Fortune News, July 4 | the three major indexes of Hong Kong stocks are mixed. The Hang Seng Index closed down 0.13%, the Hang Seng Technology Index closed up 0.28%, and the State-owned Enterprises Index closed down 0.25%.

By the end of the day, Hong Kong stocks were up 684, down 1218, to close flat.

The specific industry performance is shown below:

On the plate side, large-scale technology stocks rise and fall differently.Bilibili Inc. rose by more than 6%, Meituan and JD.com by nearly 4%, Shangtang by more than 18% and Tencent by more than 2%.

The medical sector rose strongly.HUTCHMED (China) Limited rose by more than 23%, minimally invasive robots by nearly 19%, Rongchang Bio and Kangfang Bio by about 15%, Shanghai Fosun Pharmaceutical and INNOVENT BIO by about 9%.

Building materials stocks strengthenChina National Building Material rose more than 4 per cent, Anhui Conch Cement nearly 3 per cent and China Resources cement more than 2 per cent.

The power plate rose.Xinte Energy rose nearly 9%, China Resources Power Holdings rose more than 4%, and Huaneng International Power rose more than 3%.

Property management stocks fell.Sunac Services fell by more than 12%, Country Garden Services Holdings, Xuhui Yongsheng and Jinke Service fell by more than 4%.

The non-ferrous metal plate generally fell.Ganfeng Lithium and Zijin Mining Group fell by more than 3%, while China Molybdenum and China Hongqiao followed suit.

Catering stocks,Beer stocks fell collectively.Helen fell by more than 6%, 99 cents by nearly 5%, China Resources Beer by more than 3%, Tsing Tao Beer by more than 2% and Budweiser Brewing Company APAC Limited by more than 1%.

Individual stocks$Meituan-W (03690.HK) $Increase by more than 3%。From an institutional point of view, Morgan Stanley issued a report saying that JD.com 's entry into the takeout business poses a limited threat to Meituan because Meituan has a strong competitive advantage in local services. The bank reiterated Meituan as its preferred Internet stock in China, reiterated its investment rating and target price of HK $240. due to its reopening into a short-term catalyst and the underestimated long-term potential of its in-store and innovative business, the bank continues to be bullish on Meituan's long-term prospects and expects a market capitalization of US $350 billion over the next three years.

$INNOVENT BIO (01801.HK) $It's up more than 8%.On the news, INNOVENT BIO announced that the State Drug Administration (NMPA) has formally approved the application for new indications for first-line treatment of unresectable locally advanced, recurrent or metastatic gastric and gastroesophageal junction adenocarcinoma (sNDA) with innovative drug PD-1 inhibitor Dabeshu (Xindelizumab injection) combined with fluorouracil and platinum-containing chemotherapy.

$Gao Wei Electronics (01415.HK) $AfternoonContinue the upward trend as of the close.It's up more than 8%.Gao Wei Electronics has risen more than 50% since the end of June, with its total market capitalization approaching the HK $10 billion mark. It is reported that the front camera of iPhone14 will be upgraded to AF (currently with fixed focal length), and the selfie and image performance will be significantly improved. It also includes adding VCM and upgrading to 6p lenses (currently 5p). Guo Mingyi, a well-known Apple Inc analyst, said that Gao Wei Electronics will be one of the winners of this upgrade, benefiting from the vertical integration of CCM and VCM.

$minimally invasive robot-B (02252.HK) $Up nearly 19%.The agency pointed out that with the approval of surgical robots such as Tumai endoscope and swan orthopaedics, the process of commercialization and production of minimally invasive robot-B is also on the way. Citic Construction Investment said it expects the Tumai II mirror robot to be approved in the first quarter of 2023, and the swan orthopaedic surgery robot is expected to be licensed by FDA this year. The company is expected to maintain a "buy" rating with revenues of 0.86,5.12 and 1.279 billion yuan from 2022 to 2024.

$Kangfang Bio-B (09926.HK) $Up nearly 15%.UBS released a research report saying that it maintained Kang's B "buy" rating, with the target price rising from HK $26.68 to HK $29.1. The company announced that the application for the marketing of the independently developed PD-1/CTLA-4 bispecific antibody tumor immunotherapy drug cetanil (caduniumab injection) has been approved for the treatment of patients with recurrent or metastatic cervical cancer who have previously failed to receive platinum-containing chemotherapy.

