The three major indices of the Hong Kong stock market quickly surged higher and turned red after opening lower in early trading, but then fell back down; near midday trading, the three major stock indexes bottomed out and rebounded. At one point, the Hengke Index rose more than 1%, and the red market fluctuated throughout the day thereafter.
The Zhitong Finance App learned that the three major indices of the Hong Kong stock market quickly rose and turned red after opening low in early trading, but then fell back down; close to midday trading, the three major stock indexes bottomed out and rebounded. At one point, the Hengke Index rose more than 1%, and since then the red market fluctuated throughout the day. At the close, the Hang Seng Index rose 0.41% or 65.25 points to 15944.63 points, with a full day turnover of HK$47.017 billion; the Hang Seng State-owned Enterprises Index rose 0.46% to 5410.94 points; and the Hang Seng Technology Index rose 0.79% to 32,33.1 points.
Zhejiang Business International pointed out that from a fundamental perspective, the policy side continues to work hard in various areas such as capital markets, real estate, and consumption, and the substantial improvements transmitted to fundamentals still need to be observed and tracked; from a financial perspective, US economic data continues to be strong. Combined with key price data, expectations of interest rate cuts have further cooled down. In terms of configuration, emphasis continues to be placed on maintaining a distributed and balanced industry sector configuration. In a weak market environment, it is recommended to focus on the central enterprise sector with stable performance, stock prices, and dividends. At the same time, it is recommended to maintain part of the layout for pro-cyclical, favorable policies, and booming industries.
Blue chip stock performance
Li Ning (02331) led the blue chip increase. At the close, it rose 5.58% to HK$20.25, with a turnover of HK$620 million, contributing 3.99 points to the Hang Seng Index. Damo recently pointed out that Li Ning's stock price has rebounded 25% from its January low. I believe its basic factors have improved, but the stock price recovery will take time and will not rise in a straight line in the next few months. It is also estimated that retail sales performance in the first quarter was weak, and core operating profit still declined in the first half of the year, but it will pick up strongly in the second half of the year due to the recovery of wholesale channels and the low base effect.
In terms of other blue-chip stocks, JD Group-SW (09618) rose 2.41% to HK$91.25, contributing 5.9 points; Lenovo Group (00992) rose 2.21% to HK$8.34, contributing 2.24 points to the Hang Seng Index; Tencent Holdings (00700) fell 1.59% to HK$285.4, dragging down the Hang Seng Index by 20 points; and Xinao Energy (02688) fell 1.58% to HK$53.05, dragging down the Hang Seng Index by 1.05 points.
In terms of popular sectors
On the market, most of the large technology stocks rose; GDS closed up more than 7%, JD closed up more than 2%, and Scion Asset Management, a hedge fund owned by “big short” investor Michael Burry, further increased its holdings of Alibaba and JD.com in the fourth quarter of last year; Bitcoin once surpassed 52,000 US dollars, and related concept stocks surged; favorable off-campus training policies were released, and education stocks rose again; semiconductor stocks and Apple concept stocks rose again. On the other side, trends in paper stocks, aviation stocks, domestic housing stocks, etc. are weak.
1. Bitcoin concept stocks soared. At the close, Xinhuo Technology Holdings (01611) rose 26.07% to HK$2.95; Xiongan Technology (01647) rose 22.06% to HK$0.083; OSL Group (00863) rose 12.64% to HK$9.18; and Eurotech (01499) rose 10.53% to HK$0.315.
On Wednesday, Bitcoin rose again, breaking through $52,000 in the intraday period, reaching a new high of more than two years. CoinGecko data shows that Bitcoin's 22% increase so far this year has made its market capitalization exceed $1 trillion for the first time since December 2021. Financial blog ZeroEdge's review indicates that Bitcoin's market value has surpassed many world-renowned companies such as Tesla and TSMC, making it the tenth most valuable asset in the world. This achievement marks the growing importance of Bitcoin and the blockchain technology behind it in global financial markets.
2. Education stocks rose again. At the close, Guangzheng Education (06068) rose 18.64% to HK$0.35; Maple Leaf Education (01317) rose 9.09% to HK$0.36; China Education Holdings (00839) rose 6.12% to HK$3.99; and New Higher Education Group (02001) rose 5.45% to HK$2.32.
