Evaluation of Hong Kong stocks

Futu Information on October 22 | the Hang Seng Index fluctuated in a narrow range throughout the day, the trading heat of the market decreased, and individual stocks rose and fell mixed. By the close, the Hang Seng index was up 0.23% at 26786.2, while the state-owned enterprises index was down 0.16% at 10526.86. The main board had a turnover of HK $75.184 billion throughout the day, slightly larger than the previous trading day.

In terms of the plate, automobile stocks rose across the board, led by Geely Automobile up nearly 5%, brilliance China up more than 3%, Dongfeng Group, Guangzhou Automobile Group, Great Wall Motor and so on. Shanghai Securities recently pointed out that the arrival of the peak car consumption season superimposed a low base in the same period last year, passenger car sales data narrowed year-on-year decline in September, month-on-month data improved, but the improvement was slightly lower than expected. As the demand for passenger cars gradually stabilizes, the growth rate of sales in the fourth quarter is expected to become positive, and the leading enterprises with strong product power may be the first to recover.

Hotel stocks rebounded strongly, led by Shangri-La (Asia) up more than 4%. Financial Secretary Chen Maobo will announce a new round of measures to support enterprises this afternoon, and a source said that the Hong Kong government will step up efforts to assist the tourism industry.

New economic stocks fell significantly today, with two shares of different rights that can be included in the "Hong Kong Stock Connect" giving up together today. Meituan's comments fell nearly 7 per cent, XIAOMI fell more than 1 per cent, and Ping An Healthcare And Technology and Zhongan Online fell nearly 5 per cent.

Shipping stocks fell, Yutong of Rizhao Port fell by more than 4%, Xiamen Port fell by nearly 1%, and Cosco Haineng, COSCO Shipping Holdings, Qingdao Port and Pacific Shipping followed suit. In the sector, the Baltic dry bulk index fell 0.5 per cent or 9 points to 1846 on Monday, the seventh day in a row, mainly dragged down by falling capesize and Panamanian rates.

In terms of individual stocks, trading was temporarily suspended after an intraday drop of 34.69% after being investigated by the local police in Zhejiang yesterday.$51 Credit Card (02051.HK) $Trading resumed this afternoon and closed at HK $2, up 12.99%. The whole-day turnover was HK $166 million, with a total market value of HK $2.38 billion. Hangzhou Public Security announced last night that it had launched an investigation into the suspected criminal acts of 51 credit card outsourcing collection companies. 51 Credit Card also announced in the morning on the Hong Kong Stock Exchange that the company's Hangzhou office was subject to door-to-door investigation by relevant government departments, and that the Chairman and Chief Executive Officer, Executive Director, CFO and some employees were assisting in the investigation, and the investigation requiring the assistance of the two directors had been temporarily concluded, and the two directors had not been detained by the relevant government departments.

Among the constituent stocks of the Hang Seng Index, individual stocks were mixed, with AAC Technologies Holdings Inc. leading the market; and among the constituent stocks of the national index, Geely Automobile led the market.

Market sentiment

In terms of Hong Kong Stock Connect, the net inflow of Hong Kong Stock Connect (southbound) is about HK $600 million today, and the recent net inflow has significantly narrowed.

Message surface

From a macro point of view, the central bank launched a reverse repurchase operation of 250 billion yuan today and achieved a net investment of 250 billion yuan on the same day because there was no reverse repurchase due today.

In terms of IPO, Changsha Broad Residential Industry Group Hong Kong IPO plans to sell about 122 million shares at HK $9.68-12.48 per share, which will be subscribed by investors from Tuesday. The company is expected to price IPO on Oct. 30 and plans to list on Nov. 6. According to the preliminary prospectus, China International Capital Corporation and CITIC Construction Investment International are joint sponsors.

In terms of papermaking, the Ministry of Industry and Information Technology disclosed that from January to August, the operating income of the national paper and paper products industry was 865.19 billion yuan, down 3.5 percent from the same period last year, while profits totaled 38.54 billion yuan, down 21.9 percent from the same period last year. From January to August, the output of pulp (primary pulp and waste pulp) in the national paper industry was 8.605 million tons, an increase of 6.6 percent over the same period last year, and the output of machine-made paper and paperboard was 80.838 million tons, an increase of 1.0 percent over the same period last year.

Big data, the Beijing Finance Bureau today instructed all big data enterprises in the area whether there is any illegal crawler business.

On the auto front, Toyota plans to start selling electric vehicles in Europe in the early 2020s, Executive Vice President Shigeki Terashi said in Tokyo on Tuesday. In Europe, the company plans to start with small electric cars; in the US, it will offer a variety of models, including large electric vehicles. The Japanese carmaker hopes to start selling small electric cars in India in partnership with Suzuki as soon as possible.

Securities firm's point of view

CICC: one of the goals of policies such as national collection, health insurance payment reform, and public hospital reform is to reduce the inflated component of drug prices and brighten doctors' income, rather than directly affecting the interests of manufacturing enterprises; although in the process of adjustment, the pharmaceutical sector will experience short-term labor pains, but with the progress of the reform, the medical demand in rural areas will be further released. And from the experience of other countries, the pharmaceutical market will accelerate with economic growth, so it is still firmly optimistic about the growth of the domestic pharmaceutical sector.

Everbright Securities: the prosperity of the communications and electronics-related industries continues to improve, and the results have improved significantly in the three quarters, and can continue to be added after recent substantial adjustments; at the same time, food and beverages, pharmaceuticals and banks with high performance certainty are standardized to maintain the configuration of the automotive industry where fundamentals are expected to bottom out; focus on infrastructure during the cycle.

Market comment

The Hang Seng Index fluctuated in a narrow range today and fell slightly towards the end of the day. At present, in the context of a sustained economic downturn, market preference may decline, and the market may maintain a volatile pattern in the fourth quarter.