港股收盘(11.08) | 恒指收跌0.58% 内房股尾盘飙升 石油、有色金属股全天承压

Hong Kong stocks closed (11.08) | The Hang Seng Index closed down 0.58%, and domestic housing stocks soared at the end of the session, oil and non-ferrous metals stocks were under pressure throughout the day

Zhitong Finance ·  11/08/2023 16:32

Hong Kong's Hang Seng Index opened down 0.11%. The Hang Seng Index fluctuated and rebounded after opening low in early trading. It once rose nearly 80 points in the intraday period, then the increase narrowed somewhat, then declined at an accelerated pace in the afternoon.

The Zhitong Finance app learned that Hong Kong's Hang Seng Index opened down 0.11%. The Hang Seng Index fluctuated and rebounded after opening low in early trading. It once rose nearly 80 points during the intraday period. The increase then narrowed somewhat, then declined at an accelerated pace in the afternoon. By the close, the Hang Seng Index fell 0.58% or 101.7 points to 17568.46 points, with a full day turnover of HK$94.146 billion; the Hang Seng State-owned Enterprises Index fell 0.78% to 6039.91 points; and the Hang Seng Technology Index fell 0.86% to 4020.84 points.

CICC pointed out that since the high in February 2021, the weakness of Hong Kong stocks has continued for nearly 3 years, and the rebound, which was highly anticipated at the beginning of this year, did not last long. Looking ahead to 2024, the key is to find out where the real “problem” lies and how to solve the situation. If it can be realized, combined with the current lower valuation, lower allocation, and sentiment, it will not be difficult to reverse the decline. Otherwise, it may be more of a rebound with insufficient momentum, so it is a better strategy to move backwards and not slow down.

Blue chip stock performance

Country Garden Services (06098) led the blue chip. At the close, it rose 8.85% to HK$7.75, with a turnover of HK$556 million, contributing 2.19 points to the Hang Seng Index. Country Garden Services announced that it has entered into a strategic cooperation agreement with listed real estate agency Hefu Huihuang to acquire 71.64 million shares of Hefu Huihuang for HK$115 million. After the transaction was completed, Country Garden Service's shareholding ratio in Hefu Huihuang increased from 25% to 38.1%, becoming the largest shareholder. In response, UBS pointed out that it has a negative view of the deal, mainly due to limited synergy between the two parties. The bank believes that any repurchase of shares or dividends from BF can bring shareholders more favorable returns than the acquisition of a real estate agency business.

In terms of other blue-chip stocks, Longhu Group (00960) rose 6.77% to HK$12.94, contributing 2.51 points to the Hang Seng Index; Zhongsheng Holdings (00881) rose 5.26% to HK$20, contributing 1.39 points to the Hang Seng Index; CNOOC (00883) fell 2.5% to HK$12.5, dragging down 8.12 points; China Life (02628) fell 2.38% to HK$10.66, dragging down the Hang Seng Index by 3.15 points.

In terms of popular sectors

On the market, film and television stocks, domestic housing stocks, property management stocks, biomedical stocks, etc. registered the highest gains; on the other side, most of the large technology stocks fell, Fed officials “let the hawks”, and non-ferrous metals stocks were generally under pressure; crude oil plummeted overnight and petroleum stocks fell collectively. Furthermore, domestic insurance stocks declined at an accelerated pace in the afternoon. Ping An of China (02318) clarified the false reports that the companies concerned were required to acquire Country Garden shares and carry on their debts.

1. The domestic housing stock market soared at the end of the session.At the close, Sunac China (01918) rose 30.11% to HK$2.29; China Evergrande (03333) rose 28.15% to HK$0.305; Xuhui Holding Group (00884) rose 18.42% to HK$0.27; and Country Garden (02007) rose 12.16% to HK$0.83.

According to reports, the People's Bank of China continues to step up efforts to make the “second arrow” effective. In the near future, the “second arrow” will support private real estate companies such as Xincheng Holdings, Midea Real Estate, and Excellent Commercial Management to issue bonds for financing. Some of these projects will raise funds to secure buildings, repay foreign debts, and promote urban village renovation and urban renewal projects. Industry insiders believe that in the future, it is hoped that the “second arrow” will support more private real estate enterprises to carry out bond financing, meet the reasonable financing needs of enterprises, boost market confidence, improve market expectations, and promote a virtuous cycle between finance and real estate.

There were rumors in the afternoon market that the relevant government departments/agencies requested that China Ping An buy Country Garden in order to obtain a controlling interest. Ping An of China publicly denied reports about the acquisition of Country Garden, etc., saying that the report was completely inconsistent with the facts, and that Ping An of China has never received any relevant requests from relevant government departments/agencies. Furthermore, Ping An Group told reporters, “By the end of the third quarter, the company no longer held shares in Country Garden.”

2. Film and television stocks and game stocks rose.At the close, Friendship Time (06820) rose 7.87% to HK$1.37; IGG (00799) rose 7.67% to HK$3.37; Alibaba Pictures (01060) rose 5.45% to HK$0.58; and Cat's Eye Entertainment (01896) rose 3.99% to HK$10.16.

