On July 15th, the three major stock indexes in Hong Kong showed a unilateral decline throughout the day. Hang Seng Tech Index plummeted by 3.2% in the last trading session, and finally fell sharply by 2.9%. The Hang Seng Index and the National Index fell by 1.52% and 1.7% respectively. The Hang Seng Index once again lost the 18,000 level during the day. All three major indexes failed to maintain the strong trend of last week.
At the close, 637 Hong Kong stocks rose, 1257 fell, and 1181 closed flat.
The specific industry performance is as follows:
In terms of sectors, large technology stocks generally fell, with Bilibili falling more than 8%, Baidu falling more than 5%, JD.com falling nearly 5%, and Kuaishou falling nearly 3%. Alibaba, Meituan, and Xiaomi fell more than 2%.
Ether and Bitcoin spot ETFs rose across the board, with Bosera Bitcoin, Jiashi Bitcoin, and Huaxia Bitcoin all up more than 10%, and Bosera Ether, Jiashi Ether, and Huaxia Ether up nearly 10%.
Coal stocks rose against the trend, with Mongol Mining up more than 4%, China Shenhua Energy up nearly 3%, Yankuang Energy and China Coal Energy up more than 1%.
Biomedical stocks rose and fell, with Genscript BioTech up more than 25%, Beigene and Akeso Bio down about 4%, and Wuxi Biologics and Wuxi apptec down more than 3%.
Mainland real estate stocks fell, with Longfor Group down more than 4%, China Overseas Development down more than 3%, China Resources Land down nearly 3%, and China Vanke down nearly 2%.
Most automobile stocks fell, with Xpeng and Li Auto down more than 4%, Leapmotor down nearly 4%, and Brilliance China down nearly 3%.
In addition, the Apple concept stocks, insurance stocks, and sporting goods stocks were weak, and most constituent stocks fell. Golden industrial concept and semiconductor stocks rose slightly, while oil and gas stocks, shipping stocks, and mainland banking stocks fell slightly.
In terms of individual stocks,$GENSCRIPT BIO (01548.HK)$Legend Biotech rose more than 25%, reportedly receiving a merger invitation.
$FIT HON TENG (06088.HK)$The stock of Yingxi Data fell nearly 10%, and the market is worried that the company's performance will fall short of expectations. Institutions said that the company's performance will be concentrated in the second half of the year.
$SINO BIOPHARM (01177.HK)$The stock of Hutchison China MediTech fell more than 4%, and the sales of its various drugs decreased month-on-month. Institutions said that the products are facing price pressure.
$CHOW TAI FOOK (01929.HK)$Falling more than 4%, planning to acquire 30% stake in Qianhai office building, Daiwa said the company's full-year net profit fell short of expectations.
$CHINA RUYI (00136.HK)$OOIL rose more than 3%, and the summer box office continued to heat up, with the first day box office of "Cliff Walkers" breaking 100 million yuan.
Today's top 20 turnover of Hong Kong stocks
Hong Kong Stock Connect Fund
In terms of Hong Kong Stock Connect, Hong Kong Stock Connect (Southbound) had a net inflow of HK$4.871 billion today.
Institutional perspective
Morgan Stanley lowered its rating of Cosco Shipping Holdings and OOIL to "underweight", and the long winter is coming.
Morgan Stanley released a research report stating that even if the Red Sea conflict continues, the container shipping industry will need at least two to three years to digest the oversupply. The industry is expected to have a long and painful downturn, describing the long winter that is about to come. The bank also downgraded the rating of Cosco Shipping Holdings and OOIL to "underweight"; and reduced the target price of COSCO Shipping Holdings by 35.6% to HK$8.5 yuan, and the target price of OOIL by 21.9% to HK$89 yuan. The bank also lowered the target price of SITC International Holdings to HK$16 yuan, a decrease of 12.1%, while maintaining the rating of "in sync with the market". $COSCO SHIP HOLD (01919.HK)$and $OOIL (00316.HK)$target price reduced their rating to "underweight"; also cut the target price of COSCO Holdings by 35.6% to HK$8.5, and the target price of OOIL by 21.9% to HK$89. The company also lowered SITC International's target price by 12.1% to HK$16 and maintained a "in sync with the market" rating.
Citigroup: China Res Land and Ke Holdings are the main beneficiaries of the real estate industry's turnaround.
Citi's report states that after going through an initial emotional boost the market sentiment regarding China's historic measures (May 17th real estate policy) to stabilize the real estate industry is gradually cooling down. Although the policy implementation process faces challenges, Citigroup believes it is too early to deny the potentially far-reaching positive impact on the real estate and banking industries. Citigroup is optimistic for two reasons; First, the successful destocking pilot plans in Zhengzhou and Jinan; Second, Citigroup believes that the 517 measures will continue to receive policy support. $CHINA RES LAND (01109.HK)$And.$BEKE-W (02423.HK)$China Res Land and Ke Holdings are the main beneficiaries of the real estate industry's turnaround.
Goldman Sachs cuts China Tourism Group Duty Free Corporation target price to HKD 79 and lowers its 2024-2026 EPS forecast.
Goldman Sachs research report indicates that, because the crackdown on daigou（overseas shopping agents） in China began in April and May last year, the base period for comparison is higher, so the number of outbound tourists to Japan and South Korea has increased. It is expected that the Hainan duty-free shops' sales will decrease by 35% YoY in the second quarter of this year, but this trend should improve in the second half as Hainan's aviation data reflects steady recovery. However, the recovery of airport duty-free shops is partially offset by reduced online sales. Goldman Sachs expects the company's gross margin to continue to improve, increasing 0.8% QoQ to about 34% in the second quarter, and the EBT profit margin to drop 2.4% QoQ to 13%. It cut the 2024-2026 EPS forecast by 16%, and the target price from HKD 92 to HKD 79, but maintains a "buy" rating. $CTG DUTY-FREE (01880.HK)$China Tourism Group Duty Free Corporation's gross margin will continue to improve, with a QoQ increase of 0.8% to about 34% in the second quarter. The EBT profit margin will drop 2.4% QoQ to 13%. It is expected that the trend of the Hainan duty-free shop's sales decreasing by 35% YoY in the second quarter of this year will improve in the second half, as Hainan's aviation data reflects steady recovery. However, the recovery of airport duty-free shops is partially offset by reduced online sales.
Editor/Feynman