Futu News, July 26th - Hong Kong's three major indices rose in the morning and fell back in the afternoon, maintaining a volatile trend for the day and stopping the previous declining trend. At the close, the Hang Seng Index rose 0.1%, the GEM Index fell 0.1%, and the Hang Seng Tech Index rose 0.66%. In the morning, all three indices rose more than 1.3%.
At the close, there were 992 gainers, 774 decliners and 1299 unchanged stocks in the Hong Kong stock market.
The specific industry performance is shown in the following figure:
In terms of sectors, network technology stocks rose and fell, with JD Group-SW up 3.02%, Netease-S down 2.44%, Xiaomi Group-W up 0.99%, Tencent up 0.91%, Kuaishou-W down 0.81%, and Meituan-W up 0.47%.
Gold stocks rose across the board, with China Gold International up 4.06%, Lingbao Gold up 3.54%, Zijin Mining up 2.28%, Tongguan Gold up 1.96%, China Silver Group down 1.82%, and Zhaojin Mining up 1.70%.
Internet healthcare stocks performed well, with Medi-Wellness up 7.25%, Ali Health up 3.49%, ZA Online up 3.39%, JD Health up 2.21%, and Ping An Good Doctor up 2.01%.
Securities and brokerage stocks rose, with GF Securities up 4.48%, Holly Futures up 4.20%, HTSC up 2.82%, CITIC Securities up 2.68%, Haitong Securities up 2.64%, Galaxy Securities up 2.49%, and CICC up 2.11%.
Auto stocks rose, with Guangzhou Automobile Group up 2.09%, Li Auto Inc. -W up 1.91%, Xpeng-W up 1.74%, Great Wall Motor up 1.63%, and BYD Company up 0.68%.
In terms of individual stocks,$XD INC (02400.HK)$The game Heartbeat Town rose by over 4% and the small game version of Muffin may improve the overall revenue of the game.
$HKT-SS (06823.HK)$Up nearly 3%, the net profit for the first half of the year increased by 2% YoY and the dividend of HK$ 0.3292 is in line with expectations.
$HUADIAN POWER (01071.HK)$Up nearly 4%, Huadian Group is planning a large asset injection, which will help expand the company's business landscape.
$GF SEC (01776.HK)$Up over 4%, leading the China-affiliated brokerage stocks, as strict supervision gradually becomes normal, the impact on the sector is likely to diminish marginally.
$TIMES ELECTRIC (03898.HK)$Up over 3%, the old-for-new policy and railway reforms are expected to be a long-term bullish for rail transit equipment procurement.
$EAST BUY (01797.HK)$Down over 23%, Dong Yuhui resigned, and Eastbuy announced the sale of its subsidiary with Hui Tongxing to Dong Yuhui, which will have a significant impact. It is estimated that "With Hui Tongxing" accounts for half of the total trading volume of Eastbuy's products in recent seasons. The bank pointed out that it would not be surprised if Eastbuy cannot make a profit in the future, which means that the bank may need to remove about 10% of its comprehensive operating profit and about 5% of its net income from its forecast. However, the impact on New Oriental Education & Technology Group: New Oriental-S (09901) is "very controllable", as Eastbuy accounts for about 20% of New Oriental's revenue, 10% of operating profit, and less than 5% of net profit.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
In terms of the Hong Kong stock connect, the net inflow of Hong Kong shares (Southbound) was HK$8.774 billion today.
Institutional perspective
Morgan Stanley: Not Surprised If Eastbuy Fails to Make Profits in the Future, But the Impact on New Oriental-S is Controllable.
JPMorgan released a research report stating that $EAST BUY (01797.HK)$The departure of the Internet anchor Dong Yuhui, who occupies a major part of the total volume of Eastbuy products, will have a "significant" impact; it is estimated that With Hui Tongxing accounts for half of Eastbuy's total trading volume. The bank pointed out that it would not be surprised if Eastbuy cannot make a profit in the future, which means that the bank may need to remove about 10% of its comprehensive operating profit and about 5% of its net income from its forecast. However, the impact on New Oriental Education & Technology Group: New Oriental-S (09901) is "very controllable", as Eastbuy accounts for about 20% of New Oriental's revenue, 10% of operating profit, and less than 5% of net profit.
Morgan Stanley: Raising the Scrapping and Renewal Subsidy Standard for Automobiles on the Mainland Should Boost Fourth-Quarter Sales, but May Eat into 2025 Sales.
Morgan Stanley released a research report stating that the mainland is raising the scrap update subsidy standard for passenger vehicles. Personal consumer scrapping of National III or below emission standard fuel passenger vehicles or passenger vehicles registered before a specified date of new energy, and purchase of new energy passenger vehicles or passenger vehicles with 2 liters or below RBOB gasoline displacement, which are included in the New energy vehicle model directory for exemption from vehicle and vessel tax, will increase the subsidy standard for purchasing a new energy passenger vehicle by CNY 0.02 million and for purchasing a passenger vehicle with 2 liters or below RBOB gasoline displacement by CNY 0.015 million. Daiwa believes that the upgraded replacement subsidy plan has fulfilled the government's commitment to boost automobile demand, but also exposed the challenges facing the domestic consumer market and the ineffectiveness of earlier stimulus measures. The company believes that a stable pipeline of car models and stimulus measures should boost automotive sales growth in the fourth quarter, but may raise concerns about cannibalizing car sales in 2025.
China International Capital Corporation: American growth is steady and does not support an early rate cut.
China International Capital Corporation released a research report stating that the actual GDP annualized growth rate of the United States in the second quarter of 2024 was 2.8%, exceeding market expectations of 2.0% and a significant rebound from the 1.4% in the first quarter. Personal consumption expenditure has accelerated, corporate equipment investment is strong, and inventory has recovered, which indicates that the US economic growth is still healthy and the probability of recession in the short term is not great. In fact, some economic data improving since June may indicate that economic growth in the third quarter will remain steady. From the perspective of the Fed, this data does not provide sufficient reasons for an early rate cut. On the contrary, the data supports the Fed's patience and avoiding excessive reactions to short-term fluctuations. China International Capital Corporation maintains its judgment that the Fed will cut rates once in the fourth quarter.
Editor/Feynman