Hong Kong Quick Watch

Futu Information on May 20 | Hong Kong stocks were strong throughout the day, with the Hang Seng Index up 2.96%, the State-owned Enterprises Index up 3.22%, and the Hang Seng Technology Index up 4.74%. The three major indexes continued to rise this week, with the Hang Seng Index up 4.11%, the National Index up 4.62% and the Science and Technology Index up 4.74%.

As of the close, Hong Kong stocks rose 1377, fell 533, and closed flat at 960.

In terms of the plate, the component stocks of the science and technology index rose generally.Bilibili Inc. rose 7%, JD.com 6%, BABA nearly 6%, XIAOMI more than 5%, Meituan more than 4%, Tencent more than 3%.

The big financial plate is strong.China Merchants Bank rose by over 7%, AIA Group Limited by 4%, Postal Savings Bank of China by more than 3%, Ping An Insurance by 3% and China Construction Bank Corporation by more than 2%.

Auto stocks continue to riseNIO Inc. rose by more than 9%, XPeng Inc. by more than 6%, Byd Company Limited by more than 3%, and Geely Automobile by nearly 2%.

Tobacco concept stocks maintain their rising trendSmoore International Holdings Limited rose by more than 8%, Huabao International by more than 7% and BYD Electronic by more than 4%. On the face of the news, the national "e-cigarette retail license" was officially released.

Oil stocks are improving.CNOOC and Petrochina Company Limited rose more than 2 per cent, while China Petroleum & Chemical Corp rose nearly 2 per cent.

Strengthening of non-ferrous metal plateAluminum Corporation Of China Ltd rose 7%, China Hongqiao rose more than 5%, China Nonferrous Mining rose more than 4%, Ganfeng Lithium rose 1%.

Gold concept stocks rose sharplyZijin Mining Group rose by more than 4%, Zhaojin Mining by nearly 3% and Shandong Gold Mining by more than 1%. On the face of the news, the successive weakness of the US dollar pushed up the price of gold.

Pharmaceutical stocks continue to rise.CANSINOBIO is up nearly 10%, Wuxi Biologics is up nearly 8%, Tigermed is up over 7%, and Wuxi Apptec is up nearly 6%.

Most beer stocks rose.Budweiser Brewing Company APAC Limited rose by more than 4%, China Resources Beer by more than 3%, and Tsingtao Brewery by more than 2%.

In addition,Most industry sectors recorded gains.

Individual stocks$JD.com Group-SW (09618.HK) $It's up more than 6%. The company announced that the "618 Shopping Festival" will begin at 8 p.m. on May 23 and end on June 20.

$Sunny Optical Technology (02382.HK) $Up more than 7%. On the news side, Apple Inc MR device will be unveiled soon, and iPhone 14 will upgrade the lens.

$JD Health (06618.HK) $Up nearly 5%. The quarterly inspection of the Hang Seng Index is just around the corner, and the market is looking forward to the inclusion of company stocks in the Hang Seng Index.

$Development Pharmaceutical Industry-B (09939.HK) $It has increased by more than 5%, and has increased by nearly 30% in the past six days. On the news side, the market continues to pay attention to the progress of the approval of Puclosamide.

$Smoore International Holdings Limited (06969.HK) $The increase widened in the afternoon, closing up more than 8%. On the face of the news, the national "e-cigarette retail license" was officially released, announcing the layout of e-cigarette retail outlets in many places.

$China Gas (00384.HK) $It closed up 6%. China Golden Index is expected to be promoted to Hang Seng Index blue chip.

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $223 million from Hong Kong Stock Connect (southbound) today.

Today's turnover of Hong Kong shares TOP20

Message surface

• LPR quotation released in May: unchanged for 1 year and reduced by 15 basis points for 5 years

On May 20, the people's Bank of China authorized the National Interbank lending Center to announce that the quoted interest rate (LPR) for the latest phase of the loan market is:The 1-year LPR is 3.7% and the LPR for more than 5 years is 4.45%.. More than 5-year-old LPR is related to housing loans, so it has attracted a lot of attention. According to the estimates of industry experts, after this adjustment, according to 500000 yuan, a term of 30 years, the same amount of principal and interest repayment, the average monthly payment expenditure can be reduced by about 45 yuan, and the interest expenditure will be reduced by about 16000 yuan in the next 30 years.

• Ministry of Commerce: China's cross-border e-commerce imports and exports have increased nearly tenfold in the past five years.
  

In recent years, with the progress of Internet technology and the development of the digital economy, major changes have taken place in international trade, said Sheng Qiuping, vice minister of commerce, at a series of news conferences on the theme of "China's decade" held today (20th). Cross-border e-commerce has developed rapidly from scratch. Since 2015, the State Council has approved the establishment of 132 cross-border e-commerce comprehensive test zones in six batches, covering 30 provinces, autonomous regions and cities across the country. In 2018, China innovated and introduced a regulatory policy on the import of cross-border e-commerce retail, and gradually expanded the scope of the pilot to 31 provinces, autonomous regions and cities. According to customs statistics, China's cross-border e-commerce imports and exports have increased nearly tenfold in the past five years, reaching 1.92 trillion last year, an increase of 18.6 per cent.

• The State Office: promote the consistent evaluation of the quality and efficacy of generic drugs, and improve the supporting measures related to the three-child policy.

The General Office of the State Council issued the National Health Plan of the 14th five-year Plan. The plan proposes to improve the national drug standard system and promote the consistent evaluation of the quality and efficacy of generic drugs. To establish a quality and efficacy evaluation system in line with the characteristics of traditional Chinese medicine. We will build a quality management mechanism for the whole life cycle of drugs and vaccines, promote the construction of an information traceability system, and achieve traceability and traceability of key categories. We will steadily implement the unique identification system for medical devices. The plan proposes to implement the three-child policy and improve relevant supporting measures. We will continue to do a good job in ensuring maternity medical expenses and maternity allowances for insured female workers, do a good job in ensuring reproductive medical expenses for medical insurance participants of urban and rural residents, and reduce the burden of reproductive medical expenses. Do a good job in fertility consultation and guidance services.

