The Zhitong Finance App learned that the three major indices of Hong Kong stocks fluctuated and fell after opening high in early trading, and collectively rallied higher in the afternoon. Among them, the Hengke Index rose 1.7% at one point, but the increase narrowed at the end of the session. At the close, the Hang Seng Index rose 0.88% or 144.68 points to 16618.32 points, with a full day turnover of HK$108.652 billion; the Hang Seng State-owned Enterprises Index rose 1.23% to 5825.42 points; and the Hang Seng Technology Index rose 1% to 3471.49 points.

Guoyuan International pointed out that based on judging the market environment, the bank believes that the current investment tone should focus on seeking structural opportunities. The Hang Seng Index fell again last week, which means that the previous recovery was still only due to external short-term factors. Lack of long-term upward momentum is still a problem that Hong Kong stocks need to solve. Until the fundamental support issue is resolved, Hong Kong stocks will still face the possibility of fluctuating and falling in the medium term.

Blue chip stock performance

China Merchants Bank (03968) led the blue chip increase. At the close, it rose 4.33% to HK$31.3, with a turnover of HK$1,067 billion, contributing 7.92 points to the Hang Seng Index. Bank of China International pointed out that CMB's results last year showed a steady increase in profits in the fourth quarter of last year, and asset quality was still excellent, based on the fact that its non-performing loan ratio reached 0.95% by the end of last year, or is still at the low end of the same industry. Furthermore, the company's dividend payout ratio rose 2 percentage points year on year to 35% last year. CMB's average return on net assets (ROAE) is expected to reach 15.8% this year, the highest in the industry.

In terms of other blue chips, Tencent Holdings (00700) rose 3.74% to HK$299.4, contributing 50.98 points to the Hang Seng Index; Baidu Group - SW (09888) rose 3.67% to HK$104.4, contributing 4.12 points to the Hang Seng Index; Zhongsheng Holdings (00881) fell 4.87% to HK$12.5, dragging down the Hang Seng Index by 0.8 points; Xinyi Solar (00968) fell 3.41% to HK$5.95, dragging down the Hang Seng Index by 1.63 points.

In terms of popular sectors

On the market, large technology stocks had mixed ups and downs today. Tencent closed up nearly 4%, leading the way for TechNet shares; the real estate industry is booming, with most domestic housing stocks flourishing; Bitcoin prices have returned to 70,000 US dollars, and related concept stocks have generally risen; mobile game stocks, auto stocks, and domestic bank stocks have risen. On the other hand, non-ferrous stocks, which surged yesterday, generally declined today; the performance of Apple concept, CRO concept stocks, coal stocks, etc. is weak.

1. Bitcoin concept stocks moved higher. At the close, OSL Group (00863) rose 8.4% to HK$8.13; Blue Port Interactive (08267) rose 6.41% to HK$0.83; and Xinhuo Technology Holdings (01611) rose 4.42% to HK$3.54.

On Monday, spot Bitcoin ETFs surged about 11% across the board. The CME Bitcoin Futures BTC main contract reported $71,075, up 6.84% from the end of last Friday in New York; the CME Ethereum futures DCR main contract reported $3637.5, up 6.17% from last Friday. According to reports, on January 11, the US Securities Regulatory Commission and SEC officially approved the listing and trading of 11 Bitcoin spot ETFs. According to Coinglass data, as of March 20, the total asset management scale of Bitcoin ETFs reached US$58.721 billion. According to Goldman Sachs data, in the futures market, Bitcoin's open positions reached a new high, exceeding 33,000, with a nominal value of nearly 12 billion US dollars.

2. Auto stocks are generally flourishing. At the close, Zero Sports Auto (09863) rose 5.66% to HK$25.2; Geely Auto (00175) rose 3.49% to HK$9.19; and BYD shares (01211) rose 2.37% to HK$216.

Open Source Securities pointed out that in the short term, as the wave of price cuts has continued since 2023, consumers have a wait-and-see mentality, and the stimulating effect on sales is limited. However, in the long run, after prices are relatively stable, actual discounts are expected to boost terminal sales. In terms of sales, passenger car sales increased month-on-month in the first half of March due to a low base, and total sales growth in the late sprint quarter can be expected. Looking forward to the future, subsequent sales growth in the passenger car market can be expected due to multiple factors such as the introduction of trade-in policies, the continuous release of new models, the holding of offline events such as auto shows, and the wave of price cuts is expected to stabilize. Furthermore, China's automobile market has entered an era where “increment and inventory coexist”, and there is plenty of room for scrapping and replacement demand.