$Shang Tang-W (00020.HK) $It was down more than 18% in the afternoon.On the news side, the company's management promised to extend the lock-up period for six months, down more than 46% in the last trading day.

Hong Kong stock exchange fund

As for Hong Kong Stock Connect, there was a net inflow of HK $1.21 billion from Hong Kong Stock Connect (southbound) today.

Today's turnover of Hong Kong shares TOP20

Message surface

The return path of China-listed stocks is abrupt, and the "dual major listing" has gradually become the mainstream.

According to the Shanghai Stock Exchange News, in mid-2022, this round of return of Chinese stocks has lasted for nearly four years, but there are still more and more enterprises are speeding up the pace, hoping to return home as soon as possible. According to the disclosed timetable, at least four US-listed stocks will return to the Hong Kong stock market in July. Wealth management service provider Noah Holdings and well-known retailer MINISO Group both launched their initial public offerings on June 30 and are expected to go public on July 13. Prior to this, OneConnect Financial Technology and Tuya Inc. announced that they would enter the Hong Kong stock market on July 4 and July 5 respectively. China International Capital Corporation predicts that in the context of an increasingly complex external environment, the HKEx will broaden the acceptance of dual major listings, and in the future, more and more overseas issuers will choose to return to Hong Kong stocks in the form of dual major listings. at the same time, existing or have applied for secondary listing companies may apply for major listing status in Hong Kong stocks.

The people's Bank of China and the Hong Kong Monetary Authority sign a standing swap agreement and expand its scale

Recently, the people's Bank of China and the Hong Kong Monetary Authority signed a standing swap agreement, upgrading the currency swap arrangement established by the two sides since 2009 to a standing swap arrangement. The agreement is valid for a long time. The swap scale has been expanded from 500 billion RMB / 590 billion Hong Kong dollars to 800 billion RMB / 940 billion Hong Kong dollars, so as to further deepen financial cooperation between the mainland and Hong Kong and better support the construction of Hong Kong's international financial center. To promote the steady development of the offshore RMB market in Hong Kong.

The people's Bank of China: at the initial stage of the "interchange", the "northbound link" will be opened, and the timely research will be extended to the "southbound link" in the future.

The people's Bank of China, the Hong Kong Securities Regulatory Commission and the Hong Kong Monetary Authority jointly announced that "swap" refers to the institutional arrangements for domestic and foreign investors to participate in the two financial derivatives markets through the connection between Hong Kong and mainland infrastructure institutions. At the initial stage, the "northbound Link" was launched, that is, foreign investors in Hong Kong and other countries and regions (referred to as foreign investors) through the mechanism arrangements for interconnection between Hong Kong and mainland infrastructure institutions in terms of transaction, clearing, settlement, etc., participate in the mainland interbank financial derivatives market. In the future, timely research will be extended to the "Nanxiang Link", that is, domestic investors will participate in Hong Kong's financial derivatives market through the interconnection mechanism between the infrastructure institutions of the two places.

Ms Leung Fung-Yee of the Hong Kong Securities Regulatory Commission: make preparations for the swap and strive for landing by the end of this year

According to the Shanghai Stock Exchange News, at the "2022 Annual Bond Exchange Forum and Exchange launch ceremony", Leung Fung-Yee, acting Chief Executive Officer of the Hong Kong Securities and Futures Commission, said that from stock market interconnection to bond connectivity, and then to the announcement of the landing of the interest rate swap market interconnection, the interconnection of the financial markets of the two places has continued to move forward. The SFC will make preparations for the swap and strive to land by the end of this year, making the Hong Kong market the preferred risk management center for international investors to hedge against risks in the mainland market.

HKEx: the eligible ETF included in the Shanghai-Shenzhen-Hong Kong Stock Connect in the initial stage will be limited to stock ETF.

On July 4th, Hong Kong Exchanges and Clearing's office of chief China economist released the latest research report. It is mentioned that eligible ETF has been included in the Shanghai-Shenzhen-Hong Kong Stock Connect since 4 July 2022, which will give global and mainland investors the opportunity to explore more different types of ETF in the mainland and Hong Kong markets. as a result, the investor base of the two markets will be expanded, thereby promoting liquidity supply and price discovery in their respective markets. In the initial stage, the eligible ETF to be included in the Shanghai-Shenzhen-Hong Kong Stock Connect will be limited to stock ETF. Looking ahead, the inclusion of ETF in the Shanghai-Shenzhen-Hong Kong Stock Connect will provide global and mainland investors with diversified asset allocation and investment opportunities in the long run.

