Hong Kong Quick Watch

Futu Information on April 28 | Hong Kong stocks continued to rebound, with the Hang Seng Index and Hang Seng Technology Index rising 1.65% and 2.15% respectively, both of which rebounded in 3 days. The Hang Seng Index returned to the 20000-point mark, while the National Index rose 1.95%.

As of the close, Hong Kong stocks rose 1236, fell 673, and closed flat at 959.

Plate aspectMost large technology stocks are upBilibili Inc. rose by more than 6%, Baidu, Inc., BABA and JD.com by more than 4%, and Tencent, Meituan and NetEase, Inc all rose.

Coal stocks soared collectivelyYitai Coal is up nearly 15%, Yanzhou Coal Australia is up more than 10%, China Shenhua Energy is up nearly 9%, and Yanzhou Mining Energy is up more than 5%.

Heavy infrastructure stocks continue to be strongChina Construction International is up nearly 8%, China Metallurgical is up more than 5%, China Rallway is up nearly 5%, and China Communications Construction is up more than 4%.

Most bank stocks rose.Standard Chartered PLC rose by more than 10%, China Merchants Bank by more than 5%, Bank of Communications by nearly 3%, Bank of China Ltd. and China Construction Bank Corporation by more than 2%.

Green Power concept stocks are strongFlat Glass Group rose more than 6%, Huaneng International Power rose more than 5%, CGN New Energy rose more than 2%, China Longyuan Power Group Corporation and ENN Energy followed suit.

Individual stocks$China Merchants Bank (03968.HK) $Rose 5.74%, China Merchants Bank ah shares rebounded for two days in a row, the chairman said the president changed but corporate governance remained unchanged.

$Hong Kong Exchanges and Clearing (00388.HK) $Up more than 1%, Lyon HKEx has not yet reached a turning point, but I believe that market confidence can be gradually restored, reiterating the "buy" rating and target price of 460 yuan.

$China Shenhua Energy (01088.HK) $It rose by more than 8%, and the first quarter report in 2022 showed that the net profit in the first quarter reached 19.796 billion yuan, an increase of 66.9% over the same period last year.

$JD.com Group-SW (09618.HK) $With an increase of more than 4%, Shenzhen will hand out 500 million yuan consumption coupons through Meituan and JD.com platforms.

$BABA-SW (09988.HK) $Up more than 4%, Deutsche Bank maintained BABA-SW "buy" rating, and the target price was reduced to HK $167m.

$Tencent (00700.HK) $Up more than 1%, the agency said that the policy marginal improvement signal has been released one after another, suggesting the long-term layout of high-quality Internet assets, Hong Kong stocks Internet core assets have a strong performance-to-price ratio, recommended to pay attention to Tencent, Meituan, NetEase, Inc and so on.

$Smoore International Holdings Limited (06969.HK) $After a sharp drop of more than 15%, Hong Kong, China banned the sale of imported e-cigarettes on April 30.

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $2.826 billion from Hong Kong Stock Connect (southbound) today.

Today's turnover of Hong Kong shares TOP20

Message surface

Ministry of Finance: China will implement a provisional zero import tax rate on coal from May 1, 2022 to March 31, 2023.

In order to strengthen the guarantee of energy supply and promote high-quality development, the tariff Commission of the State Council decided to implement a provisional import tax rate of zero for coal from May 1, 2022 to March 31, 2023.

Ministry of Commerce: it is stepping up coordination and promotion together with relevant parties to ensure the resumption of work and production of foreign enterprises in Shanghai.

With regard to the specific operational problems faced by foreign-funded enterprises in resuming work and production, a spokesman for the Ministry of Commerce said at a news conference on the 28th that the Ministry of Commerce is working with relevant member units of special classes for key foreign-funded projects and relevant authorities in Shanghai to strengthen coordination and promotion to ensure the resumption of work and production in enterprises. According to Gao Feng, of the 666 enterprises in the first batch of "whitelist" issued in Shanghai, 247 are foreign-funded enterprises, involving key industries such as integrated circuits, automobile manufacturing, equipment manufacturing, biomedicine, and so on. Volkswagen, Tesla, Inc. and other key foreign-funded enterprises have resumed work and production in an orderly manner. Some foreign-funded enterprises are actively applying for inclusion in the second batch of enterprises that resume work and production.

Department of Commerce: the United States abolishes tariffs on China in line with the fundamental interests of American enterprises and consumers

'We have taken note of the relevant reports, 'said Gao Feng, a spokesman for the Ministry of Commerce. The Chinese side has always believed that the unilateral imposition of tariffs by the United States is not good for China, the United States and the world. Under the current situation of high inflation, the abolition of tariffs on China by the US side is in the fundamental interests of US enterprises and consumers. At present, the economic and trade teams of China and the United States maintain normal communication.

