On Monday, the Hong Kong stock market continued to adjust, and the real estate and related sectors became the main force in the market. At the same time, the gambling sector, which rose sharply last trading day, continued its strong upward trend.
Although some investors are worried about the Fed’s interest rate hike or table contraction recently, which will lead to capital outflow from the Hong Kong stock market. In fact, the expectation of the Fed’s liquidity tightening has also been digested by the market. It can be seen from the recent trend of Hong Kong stocks that the Hang Seng Index performed relatively strongly last week, while the global stock market fell more or rose less. At the same time, the Hong Kong market benefits from the controllable inflation in the mainland, and Hong Kong stocks will continue to deduce the structural market in the short term.
China International Capital Corporation Limited(601995) recently pointed out that despite the persistence of internal and external uncertainty and market volatility, H shares obviously outperformed other markets, confirming the judgment that Hong Kong stocks have a comparative advantage in valuation. At the same time, this advantage is also further attracting more southward capital inflows through Hong Kong stock connect.
CICC also pointed out that it may take some time to repair the fragile sentiment of Hong Kong stocks, but as the short-term uncertainty gradually subsides and the steady growth policy is implemented, it may further promote the stabilization and recovery of Hong Kong stocks.
Note: Hang Seng Index
As of the close, the Hang Seng Index fell 0.68% to close at 24218.03; Hang Seng technology index fell 0.77% to close at 5724.50; The SOE index fell 1.06% to close at 8463.88; The red chip index fell 0.76% to close at 4063.98.
In terms of concept stocks and sectors, the gambling sector benefiting from the positive impact of policies recently led the rise for the second consecutive day. At the same time, the OLED concept also rose, with the two sectors rising 8.91% and 10.78% respectively. In addition, the real estate sector and home appliance sector fell slightly, with a decline of 3.79% and 2.25% respectively.
In the gambling sector, sands China (01928. HK) and Wynn Macau (01128. HK) led the gains, rising 14.63% and 11.91% respectively. This sector has become the focus of market attention, which is related to the revised gambling law officially announced by the Macao SAR government after hours last Friday.
After the Macao SAR government announced the gambling law, relevant institutions pointed out that the revised legal supervision is not as strict as expected. For the gambling problem that has attracted much market attention, the SAR government grants up to 6, with a grant period of no more than 10 years. In exceptional cases, it can be extended for up to 3 years, which is shorter than the current 20 + 5-year rule. Therefore, the gambling sector once again ushered in a rising market today.
UBS rated sands China (01928. HK) and Galaxy Entertainment (00027. HK) as “buy”, with target prices of HK $27.3 and HK $56.2 respectively. The bank expects that the entry-exit restrictions between Macao, Hong Kong and the mainland will be further relaxed in the second quarter of 2022.
Affected by the rise in manufacturing costs, the home appliance sector fell sharply at the opening on Monday, down 2.25% at the close, of which Haier Smart Home Co.Ltd(600690) (06690. HK) and vesync (02148. HK) led the decline, down 2.67% and 1.84% respectively.
Some analysts said that the rise of some raw materials affected the profitability of household appliance enterprises. It is reported that raw materials account for more than 70% of the operating costs of China’s major household appliance enterprises.
Recently, the real estate sector has performed poorly, and according to Kerui data, the annual sales of the top 100 real estate enterprises in 2021 was 12.6 trillion yuan, with a year-on-year growth rate of – 3.2%, which may trigger market concerns that the sales data of the home appliance industry will also decline synchronously.
In addition, Morgan Stanley reduced the rating of Haier Smart Home Co.Ltd(600690) (6690. HK) from “overweight” to “keeping pace with the market”, and also reduced the target price of JS global life (1691. HK) from HK $24 to HK $20.
southbound fund
Today, there was a significant inflow to the south, with a net purchase amount of HK $2458 million.
news and changes of individual stocks in Hong Kong market
[novo Fai health rose 33.81%, and its performance was greatly expected to stimulate investment confidence]
Novell health-b (06606. HK) rose sharply, up 33.81% to close at HK $28.1. According to the company’s recent announcement, the total revenue in 2021 is expected to reach 205.2 million yuan to 217.2 million yuan, an increase of 190.8% to 207.8% over the same period in 2020; The gross profit is expected to be between 147 million yuan and 158 million yuan, with an increase of 294.6% to 324.2% over the same period.
[ Shanghai Junshi Biosciences Co.Ltd(688180) rose 14.67%, and China’s first covid-19 oral drug is expected to apply for listing in the second half of the year]
Shanghai Junshi Biosciences Co.Ltd(688180) (01877. HK) rose 14.67% to HK $59. It is reported that covid-19 treatment of small molecule drug vv116 participated by Shanghai Junshi Biosciences Co.Ltd(688180) is currently authorized for emergency use in Uzbekistan. This is another covid-19 oral drug approved for marketing in the world after the approval of MSD and Pfizer covid-19 oral drugs. At present, vv116 has entered the clinical trial stage in China and is expected to submit the application for new drug marketing (NDA) in the second half of 2022.
[the real estate sector remained depressed, and country garden fell 8.14%]
The mainland real estate business sector continued to decline on Monday, with country garden (02007. HK) and Longguang group (03380. HK) leading the decline, down 8.14% and 6.66% respectively. Credit Suisse pointed out today that the current downturn in the valuation of the real estate sector has reflected the market’s weak expectation of last year’s performance. Although the uncertainty in debt repayment is still the main unresolved problem, it is expected that the Chinese government’s policy on the real estate market will be relaxed in the short term, which may promote the rebound of the real estate sector.
[BOE Jingdian increased by 15.04% and the annual net profit increased by no less than 350%]
BOE Jingdian (00710. HK) rose 15.04% to HK $11.78. According to the company’s announcement, the expected net profit increased significantly, no less than 350% compared with the same period in 2020. The main reason is that the sales of thin-film transistors and touch screen display modules in China have increased greatly, resulting in a sharp rise in the company’s profits.