3. Domestic housing stocks mostly rose. At the close, Longguang Group (03380) rose 3.39% to HK$0.61; Shimao Group (00813) rose 3.16% to HK$0.49; and Longhu Group (00960) rose 3% to HK$10.98.

Recently, there have been many positive developments in the real estate industry. A few days ago, an image of a document circulating on the Internet shows the notice of the Shenzhen Municipal Bureau of Planning and Natural Resources to stop implementing the “Notice Concerning Implementation of Residential Unit Ratio Requirements in accordance with National Policies”. The main content is that Shenzhen Territory [2010] No. 688 “Notice on Implementing Residential Unit Ratio Requirements in accordance with National Policies” has been abolished. In response, relevant sources from the Shenzhen Municipal Bureau of Planning and Natural Resources confirmed that the document is true. Some industry insiders said that the “70/90 policy” was originally intended to curb high housing prices, but now real estate supply and demand and real estate market conditions have changed, and policies will also be adjusted as the market changes. The supply of large units in the new housing market may increase further in the future.

4. Gold stocks collectively retreated. At the close, Lingbao Gold (03330) fell 4.84% to HK$2.36; Zijin Mining (02899) fell 2.59% to HK$15.04; and China Gold International (02099) fell 1.32% to HK$48.5.

SDIC Anxin Futures pointed out that at the US Federal Reserve interest rate meeting, which received much attention on Thursday, the Federal Reserve raised expectations for economic growth and inflation, and expressed the economy and employment more positively. The bitmap seemed more pigeons than expected. Strong recent economic and inflation data did not change the path officials expected to cut interest rates three times this year. At the same time, Powell was more positive about discussing the balance sheet structure. Overall, stable liquidity to the US dollar caused precious metals to rise again. However, the US Markit manufacturing PMI, existing home sales, and jobless claims at the beginning of the week were all better than expected. The probability of a US retreat and interest rate cuts still far left room for correction at a high level, so there is no room for a rebound in gold prices at a high level.

Popular volatile stocks

1. Zero Sports Auto (09863) was higher after the results. At the close, it rose 5.66% to HK$25.2.

Zero Sports achieved revenue of 16.747 billion yuan (RMB, same below) in 2023, an increase of 35.22% over the previous year. In 2023, for the first time, Zero Sports Auto achieved a positive annual gross margin of 0.5%. According to the same caliber of the new forces, plus rebates for the dealer channel, the annual gross profit after adjustment reached 11.6%; in addition, operating cash flow was also corrected for the first time throughout the year, reaching 1.08 billion yuan.

2. CNOOC Properties (02669) dived in the afternoon. By the close, it fell 24.5% to HK$4.5.

At noon, CNOOC Properties announced its 2023 results, with revenue of RMB 13.51 billion (RMB, same below), up 19.7% year on year; profit attributable to the company's shareholders of RMB 1,342.5 billion, up 22.8% year on year; final interest of HK8.5 HK cents, or HK8 cents for the same period last year.

3. Guangdong Investment (00270) was under pressure throughout the day. At the close, it fell 17.63% to HK$3.83.

According to Citigroup, the company's net profit fell 34.5% year on year last year. Among them, it also recorded a loss of about 706 million yuan in the fourth quarter of last year, mainly due to the decline in the asset book value of property projects under development. The company declared a final dividend of HK12.33 cents per share in 2023, a sharp decrease of 71.1% from the previous year. The dividend ratio fell 19 percentage points to 65%, lower than expected.

4. Zhejiang Shanghai-Hangzhou (00576) hit a new low. At the close, it fell 15.59% to HK$5.09.

Zhejiang Shanghai, Hangzhou, and Ningbo announced annual results. The group achieved revenue of RMB 16.965 billion during the period, an increase of 10.65% over the previous year; profit attributable to company owners was 5.224 billion yuan, up 0.87% year on year; basic profit per share was 112.95 points; and plans to pay a final dividend of 32 points per share, with a final dividend of 37.5 points for the same period last year.

Initial listing of IPOs

Belle Palace (02536) had a strong performance. At the close, it was up 15.38% to HK$3.

Belle Palace issued approximately 143 million shares, priced at HK$2.6 million per share, with a net proceeds of approximately HK$194.1 million. According to reports, Belle Palace was spun off from the Far East and is a comprehensive entertainment group integrating gaming and leisure businesses. It mainly operates in the Czech Republic and Germany. It owns a comprehensive resort and two physical casinos in the Czech Republic, and also operates three hotels in Germany and one in Austria, covering various services such as accommodation, catering, and meetings.