The Zhitong Finance App learned that Hong Kong stocks rose for a short time in early trading and then retreated, picking up strength in the afternoon, and the three major indices once again hit new highs in the new year. At the close, the Hang Seng Index rose 0.91% or 177.08 points to 19553.61 points, with a full day turnover of HK$179.304 billion; the Hang Seng State-owned Enterprises Index rose 0.92% to 6934.7 points; and the Hang Seng Technology Index rose 0.99% to 4112.59 points. Looking at the whole week, the Hang Seng Index rose 3.11%, the China Index rose 3.21%, and the Hengke Index rose 3.79%.

Ping An Securities (Hong Kong) pointed out that the continuous rise in the Hong Kong stock index is attracting continued attention from various investors. The daily turnover of the Hong Kong stock market reached HK$204.9 billion on Thursday, making it a landmark event where trading is once again active. The bank continues to emphasize the active layout of the rebound in Hong Kong stocks. The core point is that the undervaluation of Hong Kong stocks themselves and the marginal improvement in external liquidity of the Hong Kong stock market. The good start of Hong Kong stocks in May also verified the trend of full return of overseas capital. The bank believes that the current mid-term rebound in Hong Kong stocks is expected to continue to develop in depth.

Blue chip stock performance

Alibaba-SW (09988) was strong throughout the day. At the close, it rose 7.53% to HK$85.7, with a turnover of HK$9.498 billion, contributing 106.77 points to the Hang Seng Index. Scion Asset Management, the prototype of the lead actor in the movie “The Big Short” and investment company of legendary hedge fund manager Michael Burry, increased its bets on Alibaba in the first season. Also, Citron Capital has posted a lot of songs about Alibaba on social media.

In terms of other blue-chip stocks, Longhu Group (00960) rose 10.87% to HK$15.3, contributing 5.48 points; Country Garden Services (06098) rose 9.82% to HK$6.82, contributing 2.09 points to the Hang Seng Index; Xinyi Solar (00968) fell 8.03% to HK$5.27, dragging down the Hang Seng Index by 3.58 points; Ideal Automobile-W (02015) fell 3.81% to HK$95.9, dragging down the Hang Seng Index by 8.2 points.

In terms of popular sectors

On the market, most of the large technology stocks rose, receiving “big shorts” to increase their holdings in the first quarter. Alibaba surged more than 7%; Baidu Group closed up more than 2% after the results. The central bank issued three articles to bolster the property market; domestic housing stocks and property management stocks strengthened in the afternoon; domestic insurance stocks and Chinese brokerage stocks rose one after another; semiconductors, heavy infrastructure stocks, and wind power stocks flourished. On the other side, the PV industry is “struggling at home and abroad,” and the PV sector experienced the highest decline; CRO concept stocks, education stocks, and Apple concept stocks performed poorly.

1. Domestic housing stocks and property management stocks have broken out again. At the close, Sunac China (01918) rose 25.85% to HK$1.85; Agile Group (03383) rose 24.32% to HK$0.92; Vanke Enterprise (02202) rose 19.37% to HK$6.84; and Hejing Youhuo (03913) rose 18.68% to HK$0.54.

The central bank, the State Financial Supervisory Administration and other departments issued three major notices in a row during the afternoon. The notice proposed that the minimum down payment for the first housing commercial loan will be adjusted to no less than 15%, and the minimum down payment for the second commercial loan will be adjusted to no less than 25%; the interest rate on personal housing provident fund loans will be lowered by 0.25 percentage points from May 18; and the lower interest rate policy limit for commercial personal housing loans for the first home and two housing units will be abolished at the national level. Zhang Dawei, chief analyst at Central Plains Real Estate, analyzed that the new policy released today can be called the strongest property market rescue policy in history. It shows that the central government's determination to stabilize the real estate market is very firm, and that the country's determination to promote the real estate industry and economic recovery has exceeded expectations.

2. Domestic insurance stocks continued to rise. At the close, China Taibao (02601) rose 6.52% to HK$22.05; Ping An of China (02318) rose 5.7% to HK$45.45; China Life (02628) rose 5.01% to HK$13; and Xinhua Insurance (01336) rose 3.64% to HK$18.2.

China Aviation Securities pointed out that since mid-April, the insurance sector has continued to fluctuate upward, mainly benefiting from the expected improvement of pressure on the asset side. First, on April 22, the Ministry of Finance stated that it will “promptly begin issuing ultra-long-term special treasury bonds,” which is expected to drive a steady recovery in long-term interest rates. Second, favorable real estate policies have continued to increase, and the real estate sector continues to rebound. Real estate's pressure on the insurance asset side is expected to ease. However, judging from the performance of insurers reported in the first quarter, the value of insurers' new business has rebounded, and the debt side is expected to improve further.

Furthermore, on May 9, the State Administration of Financial Supervision and Administration issued the “Notice Concerning Matters Relating to Commercial Banks' Agency Insurance Business”, which lifted the limit on how many times each bank branch can only cooperate with up to 3 insurance companies in the same fiscal year. Clarify that commercial banks act as agents for internet insurance business, telemarketing insurance business, and other insurance services, and that branches and outlets at all levels do not limit the number of cooperative insurance companies.

