Hong Kong stocks opened high today, and the three major stock indexes quickly rose near noon. Among them, the Hengke Index performed the strongest, rising 2.7% at one point in the afternoon.
According to the Futu News app, Hong Kong stocks opened high today, and the three major stock indexes quickly rose near noon. Among them, the Hengke Index performed the strongest, rising 2.7% at one point in the afternoon. As of the close, the Hang Seng Index rose 1.18% or 209.43 points to 17978.57 points, with a daily turnover of HK$113.55 billion; the Hang Seng China Enterprises Index rose 1.27% to 6,455.7 points; and the Hang Seng Tech Index rose 2.48% to 3,626.93 points.
Guotai Junan pointed out that the uncertainty of economic policies has decreased, and the trend of declining overseas interest rates will cause Hong Kong stocks to fluctuate upwards, with Hong Kong technology stocks being advantageous. The low valuation of Hong Kong stocks has fully priced in pessimistic expectations and risk factors. The domestic economic policy is mainly stabilizing, the real estate policy continues to be optimized, and the Hong Kong stock market's profit expectations have improved. As China reduces uncertainties in the economic and policy fields, the sentiment in the Hong Kong stock market is expected to recover.
Blue chip performance
Li Auto Inc-W (02015) led the way in blue chip stocks. As of the close, it rose 5.35% to HKD 77.75, with a turnover of HKD 1.184 billion, contributing 8.75 points to the Hang Seng Index. Li Auto delivered 47,774 new cars in June, a year-on-year increase of 46.7%. It is expected to deliver 108,581 new cars in the second quarter of 2024, a year-on-year increase of 25.5%. As of June 30, 2024, Li Auto's cumulative delivery volume has reached 822,345, ranking first among China's new energy vehicle brands. In addition, L6 new cars performed strongly, with monthly deliveries exceeding 20,000 in June.
In other blue-chip stocks, Sands China (01928) rose 5.09% to HKD 16.94, contributing 3.71 points to the Hang Seng Index; Meituan-W (03690) rose 4.37% to HKD 117.1, contributing 46.79 points to the Hang Seng Index; China Merchants Bank (03968) fell 2.01% to HK$33.55, dragging down the Hang Seng Index by 4.61 points; Haier Smart Home (06690) fell 1.58% to HK$24.9, dragging down the Hang Seng Index by 1.57 points.
Hot sectors
On the market, most large-cap tech stocks rose, with Meituan up more than 4% and Kuaishou, Tencent, Baidu, and others up more than 2%. Policy support has accelerated the recovery of the property market, and mainland real estate stocks performed strongly today; expectations for the consumption tax reform ignited market sentiment, and China Tourism Group Duty Free Corporation rebounded significantly, rising more than 15% at one point during the session; travel and sightseeing concepts, Macau casino stocks, dining stocks, gas stocks, cement stocks and other stocks all rose. On the other hand, digital currency ETFs and heavy equipment stocks were under pressure throughout the day.
1. Mainland real estate stocks performed strongly. As of the close, Agile Group Holdings Limited (03383) rose 7.55% to HKD 0.57; Yuexiu Property Company Limited (00123) rose 7.52% to HKD 5.29; Seazen Group Ltd. (01030) rose 5.04% to HKD 1.46; China Jinmao Holdings Group Limited (00817) rose 4.84% to HKD 0.65.
With the frequent introduction of new policies in the property market, there have been signs of a rebound in the first-tier city property market. Data shows that in June just past, nearly 15,000 second-hand homes in Beijing were signed, hitting a new 15-month high. In addition, more than 10,000 sets of newly built commercial residential buildings were sold in Shanghai in June, with a transaction area of 1.158 million square meters; the cumulative transaction volume of second-hand houses was 26,374 sets, up 41% from the previous month, hitting a new high in nearly three years. According to China Index Academy data, the sales of TOP100 real estate companies in the first half of 2024 totaled RMB 2.08 trillion, a year-on-year decrease of 41.6%, and the decline narrowed by 3.8 percentage points from the previous month. Among them, the monthly sales of TOP100 real estate companies in June decreased by 19.55% year-on-year and increased by 26.05% month-on-month, and the year-on-year decline has narrowed for 4 consecutive months.
2. Consumer stocks were active throughout the day, and leading duty-free stocks rose sharply. As of the close, China Tourism Group Duty Free Corporation Limited (01880) rose 12.2% to HKD 53.8; Meilan Airport Co., Ltd. (00357) rose 6.51% to HKD 7.85; Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (00520) rose 6.43% to HKD 1.49; Zhouheiya Food Co., Ltd. (01458) rose 4.71% to HKD 1.78; and Trip.com Group Limited (09961) rose 2.05% to HKD 379.
The National Audit Office pointed out in the "Audit Report on the Implementation of the Central Budget and Other Fiscal Revenues and Expenditures for 2023" that a new round of fiscal and taxation system reforms is under planning, and the reform of consumption tax has received much attention. From the perspective of expanding the scope of taxation, luxury goods and high-end services may be the first to be piloted. Guotai Junan believes that the direction of reform of consumption tax has already been made public, mainly broadening the tax base and moving the taxation process backwards, accompanied by corresponding adjustments to the tax rate in this process.