World Gold Council: the global gold market got off to a good start in the first quarter, with gold demand increasing by 34% year on year.

According to the latest data released by the World Gold Council on the 28th, global gold demand in the first quarter of 2022 was 1234 tons, an increase of 34 percent over the same period last year, and 19 percent higher than its five-year average of 1039 tons. Wang Lixin, chief executive officer of the World Gold Council in China, said that the increase in gold demand in the first quarter of this year mainly came from gold ETF. Global gold ETF holdings increased by 269 tonnes in the first quarter, the highest quarterly net inflow since the third quarter of 2020.

Institutional viewpoint

Credit Suisse: downgrade$Hong Kong Exchanges and Clearing (00388.HK) $Target price to HK $352, rating neutral

According to a research report released by Credit Suisse, 00388.HK 's first-quarter results reflect the challenges facing its business, with net profit falling 31% year-on-year during the period, while total revenue fell 21% year-on-year due to falling trading volume and net investment income. Looking ahead, HKEx's trading-related income is likely to continue to fall in the second quarter, while net investment income may be curbed by market weakness, saying it may take time for business to recover, the bank said. The report lowered the forecast for the average daily trading volume of the HKEx from 2022 to 2024 to HK $132 billion, HK $145 billion and HK $162 billion, that is, the average daily turnover for the remaining three quarters of this year is expected to be HK $127 billion. Credit Suisse correspondingly lowered the HKEx's earnings per share from 2022 to 2024 by 6 per cent, 2 per cent and 2 per cent, and its target price was lowered from HK $383 to HK $352, maintaining a neutral rating. It is expected that the future catalysts include the expansion of interconnection, the clarity of the future prospects of China-listed stocks and the accelerated pace of return.

BoCom International: maintenance$Byd Company Limited (01211.HK) $Buy rating, target price of HK $382.11

BoCom International released a research report saying it maintained Byd Company Limited's (01211.HK) buy rating with a target price of HK $382.11. In the first quarter of this year, revenue and net profit surged 63 per cent and 240.6 per cent compared with the same period last year, with net profit of 808 million yuan, the median of initial performance. The bank expects the outlook for gross margins to remain optimistic as sales soar and retail prices rise, which is expected to improve profit margins in the second quarter, the report said. In addition, with a large number of new energy vehicles being replaced in the mid-market, BYD's sales are expected to grow faster than its peers, benefiting plug-in hybrid car companies.

UBS: downgrade$Great Wall Motor (02333.HK) $The target price is HK $16, and the valuation of the electric vehicle business falls.

UBS said in a research report that Changqi was in the process of transforming, cutting its earnings per share by 27 per cent, 21 per cent and 13 per cent respectively from 2022 to 2024, and the target price was sharply reduced from HK $39 to HK $16, mainly due to a decline in the valuation of its electric car business. this is partly because earnings testing has been cut in the current challenging environment. Changqi recently switched to the strategy of profit maximization. The average price of Q1 sales increased by 29% compared with the same period last year, and the net profit per vehicle increased by 19%. The bank thinks the strategy is reasonable, but it has led to the suspension of some electric car products, such as black and white cats, and the further development of high-emission internal combustion vehicles, which appears to be a slowdown in the transition to electric cars. However, after the share price has fallen 61% so far this year, the bank believes that the current valuation of Changqi completely undervalues the electric car plan. Due to low valuations, the buy rating is maintained, and portfolio upgrades and new product contributions are expected to drive the share price higher.

Goldman Sachs Group: the first$Nai Xue's tea (02150.HK) $Neutral rating, target price HK $5.50

Goldman Sachs Group published a research report that gave Naxue a neutral rating of 02150.HK for the first time, with a target price of HK $5.50, pointing out that the company ranked second in China's fast-growing and highly dispersed fresh tea beverage industry, with a market share of 2%. Mainly due to its product innovation, marketing, supply chain control and digital management, the industry is expected to achieve strong structural growth in the next few years. However, Goldman Sachs Group expects it to fail to turn around by 2023 and forecasts a net profit margin of 2 per cent and 4 per cent between 2023 and 2024. The bank pointed out that the company faces challenges such as low industry barriers, increased competition caused by a lack of consumer loyalty, and accelerated integration of mid-and high-end markets after the epidemic. Nai Xue's tea is planning to transition to a smaller, lower-cost business model. Goldman Sachs Group believes that it may be less attractive to consumers, but profit margins will increase.