On July 8th, Cailian Press (Editor Hu Jiarong) reported that the Hong Kong stock market collectively adjusted today, with the Hang Seng and SOE indexes leading the decline. As of the close, the Hang Seng Index fell 1.55% to close at 17,524.06 points; the technology index fell 0.84% to close at 3,566.63 points; the SOE index fell 1.53% to close at 6,284.73 points.

Note: performance of Hang Seng Index.

Institutions said that there may be limited space for subsequent adjustments.

Despite the collective decline of the three major indexes of the Hong Kong stock market, Huatai Securities pointed out that the cooling signal of the US employment market last week pushed up the expectation of Fed rate cuts and overseas liquidity tended to be loose, which may help the Hong Kong stock market rebound in the future.

The securities company pointed out that considering the part of policy expectations that Price in, the early or phased suppression of the "US election trade" of the Hong Kong stock risk preference, and the slight cooling of the incremental capital inflow. They maintain their previous view that there may be limited space for subsequent adjustments to the Hong Kong stock market, and the upward elasticity still depends on the effectiveness of the real estate policy.

Today's Market

From the market perspective, real estate, transportation, medicine, autos, and internet stocks fell the most.

Real estate stocks collectively declined, and R&F Properties fell more than 12%.

Among the real estate stocks, R&F Properties (02777.HK), Sunac China Holdings (01918.HK), and Shimao Group (00813.HK) fell 12.77%, 10.34%, and 9.46%, respectively.

Note: performance of real estate stocks.

In terms of news, many real estate companies announced their sales data for the first half of the year, among which Sunac China's cumulative contract sales in the first half of the year were 26.28 billion yuan, a year-on-year decrease of 49.6%; Seazen's cumulative contract sales in the first half of the year were about 23.554 billion yuan, a year-on-year decrease of 44.45%; China Overseas Development's cumulative contract sales in the first six months were 148.378 billion yuan, a year-on-year decrease of 17.6%.

Most of the shipping futures on the European route have hit the limit, and Cosco Shipping Holdings fell more than 8%.

Among the shipping stocks, COSCO SHIPPING Holdings (01919.HK), COSCO SHIPPING Development (02866.HK), and OOIL (00316.HK) fell 8.02%, 6.73%, and 6.46%, respectively.

Note: performance of shipping stocks.

In terms of news, the shipping index futures have fallen sharply today, with contracts such as 2504, 2506, 2502, 2412, and 2410 all falling more than 10%. It is worth noting that since 2024, the shipping index futures prices have been far ahead, and the main continuous contract has accumulated a nearly 250% increase, leading domestic futures varieties.

However, recent reports pointed out that the container transport market faces a tight supply of shipping capacity, and shippers continue to raise spot freight rates, driving the strong rise in the current shipping index futures prices. Looking ahead, in the background of traditional cargo volume tending to be weak in the fourth quarter, the support of the demand side may weaken, and by then the freight rates may welcome adjustments.

Most of the medical stocks have undergone adjustments, and Remegen fell nearly 19%.

Among the medical stocks, Remegen (09995.HK), Jacobson Pharma Corp.-B (06990.HK), and China Biotech Services Holdings (02171.HK) fell 18.70%, 10.04%, and 7.31%, respectively.

Note: performance of medical stocks.

In terms of news, on July 5th, the State Council executive meeting passed the "Implementation Plan for Supporting the Full-chain Development of Innovative Drugs", which mentions the coordination of commercial insurance and other policies to help breakthroughs in the development of innovative drugs. This news did not drive medical stocks to rise.

Auto stocks were affected by the EU's tariff disturbance, and NIO Inc. fell nearly 4%.

Among the auto stocks, NIO Inc-SW (09866.HK), Leap Motor International Holdings Ltd. (09863.HK), and Guangzhou Automobile Group (02238.HK) fell 3.89%, 3.19%, and 2.93%, respectively.

Note: Performance of auto stocks.

In terms of news, on July 5th, the EU imposed temporary anti-subsidy taxes on electric vehicles imported from China, with a maximum period of four months. During this period, EU member states will vote to decide on the final anti-subsidy measures. If passed, the EU will officially impose anti-subsidy taxes on Chinese electric vehicles for a period of 5 years.

Most of the internet stocks have undergone adjustments, and East Buy fell more than 5%.

Among the internet stocks, East Buy (01797.HK), Meituan-W (03690.HK), and Alibaba-SW (09988.HK) fell 5.41%, 1.76%, and 1.51%, respectively.

Note: Internet stocks' performance.

East Buy suffered the largest decline. Since the company's explosion, it has been plagued by various problems and negative news. In the latest research report released by swhy, net income forecast for the 2024-2026 fiscal years has been revised down to 0.853 billion, 1.003 billion and 1.074 billion yuan respectively, compared with the original forecast of 1.226 billion, 1.266 billion and 14.26 billion yuan. In addition, the brokerage lowered the target price of East Buy from HKD 35.79 to HKD 13.9.

Southbound funds.

The net buying of southbound funds today is 2.175 billion Hong Kong dollars. Since the beginning of this year, it has bought nearly HKD 35.23 billion in total.

Note: Performance of Southbound funds

News and fluctuations in individual stocks.

Cosco Ship Engy fell more than 4%, and the net income for the first half of the year is expected to decrease by about 9.1% year-on-year.

Cosco Ship Engy (01138.HK) fell 3.71% to close at 9.6 Hong Kong dollars. According to the announcement, the company is expected to achieve a net profit attributable to the parent company of approximately 2.55 billion yuan in the first half of 2024, a year-on-year decrease of approximately 9.1%. Among them, the net profit attributable to the parent company in the second quarter of 2024 is approximately 1.314 billion yuan, an increase of 6.3% compared with the first quarter of 2024.

Conch Cement rose more than 4% and released the "Quality Improvement, Efficiency Enhancement, and Return to Shareholders" action plan.

Conch Cement (00914.HK) rose 4.27% to close at 20.5 Hong Kong dollars. In terms of news, Conch Cement disclosed the "Quality Improvement, Efficiency Enhancement, and Return to Shareholders" action plan for 2024. Specifically, it focuses on strengthening its main business to improve business quality; adheres to innovative drive to promote green and intelligent development; attaches importance to shareholder returns, and shares development dividends. Citic Sec believes that for the cement industry, as cement sales adopt cash-and-spot transactions, all companies have sufficient cash flow and have the basis to increase their dividend payout ratio.