On the evening of February 8, the Ministry of Education issued a draft for comments on the “Regulations on the Administration of Out-of-School Training”, which clearly regulates some specific models of operation in the education and training industry. Since the announcement of the “Double Reduction in Education and Training” policy in 2021, the Ministry of Education once again issued management regulations for the education and training industry. Dongwu Securities believes that this shows that regulators do not have a negative attitude towards the education and training industry, but rather require the industry to operate more standardized and operate, and education and training enterprises that meet the requirements of the regulations are also expected to continue to develop. Tianfeng Securities said that this opinion paper clarifies the basic position of out-of-school training as a useful complement to school education, and faces up to parents' reasonable training needs.
3. Some semiconductor stocks rose. At the close, Shanghai Fudan (01385) rose 4.18% to HK$10.22; Huahong Semiconductor (01347) rose 3.3% to HK$15.66; CLP Huada Technology (00085) rose 2.33% to HK$1.32; and SMIC (00981) rose 0.14% to HK$14.58.
TSMC's consolidated revenue for January was NT$215.785 billion, up 22.4% from the previous month and 7.9% year on year. TSMC President Wei Zhejia previously predicted that the overall output value of the semiconductor industry is expected to increase by 10% (excluding memory) this year, and that the revenue of the wafer processing industry will also increase 20%. Furthermore, Asmack said in its 2023 annual report released on Wednesday that the semiconductor market has bottomed out and there are currently signs of recovery. Asmack said that in the fourth quarter, the amount of new orders more than tripled from 2.6 billion euros in the previous quarter to 9.19 billion euros, a record high, far higher than analysts' average expectations of 3.6 billion euros.
4. Domestic housing stocks generally weakened. At the close, Jinhui Holdings (09993) fell 2.64% to HK$2.58; Vanke Enterprise (02202) fell 1.82% to HK$5.93; and Yuexiu Real Estate (00123) fell 1.56% to HK$5.06.
Guotai Junan Securities pointed out that after experiencing a rebound in December last year, real estate sales continued to decline in January. According to Kerry's data, in January 2024, the total sales amount of the top 100 real estate companies dropped sharply by 36.0% year on year, and the sales area fell 39.8% year on year. Compared with the previous month's data, the decline in sales data was even more obvious. The bank pointed out that third- and fourth-tier cities are no longer the main markets for real estate sales during the Spring Festival; although first-tier cities have enacted new policies, demand for home purchases can only be gradually released after the Spring Festival. Therefore, it is believed that real estate sales data for February may not be as exciting as expected. It is expected that real estate sales will only gradually stabilize starting in March 2024.
Popular volatile stocks
1. Weilong Delicious (09985) continued yesterday's gains. At the close, it was up 8.58% to HK$7.09.
Weilong previously launched three New Year gift boxes, including the Dragon Gift Series, the Lucky Dragon Gift Box Series, and the Dragon Gift Box, priced at 56/69/82 yuan respectively, including products such as spicy strips, konjac soup, eating kelp, overbearing panda, Little Witch Konjac, Vegetarian Belly, and a new crunchy fire. According to information, the sales volume of “Little Witch” konjac puffy increased 6 times in 10 days after launch. On the day of “Double Eleven,” sales surpassed 10,000, and sales volume was as high as 400% compared to daily sales.
2. Zaiding Pharmaceutical (09688) rose throughout the day. At the close, it was up 6.07% to HK$15.72.
According to the latest data from the Hong Kong Stock Exchange, J.P. Morgan Chase increased its shareholding of 133.12,200 shares of Zaiding Pharmaceutical's common shares with an average price of HK$15.9,173 per share on the market and HK$15.6,401 on the market on February 7. Previously, on February 6, Motong Daikon increased its shareholding of 10.107 million shares of Zaiding Pharmaceutical with an average price of HK$17.4006 per share on the market and HK$17.2,896 per share on the market, with a total average price of HK$17.2896 per share outside the market, to a total value of HK$176 million.
3. China's free trial (01880) hit a new high. At the close, it was up 3.68% to HK$81.6.
According to statistics from Haikou Customs on the 14th, during the first four days of the holiday (February 10-13), customs supervised a total of 1,217 billion yuan worth of duty-free shopping on the outlying islands. The number of duty-free shoppers was 156,000, with a per capita consumption of 7,802 yuan. According to reports, during the 2023 Spring Festival holiday, Haikou Customs supervised a total of 1.56 billion yuan worth of duty-free shopping on the outlying islands. Just over half of this year's Spring Festival holiday, it has reached nearly 80% of sales during the entire holiday season last year.