The three major stock indexes in Hong Kong rose and fell sharply today, all rising more than 1% in the morning, and then showed weak and volatile trends all day. As of the close, the Hang Seng Index rose 0.1% or 16.34 points, to 17,021.31 points.
According to the Wise News APP, the three major stock indexes in Hong Kong rose and fell sharply today, all rising more than 1% in the morning, and then showed weak and volatile trends all day. As of the close, the Hang Seng Index rose 0.1% or 16.34 points to 17021.31 points, and the total daily turnover was HKD 104.67 billion. The Hang Seng National Enterprise Index fell 0.1%, to 6,010.64 points, and the Hang Seng Technology Index rose 0.66%, to 3,443.73 points. Looking at the entire week, the Hang Seng Index fell by 2.28%, the China Enterprise Index fell by 2.5%, and the Hang Seng Technology Index fell by 2.62%.
Guotai Junan pointed out that recently, overseas US inflation and employment data have cooled down, and the market has priced in the Fed's resumption of interest rate cuts in September. With the increased possibility of Trump's election, the volatility of policy expectations has decreased, and domestic important conferences have landed and policy support is clear, reducing market uncertainties at the molecular end. After sufficient digestion of the previous pessimistic expectations, the upward space of Hong Kong stocks is expected to open. It is bullish on the upward shock of Hong Kong stocks in the future, and technology growth style has greater elasticity in structure.
Blue chip performance
Haier Smarthome (06690) led blue chips higher today. As of the close, it rose 6.1% to HKD 26.1, with a turnover of HKD 1.325 billion, contributing 5.91 points to the Hang Seng Index. The Development and Reform Commission and other departments issued several measures to increase support for home appliance products to replace old ones. Compared with the policy of home appliances going to the countryside and replacements of old products in 2007-2010, this policy has a greater subsidy level for high energy efficiency home appliances. Institutions believe that the sales of high-energy-efficiency products of leading home appliance companies account for a high proportion and have research and development, production, and product advantages, which will benefit more from subsidy policies.
In terms of other blue-chip stocks, Ali Health (00241) rose 3.49% to HKD 3.26, contributing 1.13 points to the Hang Seng Index; JD Group-SW (09618) rose 3.02% to HKD 102.3, contributing 7.71 points to the Hang Seng Index; China Unicom (00762) fell 4.21% to HKD 6.83, dragging down the Hang Seng Index by 2.93 points; WH Group (00288) fell 3.12% to HKD 4.97, dragging down the Hang Seng Index by 2.17 points.
Hot sectors
On the market today, large technology stocks were mixed, with slight gains in Bilibili and Xiaomi, and Alibaba fell. The heavy machinery stock, commercial vehicle and truck sector, and home appliance stocks were strong all day, wind power stocks, China-affiliated brokerage stocks, gold stocks, and theater stocks generally rose. On the other hand, telecommunication stocks, CRO concepts, Macau casino stocks, and China mainland banking stocks fell the most.
1. The commercial vehicle and heavy machinery sectors led the gains. As of the close, China National Heavy Duty Truck (03808) rose 18.06% to HKD 20.85; Weichai Power (02338) rose 12.86% to HKD 13.16; First Tractor (00038) rose 11.71% to HKD 7.06; Sany International (00631) rose 6.03% to HKD 4.57.
The National Development and Reform Commission and the Ministry of Finance released a notice yesterday on increasing support measures for equipment updates and old-for-new consumption of consumer goods. BOCOM International believes that this new stimulus policy is significantly stronger than the one in late April and will help further stimulate the upgrading of old heavy trucks to low-emission heavy trucks, and speed up the replacement of old fuel-powered passenger cars. Overall, the bank believes that sales of new energy vehicles and natural gas heavy trucks will benefit from this round of stimulus policies.
CMB International stated that looking ahead, it is expected that the subsidies that local governments will offer to eliminate National IV trucks will become a more important driving force, and Weichai and China National Heavy Duty Truck will be the main beneficiaries. In addition, yesterday's notice proposed further increasing the subsidy for agricultural machinery updates. The scrap subsidy for tractors (above 20 horsepower) increased from RMB 1,000 per unit to RMB 1,500 per unit.
Home appliance stocks were strong all day. As of the close, Hisense Ha (00921) rose 6.15% to HKD 25.9; Haier(sm) smart home (06690) rose 6.1% to HKD 26.1; TCL Electronics (01070) rose 5.5% to HKD 5.18; and Skyworth Group (00751) rose 2.52% to HKD 2.85.
The National Development and Reform Commission and two other departments recently issued a number of measures to co-ordinate the arrangement of funds of around CNY 300 billion in ultra-long-term special national bonds to support large-scale equipment updates and the replacement of old consumer goods with new ones. It was mentioned that a subsidy for old-for-new products would be given to eight categories of home appliances for individual consumers that can meet 2nd or higher energy or water efficiency standards, including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, cooker hoods, etc. The subsidy standard is 15% of the product's sales price. For products that meet 1st or higher energy or water efficiency standards, an additional 5% subsidy will also be given.
