Futu News, July 25th. The Hong Kong stock market continued to fall in the afternoon, with all three major indexes falling by about 2%, and recording a three-day decline. By the close of trading, the Hang Seng Index fell by 1.77%, the Guozi Index fell by 2.05%, and the Hang Seng Technology Index fell by 2%.
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At the midday close, 503 Hong Kong stocks rose, 1395 fell, and 1169 were flat.
The specific industry performance is shown in the following figure:
![](https://postimg.futunn.com/news-editor-imgs/20240725/public/17218951225631920319273.jpeg)
In terms of sectors, technology stocks generally fell, Meituan-W fell 5.47%, Tencent Holdings fell 3.30%, Baidu Group-SW fell 2.22%, Xiaomi Group-W fell 2.06%, JD.com Group-SW fell 1.29%, Kuaishou-W fell 1.26%, and Alibaba-SW fell 1.21%.
Nonferrous metal shares fell, Zhaojin Mining fell 10.00%, Luoyang Molybdenum fell 6.73%, SD Gold fell 5.93%, Zijin Mining Group fell 5.10%, Aluminum Corporation of China fell 3.81%, Jiangxi Copper fell 3.30%, China Hongqiao fell 2.48%.
Banking stocks fell, China Merchants Bank fell 3.60%, China Construction Bank fell 1.45%, Industrial and Commercial Bank of China fell 1.14%, Bank of China fell 1.16%, Agricultural Bank of China fell 1.13%.
Most petroleum stocks fell, CNOOC fell 3.88%, PetroChina fell 3.67%, Kunlun Energy fell 3.40%, Sino Oil & Gas fell 2.70%, China Oilfield fell 2.36%, and Sinopec Corp fell 1.82%.
Semiconductor stocks were weak, Hua Hong Semiconductor fell 5.16%, Shanghai Fudan fell 3.72%, AV Concept Hold fell 3.33%, Semiconductor Manufacturing International Corporation fell 2.80%, HG Semi fell 2.33%, and CE Huada Tech fell 1.83%.
In terms of individual stocks,$ASMPT (00522.HK)$It fell by nearly 11% again, with a cumulative decline of more than 30% in two days. The downward trend in SMT demand has temporarily suppressed the company's performance.
$HAIER SMARTHOME (06690.HK)$It rose more than 5%. The two departments announced that they will arrange funds to support the renewal of personal and local consumer goods.
$BEKE-W (02423.HK)$It fell more than 3%. The second-hand housing market continued to trade volume for price, and Morgan Stanley expects net income to fall 8% year-on-year in the second quarter.
$EAST BUY (01797.HK)$It rebounded by more than 4%. The company participated in an international forum for the first time, and institutions are bullish on its profit improvement in the fourth quarter.
$FIT HON TENG (06088.HK)$It fell by more than 12% again, nearly 35% lower than the high point of the month. The market is concerned that the first half of the year's earnings may not meet expectations.
TOP 10 trading volume today
![](https://postimg.futunn.com/news-editor-imgs/20240725/public/17218950654211325272459.jpeg)
Hong Kong Stock Connect Fund
Regarding the Hong Kong Stock Connect, the net outflow of Southbound funds today was 4.661 billion Hong Kong dollars.
![](https://postimg.futunn.com/news-editor-imgs/20240725/public/17218951422151606080651.png)
Institutional perspective
Morgan Stanley: It reiterates its bullish view on crude oil shipping stocks, and raises the target price of COSCO Ship Engy to 11.1 Hong Kong dollars.
According to a research report released by Morgan Stanley, the short-term stock price adjustment caused by seasonal factors has basically ended. It maintains a "buy" rating, and raises the target price from 10 Hong Kong dollars to 11.1 Hong Kong dollars. It also points out that there is potential for a rise in crude oil production in the fourth quarter of this year, which will be a positive catalytic factor for the underlying fundamentals.$COSCO SHIP ENGY (01138.HK)$"Shareholding" rating, target price was raised from HKD 10 to HKD 11.1. The report stated that the fluctuations in the crude oil tanker market this year are smaller than last year. Due to weak demand, the spot market in the first quarter of this year is lower than the same period last year, but the second quarter is historically a low season, and crude oil tanker freight rates are still far above the industry's breakeven level, outperforming the traditional peak season, mainly due to the significant reduction in new ship deliveries and a healthier supply side in the industry.
UBS Group: Maintains a "buy" rating and target price of 158 Hong Kong dollars for Meituan, which is attractive as an industry leader.
UBS Group published a report indicating that the better business competition pattern should bring high elasticity and visible future profit potential, stemming from the growth of GTV (regaining market share from Douyin), revenue acceleration, and the restoration of gross margin (31% in the first quarter of 2024, compared to 46% in 2022). Meituan is currently expected to have a PE ratio of 13 times in 2025, and the bank believes that as an industry leader, it is attractive, maintaining a "buy" rating on Meituan and a target price of 158 Hong Kong dollars. The bank believes that through the local service agency industry channel, Meituan and Douyin's competition in the store market continues to stabilize, and a more rational competitive pattern should be conducive to Meituan.$MEITUAN-W (03690.HK)$Bringing high resilience and visible future profit potential, this comes from the growth of GTV (regaining market share from Douyin), accelerating revenue, and recovering gross margins (31% in the first quarter of 2024, 46% in 2022). Meituan is currently forecasted with a P/E ratio of 13 times for 2025, and the bank believes that as an industry leader, it is attractive to maintain a "buy" rating and target price of 158 Hong Kong dollars for Meituan. The bank believes that through local service agency industry channels, the competition between Meituan and Douyin in the offline market continues to stabilize, and a more rational competition pattern should be beneficial to Meituan.
JP Morgan: reaffirms that Netease-S is the first choice for China's online games industry, with a target price of HKD 200.
JPMorgan released a research report stating that $NTES-S (09999.HK)$The stock price rose about 5% in yesterday's trading, believed to be due to positive sentiment ahead of the release of "Endless Conflict" mobile game today. JP Morgan reiterated that Netease is the first choice for China's online games industry, with the expected strong performance of the "Endless Conflict" mobile game, as well as the successful global launch of "7 Days World" in early July, should drive accelerated growth in online game revenue and stock price revaluation from the third quarter, with a target price of HKD 200 for its H-shares.
Editor / Feynman