On January 24, the Hong Kong stock index maintained a weak market all day, and the market sentiment was depressed. The Hang Seng Index fell 1.24% to 24656.46; The national index fell 1.47% to 8658.11 points; The Hang Seng technology index fell 2.84% to 5703.63.
On the disk, the US technology stocks fell sharply last Friday, dragging down the share of technology stocks of Hong Kong stocks, and B stations fell by over 8%, NetEase fell 7%, Ali fell more than 6%, Jingdong fell 5%, Baidu fell 4%, Kwai sum, millet fell 3%, the U.S. group fell more than 2%, and Tencent fell more than 1%; The trend of e-cigarette concept stocks was widely divided, and the controlling shareholders were filed for investigation. Huabao international plunged by more than 66%, and China Bolton rose by more than 8%; Power stocks, auto stocks, pharmaceutical stocks and mobile game stocks fell. On the other hand, telecom stocks and catering stocks bucked the trend, Tesla concept stocks Ganfeng Lithium Co.Ltd(002460) rose by more than 7%, and interior housing stocks and property management stocks rose more or less.
Specifically
Auto stocks fell generally, Great Wall Motor Company Limited(601633) and Xiaopeng automobile fell more than 6%, Wuling Automobile, ideal automobile, Geely Automobile and Byd Company Limited(002594) all fell more than 3%, and Evergrande automobile fell more than 2%.
Power stocks led the decline, Huaneng Power International Inc(600011) power shares fell by more than 5%, China power fell by more than 4%, China Resources Power fell by more than 3%, Huadian Power International Corporation Limited(600027) power shares fell by more than 2% and Datang International Power Generation Co.Ltd(601991) fell by more than 1%.
Pharmaceutical stocks generally fell. Xiansheng pharmaceutical fell by more than 8%, Asymchem Laboratories (Tianjin) Co.Ltd(002821) fell by nearly 8%, Kaifa pharmaceutical and Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) fell by more than 5%, Hansen pharmaceutical and kangzhe pharmaceutical fell by more than 4%, and Yuanda pharmaceutical and Hehuang pharmaceutical followed suit.
The trend of tobacco concept was divided. Huabao international fell by more than 65%, Byd Company Limited(002594) electronics fell by more than 3%, China Tobacco Hong Kong fell by more than 1%, China Bolton rose by nearly 9%, and Smallworld international rose slightly.
Telecom stocks bucked the trend, with China Mobile up more than 2%, China United Network Communications Limited(600050) , PCCW up more than 1%, China Telecom Corporation Limited(601728) rising slightly.
On the news front, China Mobile announced that China mobile group increased its holdings of 12.32016 million A-Shares of the company through the trading system of the Shanghai Stock Exchange on the 21st, accounting for about 1.457% of the total issued A-Shares of the company (before exercising the over allotment option). In addition, China Mobile Group plans to increase its A-share holdings during the period from January 21 to December 31, with a cumulative increase (including this increase) of no less than RMB 3 billion and no more than RMB 5 billion.
Domestic real estate stocks collectively strengthened, with Yajule group up more than 7%, China Evergrande and China Olympic Park up nearly 4%, and Longguang group, Xincheng development, R & F real estate and Longhu group up more than 1%.
In terms of news, on January 20, the national housing and urban-rural construction work conference was held. Compared with last year, this work conference has more new references, such as emphasizing “increasing confidence, preventing risks and stabilizing growth” for the first time, proposing to “establish a ministerial and provincial regulation responsibility mechanism” in the field of real estate, and continue to maintain continuous and stable policies in 2022, but pay attention to coordination and accuracy. Based on the contents released at the working meeting, insiders expect that the property market regulation policy will be relaxed in 2022. In addition, it is also worth noting that with the reduction of LPR (quoted interest rate in the loan market), the interest rate of personal housing mortgage loans in Beijing, Shanghai, Shenzhen, Guangzhou, Suzhou and other places has been reduced accordingly.
