The situation in Russia and Ukraine is still tense, but today, the trend of Hong Kong stocks followed that of a shares, and the three major indexes rebounded, ending the previous three consecutive declines.
The Hang Seng Index rose 0.6% to 23660.28; Hang Seng technology index rose 1.39% to close at 5299.24; The Hang Seng SOE index rose 0.56% to 8317.22. The number of individual stocks rising throughout the day increased to 1056, and southbound funds bought a net HK $1.458 billion.
In terms of sub sectors, medicine and technology sectors led the increase, especially semiconductor stocks, which followed the trend of A-Shares under the concept of “counting from the east to the west”
Zhengrong crisis lifted?
Zhengrong real estate (6158. HK), a 100 billion real estate enterprise whose share price collapsed 66.39% in mid February, unexpectedly rose at the end of the day after falling for several consecutive days, with an increase of more than 10%, and finally closed at HK $0.79, up 8.22%.
According to market news, on February 23, Zhengrong real estate held a telephone conference for investors. During the conference, senior executives of the company said that they had sorted out a number of cooperation projects and investment properties, and were negotiating the equity transfer of the project with existing partners and central state-owned enterprises. It is expected to complete the asset revitalization disposal of 3-4 billion yuan in the first half of the year.
After the steep fall in the share price, Zhengrong real estate once announced that all operations were normal and suspected to be maliciously short by institutions. But soon, the company announced on February 18 that it could not redeem a $200 million perpetual bond as planned on March 5, 2022. The company is seeking the consent of securities holders to propose a number of proposed exemptions and amendments to the securities in order to improve the overall financial situation of the company.
On February 21, Zhengrong real estate issued an announcement to make an exchange offer and consent solicitation to the creditors of five bonds due in 2022, and to ask for consent from the creditors of eight bonds due from 2024 to 2026, so as to revise some terms of relevant bonds or extend the term.
Zhengrong real estate pointed out in the announcement that if the exchange offer and consent solicitation are not successfully implemented, the company may not be able to repay all Zhenan bills and may not be able to generate enough cash flow to fulfill its financial commitments. The company may consider alternative debt restructuring actions.
At today’s investor teleconference, Zhengrong real estate executives revealed that in addition to the announced 13 overseas foreign debts, the company also plans to reach similar extension arrangements for other overseas bonds. Zhengrong real estate also said that it would treat domestic and foreign creditors equally under the principle of fairness, actively communicate and negotiate the debt extension at the same time; However, due to different ABS structures, differentiated responses may be taken. In addition, the company hopes to extend other debts for at least one year.
The actual controller of Zhengrong real estate is Fujian businessman ou Zongrong. According to the data of the Hong Kong stock exchange, ou Zongrong also reduced his holdings twice last week, cashing out HK $57.0947 million by selling a total of 63 million shares, and his shareholding ratio decreased from 54.71% to 53.27%
index effect, Ronghui international soared by more than 24%
Another stock with an amazing increase is Ronghui International (0990. HK), with a market value of only HK $16.6 billion, which rose 24.24% to close at HK $1.23. Today is the fourth consecutive trading day for Ronghui international to rise.
Ronghui international is mainly engaged in iron ore import trade and loan financing services. Recently, the company issued a performance surplus announcement. Driven by the growth of its main iron ore trading business, the net profit last year is expected to reach HK $650 million, with a year-on-year increase of 130%.
On the other hand, the index effect may be an important factor in this round of rise. On February 18, FTSE Russell announced the semi annual adjustment results of FTSE Global Stock Index Series Asia Pacific (excluding Japan and China), and Ronghui international was included in the index.
Over the past two trading days, Ronghui international shares rose 8.24% and 7.61% respectively. Ronghui international is also included in the list adjustment forecast report released by CICC.
According to the adjustment of Hang Seng Composite Index and the additional requirements included in Hong Kong stock connect, CICC believes that 24 companies may meet the conditions for the investment scope of Hong Kong stock connect, including poly GCL energy, Orient Overseas International, Lijin technology, Dingfeng group, Quanfeng holdings, Yonghe medical, Greentown Management Holdings, minimally invasive Siasun Robot&Automation Co.Ltd(300024) -b, global new material international, gushengtang United Energy Group, Baifu global, Yisi health, China Nonferrous Mining, Yunyue, Jinyang New Energy, kangnoah-b, clover biology-b, Anneng logistics, China National Gold Group Gold Jewellery Co.Ltd(600916) international, Jiayuan International Holdings, Ronghui international, Zhengshang industry and China’s geographical advantages
semiconductor led the technology sector
The technology sector, which dragged down the overall trend of Hong Kong stocks in the previous two trading days, rebounded again, especially semiconductor related stocks, which followed the trend of a shares. Huahong semiconductor (1347. HK) rose 8.19%, Shanghai Fudan (1385. HK) rose more than 7%, and Semiconductor Manufacturing International Corporation(688981) (0981. HK) rose nearly 3%.
