Company News:
1) Hong Kong Stock Exchange announcement. $PCCW (00008.HK)$: In the first half of the year, revenue increased by 5% year-on-year to HKD 17.698 billion, with a net loss of HKD 0.462 billion, a 5% year-on-year decrease. Although the operating profit improved during the period, it was offset by higher financing costs. The estimated revenue for the first half of the year is about USD 0.505 billion to USD 0.5894 billion, a year-on-year increase of 29.1% to 50.6%. The net loss is expected to narrow to about USD 0.213 billion to USD 0.226 billion. Affiliated Legend Biotech is expected to have an adjusted net loss of approximately USD 94.7 million to USD 0.1097 billion. In the first half of the year, the total revenue was RMB 8.571 billion, a year-on-year decrease of 1.43%; net profit was RMB 2.111 billion, a year-on-year increase of 11.05%. In the first half of the year, the revenue was about RMB 3.4 billion to 3.6 billion, a year-on-year increase of about 114.3% to 126.9%. Net profit was about RMB 0.39 billion to 0.41 billion, a year-on-year increase of about 286.1% to 305.9%. This is mainly due to the multi-channel rapid growth of Han Shu, the group's main brand. The expected net loss for the first half of the year is about USD 30 million to 34 million.
$GENSCRIPT BIO (01548.HK)$$Contemporary Amperex Technology$: It is expected that the revenue for the first half of the year will be about USD 0.505 billion to USD 0.5894 billion, a year-on-year increase of 29.1% to 50.6%. The net loss is expected to narrow to about USD 0.213 billion to USD 0.226 billion. During the period, affiliated company Legend Biotech expects to have an adjusted net loss of approximately USD 94.7 million to USD 0.1097 billion.
$DFZQ (03958.HK)$$Shandong Energy$: In the first half of the year, the total revenue was RMB 8.571 billion, a year-on-year decrease of 1.43%; net profit was RMB 2.111 billion, a year-on-year increase of 11.05%.
$CHICMAX (02145.HK)$$Han's Laser Technology$: In the first half of the year, the revenue was about RMB 3.4 billion to 3.6 billion, a year-on-year increase of about 114.3% to 126.9%. Net profit was about RMB 0.39 billion to 0.41 billion, a year-on-year increase of about 286.1% to 305.9%. This is mainly due to the multi-channel rapid growth of Han Shu, the group's main brand.
$FIH (02038.HK)$$Legend Biotech$: The expected net loss for the first half of the year is about USD 30 million to 34 million.
$CGN POWER (01816.HK)$$Nuclear Power$: Ningde 5 unit of the affiliated company, Fujian Ningde Second Nuclear Power Co., Ltd., commenced overall construction and entered the civil engineering and construction stage. The unit capacity of a single unit is 1,210 MW.
$CALB (03931.HK)$$Contemporary Amperex Technology$: It faces a claim for infringement of intellectual property rights brought by Ningde Times.
$DATANG POWER (00991.HK)$A controlling subsidiary, Beijing Datang Fuel Co., Ltd., intends to transfer a series of debts of RMB 1.165 billion to Jincai Asset Management Company.
$CSTONE PHARMA-B (02616.HK)$$Legend Biotech$: Pembrolizumab has been approved by the European Commission for the first-line treatment of non-small cell lung cancer.
