On Thursday, the Hong Kong stock market kept rising, and the main indexes rose again across the board, with an increase of more than 6%. The collective rise of real estate and related sectors led to the rise of market sentiment again.
Note: the trend of Hang Seng Index since March 7
The Hang Seng Index rose 6.9% at the opening today and recovered all the losses of last week. As of the closing, the index rose 7.04%, or 141373 points, to 2150123 points, the closing high since March 4. Meanwhile, the Hang Seng technology index and the state-owned enterprise index rose 7.76% and 7.52% respectively to close at 457279 and 740757.
It is worth noting that the Hang Seng Index has risen by more than 1000 points in a single day for two consecutive days, which is rare. This is due to the rise of most component stocks of the index. Today, Alibaba (09988. HK) and meituan (03690. HK) both rose by more than 12% and contributed a total increase of more than 300 points to the index.
In addition to technology stocks, the financial sector also performed well, with HSBC Holdings (00005. HK) up 4.07%; AIA (01299. HK) rose 6.48% Ping An Insurance (Group) Company Of China Ltd(601318) (02318. HK) rose 10.49%, and the three stocks alone also contributed more than 200 points.
Note: performance of some constituent stocks of Hang Seng Index
In addition to the recovery of market sentiment, the sharp rise of China concept stocks listed in US stocks overnight also led to the rise of Hang Seng technology index. As of the close, all the constituent stocks of the index rose, of which mingyuanyun (09009. HK) rose 42.82%; Wanguo data – SW (09686. HK) rose 32.16%.
Note: performance of some constituent stocks of Hang Seng technology index
China International Capital Corporation Limited(601995) today pointed out that in the medium and long term, the Chinese market is expected to show relative resilience, China is in a relatively favorable growth and policy cycle, and there is relatively sufficient policy space for “steady growth”. Compared with a shares, the attraction of Hong Kong stocks lies in lower value, higher dividend yield (such as banking and Telecommunications) and high-quality growth targets, especially those killed by mistake in the sharp decline. In general, it is recommended to focus on some value stocks (such as finance) with both stable growth and high dividends, as well as high-quality growth with matching valuation earnings.
In terms of real estate developers, China and the general real estate sector are still the top gainers.
real estate collective surge triggered hot discussion in the market
Recently, the real estate sector is full of good news. At the meeting of the financial committee of the State Council, it is proposed to timely study and put forward effective countermeasures to prevent and resolve risks; The cbcirc also proposed that institutions should carry out M & A loans in a stable and orderly manner, focusing on supporting high-quality real estate enterprises to merge and acquire high-quality projects of difficult real estate enterprises; The Ministry of finance also stated that it does not have the conditions to expand the pilot cities of real estate tax reform this year.
Affected by a number of good news, the real estate developer sector rose sharply, including rongchuang China (01918. HK) rose 59.03%, Longguang group (03318. HK) rose 42.68% and World Trade Group (00813. HK) rose 32.85%.
Guotai Junan Securities Co.Ltd(601211) recently pointed out that the current valuation of the real estate sector is at the PE level of low single digits, and it is expected that there will be a lot of value repair space for this sector and individual stocks. In the process of increasing market share, leading real estate companies will enjoy a stable and sustainable growth performance, and the share price will not rise in retaliation, but a very mild and continuous rise.
securities sector had a sudden positive intraday
China Securities Depository and Clearing Corporation Limited announced this afternoon that it would reduce the payment proportion of the minimum settlement provision for stock business from 18% to 16% from April 2022.
This news was called the “targeted RRR reduction” of securities business, which led to the rise of securities sector, of which Orient Securities Company Limited(600958) (03958. HK) rose 7.35% Citic Securities Company Limited(600030) (06030. HK) rose 7.20%.
southbound funds
Today, there was a net outflow of HK $205 million from the south.
market stock news and changes
[ Shanghai Junshi Biosciences Co.Ltd(688180) rose by more than 14.21%, and the clinical data of new anti covid-19 drugs were satisfactory]
Shanghai Junshi Biosciences Co.Ltd(688180) (01877. HK) rose 14.21% to HK $57.45. The company announced on Wednesday that covid-19 oral drug vv116 showed safety and tolerance in healthy subjects. Up to now, vv116 has been approved in Uzbekistan for the treatment of moderate and severe covid-19 patients.
[HKEx rose 6.16% and preparations were made for stock trading in the southbound channel of Hong Kong stocks denominated in RMB]
The Hong Kong Stock Exchange (00388. HK) rose 6.16% to close at HK $382.6. A spokesman for the Hong Kong financial services and Treasury Bureau said that Hong Kong is preparing to allow Hong Kong stocks to be traded southward in RMB, and strive to integrate ETF into the goal of interconnection as soon as possible.
[new Xiuli increased by more than 20% and the company turned losses into profits in the year]
Xinxiuli (01910. HK) rose 22.56% to HK $16.84. According to the announcement, the profit attributable to shareholders in 2021 is US $14.3 million, with a profit of US $0.01 per share and no dividend. The same period in 2020 recorded a loss of $1.278 billion. Meanwhile, the gross profit margin increased to 54.5% from 46.0% last year. The increase in gross profit margin was due to the group raising the price of products sold to ease the rise in product, freight and tariff costs.
[jiazhaoye group increased by more than 35.71% in the afternoon, and jiazhaoye contacted and cooperated with central enterprises]
Jiazhaoye group (01638. HK) rose by more than 40% in the afternoon, up 35.71% to close at HK $0.76. According to the financial Associated Press, jiazhaoye is in contact with China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) and other central state-owned enterprises, involving war introduction and cooperative development of old reform.
