Review of Hong Kong stock market

Hong Kong stocks were weak on Wednesday, falling 507 points to 24994, the lowest level since Aug. 20, before contending at 25000 levels. By the close, the Hang Seng Index closed down 1.84% and the Hang Seng Technology Index closed down 3.14%. Power equipment stocks, wind power stocks, dairy products sector showed a strong performance, medical and health care equipment, anti-epidemic concept, most of the inner housing stocks fell.

In terms of individual stocks, 00746.HK closed up 19.44%, Xinjiang Goldwind Science & Technology (02208.HK) rose 8.63%, 01119.HK rose 6.47%, Sands China (01928.HK) closed down 32.51%, 02219.HK fell 13.45%, 02126.HK fell 10.75%, and Country Garden Holdings (02007.HK) fell 8.76%.

The Prospect of Hong Kong stocks

HS50, the over-the-counter contract for HSI futures, rose 0.33% to 25098. Hong Kong stocks closed at 25039 points, up 1 point and high water 6 points. The ADR index of Hong Kong stocks rose 12:00 to close at 25046. Petrochina rose 1.12 per cent, or HK $3.81, compared with Hong Kong shares, while China Petroleum & Chemical Corporation rose 1.4 per cent, or HK $3.93, compared with Hong Kong stocks. The decline in crude oil inventories in the United States, coupled with market concerns about production activities in the Gulf of Mexico oil producing areas in the United States, has made slow progress in recovery after Hurricane Ida. Analysts expect the performance of three barrels of oil to create a sustainable market today, and Hong Kong stocks are expected to perform repeatedly.

A list of macro news

• The executive meeting of the State Council plans to improve the medical insurance system.

Premier Li Keqiang of the State Council yesterday presided over an executive meeting of the State Council, which examined and approved the 14th five-year Plan for universal medical security. The meeting pointed out that we should deploy and improve the medical insurance system to better meet the needs of the masses for medical treatment and medication, promote the coordinated reform of medical insurance and medicine, and continue to carry out centralized volume procurement of drugs and high-value medical consumables. Drugs with high clinical value and obvious benefits for patients will be included in the scope of health insurance payment.

Focus section: pharmaceutical Unit, Biotechnology Unit

• The bond "Nanxiangtong" will be launched soon, and the two-way opening of the financial market will go further.

In order to promote the common development of the bond markets in the mainland and Hong Kong, the people's Bank of China and the Hong Kong Monetary Authority issued a joint announcement on the 15th. It was decided that mainland basic service institutions and Hong Kong basic service institutions should carry out southward cooperation on the interconnection of bond markets between the mainland and Hong Kong. "Nan Xiangtong" will be launched on September 24, 2021. The reporter learned that mainland investors in the "southbound Link" are tentatively designated as 41 bank financial institutions (excluding non-bank financial institutions and rural financial institutions) among the primary dealers in the open market business of the people's Bank of China in 2020. In addition, qualified domestic institutional investors (QDII) and RMB qualified domestic institutional investors (RQDII) can also carry out overseas bond investment through Nanxiangtong.

Attention plate: brokerage stocks, bank stocks

A list of individual stock news

• Volvo plans to go public in Stockholm with a target valuation of $20 billion

According to the media, Geely Automobile (00175.HK) is in in-depth discussions with banks about the listing of his Volvo car division in the coming weeks, which is expected to be one of the largest IPO in Europe this year. Volvo plans to go public in Stockholm with a target valuation of $20 billion, one of which said the launch date is set at the end of September, according to sources.

• Air China Limited's passenger turnover fell 53.1% in August compared with the same period last year.

Air China Limited (00753.HK) announced that in August, affected by the spread of the epidemic in local areas and epidemic prevention policies, passenger turnover (by income per kilometer) decreased compared with the same period last year and month-on-month. The input of passenger transport capacity (measured by available seat kilometers) decreased by 40.6% compared with the same period last year, and the passenger turnover decreased by 53.1% compared with the same period last year. Among them, domestic passenger transport capacity investment decreased by 41.5% compared with the same period last year, passenger turnover decreased by 54.2%, international passenger transport capacity investment decreased by 35.1%, and passenger turnover decreased by 27.6% compared with the same period last year.

• XPeng Inc. P5 officially listed, Gu Hongdi: the chip supply problem does not affect the expected delivery volume

XPeng Inc. (XPEV.N) launched a new smart car P5, offering a total of six models, with a price range of 15.79 yuan to 223900 yuan after a comprehensive subsidy, and began delivery at the end of October. Gu Hongdi, vice chairman and president of XPeng Inc., said that compared with other similar smart cars in the mainland, the price of the P5 is quite competitive, but it is mentioned that the gross profit margin of the P5 or the higher-end smart car P7 is slightly lower, and there are problems with the supply of chips and batteries in the market. however, the company is confident that it can maintain the expected quantity of delivery. he also said that he intends to introduce P5 to the European market in the future, but has no intention to enter the United States for the time being.

• XIAOMI released 11T Pro overseas, which supports 120W fast charging function.

XIAOMI Group (01810.HK) launched the 11T series in overseas markets last night, the most important of which is the 11T Pro and the previously announced 120W HyperCharge fast charging system. The phone has a battery capacity of 5000m Ahfocus 120W power charger that can charge the battery from zero to 100% in as little as 17 minutes. At the same time, it can be raised to 72% after 10 minutes of charging. This is even more outstanding than the performance of XIAOMI 10 Ultra, which is also a 120W fast charge, released by XIAOMI in China last year. 11T Pro will soon be listed in Europe and other regions.

Haier Smart Home (06690.HK):The company proposes to allocate and issue no more than 73000000 H shares (accounting for 0.78% and 2.59% of the total issued shares and H shares, respectively). The net funds raised will mainly be used for overseas business development and related investments in ESG (environment, society and governance).

Dongguan Agricultural and Commercial Bank (09889.HK):International offering of 1.033 billion shares, Hong Kong offering of 114.8 million shares, each offering price range of HK $7.92-HK $8.71, is expected to start trading on the Stock Exchange on September 29th.

Selected analysis

• Guotai Junan: the possibility of policy loosening in the fourth quarter is further strengthened.

The economic data in August continued the weakness of July, reflecting the periodic disturbances such as epidemic situation and flood situation, but the trend impact of real estate and double reduction is also constantly reflected. The export downturn will begin in the fourth quarter, but to a limited extent, structurally shifting to capital goods and intermediate goods. Follow-up real estate, production restrictions, double reduction, lack of core several major factors, will bring the characteristics of similar stagflation intensified before November. As for the follow-up policy, Guotai Junan believes that the pattern of "fiscal stability into monetary stability" will continue, and the inertia of the short-term impact of the epidemic will further strengthen the possibility of policy loosening in the fourth quarter.

• Shen Wanhongyuan: it is expected that the systematic policy of stabilizing consumption will be introduced next year.

Shen Wanhong read the August economic data released yesterday, saying that infrastructure investment was actively compensated as expected, coupled with the relatively strong early real estate demand and external demand to support real estate investment and manufacturing investment, respectively, and overall fixed investment rebounded steadily. In view of the long-term nature of changes in consumer demand, a systematic policy of stabilizing consumption is expected to be introduced next year, and the focus will still be on stabilizing infrastructure investment in the second half of this year.