Futu Information on November 17 | the afternoon decline of Hong Kong stocks narrowed significantly. The Hang Seng Index rose in late trading and finally closed down 1.15%. 18000 points were recovered. The Hang Seng Technology Index fell 2.2%. At one point, it fell more than 5% in intraday trading.

As of the close, Hong Kong stocks rose 664, fell 1128, and closed flat at 1147.

The specific industry performance is shown below:

Plate aspectLarge-scale technology stocks generally fell, Meituan fell nearly 6%, Baidu, Inc. fell nearly 4%, Tencent and BABA fell slightly, Kuaishou Technology rose more than 1% against the market.

Mobile games stocks were in the doldrums throughout the day, but their losses narrowed in the afternoon, with heartbeat companies falling more than 10 per cent, NetEase, Inc down more than 9 per cent and middle-hand swimming down nearly 6 per cent.

Auto stocks generally fell, XPeng Inc. fell nearly 8%, ideal, NIO Inc. fell more than 5%, and retail sales in the passenger car market fell 12% in the second week of November compared with the same period last year.

Early strong Internet medical stocks generally fell back, Alibaba Health Information Technology, JD Health fell about 4%, Ping An Healthcare And Technology fell nearly 3%.

Inner housing stocks, property management stocks warmed up after noon, Country Garden Holdings, Agile Group rose about 3%, Country Garden Services Holdings rose more than 4%.

Some education stocks rose against the market, oriental education and hope education rose by more than 4%, and five departments, including the Ministry of Education, issued articles to strengthen the infrastructure construction of vocational schools.

In other respects, coal stocks, power stocks, domestic bank stocks, oil stocks fell generally. Software stocks and telecommunications stocks rose significantly in the afternoon.

Individual stocks，$TENCENT (00700.HK)$It closed down 0.82% at HK $292. According to people familiar with the matter, Tencent, Perfect World, Bilibili Inc. and other game companies have become potential interested parties of Blizzard.

$BABA-SW (09988.HK)$After closing down 0.7%, the company will announce its results today, according to Bloomberg's consensus estimate.BABA is expected to achieve revenue of 209.244 billion yuan from Q2 in 2023; adjusted net profit of 29.289 billion yuan; and adjusted earnings per share of 11.225 yuan.

NetEase, Inc-S (09999.HK) $fell more than 9%, Blizzard China and NetEase, Inc stopped cooperation, NetEase, Inc's latest response, it is a great pity that Activision Blizzard announced to stop cooperation and will serve players until the last minute.

Meituan-W (03690.HK) $fell nearly 6%. In the short term, the share price of Meituan was negatively affected by the physical distribution incident of Tencent, but at the same time eliminated the uncertainties worried by the market, and the market reaction is expected to be better than expected.

$SENSETIME-W (00020.HK)$Up more than 5% led the rise in meta-universe concept stocks, and the 2022 annual meeting of the meta-universe industry conference will be held in Kunshan from December 10 to 11.

$CANSINOBIO-B (06185.HK)$Up by more than 4%, the company cooperated with Indonesia's Etana strategy to accelerate the research and development of inhaled COVID-19 vaccine and tuberculosis vaccine technology.

$CHINA YOUZAN (08083.HK)$It has risen nearly 17%, the share price has nearly doubled during the week, and the operating efficiency has improved significantly in the first three quarters.

Today's turnover of Hong Kong shares TOP20

Institutional viewpoint

• Nomura:$TENCENT (00700.HK)$Quarterly results are expected to maintain the target price of HK $420

Nomura reported that Tencent's income in the third quarter was in line with expectations, its earnings were also strong, and its overall performance in the last quarter was in line with expectations, maintaining the target price of HK $420 and its "buy" rating unchanged. The bank estimates that Tencent's stake in Meituan will fall from 17 per cent to 2 per cent after the in-kind dividend of Meituan. Calculated at the closing price of the above day, the relevant dividend yield is 5.5%. Nomura believes the dividend will help stimulate Tencent's market sentiment. The bank also pointed out that it was surprised that Meituan became the first company on Tencent's list of sales, because Meituan has a strong synergy effect on Tencent's mobile Internet ecosystem, and at the same time, the two sides do not seem to have any overlapping services. it may trigger potential competition between Tencent and other investment companies. Therefore, with the recent divestment of Tencent, pay attention to whether business synergy is still a priority. The stock is now trading at HK $293.4, with a total market capitalization of HK $2.8219 trillion.

• Big motorcycle: material$Meituan-W (03690.HK)$The stock price is short-term discounted by Tencent, which can be seen as a buying opportunity for investors.

Morgan Stanley said in a report that Tencent's physical allocation of shares held by Meituan is expected to dilute Meituan's short-term market sentiment, but at the same time dispel the uncertainties worried by the market. From Tencent's previous experience in allocating JD.com-SW shares, the market reaction will be better than expected. The bank pointed out that from Tencent's past experience in dispatching JD.com, there are some similarities with Tencent's allocation of shares held by Meituan this time, and the distribution of reduced shares may put pressure on Meituan's short-term share price, but it is expected that compared with JD.com 's situation, the impact will be milder. The bank believes that Meituan's long-term fundamentals are unlikely to change and that the company's growth in 2023 will be supported by the mainland's adjustment of epidemic prevention restrictions. The bank maintains its "overweight" rating on Meituan and its target price of HK $180.

• Goldman Sachs Group: reiterate$HKEX (00388.HK)$"Buy" rating, target price raised to HK $420

Goldman Sachs Group issued a research report, reiterating HKEx's "buy" rating, raising its earnings per share forecast for the 2022-25 fiscal year by 7 per cent, raising the target price from HK $390 to HK $420 and adding it to the "convinced buy" list. The bank believes that cash stock trading activity on the HKEx bottomed out last quarter, with an average daily turnover of about $98 billion. By contrast, it is about 120 billion yuan so far in the fourth quarter, and it is expected to reach about 140 billion yuan in fiscal year 2023, thanks to better investment sentiment, ADR return, structural increase in "north water" and the expansion of the product platform.

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