On September 5th, Caixin reported that the three major indexes of the Hong Kong stock market performed differently, continuing the consolidation trend from yesterday. As of the close, the Hang Seng Index fell 0.07% to close at 17444.30 points; the Technology Index rose 0.14% to close at 3487.8 points; the State-owned Enterprise Index fell 0.46% to close at 6105.54 points.

Note: performance of Hang Seng Index.

Compared to the volatile trend of the three major indexes of the Hong Kong stock market, the market is more concerned about the Hang Seng Index Company's new fast inclusion rules for the Hong Kong stock connect index. According to the announcement, if a security meets the qualifications for southbound trading due to a conversion from a secondary listing to a primary or dual primary listing, Hang Seng Index Limited will conduct a fast inclusion review of the security.

On the first day of qualification, if the closing total market capitalization of the qualified security ranks in the top 10 among the existing constituents, the security will be included in the index or explained separately in the next regular monthly review.

In response to this, relevant reports pointed out that Alibaba Group, which just completed a dual primary listing at the end of August, will be the first beneficiary of the rule and is expected to be quickly included in the Hong Kong stock connect index of the Hang Seng series.

Today's Market

In terms of market performance, the real estate and insurance sectors have performed well, while the oil and shipping sectors have continued to decline. In addition, Shanghai Dazhong Public Utilities saw a significant increase today.

Real estate stocks rebound in the Hong Kong stock market, with Zhongliang Holdings rising nearly 5%.

Among real estate stocks, Zhongliang Holdings (02772.HK), Greentown China (03900.HK), and China Vanke (02202.HK) rose by 4.82%, 4.79%, and 2.52% respectively.

Note: performance of real estate stocks.

If the interest rates on existing housing loans are lowered as planned, it will help directly reduce the mortgage pressure on residents, thereby stimulating consumer recovery and boosting the economy. At the same time, it will also enhance the stability of the real estate market and the confidence of homebuyers.

Insurance stocks are all strong, with PICC Property & Casualty Company Limited rising over 4%.

Among insurance stocks, PICC Property & Casualty Company Limited (02328.HK), People's Insurance Group of China (01339.HK), and China Pacific Insurance (02601.HK) rose by 4.10%, 3.73%, and 2.72% respectively.

Note: Performance of insurance stocks.

In terms of news, Haitong International believes that it is expected that the annual NBV of listed insurance companies will increase marginally year-on-year, mainly due to the improvement of product structure, the increase in the proportion of medium- and long-term premium income, the scheduled interest rate reduction, and the impact of various factors such as the integration of banking and insurance channels. In addition, the demand for resident savings is still strong. Against the backdrop of declining bank deposit interest rates, insurance products still have relative attractiveness. The overall trend of liability improvement is still optimistic.

Oil stocks continue to fall, with Sinopec Corp. falling over 6%.

Among oil stocks, Sinopec Corp. (00386.HK), PetroChina (00857.HK), and Sino Oil & Gas (00702.HK) fell by 6.08%, 2.92%, and 1.59% respectively.

Note: Performance of petroleum stocks.

In terms of news, the price of WTI crude oil futures in the United States fell by 1.55% on Wednesday, falling below the $70 per barrel mark, reaching the lowest level in 9 months. The decline in oil prices may be due to the possible postponement of the planned production increase by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which was originally scheduled to start next month.

Note: The recent trend of WTI crude oil futures.

Shipping futures continue to decline, with COSCO Shipping Holdings falling over 3%.

Among shipping stocks, COSCO Shipping Holdings (01919.HK), Pacific Basin (02343.HK), and OOIL (00316.HK) fell by 3.07%, 1.44%, and 1.28% respectively.

Note: performance of shipping stocks.

In terms of news, the bearish sentiment in the shipping market has been fermenting recently, and the center of gravity of the EC futures near and far month contracts has continued to decline. On September 4th, the main EC2412 contract of the shipping futures closed down by 6.3% at 2010.0 points, with a cumulative drop of nearly 15% this week. The decline in the far-month contracts is even more significant, with EC2504 and EC2506 both falling by over 9%.

Southbound funds.

Today, southbound funds flowed out again by 1.59 billion Hong Kong dollars. A total of 438.3 billion Hong Kong dollars has flowed in since the beginning of this year.

Note: Performance of Southbound funds

Individual stocks are fluctuating.

Bilibili rose more than 3% as Bank of America raised its target price to 147 Hong Kong dollars

Bilibili-W (09626.HK) rose 3.50% to close at 121.30 Hong Kong dollars. In terms of news, Bank of America Securities pointed out in a report that it is expected that the company's gaming and advertising business will continue to show steady trends in the second half of the year. Investors are particularly focused on the updates for the game "Sanqiu", the stable trend of the advertising business, and the growth of e-commerce related businesses. In addition, the bank raised its target price from 140 Hong Kong dollars to 147 Hong Kong dollars and reiterated a "buy" rating.

Shanghai Dazhong Public Utilities rose by over 20%, and there may be large-scale trials in 3 to 5 cities next year according to the "Luobo Kuai Pao" plan.

Dazhong Public Utilities (01635.HK) rose 21.14%, closing at HKD 1.49. According to reports, many cities have contacted Didi Chuxing and hope to become pilot cities. Didi Chuxing may conduct large-scale trials in 3 to 5 cities next year. Earlier reports indicated that Baidu, Dazhong Transportation, and other partnering companies have already conducted test operations of self-driving vehicles in certain areas of Shanghai's Jiading District.