Recently, “Done! I'm surrounded by beautiful women!” The game became very popular, and its popularity continued to ferment since it was launched on the Steam platform on October 18. Some organizations believe that the emergence of this game has provided new monetization ideas for skits, giving the already rapidly developing skit market more room for imagination. Galaxy Securities said that with the increase in the number of games in the same category, the “short drama+game” business logic and business model will continue to be verified and optimized, which is expected to open up a new track in the game industry. The bank also pointed out that the short drama market grew rapidly during the year, and video platforms, film and television companies, and online writing companies in the relevant industry chain are expected to benefit. It is estimated that the skit drama market is expected to reach a market size of more than 50 billion dollars next year.

3. Some pharmaceutical stocks rose.At the close, Pharmaceuticals Juno-B (02126) rose 14.92% to HK$2.85; Colon Botai Biotech (06990) rose 4.84% to HK$89.85; Zaiding Pharmaceutical (09688) rose 4.32% to HK$22.95; and Pharmaceuticals (02269) rose 3.76% to HK$51.

The ninth batch of centralized procurement of drugs organized by the state produced the proposed selection results in Shanghai on November 6. Forty-one drugs were successfully procured in this collection, and levonorgestrel tablets were marketed; the average price reduction for the drugs to be selected was 58%, slightly higher than the average for previous batches. According to a research report published by Bank International, the impact on major prescription pharmaceutical companies is below 5%; the impact of subsequent batch collection on corporate sales will gradually decrease, but we still need to pay attention to changes in the competitive landscape of individual major categories. The bank pointed out that the Deputy Director of the Health Insurance Administration's speech on market-based pricing of innovative drugs has strengthened investors' confidence in the profitability of innovative drugs, and sector sentiment has further recovered; third quarter results have been announced one after another, and pharmaceutical, device, and CXO companies have shown good performance resilience under external resistance, and the growth rate is expected to bottom out and pick up next year.

4. Non-ferrous stocks had the highest decline.At the close, Jiangxi Copper (00358) shares fell 5.73% to HK$10.52; China Daye Nonferrous Metals (00661) fell 4.84% to HK$0.059; China Aluminum (02600) fell 2.92% to HK$3.99; and Zijin Mining (02899) fell 2.35% to HK$11.66.

On November 7, local time, Minneapolis Federal Reserve Chairman Neil Kashkari said that the Fed's policymakers have yet to win the fight against inflation, and if necessary, they will consider adopting more monetary tightening measures. The FOMC did not discuss interest rate cuts. This has once again strengthened the US dollar. Xinhu Futures pointed out that the October export data released yesterday did not perform well, and market concerns about the downturn in overseas economies are rising; furthermore, the higher US dollar index is putting pressure on copper prices, and copper prices have weakened. Furthermore, Maiko Futures said that Fed officials continue to release tight monetary policy expectations, and the Fed's future potential monetary policy easing expectations did not soon replace risk aversion, becoming the dominant influencing factor, leading to short-term adjustments in precious metals.

5. Oil stocks are under collective pressure.At the close, CNOOC (00883) fell 2.5% to HK$12.5; CNPC (00857) fell 2.16% to HK$4.98; CNOOC (02883) fell 1.93% to HK$8.65; and Sinopec (00386) fell 0.5% to HK$4.

Crude oil prices fell sharply overnight, and the main contracts for NYMEX crude oil and ICE oil futures both fell more than 4% at the end of the session. Analysts said that on the same day, the hawkish statements of the two Fed officials, the US Energy Information Administration (EIA) downgraded future oil price predictions, and the recent weak performance of many global economic data caused investors to worry about multiple factors affecting crude oil demand, which may be an important reason for the sharp drop in crude oil prices. Xinhu Futures pointed out that there is no spillover from the Arab-Israeli conflict, and the market is worried about falling demand. Oil prices fell significantly yesterday. The bank believes that there may be a risk of a panic decline in oil prices in the short term, and is concerned about the $80/barrel support level for oil.

hotChange of shares

1. Hongteng Precision(06088)Rise higher again,At the close, it rose 10.17% to HK$1.3.

Hongteng Precision will announce its third quarter results on November 9 (that is, tomorrow). CMB International expects the company's revenue/net profit to continue to recover month-on-month, and the company's various new product launches and the smooth merger and acquisition of automotive electronics in the second half of the year will help to further promote the restoration of the company's profit level.

2. Zaiding Pharmaceutical(09688)Active performance,At the close, it rose 4.32% to HK$22.95.

Zaiding Pharmaceutical announced that product revenue for the third quarter of 2023 was US$69.2 million, compared to US$57 million for the same period in 2022, up 22% year on year and 27% year on year at a fixed exchange rate. The increase in product revenue was mainly due to the increase in sales volume, the launch of Weijia, and the reduction in the negative impact of the COVID-19 pandemic. Wei Weijia (Agamod alpha injection) has achieved sales revenue of 4.9 million US dollars since it was commercialized and listed in China in September.

3. Xiaopeng Motor-W(09868)Severe setbacks throughout the day,At the close, it fell 7.39% to HK$63.95.

Bank of America Securities pointed out that Xiaopeng's automobile gross loss rate for the third quarter is expected to narrow by 1.6 percentage points quarterly to minus 7%. Gross margin recovery is slower than expected, mainly due to inventory impairment losses for G3i models and discount promotions for G9, old P7, and G3i to clean up inventory. The bank expects Xiaopeng's net loss to expand this year, narrow next year, and turn a loss into a profit by 2025.

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