The Zhitong Finance App learned that the general market weakened again, and the Hang Seng Index fell below the 19,000 mark for the first time this year. In early trading, the index opened low and then declined rapidly, leading to a one-sided market. In the afternoon, stock index fluctuations narrowed, and the decline continued mainly. The decline at the end of the session moderated slightly. During the day, the Hang Seng Index hit a low of 18,829 points, and the Hang Seng Index fell 4% for a while. At the close, the Hang Seng Index fell 2.65% or 517.88 points to 19000.71 points, with a full-day turnover of HK$129.439 billion; the Hang Seng State-owned Enterprises Index fell 2.21% to 6469.65 points; and the Hang Seng Technology Index fell 2.75% to 3870.27 points.

The impact of the Hang Seng Index position was: Baidu Group-SW (09888) contributed 1.21 points; on the downward side, HSBC Holdings (00005) lowered 94.18 points, AIA (01299) dropped 62.64 points, Alibaba-SW (09988) dropped 42.63 points, China Mobile (00941) lowered 23.92 points, and Tencent Holdings (00700) lowered 21.16 points.

Blue chip stock performance:

Pharmaceuticals, Chinese leading weights, the Internet, consumption, etc. led the decline, while the overall decline in Hong Kong-funded blue chips was limited. In the Hang Seng Tech Index, the internet fell sharply.

By the close, Baidu Group-SW (09888) rose 0.91% to HK$143.50; in terms of decline, HSBC Holdings (00005) fell 6.23% to HK$50.45; Hanson Pharmaceuticals (03692) fell 5.93% to HK$13.64; Budweiser Asia Pacific (01876) fell 4.67% to HK$22.45; China Mobile (00941) fell 3.56% to HK$63.60; Alibaba-SW (09988) fell 2.89.2% to HK$2.072% HKD.

On the 19th, Dongwu Securities commented that in the short term, the Hang Seng Technology Index was less affected by the recovery of the US economy and the short-term recovery of the Internet than expected, but the direction of its fundamental recovery is certain, and Internet companies as a whole will maintain qualitative development this year. If the Federal Reserve slows down expectations of interest rate hikes in the future, it will also bring greater flexibility to the Hang Seng Technology Index.

According to Tianfeng Securities's Hong Kong Stock Weekly Report this week, the current valuation level of Hong Kong stocks has not yet returned to the normalized range of history, and vertical and horizontal comparative advantages are obvious. We believe that the overall positive trend in the Hong Kong stock market in 2023 is obvious. The denominator liquidity environment is expected to gradually improve, and the risk-benefit ratio implied by valuations is considerable. The market's monetary policy is expected to be rapidly adjusted, and austerity trading has once again reverted to easy trading. On a full-year perspective, we expect the liquidity environment for Hong Kong stocks to improve.

The price of the HSBC Holdings (00005) AT1 bond fell during the 20th session. On the 19th local time, Swiss regulators announced that UBS will fully acquire Credit Suisse for 3 billion Swiss francs. The move will trigger the complete write-down of Credit Suisse's additional Tier 1 Capital (AT1) bonds worth around 16 billion Swiss francs ($17.3 billion) in nominal terms. This will be the biggest value write-off event in Europe's $275 billion AT1 market.

Guangfa Media's Kuangshi team recently commented that Baidu Group-SW (09888) Wen Xin's one-word search for ecological restructuring opportunities and industry-level opportunities in the 2B field brought new room for imagination. We adjusted our revenue forecast for 2023-24 to 133.8 billion yuan and 149.1 billion yuan, up 8% and 11% year-on-year. The adjusted net profit for 2023-24 is estimated to be 25.6 billion yuan and 30.1 billion yuan respectively. A reasonable value of HK$167 per share, maintaining the “buy” rating.

US stocks closed lower last Friday. The Dow Jones Industrial Average fell 1.19% to 31,861.98 points; the S&P 500 fell 1.10% to 3,916.64 points; and the Nasdaq fell 0.74% to 11,630.51 points. The S&P 500 rose slightly on the weekly line, while the NASDAQ and Dow indices both declined on a weekly basis.