Institutional viewpoint

Goldman Sachs Group: more foreign capital will flow into the Chinese market through ETF interconnection

Ma Zhiping, head of the Greater China Equity Business of Goldman Sachs Group's Global Markets Department, said that on the first day of the transaction, the institution was concerned about the positive feedback from foreign institutional investors. Goldman Sachs Group's trading team has completed a number of ETF transactions under the interconnection mechanism. As a financial institution that can support foreign institutions to invest under the QFII and all connectivity mechanisms, Goldman Sachs Group expects that more foreign capital will flow into China's financial market through the ETF connectivity mechanism in the future.

China Merchants International: Hong Kong stocks are expected to rise in the second half of the year, with the Hang Seng Index rising as high as 25000.

China Merchants International published a strategy report on Hong Kong stocks for the second half of the year, pointing out that the Hang Seng Index and the MSCI China Index are close to the historical median level of the past three years, believing that Hong Kong stocks are expected to rise in the second half of 2022, and the Hang Seng Index is expected to operate in the range of 21,000 to 25000 (corresponding to the forecast price-to-earnings ratio of 10.5 to 12.5 times). The industry is mainly optimistic: the first is the pro-cyclical sectors related to economic recovery, such as energy, metals and transportation; the second is offline consumption such as catering, tourism and automobiles; the third is some real estate and new economic targets where policy headwinds have gradually slowed down, valuations have been substantially adjusted and fundamentals are stable.

Bank of America Securities: Macau's gambling revenue is expected to be 2.8 billion patacas in July, continuing to be bullish on gambling stocks.

BofA Securities released a research report, pointing out that Macau's gaming revenue in June fell 62% year-on-year and 26% month-on-month, the lowest since September 2020, but in line with the bank's expectations of 2.3 billion to 2.7 billion patacas and slightly higher than market expectations. BofA Securities pointed out that although the recent epidemic in Macau has affected the recovery of gaming revenue, it is still optimistic about Macau gambling stocks and believes that valuations are attractive. According to past experience, once the situation improves, it is believed that the industry will rebound quickly. At the same time, it is expected that the re-tendering process for betting licences will end in the third quarter, and it is estimated that all six gaming operators will be able to obtain new betting licences.

Dama: to reiterate$Meituan-W (03690.HK) $The preferred stock for the Internet, with a target price of HK $240

Morgan Stanley said in a report that JD.com-SW (9618.HK) 's entry into the takeout business poses a limited threat to Meituan-W because Meituan has a strong competitive advantage in local services. The bank continues to be bullish on Meituan as a beneficiary of the reopening of social distance in the mainland, saying that its cost optimization is under way and its long-term investment prospects are consolidated. The bank reiterated Meituan as its preferred Internet stock in China, reiterated its "overweight" investment rating and target price of HK $240. due to the short-term catalyst for reopening and the underestimated long-term potential of in-store and innovative business, the bank continues to be bullish on Meituan's long-term outlook, forecasting a market capitalization of US $350 billion (HK $450 per share) over the next three years.

Bank of America Securities: maintain$Byd Company Limited (01211.HK) $Buy rating with a target price of HK $375

According to a research report released by BofA Securities, BYD's car sales in the first half of the year reached 646000, an annual increase of 162%, reaching 42% of the bank's annual sales forecast. the significant growth was mainly due to the successful launch of new products this year, a low base in June 2021, and a recovery in car sales after the city blockade was relaxed. The bank maintains BYD's "buy" rating, is bullish on growth in electric vehicle sales, as well as improved product mix and wider use of lithium iron phosphate batteries, and expects profit margin prospects to improve, with a target price of HK $375.

Big Motors: a big increase$Kangfang Bio-B (09926.HK) $The target price is HK $30 and the rating is increased

Morgan Stanley issued a report saying that Kang Fang Bio-B's new drug Katanni was approved by the China Drug Administration to be listed earlier than the market expected in the third quarter and faster than the final negotiation deadline of the China Drug Administration. According to management guidelines, sales of the new drug are expected to reach 1 billion yuan in the first 12 months after the launch, while the bank expects sales of 478 million yuan this year and 1.5 billion yuan next year, including 300 million yuan of off-label sales. Morgan Stanley raised the target price of Kangfang by 50%, from HK $20 to HK $30, maintaining its rating as "overweight".