Gaowei Electronics (1415. HK), which was included in the Asia Pacific Regional index of the FTSE global stock index series synchronously with Ronghui international, fell for two days at the end of the day, rising 13.16% to HK $8.94.
Tianfeng Securities Co.Ltd(601162) said that a number of overseas power semiconductor enterprises have released the latest financial reports, and the overall month on month remains strong. The production capacity of many companies is scheduled to be full throughout the year, and the situation of short supply is expected to continue. It is suggested to pay attention to relevant enterprises that have achieved a 0-1 breakthrough in China + grasp the localization opportunity of shortage downward and start large-scale production.
The popularity of “counting from the east to the west” has also become a major driving force for the rise of the semiconductor sector. Founder Securities Co.Ltd(601901) believes that the full launch of the “counting from the east to the west” project will drive the development of the semiconductor chip industry chain from the short, medium and long-term stages. In the long run, chips related to data generation remain highly prosperous, applications in VR / Ar / metauniverse, unmanned driving and other fields will accelerate the landing, and the demand for related chips remains highly prosperous, which also drives the explosion of data traffic.
All day long Internet technology stocks rebounded, Jingdong group (9618.HK) rose 3.56%, 1024.HK Kwai (2.35%) and 9626.HK increased 1.22%. The central media issued a voice, which led the stock price of meituan (3690. HK) to rebound. At one time, it rose nearly 7% and closed down to 3.09%
pharmaceutical sector valuation repair
The pharmaceutical sector with poor early performance also rose generally today.
Yaoming Biology (2269. HK) led the rise of blue chips, up 4.9%; Fonda Holdings (1521. HK) increased by more than 7%, and kingship Biotechnology (1548. HK) increased by more than 6%.
Anxin international suggested that investors should seize the opportunity to repair the valuation of Hong Kong stocks and lay out the boom track and oversold core assets, including innovative drugs, devices, medical services, CXO, vaccines and covid-19 therapeutic drugs track. Anxin International believes that in the long run, innovation in the pharmaceutical industry is still the main theme. It is suggested to closely track the progress of overseas clinical trials of relevant enterprises, pay attention to the rate of enterprise R & D expenses and the overseas market space of relevant potential varieties, such as Cinda Biology (1801. HK) and kangfang Biology (9926. HK). In the instrument track, the sub tracks such as molecular diagnosis and minimally invasive Siasun Robot&Automation Co.Ltd(300024) have great potential, and the leading enterprises and innovative enterprises have barriers. It is recommended to pay attention to the minimally invasive Siasun Robot&Automation Co.Ltd(300024) (2252. HK), the high-quality target of Siasun Robot&Automation Co.Ltd(300024) , nuohui health (6606. HK), the early screening target of cancer, and Yingtong Technology (2251. HK), the high-quality target of ophthalmic AI screening.
In the field of medical services, Anxin International believes that the penetration rate of medical services is low and there are broad prospects for relevant demand growth in the future. It is suggested to pay attention to haijiya medical (6078. HK), the first Yonghe medical (2279. HK) of Hong Kong stock hair transplantation, and Jinxin Shengzhi (1951. HK) of assisted reproduction.
In the field of CXO, Anxin International believes that although the industry and Security Bureau of the U.S. Department of Commerce updated the unverified list (UVL) and announced the inclusion of 33 Chinese entities, including the Shanghai and Wuxi subsidiaries of YaoMing biology, it triggered an overall callback of CXO boards, including Wuxi Apptec Co.Ltd(603259) and Yaoming biology. However, China’s R & D service outsourcing industry chain has global competitive advantages, benefiting from the growth of downstream demand at home and abroad, and the high prosperity of the industry can be sustained. In the long run, we recommend integrated industry leaders Wuxi Apptec Co.Ltd(603259) (2359. HK), Pharmaron Beijing Co.Ltd(300759) (3759. HK) and Yaoming Biology (2269. HK).
