As of the close of the day on July 16th, Hong Kong's three major indexes maintained a downward trend. The Hang Seng Index fell 1.6% and once again fell below the 18,000 mark. The NASDAQ Golden Dragon China and Hang Seng Tech indexes fell 1.64% and 1.35%, respectively. The three fell for the second consecutive day, nearly wiping out the strong gains of the previous two days. In terms of sector, network technology stocks experienced a general decline, with Ctrip falling nearly 4%, Tencent and Kuaishou falling more than 3%, Baidu falling nearly 3%, JD.com falling more than 2%, and Alibaba falling more than 1%. Apple concept stocks saw gains, with Sunny Optical rising nearly 7%, BYD Electronic rising over 4%, Cowell rising over 5%, and Q-Tech rising nearly 2%. Gold stocks rose across the board, with SD Gold and Zhaojin Mining up over 4%, Lingbao Gold and Chinagoldintl up by about 1%. Bank stocks fell across the board, with China Construction Bank and Bank of Communications falling nearly 3%, ICBC, Agricultural Bank of China, and Bank of China falling nearly 2%, and CM Bank falling more than 1%. Insurance stocks fell across the board, with Ping An Insurance falling more than 5%, New China Life Insurance and AIA falling about 3%, and China Life Insurance falling nearly 2%. In addition, shipping, mainland real estate, and coal stocks continued their downward trend, while biomedical, auto, oil and gas, and sporting goods stocks edged down slightly, and semiconductor stocks edged up slightly.
As of the close, 729 stocks on the Hong Kong stock market rose, 1,105 fell, and 1,242 remained flat.
The specific industry performance is as follows:
In terms of sectors, network technology stocks are generally down, with Ctrip down nearly 4%, Tencent and Kuaishou down more than 3%, Baidu down nearly 3%, JD.com down more than 2%, Alibaba and Meituan down more than 1%.
Apple concept stocks saw gains, with Sunny Optical rising nearly 7%, BYD Electronic rising over 4%, Cowell rising over 5%, and Q-Tech rising nearly 2%.
Gold stocks rose across the board, with SD Gold and Zhaojin Mining up over 4%, Lingbao Gold and Chinagoldintl up by about 1%.
Bank stocks fell across the board, with China Construction Bank and Bank of Communications falling nearly 3%, ICBC, Agricultural Bank of China, and Bank of China falling nearly 2%, and CM Bank falling more than 1%.
Insurance stocks fell across the board, with Ping An Insurance falling more than 5%, New China Life Insurance and AIA falling about 3%, and China Life Insurance falling nearly 2%.
In addition, shipping stocks continued their downward trend as geopolitical tensions eased and freight rates fell. Real estate and coal stocks saw a significant decline, while biomedical, auto, oil and gas, and sporting goods stocks edged down slightly and semiconductor stocks edged up slightly.
In terms of individual stocks,$SUNNY OPTICAL (02382.HK)$Cowell rose nearly 7%, and institutions predict that the company will release good earnings news and enter the field of edge-side AI innovation by partnering with Apple.
$TCL ELECTRONICS (01070.HK)$Zhaojin Mining fell more than 12%, and the company expects net income attributable to shareholders for the first half of the year to increase by about 130% to 160%.
$PING AN (02318.HK)$Down more than 5%, plans to issue USD 3.5 billion of 0.875% convertible bonds due 2029 based on general authorization.
$U-PRESID CHINA (00220.HK)$Convenient noodles and sour cabbage buns fell more than 10%, triggering reactions online about rat heads.
$CHINA RUYI (00136.HK)$Golden Glove rose more than 5%, and the company's summer film lineup is rich. The total box office of Catch Dolls exceeded 0.5 billion.
Today's top 10 Hong Kong stock turnover
Hong Kong Stock Connect Fund
In terms of the Hong Kong stock connect, net inflows into Hong Kong stocks (southbound) were HKD 6.126 billion.
Institutional perspective
UBS Group downgraded its rating on OOIL to “shareholding” and set a target price of HKD 89.
Morgan Stanley issued a research report stating that it gave a “shareholding” rating and believed that the limited space for stock prices to rise would be driven by OOIL's mid-term performance. Risks include the peak of the container shipping market atmosphere and the possibility of price adjustments to the current transport cost. The target price is HKD 89. Morgan Stanley believes that there is a 70% to 80% chance that the company's stock price will fall in the next 60 days. The company's second-quarter operating data was moderate, with a year-on-year increase of 1% in transportation volume, but a decrease in transportation capacity, possibly due to the drag on realigned flight routes. Compared with the same period, revenue per standard box rose 13.4%, but this is still lower than the year-on-year increase of 53% in China's container shipping rate index (CCFI). Revenue increased 14.4%, but was still behind Taiwan's counterparts.$OOIL (00316.HK)$Apple supplier stocks rose slightly as institutions predict that companies will release good earnings news.
UBS issued a research report stating that China Ping An's issuance of convertible bonds should not come as a complete surprise to the market, and set a target price of HKD 56.
UBS Group released a report stating that $PING AN (02318.HK)$It is planned to issue convertible bonds of $3.5 billion, and the expected dilution effect after full conversion is estimated to be 3.3%, with a net amount of $3.452 billion to be used for further development of core businesses, capital enhancement, support for medical care, and strategic initiatives for elderly care ecosystems. The issuance of convertible bonds can optimize the capital structure and diversify funding sources. The bank believes that given the high interest rates and stock market volatility in the United States, it is not completely surprising that Chinese companies have been issuing convertible bonds this year, and Chinese companies have accelerated the pace of convertible bond sales, especially in the technology industry. The issuance of convertible bonds by Ping An Insurance of China should not be completely unexpected to the market. The bank has a target price of HK$56 for Ping An Insurance H shares and a buy rating.
Goldman Sachs reiterated its sell rating on COSCO Shipping Holdings and raised its target price to HK$8.
Goldman Sachs released a research report stating that it has reiterated its sell rating.$COSCO SHIP HOLD (01919.HK)$According to the latest freight rate forecasts, Goldman Sachs has raised its adjusted net income forecast for this year and 2026 by 67% and 21%, respectively, and reduced its net loss forecast for next year by 37%. The target price has been raised from HK$7.6 to HK$8. The bank estimates that the growth in shipping supply in August may slightly exceed the growth in demand, and spot freight rates may turn around at that time. The report stated that the freight rates on the Asia-Europe route fell last week for the first time since mid-April, and the latest data from the Shanghai Shipping Exchange's SCFI freight rate index also showed a 2% weekly decline in the composite index, with a 6% and 1% decline in the far-reaching routes to the west and east coasts of the United States, respectively, while the prices on the European routes increased by 4%.
Editor/Feynman