Evaluation of Hong Kong stocks

Futu Information on January 20 | Hong Kong stocks rebounded sharply today, with all three major indexes rising high. The Hang Seng Index rose 3.42%, the National Index rose 3.79%, and the Hang Seng Technology Index rose 4.5%.

As of the close, Hong Kong stocks rose 1180, fell 751, and closed flat at 919.

Plate aspectLarge-scale technology stocks soared collectivelyMeituan rose by more than 11%, Kuaishou Technology by nearly 7%, JD.com, Tencent and Baidu, Inc. by more than 6%, and BABA by nearly 6%.

Inner housing stocks continue to strengthenSunac China rose by more than 15%, Hejing Pacific by more than 13%, Shimao Group by more than 12%, Longguang Group by more than 10%, Xuhui Holdings by 5%, China Evergrande Group and Country Garden Holdings by more than 4%.

Property management stocks rose sharply.Hejing leisurely rose by more than 22%, Baolong Commercial and Jinke Services by more than 16%, Country Garden Services Holdings by more than 15%, and Shimao Service by more than 12%.

Insurance stocks are among the top gainersPing An Insurance rose by more than 7%, China Pacific Insurance and Zhongan Online by more than 6%, AIA Group Limited by nearly 6% and China Life Insurance Company Limited by nearly 4%.

Sporting goods stocks go higherANTA Sports Products and Li Ning Co. Ltd. rose by 6% and Li Ning Co. Ltd. by 361%, while Xtep International and Bosideng International rose by nearly 2%.

In other respects, bank stocks, Chinese brokerage stocks, gold concept stocks, gambling stocks, aviation stocks, furniture stocks were active throughout the day, while gas stocks, port transport stocks and traditional Chinese medicine stocks fell.

Individual stocks$Meituan-W (03690.HK) $Rose more than 11%, southbound capital inflows in December, institutions said the company's competitive situation is better.

$Tencent (00700.HK) $It rose more than 6 per cent, the biggest increase since August last year, and repurchased nearly HK $2 billion in January.

$Kuaishou Technology-W (01024.HK) $Up nearly 7%, the brokerage expects the company's Q4 revenue to grow by + 25%, and Tianfeng believes that fee rate control will be better than expected.

$Sunac China (01918.HK) $It soared by more than 15%, and it is reported that it paid two payments of about 4.25 billion open market products on schedule.

$Hong Kong Exchanges and Clearing (00388.HK) $It rose nearly 4% to usher in its first SPAC, with a target price of HK $531.1 on Nomura.

$ANTA Sports Products (02020.HK) $It has risen by more than 6%, and the profit attributable to shareholders is expected to increase by no less than 45% in 2021.

$Weimeng Group (02013.HK) $Pull up more than 6%, several buybacks this month, Credit Suisse maintained the company's "outperform" rating.

$CITIC (06030.HK) $A rise of nearly 5% led to a rise in Chinese brokerage stocks, with the market expecting further monetary easing.

$AAC Technologies Holdings Inc. (02018.HK) $After falling more than 12%, the company issued a profit warning, and it is expected that the net profit attributable to shareholders in 2021 will decrease by 12% to 16% compared with the same period last year.

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $6.544 billion from Hong Kong Stock Connect (southbound) today.

Today's turnover of Hong Kong shares TOP20

Message surface

Both one-year and five-year LPR were down-regulated.China's January one-year loan market quoted interest rate (LPR) is 3.7 per cent, expected to be 3.7 per cent, compared with 3.8 per cent last month. The 5-year LPR is 4.6 per cent, expected to be 4.55 per cent, and 4.65 per cent last month.

Guangdong Provincial Government work News: expand the scale of "cross-border LiCaiTong".The Guangdong Provincial Government work report points out that financial reform and opening up will be promoted in 2022. We will speed up the improvement of the modern financial system, prepare for the establishment of an international commercial bank in the Dawan area, build the Guangzhou Futures Exchange, support the Shenzhen Stock Exchange in implementing the reform of the full-market registration system, and actively establish a pilot area for financial reform in Guangzhou and Shenzhen Science and Technology. We will deepen the reform of green finance, innovate digital inclusive finance, and promote the pilot of supply chain finance. We will explore the construction of a cross-border financial management and capital management center in the Greater Bay area, expand the scale of "cross-border LiCaiTong", build an after-sales service center for insurance in Hong Kong and Macao, and promote "ICT solicitation" and "insurance communication". We will promote the construction of financing platforms for small and medium-sized enterprises and raise the level of the real economy in financial services.

