Financial Services Association, July 25 (Editor: Hu Jiarong) The Hong Kong stock market experienced “three consecutive declines,” with the Chinese enterprise index falling the highest. At the close, the Hang Seng Index fell 1.77% to close at 1,7004.97 points; the Technology Index fell 2% to close at 3421.26 points; and the State-owned Enterprises Index fell 2.05% to close at 6016.51 points.

Regarding the recent market adjustments, Tianfeng Securities believes that although current market trends cannot be ignored, more solid fundamental data is needed to determine future sustainability and room for growth.

Today's market

Judging from the performance of individual stocks, Internet, petroleum, coal, and gold stocks had the highest declines, while a few individual stocks, such as some photovoltaics, bucked the trend and strengthened.

Internet stocks mostly adjusted Meituan had the highest decline

Among internet stocks, Meituan-W (03690.HK), Tencent Holdings (00700.HK), and Baidu Group-SW (09888.HK) fell 5.47%, 3.30%, and 2.22% respectively.

In terms of news, Meituan had the highest decline. Zephirin Group, an internationally renowned professional analysis agency, lowered Meituan's target price from HK$120 to HK$112, but the bank still maintains a buying rating and the risk is high.

Refined oil products may usher in a new round of downsizing, CNOOC falls nearly 4%

Among petroleum stocks, CNOOC (00883.HK), CNPC (00857.HK), and Kunlun Energy (00135.HK) fell 3.88, 3.67%, and 3.40%, respectively.

In terms of news, according to the data monitoring model of Zhuochuang Information, as of the close of trading on July 23, the rate of change in domestic reference crude oil was -2.87%. It is expected that gasoline and diesel will be reduced by 125 yuan/ton. The price increase for No. 92 gasoline and No. 0 diesel will be reduced by 0.1 and 0.11 yuan, respectively.

The decline in coal prices put pressure on related individual stock trends, and China Coal Energy fell by more than 5%

Among coal stocks, Yancoal Australia (03668.HK), China Coal Energy (01898.HK), and China Shenhua (01088.HK) fell 5.17%, 3.72%, and 2.22% respectively.

In terms of news, coal prices entered a downward channel in mid-March due to the slow release of demand after the heating season. The second quarter was a low season for traditional coal demand. Huatai Securities recently pointed out that in the second quarter of this year, the spot price of 5,500 kilocalories of thermal coal in Beigang fell month/month on month; the price of coking coal increased year-on-year per ton, but declined month-on-month, and the Changxie price index declined month-on-month.

International gold prices continue to fall, China's gold international falls by nearly 12%

Among gold stocks, China Gold International (02099.HK), Zhaojin Mining (01818.HK), and China Baiyin Group (00815.HK) fell 11.74%, 10%, and 6.78% respectively.

In terms of news, international gold prices have continued to adjust recently, recovering from a high of 2488.4 US dollars on July 17 to around 2,375 US dollars today.

In response, Du Yang, a researcher at the Bank of China Research Institute, pointed out that increasing uncertainty in the global economic and financial environment is one of the main reasons for sharp fluctuations in precious metals prices. The US inflation data fell short of expectations, triggering a rise in market expectations for the Federal Reserve's interest rate cut, which further boosted the price of gold. However, the path of the Federal Reserve's subsequent interest rate cuts is still unclear, making precious metals face greater trading risks in the short term.

China Photovoltaic Industry Association encourages mergers and restructuring, Follett Glass rises nearly 6%

Among photovoltaic solar stocks, Follett Glass (06865.HK), Xinyi Solar (00968.HK), and Xinte Energy (01799.HK) rose 5.98%, 3.04%, and 0.56% respectively.

In terms of news, at a seminar on reviewing the development of the photovoltaic industry in the first half of 2024 and looking forward to the situation in the second half of the year held today, Wang Bohua, honorary chairman of the China Photovoltaic Industry Association, said that the PV industry should adjust quickly. Currently, competition within and outside the industry is intense, the industry needs to “go to battle lightly”, and the integration period should not be too long. It is necessary to promote the clearance of backward production capacity and encourage mergers and restructuring of enterprises. Among them, management departments need to strengthen guidance on the construction of advanced production capacity, local governments should strictly control unreasonable bailouts, enterprises should carefully launch new investments, encourage targeted acquisitions of new production capacity left over from the industry by cross-border enterprises leaving the industry, and financial institutions should avoid “blood transfusions” into production capacity that is about to be cleared.

Southbound funding

The net outflow of capital to the south continued, amounting to HK$4.66 billion. Since this year, Southbound has accumulated purchases of nearly HK$375.744 billion.

Individual stock news and changes

[Meitu's net profit is expected to increase by more than 7% after adjustment in the first half of the year]

Meitu (01357.HK) rose 7.52% to close at HK$2.43. In terms of news, the company expects adjusted net profit growth of no less than 80% in the first half of 2024.

[Hongteng Precision fell more than 12%, the market is worried that Yingxi's data for the first half of the year fell short of expectations]

Hongteng Precision (06088.HK) fell 12.33% to close at HK$2.63. According to the news, the company recently announced its performance forecast for the first half of the year. It is expected to achieve net profit of 2,800 to 33 million US dollars in the first half of the year, reversing losses from the previous year. CMB International said that the company's stock price came under pressure after the release of Yingxi, mainly due to the fact that the first half of the year's Yingxi figures announced by the company were slightly weaker than previous market expectations. Investors are concerned about the pace of achieving the company's performance guidelines for the full year of this year, and whether the high OPEX problem caused by the new AirPods production line and Voltaira's automotive electronics business can be mitigated in the second half of the year.