Another thrilling day.
Hong Kong stocks opened more than 200 points lower today, but they rose with A-Shares in the afternoon, boosted by the news of stable market in the mainland. Hang Seng technology index closed up 0.28%, ending three consecutive declines; The Hang Seng Index fell 0.21% for the fourth consecutive trading day.
Electricity, coal, catering and other sectors rose mostly. Yanmei Australia rose by more than 14%, and Huaneng Power International Inc(600011) electricity rose by nearly 6%.
Chinese stocks rebounded
Zhihu fell nearly 24% on the first day of listing
Hong Kong technology stocks generally opened low, rising with the market in the afternoon, narrowing the decline, and some stocks closed up.
On April 22, the CSRC disclosed that 17 companies including Zhihu, ideal automobile, Credit Suisse coffee and shell were added to the “pre delisting list”. In addition, futu holdings, Nocera, iqiyi, Baidu and Kaixin Yuanda pharmaceutical entered the “confirmed delisting list” from the “pre delisting list”.
On the evening of April 21, when attending the Boao Forum for Asia, Fang Xinghai, vice chairman of China Securities Regulatory Commission, said that China would continue to expand its high-level opening to the outside world. At present, the negotiation on China US audit and supervision cooperation is progressing smoothly, and it is believed that a cooperation agreement will be reached soon.
Hong Kong stocks of ideal automobile, which were added to the list, fell by more than 3%. The company responded that all Chinese concept stocks listed in the United States will be included in the list after they release their annual reports. Being included is not equivalent to delisting. According to relevant regulations, if an enterprise does not open its audit manuscript to the United States for three consecutive years, it will be restricted from trading in U.S. stocks.
Zhihu, who just completed the dual main listing in Hong Kong stocks today, fell below the issue price on the first day of listing, down nearly 24%. Zhihu responded that the impact of the incident was limited. The company has completed its dual major listing in Hong Kong and will pay close attention to the progress in the future.
looking forward to carbon trading and RMB pricing of Nantong
HKEx rose nearly 4% against the market
The Hong Kong stock exchange, which had a weak share price in the early stage, bucked the market today and closed up nearly 4% to HK $335.6.
CLSA released a report that the mainland can use the HKEx to open and develop the carbon market. It is expected that the HKEx can allow qualified overseas investment to enter China’s carbon market through the interconnection plan.
At present, the development of the national carbon market has started and has become the largest carbon market in the world, and China’s carbon price is far lower than that of the EU, the most mature carbon market. CLSA believes that the mainland may also allow southbound funds to invest in ETF products linked to EU carbon pricing and listed on the Hong Kong stock exchange. These factors should support the HKEx to obtain a market revaluation of its value and reaffirm its buy rating on the HKEx, with a target price of HK $460.
Recently, Xu Zhengyu, Secretary for financial affairs and the Treasury of the Hong Kong Special Administrative Region, also said that the SAR government will discuss with the mainland regulatory authorities on the pricing of Hong Kong stock southbound transactions in RMB, which means that connectivity will be further deepened. Recently, Ou Guansheng, chief executive of HKEx, also reiterated that Hong Kong will continue to consolidate its position as the world’s preferred financing center, risk management and trading market.
The Hong Kong Stock Exchange will release its first quarter results next Wednesday. Previously, the stock price of the Hong Kong Stock Exchange did not have enough power to rise because investment banks were not optimistic about the business performance in the first quarter. Credit Suisse had predicted that due to the weak performance of the stock market and the poor performance of the IPO market, the revenue of the Hong Kong Stock Exchange in the first quarter would decline by 17% year-on-year to HK $4.95 billion, and the after tax net profit could decline by 24% year-on-year to HK $2.91 billion.