Ministry of Industry and Information Technology: in 2022, steady industrial growth will be the most important position.Tian Yulong, spokesman for the Ministry of Industry and Information Technology, said that the external environment we face in 2022 is becoming more severe, complex and uncertain. China's industrial economic development is facing the triple pressure of demand contraction, supply shock, and expected weakening, and the task of stabilizing growth is still very arduous. We will adhere to the general tone of seeking progress in the midst of stability, promote the high-quality development of industry and information technology, coordinate epidemic prevention and control and economic and social development, co-ordinate development and security, and focus on the goal of building a manufacturing power and a network power. put stable industrial growth in the most important position, do a good job of pre-adjustment, fine-tuning and cross-cycle adjustment, strive to enhance the core competitiveness of the manufacturing industry, and promote the smooth operation of the industrial economy to improve quality and efficiency. We will keep the proportion of the manufacturing industry basically stable, strengthen and optimize the real economy, and build a solid economic ballast stone.

China's grid-connected photovoltaic power generation capacity exceeded 300 million kilowatts, ranking first in the world for seven consecutive years.National Energy Administration: according to statistics, China's new grid-connected photovoltaic power generation capacity is about 53 million kilowatts in 2021, ranking first in the world for nine consecutive years. By the end of 2021, the grid-connected installed capacity of photovoltaic power generation has reached 306 million kilowatts, breaking the 300 million kilowatt mark, ranking first in the world for seven consecutive years. Distributed photovoltaic reached 107.5 million kilowatts, exceeding 100 million kilowatts, accounting for about 1/3 of the total grid-connected photovoltaic capacity. Among the new photovoltaic power generation grid-connected installations, distributed photovoltaic power generation has increased by about 29 million kilowatts, accounting for about 55% of all new photovoltaic power generation installations, exceeding 50% for the first time in history. The development trend of both centralized and distributed photovoltaic power generation is obvious.

Institutional viewpoint

CITIC: maintain$Tencent (00700.HK) $"Buy" rating, the target price was lowered by 9.6% to HK $554.

CITIC released a research report that maintained Tencent's "buy" rating, lowered its target price by 9.6% from HK $613 to HK $554, and adjusted its 2021-23 Non-IFRS net profit forecast to 1,241.13 / 171.188 billion yuan. Although short-term performance is under pre-pressure, the core business still maintains a strong competitive advantage, while actively increasing investment in ESG, cloud business and innovative content to maintain long-term sustainable development. Although it still faces the impact of regulatory policies such as games, data security and antitrust, and sustained investment in key areas such as international games, video numbers, cloud and enterprise software will lead to pressure on short-term profit growth, however, the medium-and long-term dimensions are expected to form stronger competitiveness in the above areas, and there is still room for sustainable upside.

JPMorgan Chase & Co: material$Longfor Group (00960.HK) $、$Xuhui Holdings Group (00884.HK) $及$Baolong property (01238.HK) $The short-term rebound of the inner room is stronger.

JPMorgan Chase & Co published a report that the recent measures for the real estate industry in the mainland may promote the short-term rise of internal housing stocks and property management stocks, but that relaxing the use of escrow funds by mainland real estate enterprises will mainly benefit state-owned enterprises and low-risk private enterprises. the market may still need more evidence of market recovery to support a sustainable valuation reevaluation, when the industry reaches its previous peak and there is no new easing signal. Inner housing stocks are likely to weaken again, hit by weak sales data in January and more defaults by housing companies. The bank is still bullish on state-owned enterprises, but believes that private enterprises with lower risks may rebound more strongly in the short term, including Longfor Group, Xuhui and Baolong Real Estate; Country Garden Services Holdings, Xuhui Yongsheng Services and Jinke Services in property Management stocks. Risky shares may only be driven by insipid positions.

Macquarie: to$ANTA Sports Products (02020.HK) $Outperform the market rating with a target price of HK $143.

Macquarie issued a research report, pointing out that ANTA Sports Products released sales updates and preliminary profit forecasts for the last quarter of last year. According to the comprehensive basis, including the impact of sharing the losses of the joint venture company, it is expected that the profit attributable to shareholders will increase by no less than 45% year-on-year last year, in line with the bank's expectations. The bank said it maintained Anta's "outperform" rating and lowered its target price slightly from HK $144 to HK $143, saying the current valuation was equivalent to 20 times forecast next year's earnings, compared with the historical average of 31 times over the past three years.

Nomura: optimistic about Chinese financial stocks as a whole, the first choice$CITIC (06030.HK) $、$Ping An Insurance (02318.HK) $Wait for shares.

Nomura published a research report pointing out that the overall bullish on Chinese financial stocks, the first choice is CITIC, Ping an, property Insurance, China Merchants Bank and the Hong Kong Stock Exchange (0388.HK), all rated as "buy". The bank believes that the above shares have benefited from supply-side reforms and market leadership, wealth management business has structural growth opportunities, and good corporate regulation. Among them, China Merchants Bank and CITIC account for the highest share of wealth management / asset management income in the industry, at 12 per cent and 15 per cent respectively. The HKEx and Ping an are seen as beneficiaries of increasing the transfer of household assets to long-term financial assets, including stock and annuity insurance.