Source: Securities Times

Hong Kong stocks fluctuated in early trading on January 27. By midday, the Hang Seng Index was down 0.05 per cent at 22555.27, the Hang Seng Technology Index was up 0.22 per cent at 4774.04, and the Hang Seng China Enterprises Index was up 0.18 per cent at 7720.65.

Technology stocks perform well

Yesterday, the Hong Kong stock market closed high on the first trading day after the Spring Festival. after Hong Kong stocks opened high on the 27th, the share prices repeatedly jumped, with a half-day turnover of HK $54.382 billion, which was still active, and foreign investors gradually re-allocated Hong Kong stocks, bringing incremental capital to Hong Kong stocks.

On the market, the industry sector was mixed, film and television entertainment, auto parts and software sectors rose at the top, China Innovation Airlines rose 14%, Shang Tang rose more than 12%, and the real estate sector rose higher and lower. Country Garden Holdings once rose more than 7% in intraday trading and reached a new high in more than a month. Home appliances, car dealers, wind power plate fell at the top.

Specifically, Hong Kong stock technology leader Tencent continued to be strong, rising more than 2.4% in early trading on the 27th after recovering the HK $400 mark yesterday, reaching an intraday high of HK $416.6, an 11-month high, rebounding nearly 120% from the position of HK $188.6 in October last year.

Xiaomo pointed out that to maintain Tencent's "overweight" rating, Tencent's performance in the last quarter had a limited impact on the company's stock price in the near future, and maintained a positive view on the company's stock price outlook this year. After rising 28% so far this year, the stock price is expected to rise further, mainly due to multiple revaluation and a strong game product line that has led to a positive correction in earnings.

CITIC pointed out that under the influence of the epidemic, Tencent's income growth in the fourth quarter of 2022 is still under pressure, but looking forward to 2023, after the optimization of epidemic policies, with the acceleration of the commercialization of video numbers and the launch of new games one after another, the company's performance is expected to gradually resume growth. At the same time, reducing costs and increasing efficiency continue to advance, and the profit end is expected to be further improved.

In a report, Fu Rui pointed out that its analysis of ios game streams in the mainland showed that the annual trend in the run-up to the Lunar New year and the first few days of the holidays this year remained positive. Tencent's video account achieved satisfactory results in live broadcast at the CCTV Spring Festival Gala, with 190 million of users watching, up from 120 million last year. Tencent's "three-body" premiered on January 15 and has become the fastest hit series in his series.

In addition to Tencent's eye-catching performance, US-listed US-listed stocks strengthened last night, which led to a general rise in Hong Kong-listed Chinese stocks this morning. By the close of midday, Weibo Corp rose 10.68%, Zhihu Inc. rose 5.14%, Tencent Music rose 4.39%. Baidu, Inc., JD.com, Trip.com and so on rose.

Most organizations are optimistic about the follow-up trend of Weibo Corp. China International Capital Corporation pointed out that Weibo Corp's content ecosystem is conducive to the rapid dissemination of topic content and public discussion, and believes that differentiated content ecology is Weibo Corp's core advantage. Weibo Corp continues to produce hot content with the participation of media, enterprises, stars and so on on the platform.

Bank of China Securities pointed out that Weibo Corp's advertising demand recovery trend is synchronized with the macro-economy, Q4 e-commerce has greatly promoted a certain increase compared with the same period last year, and the World Cup event has promoted an increase in fast-consumer advertising, with expected revenue comparable to that during the Beijing Winter Olympic Games. It will take a long time for overall consumption to recover, and there is still pressure in the advertising market in the first half of 2023. The company will strengthen the effective advertising products.

With regard to the continued rebound of Chinese stocks returning to Hong Kong, Guolian Securities pointed out that the current macro environment is good for the Internet industry, mainly because the Fed's interest rate hike cycle is expected to come to an end, inflation is basically under control, and the focus of macro-control begins to shift to economic growth. at the same time, domestic regulation of the Internet sector is expected to return to normal.

Retail stocks rose generally.

During the Spring Festival holiday, domestic tourism, movies, retail and other items of consumption have recovered.

On January 27th, Trip.com released the 2023 Spring Festival Tourism Summary report. As the first Spring Festival since 2019, the tourism market has handed in its brightest report card in three years, according to the report. On Trip.com 's platform, travel orders at home and abroad reached a three-year peak during the Spring Festival, with an overall increase of four times compared with the Spring Festival in the year of the Tiger.

On the film side, Citi expects box office receipts during the Chinese Spring Festival to reach 6.5 billion to 6.7 billion yuan, up 7 to 11 percent from a year earlier, thanks to a large number of film distributions and the disappearance of the epidemic. Box office momentum is expected to continue after the festival, cinema operations will return to pre-pandemic levels, and more high-profile films, including Marvel films and high-quality domestic films, are being released.

In terms of consumption, duty-free shops on outlying islands of Hainan are very popular during the Spring Festival holiday. According to statistics provided by the Hainan Provincial Department of Commerce on January 26, the total sales of 12 duty-free shops on outlying islands in the province totaled 1.685 billion yuan in the first five days of this year's Spring Festival holiday (January 21-25), an increase of 20.03 percent over the five days before the Spring Festival in 2022 and 325 percent over the first five days of the Spring Festival in 2019. Among them, the total sales of six duty-free shops on outlying islands in Haikou were 470 million yuan, an increase of 140 percent over the five days before the Spring Festival in 2022 and 641 percent over the five days before the Spring Festival in 2019. The total sales of four duty-free shops in Sanya were 1.158 billion yuan, an increase of 253 percent over the first five days of the Spring Festival in 2019.

Retail stocks in Hong Kong rose on the 27th. By midday, Liufu Group rose 3.93% and Zhou Sang Sang rose 3.78%, followed by Chow Tai Fook Jewellery and Samsonite.

At one point, the 40 billion lithium faucet rose by over 16%.

In addition, some stocks also showed eye-catching performance in early trading on the 27th. China New Airlines opened high, rising more than 16% at one point, with a share price as high as HK $25.25, with a latest market capitalization of HK $44.13 billion. On the face of the news, according to HKEx filings, JPMorgan Chase & Co's H-share stake in China Chuangxin Airlines increased from 0.86 per cent to 7.62 per cent on January 18.

According to the latest data from the China Automotive Power Battery Industry Innovation Alliance, the cumulative installed capacity of Sinovel Airlines reached 19.24GWh in 2022, with a market share of 6.53%, ranking third. Tianfeng Securities pointed out that car companies subjectively introduced the second supply + production line to run, and the second-line battery factory entered a period of market share expansion. In November 2022, Sinovel announced the layout of an European industrial base in Portugal, taking the first step out to sea, which is expected to lay a solid foundation for further expanding market share in the future.

Edit / Viola