Property management stocks followed the strength, with the first service rising by more than 24%, China Resources Vanguard rising by nearly 4%, Evergrande property rising by more than 2% and CNOOC property rising by more than 1%.
Catering stocks rose higher, with Naixue’s tea up more than 3%, sipping sipping up more than 1%, and Haidilao and hailun company followed suit.
individual stock changes
Warburg international fell 66.53% to HK $4.86, with a total market value of HK $15.697 billion. Today Huabao Flavours & Fragrances Co.Ltd(300741) and Huabao international suddenly announced that they had recently received a case filing notice from Leiyang Supervision Commission, which decided to file an investigation into the violation of the law of Ms. Zhu linyao, the actual controller of the company. Due to the high proportion of dividends, Zhu linyao was jokingly called “pumping Queen” by A-share investors. Affected by this, the share price of Huabao international once plummeted by 70%, Huabao Flavours & Fragrances Co.Ltd(300741) 20cm fell by the limit. It is worth mentioning that Huabao Flavours & Fragrances Co.Ltd(300741) has just released the equity incentive plan. Whether it will be affected remains to be seen.
China Evergrande closed up 3.91% to HK $1.86, with a total market value of HK $24.560 billion. Evergrande’s shares strengthened collectively today. China Evergrande said last night that Sean was appointed as an executive director, Liang Linlin was appointed as a non-executive director, and the former two executive directors of Evergrande resigned. Among them, Liang Linlin is the chairman of China Cinda, one of the member units of China Evergrande risk resolution Committee, and China Cinda is one of the four asset management companies focusing on dealing with non-performing assets. Some market analysts said that this may mean that Evergrande has entered a deeper level in resolving debt risks.
Ganfeng Lithium Co.Ltd(002460) closed up 7.57% to HK $125.10, with a total market value of HK $179.829 billion. On January 22, Dongfeng Ganfeng high specific energy solid-state battery E70 demonstration operation vehicle developed by Dongfeng Automobile Co.Ltd(600006) company in cooperation with Ganfeng Lithium Co.Ltd(002460) was launched in Xinyu City, Jiangxi Province. Dongfeng Fengshen E70 took the lead in launching the first shot of solid-state battery industrialization in China, opening the prelude to the industrialization of solid-state batteries. The first batch of 50 Dongfeng Fengshen E70 completed the delivery ceremony and will be put into four provinces of Jiangxi, Guangzhou, Zhejiang and Jiangsu as solid-state battery demonstration vehicles. On the same day, Ganfeng Lithium Co.Ltd(002460) said on the investor interaction platform that the company had signed a product supply contract with Tesla, and the actual purchase quantity and sales amount were subject to the purchase order issued by Tesla.
Today, in terms of southward funds, the net inflow of southward funds was HK $3.575 billion, including HK $1.215 billion for Hong Kong stock connect (Shanghai) and HK $2.36 billion for Hong Kong stock connect (Shenzhen).
Looking forward to the future, Sinolink Securities Co.Ltd(600109) believes that since the beginning of 2021, especially in the second half of the year, there have been a variety of bullish remarks on Hong Kong stocks in the market. However, contrary to mainstream expectations, the Hang Seng Index has been declining since the second half of 2021, which is closely related to the mainland’s economic fundamentals and industrial rectification policies. It will take time for risk appetite to stabilize. The impact of the Fed’s expectation of raising interest rates and shrinking the table on the global capital market has not been fully priced, and Hong Kong stocks are vulnerable. In addition, the deepening and continuation of industry norms and policies and geopolitical risks may mean that the disturbance to the market has not ended.
The repair of corporate profitability in the undervalued sector of Hong Kong stocks remains to be seen. Under the background of “no speculation in housing and housing”, it takes time to repair the expected confidence of market subjects from the market financing environment. In the downward cycle of PPI, the weakening of inventory is the general trend, and the profit growth of cyclical industries weakens. At the same time, the epidemic has repeatedly constrained the strength and space for the repair of the consumer industry.
