The Hang Seng Index fell first then stabilized today and closed at 18,000 points. Nvidia (NVDA.US) continued to give back gains last Friday, and the Dow Jones rose 0.04% and the Nasdaq fell 0.2%. At the time of writing, the yield on the 10-year US Treasury bond fell to 4.253%, and the US Dollar Index fell to 105.65. The latest Dow futures rose 72 points or 0.18%, and the latest Nasdaq futures rose 0.12%. The yuan's central parity rate fell by 5 points to 7.1201 against the US dollar this morning, repeatedly hitting a seven-month low. The Shanghai Composite Index fell 35 points or 1.17% to close at 2963 points. The Shenzhen Component Index fell 1.6%, while the turnover of the two markets exceeded CNY 695.6 billion in total.
The Hang Seng Index opened low by 122 points this morning, then the decline expanded to 238 points, once falling to 17,789 points, but recovered before the market closed, falling less than 1 point for the whole day and closing at 18,027 points. The H share index rose 1 point, closing at 6,441 points. The Hang Seng Tech Index fell 23 points or 0.65%, closing at 3,677 points. The total trading volume for the whole day dropped to HKD 96.473 billion, and the net inflow of southbound trading of the Shanghai and Shenzhen-Hong Kong Stock Connect was CNY 249 million and CNY 98.7 million, respectively. Semiconductor stocks SMIC (00981.HK) and Hua Hong (01347.HK) fell 3.4% and 5.1%, respectively. Prudential (02378.HK) stock price rose by 6%, and the company announced a $2 billion share buyback to be completed no later than 2026.
Chip stocks fell and there was selling pressure on Kuaishou.
In terms of network technology stocks, Tencent (00700.HK) fell 0.3% to HKD 380.4, and Alibaba (09988.HK), JD.com (09618.HK), and Netease (09999.HK) rose 0.1% to 0.5%, while Meituan (03690.HK), Xiaomi (01810.HK), and Baidu (09888.HK) fell 0.7% to 1.1%, and Kuaishou (01024.HK) fell 4.1%.
China CITIC Bank International released a report indicating that during the 618 promotion, Kuaishou emphasized "cheap goods", simpler methods, and longer cycles. The bank believes that Kuaishou's e-commerce business is performing well, with orders and paying users increasing by 65% and 57% respectively year-on-year. The bank expects that Kuaishou's e-commerce business will account for more than 25% of the total transaction value (GMV) of the commodity shelf business, and the business growth rate in the second quarter of this year will remain unchanged, with GMV and other service revenue expected to increase by 25% and 24% year-on-year. Although third-party industry data show mixed results, the bank is bullish on Kuaishou's market share growth during the 618 event and expects the continued improvement in gross margin to bring confidence to its profit growth. The bank maintains a "buy" rating for Kuaishou with a target price of HKD 97.
Haidilao weakened as more than two thousand stocks fell.
The Hong Kong stock market continued to weaken today, with a ratio of 13 to 30 on the rise and fall of main board stocks (compared to 13 to 30 the previous day), and 1272 stocks fell (a drop of 2.7%). 39 Hang Seng constituent stocks rose and 37 fell today, with a ratio of 48 to 45 on the rise and fall of the index (compared to 1 to 96 the previous day); the market recorded net short-selling of HKD 13.922 billion today, accounting for 16.498% of the total trading volume of short-selling stocks of HKD 84.386 billion (compare to 20.142% the previous day).
The CEO of Haidilao (06862.HK) changed, and the stock price fell by 2.8%. Haidilao previously announced that Yang Lijuan resigned as Executive Director and CEO, and Gu Yi Qun was appointed as Executive Director and CEO, which will take effect on July 1. Daiwa believes that the hasty change of Haidilao's CEO may catch investors off guard and may affect the company's stock price performance in the short term. However, the bank also believes that given the company's current positive trajectory and the new CEO's expertise and experience in the supply chain and digitization, it is well suited to the current development stage of Haidilao. Daiwa also pointed out that rumors of health problems for Haidilao's chairman and his successor recently led to pressure on the company's stock price last week. The bank believes that these rumors are unfounded and estimates that the situation of short-term stock price fluctuations for Haidilao will continue. Considering the above factors, Daiwa believes that its fundamentals are sound or present an opportunity to enter the market, and maintains a "buy" rating with a target price of HKD 20.
Daiwa also pointed out that rumors of health problems for Haidilao's chairman and his successor recently led to pressure on the company's stock price last week. The bank believes that these rumors are unfounded and estimates that the situation of short-term stock price fluctuations for Haidilao will continue. Considering the above factors, Daiwa believes that its fundamentals are sound or present an opportunity to enter the market, and maintains a "buy" rating with a target price of HKD 20.