Evaluation of Hong Kong stocks

Rich Road Information July 22 | Hong Kong stocks opened slightly lower today and fell after concussion, the market trading heat was cold, and individual stocks generally fell. By the close, the Hang Seng Index was down 1.37% at 28371.26, while the index of state-owned enterprises was down 1.28% at 10770.31. The main board had a turnover of HK $67.75 billion throughout the day, almost the same as the previous trading day, and there was no significant change in turnover.

Source: Futu Securities

On the plate side, Hong Kong local property stocks led the decline, with Wharf Real Estate Investment down more than 3 per cent, Sun Hung Kai Properties 2.58 per cent, New World Development 2.25 per cent, Henderson Land Development and Sino Land Co. Ltd. nearly 2 per cent.

All the Hao gambling stocks fell.Galaxy Entertainment (00027.HK)、MGM China (2282.HK)Down 2.43% led the decline, while Sands China and Wynn Macau fell nearly 2%. According to the latest research released by Lyon, gaming companies are expected to maintain sluggish profits in the second quarter due to weak gaming revenue in the second quarter. Overall EBITDA is expected to rise 2% year-on-year, while VIP lounge revenue will fall 11% year-on-year, but overall valuations are still attractive.

Building materials cement stocks all fell.Western cement (2233.HK)The decline was led by nearly 3 per cent, while China National Building Material and Jinyu Group fell more than 2 per cent. Shanshui cement, China Resources cement, Asian cement and so on fell one after another. It is reported that since June, national cement prices have declined month-on-month for seven consecutive weeks. According to the latest statistics, the price of cement in the national market fell 0.3% month-on-month last week; last week, the cement storage capacity ratio was 62.81, a slight decline from the previous week.

Individual stocksFancy year Holdings (1777.HK)The afternoon gain expanded to HK $1.40, up 6.06% against the market, with a full-day turnover of HK $24.4898 million and a total market capitalization of HK $8.072 billion. Fitch, an international credit rating agency, recently announced that it will give long-term foreign currency issuers a default rating (IDR) of "B +" and a "stable" outlook.

National Pharmaceutical Technology Co., Ltd. (08156.HK)Recent upward trend, after the last trading day rose nearly 18%, today continued to rise against the trend, two days of soaring once reached nearly 30%. It closed at HK $0.37, up 1.37%. The whole-day turnover was HK $18.53 million, with a total market capitalization of HK $1.52 billion.

Hong Kong Stock Exchange (0388.HK)It is now quoted at 266.6 Hong Kong dollars, down 2.49%. The daily turnover is 1.647 billion Hong Kong dollars, and the latest total market capitalization is 335.4 billion Hong Kong dollars. It is reported that the Hong Kong stock exchange will release results on August 14. Goldman Sachs is expected to earn HK $1.9 per share in the second quarter, which is 5% lower than that of its peers in the market, and said that the transaction of Hong Kong shares will disappoint the market.

Among the constituent stocks of the Hang Seng Index, Wharf Real Estate Investment led the decline; among the constituent stocks of the national index, Haitong led the decline.

Market sentiment

Hong Kong Stock Connect, today's Hong Kong Stock Connect (southbound) net inflow of more than 1.3 billion yuan, slightly higher than the previous trading day, market sentiment picked up slightly.

Source: Futu Securities

Message surface

From a macro point of view, the central bank launched a reverse repurchase operation of 50 billion yuan today and achieved a net investment of 50 billion yuan on the same day because there was no reverse repurchase due today.

Huang Hongyuan, chairman of the Shanghai Stock Exchange: Science and Technology Innovation Board builds a bridge between science and technology and capital, truly implements the registration system with information disclosure as the core, and plays an experimental role in reform. to accumulate experience in building a standardized, transparent, open, dynamic and resilient capital market.

In the mobile phone sector, Jibang Consulting said that when mobile 3D sensing enters the market growth period in 2019, the output value of VCSEL is expected to reach 1.139 billion US dollars. It is estimated that nearly 10 high-end phones will adopt 3D sensing solution by 2020, and some models will be expanded to use both front and rear lenses.

In the cloud computing sector, the Internet Information Office said that recently, the National Development and Reform Commission, the Ministry of Industry and Information Technology and the Ministry of Finance issued a notice on the "measures for Security Assessment of Cloud Computing Services".

In the wind power sector, China's total installed capacity of offshore wind power in 2018 is 4.45 million kilowatts, and 6.47 million kilowatts are under construction. China has become the third largest offshore wind power country in the world after Britain and Germany. Experts said that the development of offshore wind power will become an important strategic support for the transformation of China's energy structure.

Securities firm's point of view:

Bank of America Merrill Lynch: Fed Williams "inadvertently misled the market", causing a collapse in communication, but on the plus side has convinced our analysts that the Fed is expected to cut interest rates by 25 basis points. The Fed is expected to be uneasy about the market's 50 basis point interest rate cut and hopes to push the market back to its 25 basis point benchmark.

Goldman Sachs Group: tensions between Japan and South Korea are less likely to develop into global trade tensions, and the impact of tighter export regulation in Japan may be temporary. In the basic scenario where delisting may cause short-term supply disruptions, we believe that South Korea's expectation of 2.1 per cent real GDP growth in 2019 is not at risk of a significant downside, but growth is likely to fluctuate significantly in the third to fourth quarters.

Market comment

Affected by external instability, the Hang Seng Index fluctuated lower after opening low today and widened its decline in the afternoon, with only four stocks floating red, while the sector also generally fell. At present, the accumulated risk in the market is strengthening, and if there is no big good news stimulation in the coming period of time, the Hang Seng Index does not rule out the possibility of a deeper adjustment.