$Fuyao Glass (03606.HK)$: A wholly-owned subsidiary located in Moraine, Ohio, USA, Fuyao America received an on-site inspection from US government agencies at around 10 a.m. on July 26 local time. Fuyao America is not under investigation. All production and operation of Fuyao America is normal. Affiliated companies, Evergrande New Energy Automobile and Evergrande Smart Automobile, have received notices. Some creditors applied to relevant local courts on July 25, 2024 to apply for bankruptcy reorganization of relevant subsidiaries, which will have a significant impact on our production and operation activities of the company and related subsidiaries. The announcement also stated that discussions about potential equity transfers are still ongoing, but the potential sellers and buyers have not yet entered into a purchase agreement. Due diligence on potential transactions is still pending, including the potential buyer's proof of funds and a comprehensive investigation of the group's assets, liabilities, and operations, etc.$PCCW (00008.HK)$: In the first half of the year, revenue increased by 5% year-on-year to HKD 17.698 billion, with a net loss of HKD 0.462 billion, a 5% year-on-year decrease. Although the operating profit improved during the period, it was offset by higher financing costs. The estimated revenue for the first half of the year is about USD 0.505 billion to USD 0.5894 billion, a year-on-year increase of 29.1% to 50.6%. The net loss is expected to narrow to about USD 0.213 billion to USD 0.226 billion. Affiliated Legend Biotech is expected to have an adjusted net loss of approximately USD 94.7 million to USD 0.1097 billion. In the first half of the year, the total revenue was RMB 8.571 billion, a year-on-year decrease of 1.43%; net profit was RMB 2.111 billion, a year-on-year increase of 11.05%. In the first half of the year, the revenue was about RMB 3.4 billion to 3.6 billion, a year-on-year increase of about 114.3% to 126.9%. Net profit was about RMB 0.39 billion to 0.41 billion, a year-on-year increase of about 286.1% to 305.9%. This is mainly due to the multi-channel rapid growth of Han Shu, the group's main brand. The expected net loss for the first half of the year is about USD 30 million to 34 million. $Fuyao Glass (03606.HK)$: A wholly-owned subsidiary located in Moraine, Ohio, USA, Fuyao America received an on-site inspection from US government agencies at around 10 a.m. on July 26 local time. Fuyao America is not under investigation. All production and operation of Fuyao America is normal. Affiliated companies, Evergrande New Energy Automobile and Evergrande Smart Automobile, have received notices. Some creditors applied to relevant local courts on July 25, 2024 to apply for bankruptcy reorganization of relevant subsidiaries, which will have a significant impact on our production and operation activities of the company and related subsidiaries. The announcement also stated that discussions about potential equity transfers are still ongoing, but the potential sellers and buyers have not yet entered into a purchase agreement. Due diligence on potential transactions is still pending, including the potential buyer's proof of funds and a comprehensive investigation of the group's assets, liabilities, and operations, etc.
$EVERG VEHICLE (00708.HK)$$Evergrande (0708.HK)$: Affiliated companies, Evergrande New Energy Automobile and Evergrande Smart Automobile, have received notices. Some creditors applied to relevant local courts on July 25, 2024 to apply for bankruptcy reorganization of relevant subsidiaries, which will have a significant impact on our production and operation activities of the company and related subsidiaries. The announcement also stated that discussions about potential equity transfers are still ongoing, but the potential sellers and buyers have not yet entered into a purchase agreement. Due diligence on potential transactions is still pending, including the potential buyer's proof of funds and a comprehensive investigation of the group's assets, liabilities, and operations, etc.”
The announcement stated that discussions about potential equity transfers are still ongoing, but the potential sellers and buyers have not yet entered into a purchase agreement. Due diligence on potential transactions is still pending, including the potential buyer's proof of funds and a comprehensive investigation of the group's assets, liabilities, and operations, etc.
2) Equity and Buyback Dynamics
$AIA (01299.HK)$$Shandong Molong Petroleum Machinery (0568.HK)$: Spent HKD 0.426 billion to repurchase 8.23 million shares, with a repurchase price of HKD 50.7-52.1 per share.
$HSBC HOLDINGS (00005.HK)$$Grand Baoxin Auto Group (1293.HK)$: Spent HKD 0.152 billion to repurchase 2.3 million shares, with a repurchase price of HKD 65.90-66.95 per share.
$CNOOC (00883.HK)$$China Nonferrous Mining (1258.HK)$: Spent HKD 97.7028 million to repurchase 4.889 million shares, with a repurchase price of HKD 19.74-20.45 per share.
$HAIER SMARTHOME (06690.HK)$$China Petroleum & Chemical (0386.HK)$: As of July 26, 2024, the core employees' holding plan has purchased a total of 3.0354 million H-shares, with an average transaction price of HKD 23.9203 and a transaction amount of about HKD 72.6078 million.
$YANKUANG ENERGY (01171.HK)$$Beijing Energy Investment Holding$: The controlling shareholder, Shandong Energy, increased its shareholding by approximately RMB 0.3 billion from January 22 to July 26, 2024.
$MEITUAN-W (03690.HK)$On July 26, 2024, about HKD 0.374 billion was spent to repurchase 3.483 million shares.
Focus on hotspots:
The three major US stock indexes all rose today, with most large-cap technology stocks rising.
The US stock market opened high and rose on Friday, with the three major indexes all rising. The Dow rose 654.27 points, or 1.64%, to 40589.34 points, recording a fourth consecutive weekly gain; the Nasdaq rose 176.16 points, or 1.03%, to 17,357.88 points; the S&P 500 index rose 59.88 points, or 1.11%, to 5,459.10 points. The Nasdaq and S&P 500 indexes both fell for the second consecutive week. Most large-cap technology stocks rose, with Meta up more than 2%, Microsoft and Amazon up more than 1%, and Apple, Nvidia, and Intel slightly up; Tesla, Google, and Netflix down slightly.