3. Aviation stocks are generally improving. At the close, Eastern Airlines (00670) rose 4.37% to HK$2.15; Capital Airport (00694) rose 4.09% to HK$2.8; Air China (00753) rose 2.72% to HK$4.15; and China Southern Airlines (01055) rose 1.61% to HK$3.16.

The three major airlines (Air China, China Eastern Airlines, China Southern Airlines) contracted capacity investment in April, and overall supply/demand fell 3.0%/2.6% month-on-month, returning to 108%/106% in the same period in 2019 (111%/108% in March). The passenger occupancy rate was 80.9%, up 0.3 percentage points from month to month. Huatai Securities pointed out that April is still a low season for civil aviation. Combined with extreme weather in South China, airline capacity investment contracted month-on-month, but passenger occupancy rates improved marginally from the March low. Looking ahead, off-season business travel still needs to be tracked. However, with reference to the Spring Festival travel season and the “May Day Holiday” data, demand for private travel such as travel and family visits is still strong, and it is expected that the summer travel season will once again peak in demand. Furthermore, China's visa-free policy continues to be relaxed, which is expected to drive demand for international routes. In the medium to long term, the bank believes that the tightening of civil aviation supply is highly predictable, driving the improvement in the aviation sector's prosperity to be realized.

4. PV stocks had the highest decline. At the close, Follett Glass (06865) fell 8.11% to HK$16.1; Xinyi Glass (00968) fell 8.03% to HK$5.27; and Fuyao Glass (03606) fell 4.74% to HK$47.25.

According to the Securities Times, China's photovoltaic industry is experiencing a period of internal and external difficulties. On the one hand, the US recently announced additional tariffs on Chinese solar cells. On the other hand, prices in the industrial chain have dropped again and again, and it is still difficult to determine when the bottom will arrive. According to the latest data released by the Silicon Industry Branch of the China Nonferrous Metals Industry Association, the price of polysilicon continued to decline this week, with silicon wafers falling even more. Among them, the average transaction price of P-type M10 monocrystalline silicon wafers fell to 1.25 yuan/sheet, a decrease of 20.4% from week to week.

According to the J.P. Morgan Chase Research Report, the current outlook for PV glass supply and demand has become less optimistic. The latest market data shows that the industry's supply growth may be slightly higher than the previously predicted upper limit, causing the supply and demand relationship to shift from slightly strained to slightly relaxed. The bank lowered Xinyi Solar's target price from HK$7.6 to HK$6.1, and Follett Glass's target price from HK$24.5 to HK$19. The ratings were all downgraded from “increased holdings” to “neutral”.

Furthermore, Evergrande's market is currently soaring today. Trading of Evergrande Auto (00708) was suspended for a short time after soaring more than 70% in early trading. Before the suspension, the stock price rose 53.23%; to HK$0.38; Evergrande Properties (06666) closed up 34.33% to HK$0.9.

According to some analysts, the hype about Evergrande Auto is fabricating the future of US stock Faraday. On Thursday evening, Faraday rose 134% in the future to close at $1.65 per share, and the market capitalization rose to $70.41 million. In the middle, trading was also suspended for half an hour due to abnormal fluctuations in the rise and fall rate. In the last 5 trading days, Faraday's future stock price has increased by a cumulative total of 3964%.

According to reports, Jia Yueting, the future founder of Faraday, recently released a video statement. In the video, Jia Yueting expressed her determination to work closely with the company's management team and promised to take all necessary measures to ensure that the company can maintain a compliant listing status. In addition, he also announced that he will launch the commercialization of personal IP with the aim of raising capital through this method to support the company's operations and automobile manufacturing business.

Popular volatile stocks

1. Johnson Electric Holdings (00179) was higher after the results. At the close, it rose 6.08% to HK$12.56.

Johnson Electric Holdings announced annual results for the year ended the end of March. The group achieved a turnover of US$3.814 billion, an increase of 4.61% year on year; profit attributable to shareholders of US$229 million, an increase of 45.25% year on year; and plans to pay a final dividend of HK44 cents per share.

2. Kaisheng New Energy (01108) rallied in the afternoon. At the close, it was up 5.03% to HK$5.43.

Damo revealed that the advanced packaging process adopted by Nvidia GB200 will use glass substrates. According to public information, the company is a capital operation and industrial integration platform under China Building Materials Group specializing in ultra-thin glass substrate business and new energy glass business.

3. Ideal Automobile-W (02015) weakened throughout the day. At the close, it fell 3.81% to HK$95.9.

According to some reports, Ideal Internal is undergoing a new round of company-wide personnel optimization, with an overall optimization ratio of over 18%. Furthermore, there are reports that Ideal Auto was class-sued by investors in the US. Ideal Auto responded that the accusation was unfounded and that the company would do its best to protect the rights and interests of the company and shareholders.

4. HSBC Holdings (00005) bucked the trend and fell 2.21% to HK$68.55 at the close.

According to market sources, Ping An of China is considering ways to reduce its HSBC stock holdings by 13 billion US dollars. Earlier on May 10, according to HKEx filings, Ping An Asset Management sold 5.65 million shares of HSBC Holdings on May 7. The average price per share was HK$6.93074, worth HK$391.5 million. The shareholding ratio dropped from 8.01% to 7.98%.