According to Futu information on July 22, the Hong Kong stock market continued to rise in the afternoon, with the Hang Seng Tech Index rising as high as 2.5% at the end of the day and finally closing up 2.1%. The Hang Seng Index and the National Index rose 1.25% and 1.44%, respectively, ending the pattern of continuous declines last week. In terms of sectors, network technology stocks rebounded, with Ctrip up over 5%, Xiaomi up over 4%, Meituan up over 3%, Tencent and NetEase up over 2%, and Alibaba, Baidu, and JD up over 1%. Biomedical stocks were strong, with Kelun-Bio up nearly 6%, Tigermed and Wuxi Bio up nearly 4%, WuXi AppTec up nearly 3%, and Beigene up over 2%. Autos performed well, with XPeng up nearly 4%, HuaChen up over 3%, Leap Motor up over 2%, BYD Company and Li Auto up over 1%. Electric power stocks rose across the board, with China Power International Electricity up over 5%, CGN Power up nearly 3%, China Energy Conservation and Environmental Protection Group up over 2%, and China Resources Power up nearly 2%. In addition, mainland real estate stocks, mainland banking stocks, semiconductor stocks, and coal industrial concept (coal industry) stocks rose slightly. Apple supplier stocks were weak in the morning and turned higher at the close, while golden industrial concept stocks fell slightly.
At the close, 949 Hong Kong stocks rose, 860 fell, and 1,258 remained unchanged.
The specific industry performance is as follows:
In terms of sectors, network technology stocks rebounded, with Ctrip up over 5%, Xiaomi up over 4%, Meituan up over 3%, Tencent and NetEase up over 2%, and Alibaba, Baidu, and JD up over 1%.
Biomedical stocks were strong, with Kelun-Bio up nearly 6%, Tigermed and Wuxi Bio up nearly 4%, WuXi AppTec up nearly 3%, and Beigene up over 2%.
Autos performed well, with XPeng up nearly 4%, HuaChen up over 3%, Leap Motor up over 2%, BYD Company and Li Auto up over 1%.
Electric power stocks rose across the board, with China Power International Electricity up over 5%, CGN Power up nearly 3%, China Energy Conservation and Environmental Protection Group up over 2%, and China Resources Power up nearly 2%.
In addition, mainland real estate stocks, mainland banking stocks, semiconductor stocks, and coal industrial concept (coal industry) stocks rose slightly. Apple supplier stocks were weak in the morning and turned higher at the close, while golden industrial concept stocks fell slightly.
In terms of individual stocks,$TENCENT (00700.HK)$Up over 2%, Morgan Stanley stated that Tencent's second-quarter buybacks were more than twice the amount sold by major shareholders.
$XIAOMI-W (01810.HK)$Up over 4%, they announced the delivery of a new generation of foldable smartphones and achieved early delivery of SU7.
$TRIP.COM-S (09961.HK)$Up over 5%, the Third Plenary Session put forward the expansion of China's international cultural dissemination, and the company increased its overseas supply chain layout.
$NEW ORIENTAL-S (09901.HK)$Up nearly 9%, it ended the pattern of continuous declines. The ranking list will be released next week, with institutional optimism before it is released.
$MNSO (09896.HK)$Up over 4%, analysts stated that the tariff event was only a disturbance in sentiment, and share buybacks in July increased.
$TINGYI (00322.HK)$As for the Hong Kong Stock Connect, the net inflow from Hong Kong Stock Connect (Southbound) today was HKD 3.692 billion.
Today's top 10 Hong Kong stock turnover
Hong Kong Stock Connect Fund
Goldman Sachs: Raised target price of Xiaomi to HKD 23.2 and raised revenue and net profit forecast.
Institutional perspective
Goldman Sachs released a research report stating that it raised Xiaomi's revenue forecast for the second quarter of this year and the period from 2024 to 2026 by 2% to 3%, reflecting a more robust long-term sales growth outlook for the Internet of Things and smart electric vehicles. The bank also raised Xiaomi's net profit forecast for the period from 2024 to 2026 by 1% to 4%, mainly due to the fewer losses of electric vehicles and the sales of new services and vehicle use IoT with higher profits. The bank expects Xiaomi's smartphone gross margin to record 13.4%, 13.7%, and 13.2% respectively in the second quarter of this year and the next two years, and expects Xiaomi to maintain its important position in the AI-driven interactive network field. The bank also mentioned that overseas income resumed growth in the first quarter of this year and is expected to record an annual compound growth rate of 14% from 2023 to 2026. Goldman Sachs slightly raised Xiaomi's target price from HKD 23 to HKD 23.2 and maintained its "buy" rating.
Goldman Sachs released a research report stating that it raised $XIAOMI-W (01810.HK)$its revenue forecast for Q2 of this year and the period from 2024 to 2026 by 2% to 3%, reflecting a more robust long-term sales growth outlook for the IoT and smart electr...
HSBC: Gives Sunny Optical Technology a "buy" rating with a target price of HKD 59.
Morgan Stanley released a research report, expecting that$SUNNY OPTICAL (02382.HK)$The positive reaction of the stock price brought by the profit announcement is believed to attract more attention from investors to the company's business prospects in the second half of the year. The stock is rated as "shareholding" with a target price of HKD 59. The report stated that, due to the realization of the cyclical industry recovery, the industry catalyst is whether artificial intelligence smart phones can trigger the next product cycle, and whether Sunwoda can seize this growth opportunity. The industry also expects that the growth prospects of automotive lenses will affect Sunwoda's valuation.
Invesco: AI still has significant room for growth, and it is unlikely that there will be a technology stock bubble in the short term.
Invesco Fund said in a post that the recent market fluctuations caused by the world's largest producer of artificial intelligence chips have raised doubts about whether the investment boom in AI has come to an end. As several recent reports highlight the limitations and shortcomings of this technology, skepticism about the economic benefits of the AI revolution is growing. Conversely, the expectations for AI may have reached its peak, although these expectations have not yet been confirmed by concrete evidence that this technology can improve productivity. More importantly, investors may be approaching a period of disillusionment with their fantasies, but once the macro-economic benefits become apparent, this skepticism will dissipate.
Editor/Feynman