In addition, Ctrip Group released the '2024 Summer Travel Market Forecast Report', which shows that the domestic tourism market maintained steady growth during the summer this year, with search volume for domestic hotels and air tickets both increasing by more than 20% year-on-year. The report predicts that the end of June to early July, mid-July, and mid-August will be the three peak periods for summer travel. Other data shows that inbound tourism orders in China during this summer season have doubled compared to the previous year after China implemented visa-free and 72/144-hour transit visa policies for multiple countries around the world.
Most AI concept stocks rose. At the close, SenseTime-W (00020) rose 17.39% to HKD 1.62; Meituan-W (03690) rose 4.37% to HKD 117.1; Tencent Holdings (00700) rose 2.76% to HKD 379.4; Alibaba-SW (09988) rose 2.48% to HKD 72.2.
From July 4th to 7th, the 2024 World Artificial Intelligence Conference and the Global Governance High-level Meeting on Artificial Intelligence (WAIC 2024) will be held in Shanghai. The conference will cover key topics such as large models, data, computing power, embodied intelligence, intelligent industry, and autonomous driving. In terms of large models, major manufacturers including Baidu, Alibaba, Tencent, Huawei, SenseTime, iFlytek, China Mobile, China Unicom, and Xinghuan Technology will exhibit their heavy-duty new products at WAIC 2024, with hundreds of large models on display at the conference. Haitong Securities believes that WAIC2024 will showcase hundreds of large models and their applications, and domestic large models are receiving special attention.
New energy vehicle stocks rose across the board. At the close, BAIC Motor (01958) rose 6.9% to HKD 2.17; Li Auto-W (02015) rose 5.35% to HKD 77.75; NIO-SW (09866) rose 4.37% to HKD 35.8; Geely Auto (00175) rose 1.65% to HKD 8.62.
In June, overall deliveries from 15 new energy vehicle companies rose 8% compared to the previous month. The total delivery volume of the top 15 new energy passenger vehicle companies was 676,800 vehicles, a year-on-year increase of 49% and a month-on-month increase of 8%. Among them, NIO, Leapmotor, JiKe, WenJie, and BYD monthly deliveries all reached historic new highs, and the industry's overall performance was better than expected. Ideal and WenJie saw the largest month-on-month growth in deliveries, Leapmotor exceeded 20,000 deliveries for the first time, and its performance exceeded expectations.
In addition, Tesla soared more than 10% overnight. Tesla delivered 443,956 vehicles in the second quarter, higher than the Wall Street's previous expectation of 439,000, securing its position as the best-selling electric vehicle manufacturer in the world. Minsheng Securities pointed out that the singularity of automobile intelligence has arrived, and there are opportunities for independent technology output and incubation. The ability of automotive intelligence will become an important factor in the competition among vehicle manufacturers.
Popular fluctuating stocks
SenseTime-W (00020) hit a two-month high and closed up 17.39% at HKD 1.62.
On the morning of July 5th, SenseTime will hold the 'Great Love is Boundless, Towards the New Era' Artificial Intelligence Forum during the WAIC, and will officially release the 'RiRiXin' large model 5.5. On April 23rd, SenseTime released the 'RiRiXin' large model 5.0 at the Technology Exchange Day, which was the first Chinese large model to surpass GPT-4 Turbo in SuperClue evaluations.
Microport NeuroTech (02172) released a profit appreciation announcement and closed up 11.99% at HKD 7.19.
Microport NeuroTech announced that in the six months ending June 30, 2024, the group is expected to earn revenue of approximately RMB 400 million to RMB 410 million, a year-on-year increase of approximately 34% to 37%.
Fufeng Group (00546) issued a profit warning and closed down 12.64% at HKD 4.63.
Fufeng Group issued a profit warning, and it is expected that the company's net profit for the six months ending on June 30, 2024 will decline by approximately RMB 450 million to RMB 600 million compared to the net profit earned during the six months ending on June 30, 2023.
New stocks debut.
Zhongganxin Communications (02545) experienced a sharp drop in its stock price and closed down 46.4% at HKD 0.67.
Zhongganxin Communications was priced at HKD 1.25 per share and issued a total of 160 million shares, with 2,000 shares per lot, and the net proceeds amounted to approximately HKD 151 million. It is reported that Zhongganxin Communications focuses on providing telecommunications infrastructure services and digital solutions for infrastructure in China. It is worth noting that the company is highly dependent on its large clients. In 2023, revenue from the company's top five clients accounted for approximately RMB 592 million, or about 97.2% of its total revenue, with its largest client accounting for 48.8% of its total revenue.
Jinfeng Property (01354) was under pressure throughout the day and closed down 11.47% at HKD 6.64.
Jinfeng Property was priced at HKD 7.50 per share and issued a total of 16,666,800 shares, with 300 shares per lot, and the net proceeds amounted to approximately HKD 90.47 million. It is reported that Jinfeng Property is a state-owned comprehensive urban service and property management service provider in Shaanxi Province. According to data from the CIRC, as of December 31, 2023, the company had a market share of approximately 1.8% based on building area under management in Shaanxi Province, ranking third among property management service providers operating in Shaanxi Province in 2023.