Hong Kong stocks continued their downward trend from yesterday, with all three major indexes falling throughout the day and further widening their losses in the afternoon, with the Hang Seng Tech Index falling more than 2% at one point. At the close, the Hang Seng Index was down 0.91% or 158.31 points, at 17311.05 points.
As reported by the Intelligence Finance app, Hong Kong stocks continued their downward trend from yesterday, with all three major indexes falling throughout the day and further widening their losses in the afternoon, with the Hang Seng Tech Index falling more than 2% at one point. At the close, the Hang Seng Index was down 0.91% or 158.31 points at 17311.05 points,and recorded a total turnover of HKD 86.899 billion for the day; the Hang Seng China Enterprises Index fell 0.85%, closing at 6142.32 points; the Hang Seng Tech Index fell 1.52%, closing at 3491.2 points.
Huatai Securities pointed out that the recent weakness in Hong Kong stock market liquidity is characterized by the outflow of configuration-type foreign capital, increasing short positions under the trading upsurge during the elections and trading freeze during the interest rate adjustment; in addition, following the successful inclusion of the first batch of new ETFs in the Shanghai-Shenzhen-Hong Kong Stock Connect on July 22nd, six new ETFs were officially included into the scheme as of today. The new ETFs have a combined scale of HKD 24.29 billion, and are expected to generate higher turnover as per the experience of the first batch of mutual access ETFs.
Blue chip performance
Netease-S (09999) led the blue chips. At the close, it rose 4.57%, at HKD 148.8, with a turnover of HKD 1.232 billion, contributing 7.26 points to the Hang Seng Index. The mobile game "Yong He Wu Jian," which is under Netease, will begin public beta testing tomorrow, and the current number of reservations has exceeded 40 million. HSBC Research expects the game's total revenue in the third quarter to reach RMB 2.4 billion, and its total revenue for the first 12 months to reach approximately RMB 11 billion.
In terms of other blue-chip stocks, China Resources Power (00836) rose 4.16%, closing at HKD 22.55, contributing 2.76 points to the Hang Seng Index; Sinopec (00386) rose 3.13%, closing at HKD 4.94, contributing 5.91 points to the Hang Seng Index; Chow Tai Fook (01929) fell 6.57%, closing at HKD 7.39, dragging down the Hang Seng Index by 1.72 points; China Resources Beer (00291) fell 6.3%, closing at HKD 25.3, dragging down the Hang Seng Index by 4.4 points.
Hot sectors
On the market, large technology stocks generally declined while NetEase rose more than 4% against the trend due to the upcoming launch of the "Yong He Wu Jian" mobile game. Consumer weakness affected the beer market, causing beer stocks to fall collectively, with China Resources Beer falling more than 9% at one point. Tesla's Q2 profits were lower than expected, causing pressure on the auto industry throughout the day. Chip stocks, holiday entertainment concept stocks, Hong Kong retail stocks, mainland real estate stocks, and others posted the largest declines. On the other hand, electrical utilities rose against the trend due to the strong increase in power consumption in the first half of the year, with high dividend concept stocks such as water affairs, highway and railway transportation, wind power, coal, and petroleum generally on the rise.
1. Electrical utilities rose against the trend. At the close, CGN Power (01816) rose 5.67%, closing at HKD 3.54; China Resources Power (00836) rose 4.16%, closing at HKD 22.55; China Power (02380) rose 3.56%, closing at HKD 3.78; and Datang International Power Generation (00991) rose 2.58%, closing at HKD 1.59.
China Electricity Council data released on the 24th showed that in the first half of the year, the country's total electricity consumption was 4.66 trillion kilowatt-hours, a year-on-year increase of 8.1%, up 3.1 percentage points from the same period last year. In the second quarter, total electricity consumption rose 6.5% year-on-year. The China Electricity Council expects the national power supply and demand situation to remain tight and balanced during peak summer periods in 2024. Huayuan Securities previously stated that the strong growth in China's overall electricity demand since 2024 has laid a solid foundation for the performance of the power sector. Shanxi Securities also believes that as auxiliary services and capacity pricing mechanisms are gradually implemented, the expectations for stable profitability and dividend capacity of thermal power enterprises have improved, and there remains new value points to be explored by the market under improved business models.
