On May 23, Futu News reported that the three major indices in the Hong Kong stock market had mixed results, with the Hang Seng Index closing up 0.24%, the Tech Index down 0.09%, and the Hang Seng China Enterprises Index up 0.31%.
By the end of the day, 1,008 stocks in the Hong Kong stock market rose, 1,024 fell, and 1,109 closed unchanged.
The performance of specific industries is shown in the following figure:
In terms of sectors, aviation companies saw a faster recovery in domestic supply and demand for domestic flights in August, with passenger traffic reaching the highest monthly level this year. Relaxing access may optimize the route structure. Looking ahead to the fourth quarter, the landing of vaccines during the year is a high-probability event. As domestic aviation demand continues to recover, aviation companies will continue to reduce losses. The favorable oil prices and exchange rates will provide advantages, and the aviation sector will also usher in both valuation and profit restoration. I recommend investors to actively allocate related stocks in the Hong Kong stock market, such as Meilan Airport (00357), Air China Limited and other related symbols.
Network Technology stocks had mixed results, with Bilibili up 4.35%, MEITUAN-W up 0.66%, Baidu Group-SW up 0.54%, JD-SW down 0.45%, XIAOMI-W down 0.38%, TENCENT up 0.29%, Alibaba-W down 0.25%, and KUAISHOU-W down 0.20%.
Entertainment stocks performed strongly, with ALI PICTURES up 8.45%, MAOYAN ENT up 4.05%, STRAWBEAR ENT up 3.64%, EMPEROR CULTURE up 2.56%, and CHINA STAR ENT up 1.43%.
Pharmaceutical stocks strengthened, with Hengrui Pharmaceuticals up 25.20%, CMS up 13.34%, GRANDPHARMA up 5.75%, INNOVENT BIO up 4.18%, CSPC PHARMA up 2.16%, and 3SBIO up 0.35%.
Battery stocks rose, with Tianqi Lithium Corporation up 2.45%, BYD Company up 1.97%, LEOCH INT'L up 0.41%, and GANFENGLITHIUM up 0.20%.
The performance of the auto stocks is impressive, with Brilliance China rising by 3.12%, Great Wall Motor by 2.42%, BYD Company by 1.97%, Li Auto-W by 1.07%, LEAPMOTOR by 1.05%, and Geely Auto by 1.00%.
The performance of gold stocks is remarkable, with LINGBAO GOLD rising by 9.16%, Chifeng Jilong Gold Mining by 3.28%, Zhufeng Gold by 2.63%, TONGGUAN GOLD by 2.50%, CHINAGOLDINTL by 2.45%, ZHAOJIN MINING by 1.51%, Zijin Mining Group by 0.75%, and SD GOLD by 0.40%.
In terms of individual stocks,
$HENGRUI PHARMA (01276.HK)$On its first day of listing, it rose by 25.2%, with Citigroup predicting a compound annual growth rate of 21% for revenue from 2024 to 2027.
$BYD COMPANY (01211.HK)$It closed up by 1.97%, reaching a new historical high, and will enter the Hang Seng China Enterprises Index next month. In April, the new registration of electric vehicles surged to 7,231 units, a year-on-year increase of 169%, with European electric vehicle sales for the first time surpassing Tesla.
$FIH (02981.HK)$Increasing over 22%, the company has been included in the Hong Kong Stock Connect after implementing a share consolidation, which is expected to enhance its attractiveness.
$ALI PICTURES (01060.HK)$ Increasing over 8%, the company plans to rename itself to DAMAI ENTERTAINMENT, and Citibank states that the potential of IP products has not yet been fully realized.
$FUYAO GLASS (03606.HK)$Increasing over 4%, the stock price hits a new high for the year, and Institutions are optimistic about its continued global market share growth.
$GRAND PHARMA (00512.HK)$Increasing nearly 6%, reaching a new high again, Institutions state that the impact of Lishuan's centralized procurement is controllable, and are optimistic about the company's innovative value being reshaped.
$MAOYAN ENT (01896.HK)$The stock rose over 4%, the company's upcoming films are abundant, and Institutions are Bullish on the annual box office performance.
$SDHG (00412.HK)$The stock rose nearly 9%, with a cumulative increase of over 50% this week, as the parent company Shandong Hi-speed Group reached a cooperation with Huawei.
Top 10 transaction amounts today.
Hong Kong Stock Connect funds.
Regarding the Stock Connect, today there was a net Outflow of 1.139 billion HKD from the Stock Connect (southbound).
Institutional views
Morgan Stanley Analysts warned that China may have already won in this global hardware battle for electric vehicles.
Morgan Stanley stated in its latest report: Xiaomi's rapid development is particularly remarkable. Although the YU7 is only its second model, even the CEO of Ford admitted that traditional American automakers will need years to launch similar products. By the time they catch up, Xiaomi may have already launched its third-generation car, meaning they will still have to continue chasing. It is expected that by 2027, Xiaomi's electric vehicle business will generate 233 billion yuan (approximately 32 billion USD) in revenue, roughly equivalent to Tesla's total car sales since 2020. Xiaomi can reach such a scale with just three generations of models, whereas in the past, established automakers took often ten years or longer to achieve this scale.
Morgan Stanley believes that if China has already won the hardware race in electric vehicles, then the next battlefield and profit pool in the electric vehicle sector will be fully autonomous driving software and data. Although Western governments may use tariffs to slow this trend, Morgan Stanley warns that, in any case, top Chinese electric vehicles are likely to find high-end buyers. In fact, some global automakers are already exploring joint ventures or technical licensing agreements with Chinese companies to acquire key electric vehicle and autonomous driving technologies while limiting capital expenditures and execution risks.
The Chairman of JPMorgan: Will not withdraw from China; the U.S. does not want to decouple.
According to Sina Finance, on May 22, at the invitation of the China Council for the Promotion of International Trade, Jamie Dimon, Chairman and CEO of JPMorgan, visited Peking. Ren Hongbin, President of the China Council for the Promotion of International Trade, met with Jamie Dimon and his team to discuss topics related to promoting exchanges between Chinese and American business circles and deepening cooperation in the financial investment field. Dimon explicitly mentioned during his trip to Peking that the U.S. does not want to decouple.
Dimon emphasized that the bank has always adhered to the positioning of a 'long-term investor.' 'Despite the many challenges currently present, we always make business decisions based on reality rather than ideal scenarios,' Dimon stated. 'The strategic importance of the Chinese market to us will not change, and we will not choose to retreat.' Regarding the latest developments in U.S.-China trade negotiations, Dimon commented, 'The consensus among American businesses is to continue operating in China. Although U.S.-China trade negotiations may bring about certain strategic adjustments, I do not believe the U.S. government wants us to withdraw from China.'
Editor/joryn