Panel blocks and hotspots:

1. Annual Report Market: At the close, Fushouyuan (01448) rose 8.29% to HK$6.27; Greentown Management Holdings (09979) rose 2.98% to HK$7.25; on the other hand, Geli Pharmaceutical-B (01672) fell 7.46% to HK$2.73; Jiantao Laminate (01888) fell 6.53% to HK$9.59.

On the evening of the 17th, Fushouyuan announced its 2022 annual results. According to Morgan Stanley, due to the strong recovery trend since this year, the company's management raised this year's revenue growth guide from more than 20% to 30% to 35%. A target price of HK$10 was given, and the rating was “increase holdings”.

Southwest Securities commented that Greentown Management Holdings will maintain contrarian growth in 2022 on the basis of thorough research and judgment. The company's net profit for 2023-25 is estimated to be 93/1,16/1.36 billion yuan respectively. Maintain a “buy” rating.

On the morning of the 20th, Geli Pharmaceutical announced its 2022 annual results. Total revenue achieved during the period was about 54.09 million yuan, a decrease of 29.6% over the previous year; losses attributable to shareholders were 315 million yuan, an increase of 58.2% over the previous year. During this period, the company's R&D expenses were 267 million yuan, an increase of 25.2% over the previous year.

2. The market generally declined, and individual stocks in sectors such as gold, electric vehicles, and banks flourished. By the close, Zhaojin Mining (01818) rose 10.97% to HK$10.82; Xiaopeng Motor-W (09868) rose 1.64% to HK$34; and China CITIC Bank (00998) rose 1.08% to HK$3.75.

According to Huatai Futures, due to the impact of European and American bank risk events last week, market expectations that the Federal Reserve will slow down or even stop interest rate hikes increased dramatically. Precious metals clearly benefited from this process. Furthermore, future market uncertainties have also increased, so at present, precious metals still have a high allocation value.

On the evening of the 17th, the People's Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.25 percentage points (excluding financial institutions that have implemented a 5% reserve ratio). CITIC Securities commented that the downgrade has effectively relieved the pressure on some banks, while medium- to long-term financial stability still needs to return to the roots of commercialization. Overall, the sector is moving into an area where it can be actively configured.

3. In terms of decline, biotechnology, medical equipment and services, cloud services, food and beverage, shipping, and Hong Kong-funded banks led the decline. At the close, Cinda Biotech (01801) fell 9.11% to HK$37.9; Minimally Invasive Healthcare (00853) fell 7.17% to HK$19.54; Wave Digital Enterprise (00596) fell 9.24% to HK$4.52; Yihai International (01579) fell 4.49% to HK$20.2; Pacific Shipping (02343) fell 6.01% to HK$3.13; Standard Chartered Group (02888) fell 7.3% to HK$58.4.

Other popular moving stocks:

1. Innovation & Wisdom (02121) continued to strengthen, closing at HK$17.28, up 4.7%.

Recently, Innovation Qizhi signed a strategic cooperation agreement with Lanzhou Technology. The two sides will build a complete AI2.0 technology map and explore the commercialization of AIGC and other technologies in manufacturing and finance industries.

2. Zero Sports Auto (09863) went against the market and closed at HK$29.75, up 4.4%.

Recently, Huacheng Securities commented that Zero Run started a pure electricity+extended range dual power layout. CITIC Securities believes that the company is gradually entering the first echelon of new forces with its cost-effective models and unique ability to define products. It is promising to seize the market further by releasing models such as C01 and C11.

3. The small-cap stock Zhang Li International (01693) continued to rebound, closing at HK$0.084, up 18.3%, with a market capitalization of HK$151 million.

Zhang Li International mainly engages in construction services such as buildings, structures, and energy infrastructure in Malaysia. According to the company, the Malaysian economy will gradually recover and stabilize in the first half of 2023. The company will continue to work hard to find opportunities while exploring new businesses.

4. Allianz Leasing (01563) continued to adjust at a high level, closing at HK$5.18, down 68%.

Before the adjustment, from the beginning of December last year to the 14th of this month, Union Leasing's stock price increased by about 3.52 times. The company's Chinese stock abbreviation will be changed from “Allianz Leasing” to “Allianz International Education Leasing” so that the shares can be traded on the Stock Exchange, effective from 9:00 a.m. on March 22, 2022.