The market trend of Hong Kong stocks on Friday can be described as repeated horizontal jumps, and its main indexes are in the shock range. However, it is noteworthy that the trading sentiment tends to pick up in the afternoon, and the real estate, insurance, finance and other sectors rebounded slightly.
The major indexes of Hong Kong stocks rebounded. The Hang Seng Index stopped falling in the afternoon and rose 0.29% to close at 2187201 points, while the technology index and state-owned enterprise index still fell 1.15% and 0.07% to close at 442274 points and 749037 points.
Note: Hang Seng Index
Taking the Hang Seng Index as an example, the index continued to rise in the afternoon, with the rise of component stocks such as AIA (01299. HK), Ping An Insurance (Group) Company Of China Ltd(601318) (02318. HK), HSBC Holdings (00005. HK) and China Resources Land (01109. HK) driving the index to turn red.
Note: performance of some constituent stocks of Hang Seng Index
In view of the recovery of market sentiment today, this can be attributed to the continuous large-scale repurchase of many heavyweights recently. In terms of the repurchase amount, HSBC’s repurchase amount is the highest temporarily. After the annual performance announcement, HSBC bought a total of more than HK $5.4 billion of shares, with an average daily purchase of about HK $160 million; Tencent Holdings (00700. HK) repurchases about HK $300 million a day; AIA repurchases slightly more than HK $160 million a day.
Relevant analysis pointed out that if we continue to buy back shares regularly and quantitatively every day, it will certainly help stabilize the stock price from the perspective of capital. In the long run, it is expected to establish a market environment in Hong Kong stocks to enhance shareholder returns through repurchase.
The national standing committee released the “wide credit” signal, and the financial stability law also began to solicit public opinions. Looking forward to the future, although the short-term interest rate increase and table contraction of the Federal Reserve will put pressure on the Hong Kong stock market, the recent “steady growth” policy has also begun to continue to work, so there is no need to be overly pessimistic about the future.
In addition, real estate has been held by many institutions recently. According to the JPMorgan report, it is mentioned that real estate is expected to usher in a directional recovery in the second quarter driven by improved sales and relaxation of demand side policies, although the volatility may be very high. In addition, JPMorgan believes that so far, bad performance, suspension, weak sales and default in fiscal year 2021 should have been exhausted.
Many institutions continued to be optimistic about real estate, which led to the rise of many real estate companies. Among them, Yuzhou group (01628. HK), Yutian China (00313. HK) and Longguang group (03380. HK) rose 17.54%, 10% and 7.35% respectively. Therefore, the rise of individual real estate stocks helped the market rebound.
In addition to the rising real estate, the coal sector maintained its rise, while the technology and clothing sector remained in decline.
coal benefits from steady growth, and policy institutions continue to be optimistic
In the recent market downturn, the trend of the coal sector is relatively strong, with Mongolia energy (00276. HK) and Yitai Coal (03948. HK) rising by more than 8%.
In recent days, coal production enterprises have benefited from supply side reform, continuously concentrated production capacity, relatively stable and efficient production capacity, and the coal price center has risen steadily. In addition, according to the 2021 annual reports and dividend schemes of many coal enterprises, the revenue and net profit attributable to the parent company have increased significantly, and the leading enterprises have announced a high proportion of dividend schemes.
Cinda Securities pointed out that in the past three years, the operating efficiency of coal enterprises has been improving, the cash flow is stable, and the industry concentration will continue to improve in the future. It is optimistic about the development of the industry under the high red rate.
technology and clothing sector continued to decline
Although a number of technology companies have announced repurchase actions, the hawkish measures of the Federal Reserve may affect the share prices of technology companies, suppress the valuation of the technology sector, and reduce investors’ enthusiasm for Internet companies.
As of the closing, weibo-sw (09898. HK) and auto home-s (02518. HK) fell 5.08% and 3.97% respectively.
In addition, some sub sectors of the technology sector are affected by weak downstream demand, or have a negative impact on the company’s performance. For example, the consumer electronics industry is affected by the weak downstream demand, or reduce the orders of electronic equipment. The trend of the science and technology sector has been poor recently due to the above factors.
clothing sales may be lower than expected
In addition to the adjusted technology stocks, the clothing industry has been affected by the epidemic recently. Recently, the epidemic in all parts of China has continued to ferment. Jilin, Shanghai and other places have successively implemented sealing and control management. The duration of the epidemic in the Yangtze River Delta has exceeded expectations, which has a certain impact on offline and online retail, or the sales data is less than expected, which also exacerbates market concerns.
Citic Securities Company Limited(600030) recently pointed out that when entering 2q22, the overall demand of the industry is cautious (repeated local epidemics + high base). It is expected that clothing brands will be differentiated due to this impact.
As of the closing, Anta sports (02020. HK) and Li Ning (02331. HK) fell 5.23% and 4.95% respectively.
southbound funds
Today, southbound funds maintained a small outflow, with a net inflow of HK $393 million.
market stock news and changes
[Kaifa pharmaceutical continued to rise by 18% and declared that its covid-19 drug test effect was good]
Kaifa Pharmaceutical (09939. HK) rose 18.2% to HK $25.65. The company previously issued a statement that in the clinical trial of mild to moderate non hospitalized covid-19 patients, the covid-19 drug prochloramide under trial effectively reduced the risk of hospitalization and death. At present, Kaifa pharmaceutical is actively applying for EUA license for emergency medication from national drug regulatory authorities in China, the United States and other countries and regions.
[ Guangzhou Automobile Group Co.Ltd(601238) increased by nearly 10% and car sales increased by 30% year-on-year in March]
Guangzhou Automobile Group Co.Ltd(601238) (02238. HK) rose 9.65% to HK $6.82. The company’s first quarter sales increased by 22.5% to 608200 vehicles, higher than the group’s annual sales growth target of 15%. In addition, Credit Suisse expects GAC’s first quarter net profit to increase by 7% to 2.5 billion yuan, a quarterly increase of 23%.
[ China Railway Group Limited(601390) increased by 7% and the newly signed contract amount in the first quarter increased by 84% year-on-year]
China Railway Group Limited(601390) (00390. HK) rose 7.31% to HK $4.99. According to the announcement of the company’s main operating data in the first quarter of 2022, the total amount of newly signed contracts was 605.74 billion yuan, an increase of 84.0% year-on-year.