Chairman of the China Securities Regulatory Commission (CSRC) Wu Qing held talks with foreign institutions to deepen reform and opening-up of the capital market.
Recently, Wu Qing, the party secretary and chairman of CSRC, held a special symposium in Beijing, had in-depth exchanges with representatives from 10 foreign securities, fund and futures institutions, QFII institutions, etc., and fully listened to their opinions and suggestions. Wu Qing stated that the CSRC is currently studying and planning new packages of measures to comprehensively deepen the reform and opening-up of the capital market.
In the first half of the year, profits of industrial enterprises above designated size across the country steadily increased, but the basis for recovery still needs to be consolidated.
Data from the National Bureau of Statistics showed that in January-June, the total profit of industrial enterprises above designated size in the country was CNY 3,511.03 billion, a year-on-year increase of 3.5%. In June, the profit of industrial enterprises above designated size increased by 3.6% year-on-year, an increase of 2.9 percentage points faster than in May. The National Bureau of Statistics stated that overall, the benefits of industrial enterprises in the first half of the year have steadily recovered, but it is also necessary to see that the insufficient effective demand domestically restricts the continuous improvement of corporate benefits, and the increasingly severe and complex international environment increases the pressure on enterprise operations. The basis for the recovery of benefits of industrial enterprises still needs to be consolidated.
US June PCE data meets expectations, and the market still firmly bets on a rate cut in September.
According to the US Department of Commerce Economics and Statistics Administration, the PCE price index rose by 0.1% month-on-month and 2.5% year-on-year (previous value 2.6%), while the core PCE price index rose by 0.2% month-on-month and 2.6% year-on-year, slightly exceeding expectations but showing no sign of accelerating inflation. Analysts at financial investment service company eToro pointed out that in combination with this month's CPI report and the recent trend of low inflation data, this provides a positive signal for a rate cut by the Federal Reserve at the end of the quarter.
Hong Kong Financial Secretary: GDP in the second quarter maintained growth and may receive interest rate cut boost in the second half of the year.
Hong Kong's Financial Secretary, Paul Chan, recently stated that the estimated figures for Hong Kong's GDP in the second quarter, which will be released soon, will reflect overall economic growth in Hong Kong. Chan stated that although the challenges posed by geopolitical situations are persistent, interest rates expected to be lowered later in the second half of the year could support investment and asset markets.
Adjustment to the information disclosure mechanism of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect will take place next month.
The Shanghai Stock Exchange, Shenzhen Stock Exchange, and Hong Kong Stock Exchange announced that they will adjust the information disclosure mechanism of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect from August 19. After the adjustment, at the end of each trading day, the total turnover and total number of transactions of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect for that day, the total transaction amount of ETFs, the top ten securities by transaction amount and their total transaction amount will be released. The above data will also be released on a monthly and yearly basis.
For the Hong Kong stock connect, during the trading hours after the adjustment, if the remaining balance of daily quota is more than 30%, the display will indicate that the quota is sufficient, and if the remaining balance of daily quota is less than 30%, the remaining daily balance of the Hong Kong stock connect will be announced in real time. At the end of the trading day, the daily buy and sell transaction amount and number of transactions of the Hong Kong stock connect, the total transaction amount and number of transactions, the total transaction amount of ETFs, the top ten securities by transaction amount and their transaction amount for buying or selling, and the total transaction amount of the securities will be disclosed, and the above data will also be released on a monthly and yearly basis. The total amount of holdings of Hong Kong stock connect investors for individual securities will also be disclosed.
Hang Seng Index Futures
At the close of the night session of July 27th,
As of July 27,$HSI Futures Current Contract (HSIcurrent.HK)$closed at 17126, up 104 points or 0.61%, with the high-water mark at 105 points. The total number of open contracts was 56844.
Hang Seng Index Bull & Bear Certificates
As of July 27th, the latest bull-bear ratio of the Hang Seng Index is 62:38.
According to data from the bull-bear certificate street cargo distribution map of the Hang Seng Index, the heavy cargo area and the most newly added bear certificates are in the range of 17400-17499, with 931 new bear certificates in this range, an increase of 564 compared to the previous trading day.
The heavy goods area of Niu Zheng Street is in the range of 16800-16899, with the latest number of Niu Zheng being 1458, a decrease of 234 from the previous trading day.
Editor/ping