On March 28, the three major indexes of Hong Kong stocks collectively closed up. The Hang Seng Index fluctuated high in the afternoon, closing up 1.31% to 21684 points; The Hang Seng technology index rose 2.62% to 4494 points and the state-owned enterprise index rose 1.54% to 7396 points. The net inflow of funds from the South was HK $932 million, and the market turnover was HK $134.3 billion.
On the disk, heavyweight technology stocks generally rose. Meituan’s performance soared by 11.56%, Netease rose by more than 5%, Alibaba rose by 3.45%, Tencent rose by 2.8% and JD fell by nearly 2%; The coal sector continued to be active, leading the rise, China Shenhua Energy Company Limited(601088) up more than 9%, setting a new high price since October 2011; Education stocks continued to rebound, while oil stocks, electric power stocks, catering stocks, heavy machinery stocks and traditional Chinese medicine stocks rose one after another. CNOOC and Sinopec rose 3.7% and 4% respectively. On the other hand, biomedical class B stocks led the decline, port and shipping stocks fell generally, and OOCL international fell more than 10%.
Specifically:
Technology stocks rebounded collectively. The US group rose by over 11%, Kwai went up 6%, NetEase rose 5%, and Ali, Tencent, beelli, millet and Baidu rose, and Jingdong fell 1.75%. On the news side, in response to the recent concerns of the market about the cooperation between China and the United States in audit supervision, an industry insider close to the regulatory authorities said that the regulatory authorities of China and the United States are fully aware of each other’s concerns and are moving towards each other, trying to find solutions to the problems, so as to achieve effective and sustainable cooperation as soon as possible. The CSRC reminded that some media that do not grasp the actual situation recently have a lot of subjective conjectures about the details and trend of bilateral cooperation, which has caused unnecessary interference to market expectations. It is hoped that market participants will take the information publicly disclosed by the regulatory authorities of both sides as the standard and do not blindly follow the trend.
Coal stocks led the gains China Shenhua Energy Company Limited(601088) rose by more than 9%, feishang anthracite and Mongolian coking coal rose by more than 8%, green collar holdings and China Coal Energy Company Limited(601898) rising tide by 6% China Shenhua Energy Company Limited(601088) previously released results, the operating revenue in 2021 was 335216 billion yuan, an increase of 43.7% year-on-year, and the net profit attributable to shareholders of listed companies was 50.269 billion yuan, an increase of 28.3% year-on-year. According to the data released by the National Bureau of statistics on March 27, the coal mining and washing industry increased by 1.55 times from January to February.
Education stocks rebounded. China Oriental Education rose by more than 16%, China generalist education rose by more than 9%, Yuhua education rose by more than 7%, Gaoxin education group and China Education Holdings rose by more than 6%, and hope education and China Science and technology training followed. In terms of news, China Oriental Education released its annual performance for the year ended December 31, 2021, with a revenue of 4.140 billion yuan (RMB, down), a year-on-year increase of 13.5%; The net profit was 302 million yuan, a year-on-year increase of 17.3%; The basic earnings per share is 13.79 points, and the proposed final dividend is HK $0.245 per share.
Fertilizer stocks continued to strengthen. Jiuyuan group rose more than 11%, China xinlianxin chemical fertilizer rose more than 7%, Sinochem chemical fertilizer rose 4%, and CNOOC Petrochemical rose 2.08%. Sinochem fertilizer previously released its performance in 2021. The annual profit attributable to shareholders was 867 million yuan, a year-on-year increase of 34.63%. China xinlianxin chemical fertilizer announced on the 26th that its revenue in 2021 was 16.815 billion yuan, a year-on-year increase of 60.99%; The profit attributable to the owners of the parent company was RMB 1.294 billion, a year-on-year increase of 272.24%.
