Jinwu Financial News | US stocks performed well on Tuesday. The market waited for the results of the Federal Reserve's interest rate agreement. Interest rates rebounded from a high level, driving the market upward. The three major indices all recorded increases and closed. The trend of the US dollar has stabilized. Interest rates on US ten-year bonds have fallen back to 4.29%. The oil price performance has improved, and the price of gold has stabilized repeatedly. Hong Kong stocks have generally risen, and it is expected that the market will open higher in the early stages. The mainland stock market fell yesterday. The Shanghai Composite Index opened high and went low. The closing market fell 0.7%, and the turnover of the Shanghai and Shenzhen markets remained active. Hong Kong stocks were repeatedly pressured. At one point, the index fell below the 16,500 point level. At the end of the market, the decline narrowed slightly, and market transactions also declined. Investors have a strong wait-and-see atmosphere, and overall momentum is weaker than before. The index is expected to continue to hover between 16,500 and 17,000 points.
Industry news
New World Development (00017) announced its interim results earlier. After deducting sales of newly created (0659) businesses and income, net profit from continuing operations was HK$502 million, a decrease of 12.8% year-on-year. Revenue from continuing operations was $17.066 billion, a year-on-year decrease of 25.1%, mainly due to a decrease in property development accounts in Hong Kong and the Mainland. The Group will provide 2,500 units in Hong Kong within half a year, all located in high-quality urban areas and near railways, including North Point and Kai Tak. After the government withdrew, first-hand property market transactions clearly heated up, which should help the Group's property sales to pick up. The Group also stated that it will continue to increase its annual target from 6 billion yuan to 8 billion yuan by selling non-core assets and businesses, continuously optimizing its asset portfolio and focusing on core business development. New World Development recently sold D-PARK, Discovery Park, Tsuen Wan to Chinachem for $4.02 billion, taking an important step towards reducing its non-core asset holdings. The Group's available capital is approximately $52 billion, including cash and bank balances of approximately $39 billion and usable bank loans of approximately $13 billion, with a net debt-to-equity ratio of 49.9%. As the property market picks up further, and asset sales continue to make progress, valuation discounts will narrow, which will help the development of the new world.
(The author is a licensee of the Securities Regulatory Commission. I and related parties do not hold the above shares)
Author: Guo Jiayao, Managing Director of Huiying International Asset Management