Jinwu Financial News | The three major indices of Hong Kong stocks collectively closed down. At the close, the Hang Seng Index fell 0.99%, the State-owned Enterprises Index fell 0.99%, and the Hang Seng Technology Index fell 2.35%.

Among blue chips, Ideal Auto (02015) fell 7.4%, Shunyu Optical Technology (02382), Pharmaceutical Biotech (02269), Sands China (01928), Pharmaceutical Kangde (02359), and Haidilao (06862) fell more than 4%; in terms of growth, Dongfang Overseas International (00316) rose 4.40%, Country Garden Service (06098) rose 3.26%, CNPC (00857) 2.32%, Sinopec (00386) 1.53%, CNOOC (00883) Up 1.20%.

On the sector side, most domestic housing stocks closed down. Ocean Group (03377) fell 5.6%, Xuhui Holding Group (00884) fell 4.66%, Sunac China (01918) fell 4.08%, Longguang Group (03380) fell 3.85%, Vanke Enterprise (02202) fell 1.86%, and Longhu Group (00960) and China Resources Land (01109) fell more than 1%. Zhongtai Securities believes that in a situation where the desire to acquire land and start new construction is low, industry investment data is still declining, and the monthly growth rate of new construction starts has declined sharply again. Against the backdrop that the intensity of land acquisition by housing enterprises is still declining, it will still be difficult for the growth rate of new construction to strengthen in the future. Taken together, in a situation where both supply and demand are weak, it is difficult to stabilize investment data in the short term, but it is expected that with continued strength on the policy side driving a gradual recovery in sales, housing enterprises are also expected to increase their efforts to acquire land, and industry investment data will bottom out and stabilize. Dongfang Jincheng said that in order to restore residents' confidence in buying homes, policies on both the supply and demand sides still need to be strengthened. Among them, policies affecting the cost of home purchases, such as lowering the lower interest rate limits for first and second home loans and lowering interest rates on provident fund loans, are still the core, and will play a key role in the subsequent trend of the property market.

Most airline stocks closed down, with Meilan Airport (00357) down 6.24%, China Southern Airlines (01055) down 4.1%, China Eastern Airlines (00670) down 2.63%, Air China (00753) down 2.61%, and Cathay Pacific (00293) down 1.35%. According to Haitong Securities Research, the low air transport season began in March, and industry demand has declined somewhat. The bank believes that strong demand for private travel on holidays will drive a clear rebound in demand in the travel chain, but business travel during the off-season was lackluster or hampered overall recovery progress. Dongxing Securities pointed out that the industry changed from peak season to low season in March, and capacity investment and passenger occupancy rates of all airlines declined month-on-month. Among them, the overall capacity investment of listed airlines fell by more than 6% month-on-month compared to February, while passenger occupancy rates fell by about 3.8 pcts month-on-month, indicating that the domestic market had a certain excess capacity during the off-season. It is predicted that the problem of pressure on the industry during the off-season will gradually improve as international routes resume this year, but the improvement process will take time.

Xiaopeng Motors (09868) closed down 7.38%. On April 15, in response to online reports that the price of the Xiaopeng P7 dropped to 140,900 yuan, the reporter consulted Xiaopeng Motor's Shenzhen 4S store. The store sales staff told reporters that the old P7 model can reach 140,900 yuan after the comprehensive subsidy, and the official guide price for this car is 239,900 yuan. However, the reduced model is an old model. The current model is the 2024 Xiaopeng P7. According to a research report published by China Merchants Securities International, data from March 4 to April 14 showed that the company's sales recovery progress was weaker than expected. The average weekly sales volume in March was about 2,100 vehicles, but the average fell to 1,200 and 1,600 vehicles in the first two weeks of April. The decline was significant, and short-term sales performance was weak. The bank lowered its target price for H shares to HK$41, maintaining an increase rating.

China Free (01880) closed down 4.82%. The company's results showed that revenue for the first quarter decreased by 9.45% year on year, net profit increased 0.33% year on year, gross margin was 32.70%, up 3.95 percentage points from the same period last year, and profitability improved. Due to the popularity of tourism in Hainan during the Spring Festival, China's performance in the first quarter fell short of market expectations.

Guotai Junan said that in a situation where overseas risk events have not been fully resolved and may disrupt the Hong Kong stock market, the high-dividend style with low risk characteristics still has allocation value. It is recommended to focus on high-dividend industries such as telecommunications operators, energy, and utilities. The bank also said that the new “National Nine Rules” in China's capital market will help investors focus on assets with lower valuations, more stable growth, and higher dividends. However, the Hong Kong stock Internet policy adjustments and valuation adjustments have been sufficient in the past few years. Stock prices are entering the batting zone, and opportunities for Chinese Internet companies can be examined from a longer-term perspective. In terms of industry choices, high dividends were the main focus, and Hong Kong stocks began to rebound on the Internet.