On July 29, Futu News reported that Hong Kong's three major indexes performed strongly overall, with a slight decline in the afternoon. At one point, the Hang Seng Index and H-Share Index soared by 2%, and ultimately rose by 1.28% and 1.16%, respectively. The Hang Seng Tech Index rose by 0.66%. The three major indexes showed a clear sign of rebounding from the previous week's decline.
At the close, 928 stocks rose, 875 fell and 1261 remained flat on the Hong Kong Stock Exchange.
The specific industry performance is shown in the following figure:
In terms of sectors, network technology stocks rose more than they fell, with Alibaba-SW rising by 4.72%, Xiaomi Corporation-W rising by 2.81%, Kuaishou Technology-W rising by 1.40%, Baidu Group-SW rising by 1.40%, JD Group-SW rising by 1.37%, while NetEase-S fell by 2.29%.
Petroleum stocks gained strength, with CNOOC rising by 3.52%, China Oilfield Services rising by 1.80%, PetroChina rising by 1.47%, and Sinopec Corp rising by 1.44%.
Most lithium battery stocks fell, with Ganfeng Lithium falling by 7.02%, Tianqi Lithium Corporation falling by 5.73%, Chaowei Power rising by 3.47%, BYD Company falling by 1.87%, and Leoch Int'l falling by 1.86%.
Photovoltaic power stocks weakened, with Fuyao Glass falling by 6.99%, Flat Glass falling by 5.16%, GCL Newenergy rising by 2.82%, Xinyi Solar falling by 2.42%, and Xinyi Glass falling by 2.18%.
Alcoholic beverage stocks generally fell, with China Resources Beer falling by 3.64%, Tsingtao Brewery rising by 2.80%, Bud APAC falling by 2.29%, and San Miguel HK falling by 1.85%.
In terms of individual stocks,$CHENQI TECH (09680.HK)$Self-driving car stocks rose nearly 34%, as the commercialization of Robotaxi has accelerated and the company has strong potential for commercial deployment.
$LEAPMOTOR (09863.HK)$Stellantis is reportedly preparing to deliver Zero Run cars in Europe, driving the stock up over 5%.
$COSCO SHIP HOLD (01919.HK)$Leading the marine transportation shares to rise by more than 2%, the Middle East situation adds new variables, and the block orders of the consolidated transportation Europe line futures main contract returns to 4000 points.
$CHINA RES BEER (00291.HK)$Auto parts stocks fell nearly 4%, with institutions predicting that its first half performance was mediocre and second-quarter sales channel shipments were poor.
$FLAT GLASS (06865.HK)$With a drop of more than 5%, there is no increase in demand, and the price of photovoltaic glass may continue to decline in the new moon period.
TOP 10 trading volume today
Hong Kong Stock Connect Fund
Regarding Hong Kong Connect, today's net inflow of southbound Hong Kong Connect was HKD 0.746 billion.
Institutional perspective
JPMorgan believes Fuyao Glass is still a preferred stock among Chinese auto parts companies and maintains an 'overweight' rating.
JPMorgan issued a report stating that multiple law enforcement agencies, including the US Department of Homeland Security and the US Internal Revenue Service, conducted searches on Futou in Ohio on July 26. Futu America, the company's wholly-owned subsidiary in Ohio, and 27 other locations (unrelated to Fuyao Glass) were searched. However, Futu America was not the target of the investigation and has resumed operations on the same day. The bank believes that the impact of the incident is limited, but the stock price may fall due to the news, and recommends buying on weakness. Fuyao Glass will release its earnings on August 6. The bank believes that Fuyao Glass is still the first choice in the Chinese auto parts companies it covers, as it is bullish that the company will increase its market share (from the current 30% to 35%), and with the adoption of large skylight glass, the company can increase the value and amount of glass per vehicle, which can improve revenue growth. $Fuyao Glass (03606.HK)$: 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.Jefferies Financial issued a report and maintained its "buy" rating.
Jefferies Financial: Alibaba may welcome more catalysts and is expected to be included in the Stock Connect in September.
Jefferies Financial released a report and maintained its stance.$BABA-SW (09988.HK)$"Buy" rating and target price of HKD 112 remain unchanged. Although there is macro uncertainty, Jefferies Financial believes that the company can still benefit from more catalysts. Jefferies Financial also expects that after Alibaba's dual primary listing is completed on August 24th, there will be a potential opportunity for inclusion in the "Hong Kong Stock Connect" on September 24th, which is expected to have a positive impact on the stock price. On the other hand, the company has repurchased USD 10.6 billion in shares in the first half of the fiscal year and still has USD 26.1 billion in repurchase quota, which means there is still a considerable proportion to be invested."
JPmorgan: Gives Netease-S a "shareholding" rating with a target price of HKD 200.
JPMorgan released a research report stating that it has set a target price of HKD 200 and a target price of USD 130 for the stock, and both have a "shareholding" rating. It is expected that the revenue of the gaming business in the third quarter of this year will reach CNY 22 billion, with an annual and quarterly increase of 8% and 13% respectively. JPMorgan has raised its forecast for net gaming revenue growth in the next two years to 11% (higher than the market's expectation of high single digits), and reiterated that Netease is the preferred choice in China's online gaming industry. JPMorgan stated that it is bullish about the "Endless Age" mobile game, which will become another flagship game with a large user base for Netease besides "Onmyoji" Party Egg, and believes that the "Endless Age" mobile game will have a long life cycle.$NTES-S (09999.HK)$Please use your Futubull account to access the feature.
Editor/Feynman