The Hang Seng Index fluctuated narrowly today with a daily range of 221 points. Nvidia (NVDA.US) rebounded significantly by 6.7% last night, while the Dow Jones and Nasdaq fell 0.8% and rose 1.3% respectively. Federal Reserve Governor Lael Brainard said that cutting interest rates at some point would be appropriate, but it is unclear when. The yield on 10-year Treasury bonds rose to 4.271 basis points, while the dollar index rose to 105.83. The latest Dow futures fell 4 points or 0.01%, and the latest Nasdaq futures rose 0.37%. The Shanghai Composite Index rose 22 points or 0.76% all day and closed at 2,972 points. The Shenzhen Component Index rose 1.6%, and the total turnover of the Shanghai and Shenzhen markets exceeded RMB 643.4 billion.
The Hang Seng Index opened low by 138 points and then regained ground. It once rose to 18,156 points, up 83 points, and finally rose 17 points or 0.1% to close at 18,089 points. The HSCI rose 34 points or 0.9% to close at 3,689 points. The total transaction volume of the stock market was RMB 95.15 billion, and the net inflow of Shanghai and Shenzhen-Hong Kong stock connect was RMB 3.437 billion and RMB 2.427 billion respectively.
Chip stocks perform well, and Netease is sought after.
Nvidia rebounded, and chip stocks SMIC (00981.HK) and Huali (01347.HK) rose 2.9% and 4.3% respectively. ASMPT (00522.HK), a chip equipment stock, rose 5.9%. A total of 104 domestic games were approved on the mainland in June, including Tencent's (00700.HK) "Lords of Kingdom: World", and Tencent's stock closed at HKD 382. Netease's (09999.HK) mobile game "Onmyoji: The World" will be open beta on July 25, and the stock price rose 6.2% to HKD 150.6, which is the largest blue-chip gain.
Netease's mobile game "Onmyoji: The World" will be open beta on July 25. UBS published a research report stating that considering that the computer version of the game is already familiar to players, the first-month revenue is expected to reach about RMB 1 billion. The bank maintains a "buy" rating on Netease with a target price of HKD 202.
The market has slightly improved, and Mengniu has partially achieved its target.
The Hong Kong stock market has slightly improved today, and the rise and fall ratio of main board stocks is 22:19 (compared to 20:22 the previous day). Among the constituent stocks of the Hang Seng Index, 48 stocks rose and 31 stocks fell today, with a rise and fall ratio of 59:38 (compared to 61:37 the previous day); the short selling value of the market amounted to HKD 16.02 billion today, accounting for 19.312% of the turnover of short sellable stocks of HKD 82.955 billion (compared to 19.488% the previous day).
Want Want China (00151.HK) rose significantly by 11.1%. The company announced yesterday that it made a profit of 18% for the whole year and increased its payout. UBS in its report stated that by the end of March of this year, Want Want's revenue and net profit increased by 2.9% and 18.4% respectively year-on-year, to CNY 23.6 billion and CNY 3.9 billion, which means that the revenue and net profit for the second half of the year are expected to increase by 1.8% and 27.2% respectively year-on-year. Due to the improvement in gross profit margin, the net profit exceeded the bank's and the market's expectations. The company announced a dividend payment of CNY 2.787 billion, which means that the annual dividend payout ratio has returned to 70%, in line with the bank's expectations. If the dividend payout rate including share buyback is calculated, it will reach 77%. The bank believes that the company's announcement of dividend payout can alleviate investors' concerns about the company's future shareholder return.
Mengniu (02319.HK) and Budweiser APAC (01876.HK) rose by 5% and 4.5% respectively. Citigroup published a research report stating that during the recent promotional tour in the UK and European markets, they met with about 30 institutional investors. Compared with the promotional tour in the US in April, investors in the UK and Europe are more interested in daily consumer goods than non-essential consumer goods. Although they still remain cautious about the macro environment in mainland China, those investors who trimmed their positions in Chinese stocks have expressed interest in reviewing their positions in China.
Citigroup revealed that investors continue to be interested in high dividend stocks, such as Topsports (06110.HK). The industry and stocks that the bank was asked about the most during its marketing tour were beer stocks such as Tsingtao Brewery (00291.HK), dining stocks such as Mengniu and Nongfu Spring (09633.HK), baijiu stocks such as Kweichow Moutai (600519.SH), sporting goods stocks such as Li Ning (02331.HK) and Topsports, dining stocks such as Haidilao (06862.HK), and home appliances stocks such as Haier Smarthome (06690.HK) and Midea (000333.SZ). (wl/u)
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