Oil stocks bucked the trend Petrochina Company Limited(601857) Chemical shares rose 4%, while CNOOC and Petrochina Company Limited(601857) shares rose more than 3%. In terms of news, Petrochina Company Limited(601857) Chemical Co., Ltd. released its performance in 2021. According to the accounting standards for Chinese enterprises, the operating revenue was about 2.74 trillion yuan, a year-on-year increase of 30.2%; The net profit attributable to the shareholders of the parent company was 71.208 billion yuan, a year-on-year increase of 114%. In addition, the attack on Saudi Arabia’s oil facilities once again raised concerns about global crude oil supply. The may contract of us oil rose by 9.22% last week; Oil distribution contract rose 11.19% in June.
The concept of catering is rising. Haidilao rose by more than 5%, Baifu holdings and international Tianshi rose by more than 3%, and Tan Zi international, jiumaojiu and Daoxiang holdings followed.
Maritime stocks fell collectively. Yongli investment fell more than 15%, OOCL international fell more than 10%, Jinhui group and Zhujiang shipping fell more than 3%, and Cosco Shipping Holdings Co.Ltd(601919) , Xiamen Port Development Co.Ltd(000905) , Qingdao Port International Co.Ltd(601298) followed. OOCL International announced that as of the end of last year, the profit attributable to shareholders for the whole year was US $7.128 billion, up 6.9 times year-on-year, but lower than the 26.5 times increase in the middle of last year, with a profit of US $11.08 per share. In terms of industry news, the global Drewry world container freight rate index compiled by the shipping consulting agency (Drewry) fell 4% in the past week as of March 24, hitting a low of more than eight months.
The concept of tourism and sightseeing led the decline. Sun city fell by more than 12%, Ctrip and new century group fell by more than 5%, and Feiyang group, professional travel transportation, Yinghai group, Beida Qingniao Huanyu and Guangdong transportation followed.
Inner room stocks fell. China Olympic Park fell by more than 14%, R & F real estate fell by more than 7%, Baolong real estate and Hejing Taifu group fell by more than 5%, followed by jiazhaoye, Shimao Group and Longguang group.
In terms of individual stocks, meituan rose by more than 11% to HK $150.6, with a total market value of HK $924.2 billion; On March 25, meituan released its financial report, which showed that the company had a revenue of 179.1 billion yuan in 2021 and an adjusted net loss of 15.6 billion yuan. According to the financial report, in 2021, the transaction amount of meituan takeout platform was 702.1 billion yuan, a year-on-year increase of 43.6%; The number of transactions reached 14.4 billion, a year-on-year increase of 41.6%. In terms of commission, in 2021, the commission income (technical service fee) obtained by meituan takeout through merchants was 28.5 billion yuan. Compared with the annual transaction amount, the commission rate of takeout platform was about 4.1%.
Today, the net inflow of southbound funds was HK $933 million, including a net inflow of HK $500 million from Hong Kong stock connect (Shanghai) and HK $1433 million from Hong Kong stock connect (Shenzhen).
Looking ahead to the future, CICC said that in the short term, the market will maintain range shocks, mainly considering: 1) regulatory uncertainty and geopolitical tensions continue, so overseas funds, especially large sovereign wealth funds, may not flow back into overseas Chinese stock markets soon; 2) The epidemic spread in China is still on the rise; 3) The steady growth policy is still in the process of continuous development, and the intensively released annual report performance will have an impact on the market; 4) The proportion of short selling remains high. However, there are also some positive factors in the market. For example, the valuation level has been very attractive; More enterprises are planning to expand stock repurchase or pay high dividends; The local epidemic peak in Hong Kong is in the past and is expected to gradually ease in the next few weeks, which may be good for the repair of local stocks.
On the whole, it believes that the opportunities faced by the market in the medium term are still significant risks, and Chinese policies play a key role in improving investors’ risk appetite. In terms of sector allocation, before more clear evidence of stable growth policy, high-quality growth stocks with high dividend yield and large adjustment range in the early stage will help investors better withstand the current market fluctuations.
