Review of Hong Kong stock market

The trend of Hong Kong stocks was weak on Thursday, with 527 points at 24505, the lowest since November 2 last year, and the decline narrowed in late trading. The Hang Seng Index closed down 1.46% and the Dow Index closed down 1.03%. The overall decline in the market, property management, education, inner housing, gold stocks fell, petrochemical stocks, tobacco, paper stocks and other few sectors rose. In terms of individual stocks, 01789.HK (01789.HK) closed up 6.5%, NetEase, Inc (09999.HK) rose 2.17%, Kuaishou Technology (01024.HK) rose 1.93%, Shimao Services (00873.HK) closed down 12.98%, Country Garden Services Holdings (06098.HK) fell 10.7%, Byd Company Limited (01211.HK) fell 3.64%, and China Telecom Corporation (00728.HK) fell 2.6%. BABA (09988.HK), which hit an all-time low of HK $149.1 in intraday trading, fell back to 1.62 per cent in late trading.

The Prospect of Hong Kong stocks

As of press time, HSI futures over-the-counter contract HS50 fell 0.04% to 24646.2. Hong Kong stocks closed at 24728 points, up 81 points and high water at 60 points. The ADR index of Hong Kong stocks rose 24:00 to close at 24692. The general science and technology stocks fell steadily the next night, while the relevant large stocks did not continue to fall sharply and rose at night. Coupled with the slight repetition of the HS50 index this morning, it is expected that Hong Kong stocks rose after opening several dozen points higher this morning. Purely based on technical indicators, Hong Kong stocks once again fell into the level of oversold in the short term, and the short-term or insipid positions of large investors in the market made the Hang Seng Index rebound slightly in the short term.

A list of macro news

• Notice of the tariff Commission of the State Council on the fifth exclusion extension list of customs commodities levied on the United States and Canada

The tariff Commission of the State Council shall, in accordance with the procedure, extend the exclusion period for the above-mentioned commodities. For the 81 commodities listed in the annex, the exclusion period stipulated in the Taxation Committee notice No. 8 (2020) and the tax Committee notice No. 2 (2021) shall be extended, and from September 17, 2021 to April 16, 2022, the duties imposed by me for the anti-US 301 measures will continue to be exempted.

• The Ministry of Commerce put forward 14 measures to promote consumption: automobile, catering, decoration and so on are the key points.

The Ministry of Commerce issued a notice on Thursday on further doing a good job in promoting consumption in the current commercial field, putting forward 14 measures to promote consumption. it includes promoting the consumption of new cars, boosting catering consumption, encouraging the development of new business models such as "Internet + recycling", and promoting the construction and transformation of a number of township trade centers. The Ministry of Commerce said that next, it is necessary to promote consumption from three major aspects: strengthening efforts to stabilize key consumption, promoting the development of new types of consumption, and optimizing and upgrading the carrier of consumption platform. In the aspect of strengthening efforts to stabilize the key consumption of bulk consumption, the Ministry of Commerce has put forward four specific measures to promote new car consumption, expand second-hand car consumption, promote household appliances, furniture and home decoration consumption, and boost catering consumption.

• Xi Jinping: it is necessary to strengthen space traffic management to ensure the stable and orderly operation of the space system

Xi Jinping, general secretary of the CPC Central Committee, state president, and chairman of the Central military Commission, inspected and investigated a base of troops stationed in Shaanxi on the 15th. Xi Jinping pointed out that space assets are national strategic assets, which should be well managed and used, and should be well protected. It is necessary to comprehensively strengthen the building of protective forces and improve the ability of disaster recovery and backup, anti-destruction survival, and information protection. It is necessary to strengthen space traffic management to ensure the stable and orderly operation of the space system. It is necessary to carry out international cooperation on space security to improve the effectiveness of space crisis management and comprehensive management.

• A number of fund companies have confirmed that regulators are investigating style drift and default fund products, and some products are required to adjust their positions.

According to media reports, regulators have focused on some fund products with drifting styles, and the relevant funds have also adjusted their positions in fund products. In this regard, the reporter asked a number of fund companies to verify that the supervision is indeed investigating products that violate the fund contract because of style drift, requiring fund companies to conduct self-inspection, and requiring some companies' products to adjust their positions at the same time.

A list of individual stock news

• The World Bank has reached a settlement with Evergrande Group on some of the receivables.

The World Bank announced that as of August 31, 2021, the balance of bills receivable between the company and Evergrande Group was 551 million yuan, and the balance of accounts receivable was 694 million yuan. As of the date of announcement, the company and Evergrande Group have reached a settlement of about 246 million yuan in receivables, with a balance of 999 million yuan.

• VANDA HOTEL Development subsidiary signed an agreement with Sunac China to terminate hotel management.

VANDA HOTEL Development (00169.HK) announced that on September 16, 2021, VANDA HOTEL Management (Shanghai) Co., Ltd. and Horgos Wanda Engineering Management Consulting Co., Ltd., two subsidiaries of the company, reached an agreement with Sunac China on the early termination of hotel management agreements for 21 hotels owned by Sunac Group and managed by the Group. Wanda Party agrees to terminate and Sunac China agrees to pay RMB 133 million to the Group within ten working days after the signing of the termination Agreement as compensation for termination, and to pay RMB 68.59 million to the Group to settle all outstanding accounts payable with the Group as at June 30, 2021.

