On Monday, affected by the bad news over the weekend, the market maintained a weak decline throughout the day and showed a general downward trend. In addition, Zhengrong real estate, which “collapsed” last Friday, continued to decline, exacerbating the market’s concerns about real estate stocks.
The three major indexes of Hong Kong stocks collectively closed lower, with the Hang Seng index falling 1.41% to 24556.57 points; Hang Seng technology index fell 1.7% to 5502.18; The SOE index fell 1.89% to 8618.48.
Note: the trend of Hang Seng Index on Monday
The main reason for the poor performance of the Hong Kong stock market on Monday was the escalation of tensions in Ukraine over the weekend, and the weak trend of the real estate sector continued, making the Hang Seng index rebound weak. Some analysts pointed out that at present, Hong Kong stocks are greatly affected by the peripheral market. It is expected that the market will follow the peripheral fluctuations in the short term. After the market environment is gradually clear, Hong Kong stocks are still expected to rebound.
The overall performance of Hong Kong stocks was poor, with most sectors falling, followed by the real estate and related sectors, followed by the financial sector, while the oil and precious metals sectors rising recently remained strong.
real estate continued to decline
Note: Trend of real estate sector
The real estate sector suffered a sharp fall on Monday and continued to decline after opening low. As of the closing, a number of domestic real estate stocks had a large decline, among which Zhengrong real estate (06158. HK) and rongchuang China (01918. HK) were the top losers, down 15.45% and 11.84% respectively.
Although the tone of real estate regulation has been relaxed, some real estate enterprises still have bad news recently, which makes the market alert to the sector again. Zhengrong real estate and Zhengrong services fell sharply on Friday afternoon. Due to market rumors, Zhengrong group will no longer redeem us $200 million of perpetual bonds in March this year as previously planned due to capital chain problems, and Zhengrong group’s overseas bonds will also be restructured; However, Rongzheng group has made the first clarification.
Zhengrong real estate issued another rumor refutation announcement on Monday morning to clarify the untrue reports of relevant shareholders and confirm that the operation of the group is still normal. However, the company’s statement did not have much impact on the stock price, and Zhengrong real estate still fell today.
Yu Liang, chairman of the board of directors of Vanke, pointed out in a document late last Friday that there will be two major changes in the real estate industry. One is that the market differentiation will become more and more obvious, and the other is that the scale of the industry begins to shrink. He pointed out that at present, the real estate industry has entered the era of black iron, and 2022 is a year for Vanke to break the cauldron and sink the boat.
Moody’s, a global rating agency, recently released a report that the financing channels of Chinese real estate enterprises remained weak in January. As of January 25, 2022, the monthly issuance scale of domestic and overseas bonds was US $1.3 billion and US $700 million respectively, which was significantly lower than the average monthly issuance scale of US $2.5 billion and US $2.9 billion in domestic and overseas bond markets in 2021.
oil stocks continued to rise
In the context of the general decline of the market, the strong trend of the oil sector benefiting from the tension in Ukraine has become the focus of the market recently. Among them, CNOOC oilfield services (02883. HK) and Petrochina Company Limited(601857) shares (00857. HK) maintained an upward trend, with increases of 3.42% and 2.66% respectively.
In terms of news, at a media briefing last Friday, White House national security adviser Jake Sullivan claimed that Russia had assembled enough troops near Ukraine to launch an attack at any time, which is likely to start with air strikes, and called on American citizens to leave Ukraine quickly within 24 to 48 hours.
Affected by this news, as of the close of last Friday, the price of WTI crude oil futures in March rose 4.47% to close at US $93.8; Brent crude oil futures rose 4.04% in April to close at $95.10, the highest level of contracts in recent months since September 2014. Crude oil futures remained strong on Monday.
southbound fund
Today, there was a net outflow of HK $701 million from the south.
news and changes of individual stocks in Hong Kong market
[Geli pharmaceutical rose 8% and the company submitted the application for listing license of ritonavir to many European countries]
Geli pharmaceutical-b (01672. HK) rose 8.39% to HK $4.52. According to the company’s announcement on Sunday, gelly pharmaceutical has submitted listing license applications for ritonavir (100 mg film coated tablets) to Germany, France, Ireland and the UK, and other listing license applications for ritonavir in European countries, North American countries and Asia Pacific countries are also expected to be submitted in the near future. Oral ritonavir tablet is a pharmacokinetic enhancer of a variety of oral antiviral drugs against viral protease. It is one of the components of Pfizer’s oral antiviral drug paxlovid (namatvir tablet + ritonavir tablet combined packaging).
[Coca Cola, a supplier of Chinese food, rose 6%, outperformed expectations, and its business in China was strong]
China food (00506. HK) rose 6.4% to HK $3.45. Coca Cola recently released a better than expected performance report, with special emphasis on strong business growth in China. China food is mainly authorized to operate Coca Cola series products in China, covering about 50% of China’s population. The agency stressed that as the absolute leader of China’s soda market, Coca Cola is expected to benefit from the steady growth prospects brought by category expansion and market integration for a long time.
[Health International Medical rose 16% to turn loss into profit in 2021 to about HK $50-80 million]
Health International Medical (03886. HK) rose 16.22% to HK $0.43. According to the announcement, the company expects to generate a net profit of 50-80 million in 2021 and a comprehensive loss of about HK $258.5 million in 2020. The main reason for turning losses into profits is the increased demand for medical services, mainland hospital management and related services and coronavirus disease detection services in 2019.
[Jiumao Jiujiu rose by 1%, and institutions are optimistic that the company will take the lead in marginal improvement]
Jiumaojiu (09922. HK) rose 1.15% to HK $19.36. According to the research report released by Caitong Securities Co.Ltd(601108) , the repeated epidemic in 2021 still has a certain impact on the catering industry as a whole. The company predicts that jiumaojiu will take the lead in better marginal improvement in 2022 and 2023, and predicts that the adjusted net profit of jiumaojiu to the parent company in 2021, 2022 and 2023 will be 351 million yuan, 718 million yuan and 1.06 billion yuan respectively. Considering the good recovery trend of jiumaojiu and strong growth, it is rated as “buy”.