• Package of 11 major transportation projects in the 14th five-year Plan announced

The package of 11 major transportation projects that China has focused on promoting during the 14th five-year Plan period was announced. According to reports, Major projects include the National Highway Corridor connection Project, the Border and Coastal Highway Construction Project, the Highway access Project from Xinjiang to Tibet, the "four good Rural Road" Rural Revitalization Project, Canal connection Project, Golden Waterway capacity expansion Project, Coastal Port upgrading Project, Modern Comprehensive Transportation "Trinity" Hub Project, "Beidou pilot" Project, New Transportation Infrastructure Enablement Project, Green low-carbon transportation sustainable development project and so on. (first Finance)

Institutional viewpoint

• China Merchants: maintain$JD.com Group-SW (09618.HK) $"push" rating, proprietary supply chain highlights resilience

China Merchants reported that to maintain the JD.com Group-SW "highly recommended" rating, is still optimistic about the company's development in the long run, the proprietary model creates solid barriers and steady growth capacity for it, and its short-term performance is more robust than that of its peers, with long-term growth. The company's revenue grew steadily in the first quarter, the adjusted net profit greatly exceeded expectations, the resilience of the supply chain, the improvement of operating efficiency and the strategic adjustment of new business resulted in better-than-expected overall operating performance.

• Big Motors:$Meituan-W (03690.HK) $Continue to expand the service matrix, preferably to achieve a balance of payments by 2024.

Morgan Stanley reported that Meituan is China's leading online food distribution and local service platform. Under the "retail + technology" corporate strategy, the company has been expanding the product and service matrix and improving service quality. In terms of new business, the bank estimates that Meituan, a subsidiary of the company, will break even by 2024. It is estimated that the total merchandise trading volume (GMV) will reach 350 million to 400 million yuan by 2025, with a gross profit margin of 1% for total trading volume (GTV) and 2% for long-term GTV. It is estimated that Meituan's flash purchases will reach break even by 2023, with an average daily order value of 10 million and an average order value (AOV) of more than 100 yuan by 2025. It is estimated that Meituan's grocery shopping will break even in 2025, and the fast donkey purchase business will break even from 2024 to 2025.

• BoCom International: downgrade$XIAOMI Group-W (01810.HK) $Rating to "neutral" and lowering the bid price to HK $12.1

BoCom International Research report pointed out that XIAOMI's first-quarter performance was far lower than market expectations. Due to the high uncertainty in the company's main business and capital markets in 2022, the bank lowered its 2022-24 net profit forecast by 60.6%, 50.4% and 50.3%, lowered its target price by 50.8% from HK $24.6 to HK $12.1, and downgraded its rating from "buy" to "neutral". According to the report, mobile phone business revenue is expected to decline 20.3% for the whole year; IoT business growth is expected to slow to 3% in 2022, but growth in 23-24 is expected to return to double digits; Internet revenue is expected to decline 7.6% year on year; advertising and game business is expected to rise 12%, and related business is expected to pick up in 23 years.

• Xiao Mo:$China Merchants Bank (03968.HK) $The market is expected to react positively to the announcement of the new president.

JPMorgan Chase & Co said in a report that China Merchants Bank announced the appointment of Wang Liang as president and believed that his appointment had been approved by all internal authorities, but was still waiting for regulatory approval. The bank said that due to the faster-than-expected progress in appointing a new president, China Merchants Bank's share price was expected to react positively, maintaining a "overweight" rating on the bank's shares and a target price of HK $85. The bank said it remained confident that China Merchants Bank would be able to deliver steady earnings growth and expected it to receive a more significant revaluation of the market when it reported second-quarter results in August to 1.5 times this year's forecast price-to-book ratio.

• Big Motors: downgrade$Hong Kong Exchanges and Clearing (00388.HK) $Earnings per share forecast, down to HK $340

Morgan Stanley reported that due to geopolitical uncertainties, rising interest rates and regulatory reset, it was decided to lower the overall daily average trading forecast for Hong Kong stocks (ADV). The latest forecast for overall daily trading of Hong Kong stocks from 2022 to 2024 is HK $131 billion (down 21% year-on-year), HK $138 billion (up 5% year-on-year) and HK $162 billion (up 17% year-on-year). The bank said it reiterated its "synchronized with the market" rating on the HKEx and lowered its target price to HK $340. The bank cut its average market capitalization forecast for Hong Kong stocks by 10 per cent this year to reflect the market's lower valuation forecasts for related indices and the lack of new share listings. It also lowered HKEx's earnings per share forecasts for 2022 to 2024 by 18 per cent, 20 per cent and 19 per cent respectively.

• Macquarie: American consumers are resuming travel and outdoor activities, buying$Samsonite (01910.HK) $、$Oshudan (00973.HK) $及$WH Group Limited (00288.HK) $

Macquarie reported that US consumers are returning to travel and outdoor activities, believing that Samsonite (1910.HK) will benefit most, as 40 per cent of its income portfolio comes from North America, and the increase in business travel will have a positive impact, with a target price of HK $29 and a rating of "outperforming the market". The bank pointed out that this situation will boost O'Shudan 's business, with a target price of HK $38.1 and a rating of "outperforming the market". WH Group Limited's US business is 30 per cent involved in catering and can benefit from increased social gatherings, with a target price of HK $10.28. the rating "outperformed the market".