After the Hang Seng Index rose 514 points or 2.9% yesterday (19th), the market fell back today (20th). US stocks were closed on holiday in the financial markets the previous night, with the UK stock market up 0.2%, and the German and French stock markets down 0.4% and 0.8%, respectively. As of writing, the yield on the US 10-year Treasury bond has risen to 4.252 basis points, the US dollar index has risen to 105.5, Dow Jones futures has risen 16 points or 0.04%, and Nasdaq futures has risen 0.65%. The mid-point of the RMB was lowered by 33 points to 7.1192 against the US dollar, a seven-month low. The People's Bank of China announced that the one-year and five-year loan market quoted interest rates (LPR) for June were flat at 3.45% and 3.95%, respectively, in line with market expectations. The Shanghai Composite Index fell 12 points or 0.4% to close at 3,005 points throughout the day. The Shenzhen Component Index fell 1.6%, and the total trading volume of the Shanghai and Shenzhen stock markets exceeded RMB 724.4 billion.
The Hang Seng Index opened high by 23 points this morning and rose to 18,520 points, up 89 points in the early stages. Afternoon fell to 18,274 points, down 156 points, a decrease of 0.5% for the whole day, closing at 18,335 points. The HSI was down 64 points or 1.7% to close at 3,767 points. The total turnover of the market was RMB 103.555 billion. The net inflow from Southbound Trading of Shanghai and Shenzhen Stock Connect was RMB 4.965 billion and RMB 4.51 billion, respectively.
CNOOC (00883.HK) rises 3.5%, and technology stocks are weak.
Concept stocks related to China Special Estimation are on the rise. CNOOC (00883.HK) rises 3.5%, Sinopec (00386.HK) and PetroChina (00857.HK) rise 1.9% and 2.4% respectively. Shenhua (01088.HK) rises 1%, China Mobile (00941.HK) rises 0.7%, and China Telecom (00728.HK) and China Unicom (00762.HK) rise 2.8% and 1.5%, respectively. China International Capital Corporation (CICC) issued a report stating that the capital market policy dividends on the mainland helped restore confidence, and short-term fluctuations did not change the long-term trend. The report stated that looking ahead, investors' expectations for this year's worst period may have passed, and the recovery trend since February may continue despite setbacks. Stabilizing growth policies, combined with the continued improvement of the current capital market policy dividends, will help to continue to activate the capital market and boost investor confidence.
Technology stocks are weak. Tencent (00700.HK) fell 0.4% to HKD 387.6. Alibaba-SW (09988.HK), Netease-S (09999.HK), and Meituan-W (03690.HK) all fell 1% to 1.2%, and JD.com-SW (09618.HK) and Baidu-SW (09888.HK) fell 2.4% and 1.8% respectively. Kuaishou (01024.HK) fell 5.2%, while Vipshop-W (00020.HK) plummeted 7.7%. CICC issued a report stating that the mainland's 618 shopping festival has ended, and e-commerce has remained resilient this year. Except for JD.com, each platform no longer discloses its 618 performance. The bank pointed out that after the growth of content e-commerce traffic and GMV slowed down, and the channel increment decreased, sellers are expected to have weakened motivation to supplement the profit subsidy of the stock channel with the profit from the reserve channel. When content e-commerce tries to transform into a shelf model, it has entered the scope of the advantages of the shelf e-commerce. The input of the shelf e-commerce in terms of price, consumer experience, and service has further consolidated its advantages.
Haidilao is under pressure for falling stocks.
The Hong Kong stock market turned weak today. The rise and fall ratio of main board stocks is 15 to 28 (compared with 29 to 14 the previous day), and the number of falling stocks is 1,185 (a decline of 2.8%). 16 constituent stocks in the Hang Seng Index rose today, and 64 fell. The rise and fall ratio was 20 to 78 (compared to 96 to 2 the previous day). The total short position of the market today was HKD 17.555 billion, accounting for 19.216% of the turnover of shortable shares of HKD 91.355 billion (compared to 16.772% the previous day).
In terms of consumer demand stocks, Haidilao (06862.HK) fell 5.9%, and Yihai (01579.HK) fell by nearly 7%. Goldman Sachs stated in a report that due to the high profit margin base and less non-operating income in the first half of last year, Haidilao's profit performance may not have excited the market, and the bank expects its net profit for the first half of this year to be flat year-on-year. The current valuation of the stock is equivalent to a P/E ratio of 17 times the forecast for 2024, and it believes that recent revenue stability has been reflected. It maintains a "sell" rating and a target price of HKD 15.8.