• Full Truck Alliance Co. Ltd. Group studies the possibility of listing in Hong Kong

Full Truck Alliance Co. Ltd. (YMM.N) is exploring the possibility of listing shares in Hong Kong, The Information reported, citing people familiar with the matter. Full Truck Alliance Co. Ltd. Group has not made any decision on whether to list in Hong Kong. The report quotes lawyers who have worked on IPO of Chinese companies as saying that listing in Hong Kong allows shareholders to swap US-listed shares with Hong Kong-listed shares. A spokesman for Full Truck Alliance Co. Ltd. Group declined to comment on The Information.

• Zhu Yanfeng, chairman of Dongfeng Motor: 100000 new energy vehicles will be exported to Europe in bulk next year.

Zhu Yanfeng, chairman of Dongfeng Automobile Group Co., Ltd., said at the third World New Energy vehicle Congress (WNEVC 2021) held in Haikou City, Hainan Province on the afternoon of September 16th that the window period for the rapid popularization of new energy vehicles has been opened, and Dongfeng will implement the strategy of "five modernizations and one vehicle", that is, electrification, intelligence, networking, sharing and lightweight. At the same time, Dongfeng insists on market orientation and insight into customer demand, and is expected to export 100000 new energy vehicles to Europe in bulk next year. By 2024, Dongfeng will achieve 100% electrification of its new passenger car brand. With regard to the current diversified competitive situation of new energy car-building, Zhu Yanfeng said that Dongfeng wants to copy the advantages of new power car-building and launch a new new energy customized product "M" in 2022.

China China Eastern Airlines Corp Ltd (00670.HK):In August 2021, the company's passenger transport capacity (in terms of available seat kilometers) decreased by 41.79% compared with the same period last year; passenger turnover (in terms of passenger kilometers) decreased by 55.70%; and the occupancy rate was 55.83%, down 17.52 percentage points from the same period last year.

Baiyun Mountain (00874.HK):The company plans to invest 50 million yuan to invest in the establishment of Guangzhou time-honored brand revitalization fund partnership. The time-honored brand fund mainly invests around time-honored brands and related industries such as big health and big consumption, with a total planned size of 404 million yuan. As a limited partner, the company plans to contribute 50 million yuan, accounting for 12.3762% of the partnership.

According to HKEx documents:Evergrande shareholders Chen Kaiyun and Lau LuanxiongOn September 10, they each reduced their holdings of 24.436 million shares of China Evergrande Group (03333.HK), accounting for 7.96 per cent of the company's issued shares.

Huoyan Holdings (01909.HK):After the market closes on September 17, 2021, the Group will be officially included as a small cap in the FTSE global stock index series (FTSE) China regional index.

Byd Company Limited (01211.HK):The subsidiary signed an agreement to invest in the VIP Green Travel Fund, which ranges from $250 million to $500m and invests mainly in green transport projects.

Selected analysis

• CICC: the value of the electric drive system is more than 10,000 yuan, and the global market space is more than one trillion yuan.

With the progress of battery technology, the focus of the new energy vehicle industry has shifted from battery life to the pursuit of vehicle power performance and handling experience. Electric drive system has become the core system of new energy vehicles, with a value of more than 10,000 yuan per bike. According to the global annual sales of nearly 100 million vehicles, the market space of electric drive system is more than one trillion yuan. In the era of Huawei and Ningde, electric drive has been laid out one after another. we believe that the electric drive industry chain is expected to resonate with the uplink cycle of new energy vehicles, and it is a big race track for the next trillion market.

System integration, process optimization and material volume and price rise are the three major investment lines. At present, the technical upgrade of electric drive system is divided into two levels: system and components. We believe that the integration at the system level has many advantages, such as reducing costs, improving efficiency, optimizing the processes of automobile enterprises, and so on, which is the only way for industrial upgrading, and the most effective; process optimization at the component level, such as flat wire motor, SiC module replacement, oil-cooled motor and other technological changes, can achieve cost reduction and increase efficiency of corresponding single components. Material end, such as permanent magnet, silicon steel sheet, etc., under the resonance of component sales and single value, is expected to usher in a simultaneous rise in volume and price.

Self-supply and external mining coexist for a long time, and independent third-party electric drive system suppliers may become the main force in the market. We believe that the integration trend of the electric drive system is in line with the requirements of the mainframe factory for reducing costs and increasing costs, optimizing the system, and the evolution of vehicle architecture. Integration has evolved rapidly from hardware fusion to electrical fusion and chip fusion, and the mainframe factory supply chain is becoming more and more open. We believe that enterprises with advantages in technology accumulation and customer resources will occupy a larger market share. The mainframe factory self-supply system represented by Tesla, Inc. and the independent integration suppliers represented by Huichuan Technology, Inball and Xinrui Technology will coexist for a long time; with the rapid growth of the vehicle market and the acceleration of technology iteration, self-supply independent suppliers are expected to become the main participants in the market.