Hong Kong stocks continued to fluctuate downward in January. By the close of January 30, the Hang Seng Index had fallen 7.88% throughout the month, falling below the 16,000 point mark; the Stock Index had a cumulative decline of 17.68% to close at 3098.87 points; and the China Index had dropped 8.55% to close at 5275.37 points.
Looking ahead to 2024, most institutions believe that Hong Kong stocks are expected to break out of the extremely undervalued market. Liu Jinjin, chief Chinese stock strategy analyst at Goldman Sachs, said that the mainland and Hong Kong stock market valuations have almost fallen to new lows after the financial tsunami. He believes that the valuation fully reflects investors' concerns about the macro environment, geopolitical situation, etc. According to the bank's estimates, profits of mainland companies may increase by 8% to 10% this year, and there is room for a rebound in valuations.
Judging from the performance of individual stocks, China Special Valuation Concept Stocks are rising strongly.$CHALIECO (02068.HK)$The cumulative surged by more than 20% during the month,$SINOTRUK (03808.HK)$Over the same period, it rose more than 16%.
On January 24, relevant officials of the State Council's State-owned Assets Administration Commission stated that further research will include market value management in the performance assessment of central enterprise heads, and the Securities Regulatory Commission has once again proposed “establishing a valuation system for listed companies with Chinese characteristics.”
The agency believes that with an extremely high margin of safety+expectation of continuous improvement in ROE+policy catalytic assessment of market value, a new round of value revaluation by central enterprises is worth looking forward to.
The coal market continues to have high dividends.$CHINA COAL (01898.HK)$,$YANCOAL AUS (03668.HK)$The stock price was moved by the news. The former rose by more than 19% during the month.
Guojin Securities said that the main factor behind the rise in coal sector stock prices has turned into valuation reshaping brought about by the discovery of high dividend asset values. In a context where the market is paying more attention to indicators related to investor returns, compounding state-owned enterprise reforms and market value management requirements to bring benefits, the “definitive” value recognition of coal's high-dividend assets is expected to continue to be high, and sector valuations will be reshaped or continuously interpreted.
The agency is optimistic about the short-term recovery of the international travel market.$TONGCHENGTRAVEL (00780.HK)$This month's increase was over 12%.
China Merchants Securities pointed out that the domestic OTA industry has benefited from the increase in the online rate, and the online share is increasing by about 3-4% every year. Currently, the online rate of high-tier cities exceeds 50%, gradually approaching saturation. The online rate of low-tier cities is currently 20%. In the long run, going overseas is expected to help OTA companies further expand. In the long run, especially in Southeast Asia, the region has very broad prospects, and is optimistic about the short-term recovery of the international travel market.
On the other hand, the weakest performing stocks this month are as follows:
Editor/Corrine