2. Auto stocks were under pressure throughout the day. At the close, Great Wall Motor (02333) fell 5.24%, closing at HKD 11.22; Xpeng (09868) fell 5.01%, closing at HKD 32.25; and Li Auto (02015) fell 4.06%, closing at HKD 74.5.
Tesla's second-quarter revenue was higher than expected, but profits were lower than expected, continuing the poor start to sales and massive layoffs this year. In addition, Tesla CEO Musk confirmed earlier media reports during the earnings call that the Robotaxi launch would be delayed from August 8 to October 10. Tesla's post-market trading fell more than 8%. In addition, China Great Wall Securities previously pointed out that opportunities and challenges coexist in the current international market. The US, EU, and Turkey have successively imposed severe tariffs on China's new energy vehicles, which will bring certain market pressure and challenges to Chinese electric vehicle companies in the long run.
3. Mainland real estate stocks continue to decline. As of the close, China Vanke (02202) fell 6.76% to HKD 4.14; Sino-Ocean Group (03377) fell 5.56% to HKD 0.34; Sunac (01918) fell 2.83% to HKD 1.03; Yuexiu Property (00123) fell 2.77% to HKD 5.27.
Debon Securities pointed out that real estate sales are still in a downward trend. In H1 2024, national commodity housing sales area decreased by 19% YoY, and sales fell by 25% YoY. There is still room for further policy optimization. Shenwan Hongyuan pointed out that after a deep adjustment of the fundamentals of the real estate industry, bottom signals such as the mortgage burden ratio, rental return on investment, and the number of new starts per thousand people have emerged. It is expected that the natural demand for the real estate industry will bottom out. Since the end of April this year, policies such as 430, 517, 607 have been introduced intensively, and the policy direction has shifted from the supply side to the demand side, focusing on inventory reduction and stable housing prices.
Popular fluctuating stocks
1. ASMPT(00522) plummeted in performance. As of the close, it fell 23.14% to HKD 88.
ASMPT released its first-half financial results, with sales revenue of HKD 6.48 billion, down 17.1% year-on-year; attributable profit to shareholders of the Company was HKD 0.314 billion, down 49.6% year-on-year; a mid-term dividend of HKD 0.35 per share was proposed, down 42.6% year-on-year from the same period last year. Looking forward to the third quarter, ASMPT expects sales revenue to be between USD 370 million and USD 430 million, down 9.9% year-on-year on a median basis, and down 6.4% on a month-on-month basis.
2. Chow Tai Fook (01929) hit a new three-and-a-half year low, falling 6.57% to HKD 7.39 at the close.
Chow Tai Fook announced that its first-quarter retail sales value as of the end of June fell 20% year-on-year, with a decline of 18.6% in the mainland market; a decline of 28.8% in Hong Kong, Macau, and other markets. During the quarter, same-store sales in the mainland fell 26.4% year-on-year, and same-store sales volume fell 36.5%; same-store sales in Hong Kong and Macau fell 30.8% year-on-year, and same-store sales volume fell 36.1%.
3. Dancing Bear Entertainment (02125) released positive results. As of the close, it rose 8.33% to HKD 0.52.
Dancing Bear Entertainment released positive results, expecting a comprehensive net profit for shareholders of approximately RMB 29 million to RMB 39 million in the first half of this year, a year-on-year increase of approximately 2075.5% to 2825.7%; adjusted net profit was approximately RMB 36.7 million to RMB 46.7 million, a year-on-year increase of approximately 163.9% to 235.8%.
4. Microport Neurotech (02172) rose significantly. As of the close, it rose 7.44% to HKD 7.8.
Microport Neurotech expects to achieve a net profit of approximately RMB 1.3 billion to 1.5 billion in the first half of 2024, a year-on-year increase of approximately 124% to 158%. The main benefits are hospital coverage and market share, and rapid growth in overseas business. During the period, revenue is expected to increase by 34%-37%. It also improved profitability significantly by executing multiple supply chain improvement projects to enhance operational efficiency.
5. Samsonite (01910) rebounded. As of the close, it rose 4.96% to HKD 21.15.
The latest data from Hong Kong's stock exchange shows that on July 17th, E Fund Fund increased its holdings of Samsonite (01910) by 7.08 million shares, at a price of HKD 20.9379 per share, for a total amount of approximately HKD 1.48 billion. The latest holding is approximately 0.135 billion shares, with the latest holding ratio of 9.23%.