Guotai Junan Securities pointed out that the subsidy for high-efficiency level home appliances in this exchange for new policy is greater than that of the home appliance down to the countryside and old-for-new policies for China's home appliance market in 2007-2010. The bank believes that this policy will promote the upgrade of the product structure of the home appliance industry and drive up the average price of home appliance products. The sales of high-efficiency products of home appliance industry leaders account for a higher proportion, and they have R&D, production, and product advantages, which will benefit more from the subsidy policy.
Most wind power stocks rose. As of the close, Goldwind Science & Technology (02208) rose 8.4% to HKD 4.39; Dongfang Electric Corporation (01072) rose 5% to HKD 10.5; C Transmission (00658) rose 3.85% to HKD 1.08; and China Longyuan (00916) rose 2.54% to HKD 7.26.
Huatai Securities pointed out that wind power installed capacity in the third quarter is expected to rebound, and demand is about to start. Recently, there have been many catalysts for wind power demand, and industry prosperity is on the rise. In the short term, domestic offshore projects are starting, and the Guangdong project's start-up time has been brought forward to August. In the medium and long term, various domestic deep and far-sea plans and competition-matching projects are being released in succession, laying the foundation for demand during the 14th Five-Year Plan. At the same time, the European Central Bank's interest rate cut and the decline in raw material prices have driven the marginal improvement of the project's internal rate of return. Due to the large planning volume before, and the local supply gap, domestic marine cable and tower manufacturers' export orders are expected to increase.
Most gold stocks rebounded. As of the close, Chinagoldintl (02099) rose 4.06% to HKD 42.25; Lingbao Gold (03330) rose 3.54% to HKD 3.22; Zijin Mining Group (02899) rose 2.28% to HKD 15.24; and Zhaojin Mining (01818) rose 1.7% to HKD 13.18.
US Q2 GDP recorded 2.8%, higher than the expected 2%. Interest rate futures continue to price in bets on the Federal Reserve's interest rate cuts starting in September. The Galaxy Securities research report pointed out that in the short term, the combination of 'soft landing + preventive interest rate cuts' is not conducive to further increase in gold prices. However, in the medium and long term, if Trump returns to the White House, his weak-dollar, large finance, and trade policy uncertainties may trigger further increases in gold prices. The bank continues to maintain the judgment that the Federal Reserve may cut interest rates for the first time in September and is expected to cut interest rates for the second time in December.
Popular fluctuating stocks
Anchor Dong Yuhui resigned, and Dongfang Zhuanxuan (01797) fell 23.39%, closing at HKD 9.5. New Oriental-S (09901) fell 4.43% to HKD 54.95.
Dongfang Zhuanxuan announced that its well-known anchor Dong Yuhui has resigned, effective on July 25th. In addition, Dongfang Zhuanxuan announced that it will sell its subsidiary to Dong Yuhui's company, Huitongxing, for a net asset value consideration of CNY 76.585 million. Subsequently, Yu Minhong responded: In order to express gratitude to Yuhui, in addition to paying all the promised compensation, I have earnestly requested and obtained the agreement of the Board of Directors and the Remuneration Committee, to reward all the net income of the company connected with Huitongxing to Yuhui.
Global New Material International (06616) fell all day, down 13.15% to HKD 4.03 at the close.
Global New Material International announced that on July 25th, the company and the equity buyer agreed to acquire Merck KGaA's global surface solutions business for a total consideration of 0.665 billion euros. It is reported that the target company is mainly engaged in the supply of pearl pigments, and the product mix also includes active ingredients in cosmetics and other industrial functional products and raw materials.
Daphne int'l (00210) rose sharply in volume, up 20.88% to HKD 0.22 at the close.
Daphne int'l announced a profit warning, expecting the group's attributable profit for the six months ending on June 30th, 2024, to be no less than RMB 50 million, an increase of no less than 62% YoY compared to CNY 30.7 million in the same period of last year. The Board of Directors considers that the above-mentioned expected increase in profit is mainly due to the significant increase in licensing fees and sales of merchandise.
Fenbi (02469) performed strongly and rose 9.09% to HKD 2.76 at the close.
Fenbi Education has achieved a revenue of no less than 1.61 billion yuan in the first half of the year, and a net income of no less than 0.255 billion yuan, a year-on-year increase of no less than 212.9%. This is mainly due to the leading application of online technologies such as artificial intelligence in the teaching and course product of the group, which has increasingly demonstrated the efficiency advantage of teacher resources utilization and the contribution of per capita income continues to increase; further technological empowerment improves operational efficiency.
5. Gushengtang (02273) released a profit report, and at the close, the stock rose 4.78% to HKD 36.15.
Gushengtang announced that it is expected to achieve a revenue of about 1.331 billion yuan to 1.381 billion yuan in the first half of 2024, a year-on-year increase of about 35% to 40%; the net excess amount is about 0.103 billion yuan to 0.108 billion yuan, a year-on-year increase of about 11% to 16%; the adjusted net excess is about 0.144 billion yuan to 0.149 billion yuan, a year-on-year increase of about 41% to 46%.