Jinwu Financial News | The Hang Seng Index closed at 16,863 on Thursday (21st), up 320 points, or 1.9%. The market traded 118.51 billion yuan throughout the day. The national index rose 101 points, or 1.8%, to 5905; the index rose 0.9% to 3,582. Tencent (00700) rose 0.8%; Alibaba (09988) rose 1.8%; Hong Kong Stock Exchange (00388) rose 0.8%; CNOOC (00883) rose 0.8%; CCB (00939) rose 2.8%; AIA (01299) rebounded 1.9%; Shunyu (02382) cut profit in half last year, adding 13.2% to the end of the package.

The Dow closed at 39,781 points on Thursday (21st), up 269 points, or 0.68%. The index rose 0.32% to 5,241 points; the NASDAQ rose 0.2% to 16,401 points; the Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell 1.6%. Ideal Auto (02015) and Pinduoduo ADR both fell 7.5%, and Bilibili (09626) retreated 8.8%. European stocks improved across the board. Among them, British stocks closed 1.88% higher and German stocks rose 0.91%; French stocks only rebounded 0.22% due to uninterrupted selling pressure on luxury goods stocks; and the Nikkei index closed up 2.03%. Among the blockbuster stocks, Nvidia (Nvidia) stock price was once 2.5% higher and closed up 1.2%; however, Apple was sued by the US Department of Justice for antitrust and fell 4.1% against the market, making it the biggest decline in the Dow index. Chip maker Micron Technology (Micron) performed well and had good prospects. The stock price soared by 14.1%, and other semiconductor stocks were also speculating higher. The Asia-Pacific stock market moved individually this morning (22nd). The Nikkei 225 Index now reports 40,957 points, up 141 points, or 0.35%. The South Korea Composite Index is now 2,757 points, up 3 points, or 0.11%. The market seems to have lost its way, and investors are wary of entering the market.

Market Focus: Giordano International (00709)

Clothing stock Giordano will hold a shareholders' meeting at the beginning of next month to vote on the shareholders' motion to replace the CEO. Giordano issued a profit forecast in January this year, which indicates a slowdown in performance growth in the second half of last year, causing the stock price to plummet by 20% in a single day. Since then, the stock price has repeatedly weakened, falling below 2 yuan. By early February, the shareholders' motion was announced to replace Liu Guoquan, the former managing director of Adidas Asia Pacific. The stock price rebounded slightly and rose repeatedly. In recent years, Giordano has become an interest-receiving stock. In the past 7 years, the dividend rate was higher than 100% for 6 years, and another year, it continued to pay dividends in a state of loss. However, the company's overly conservative strategy and fluctuations in market conditions have had a negative impact on stock prices. Compared with the stock price of about 4.2 yuan for the same period seven years ago, Giordano's stock price has now fallen by more than 2 yuan or 50%. Even after receiving a total of about 1.636 yuan in dividends during the same period, there is a profit and loss of interest. Currently, Giordano's management strategy mainly focuses on expanding to new markets such as the Middle East and Africa with minimal investment to ensure good operating cash flow and return excess cash to shareholders. Even if the group adjusts the dividend ratio to 100%, it is still attractive, and it is estimated that once management changes, the dividend policy will not change much in the short term. Instead, if it brings strategic hope, it will have a positive impact on stock prices. Target price is $2.4, stop loss price is $1.97.

(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)

Author: Dr. Deng Shengxing, Managing Partner, Yibo Capital Asia Limited