Caishen news on October 28th (Editor Hu Jiarong) Today, the three major Hong Kong stock indexes rebounded collectively. At the close, the Hang Seng Index rose by 0.04% to close at 20,599.36 points; the Technology Index rose by 0.79% to close at 4,574.07 points; and the State-Owned Enterprises Index rose by 0.08% to close at 7,391.22 points.

Note: performance of Hang Seng Index.

Today's Market

From the market performance perspective, steel, real estate, and coal stocks have seen significant increases, while petroleum stocks have experienced adjustments.

Steel stock restructuring boosts Chongqing Iron stocks, with Chongqing Iron rising over 30%.

Among the steel stocks, Chongqing Iron & Steel Co., Ltd. (01053.HK), IRC (01029.HK), Maanshan Iron & Steel Co., Ltd. (00323.HK) rose by 31.03%, 9.09%, and 9.09% respectively.

Note: Performance of steel stocks

In terms of news, the China Iron and Steel Industry Association stated that it will accelerate research to advance capacity governance and joint restructuring. China Iron and Steel Association has already begun to expedite relevant research, conduct special investigations, and propose a package of relevant policy suggestions to promote joint restructuring and improve exit mechanisms.

Some institutions point out that the steel industry is entering a phase of reducing development, with continued mergers and restructuring optimizing the industry's competitive landscape. Large state-owned enterprises and leading private enterprises that grow stronger through mergers and restructuring are better able to meet the competitive requirements of the new situation.

Real estate stocks continue to rebound, with CIFI Holdings Group rising more than 14%.

Among real estate stocks, CIFI Holdings Group (00884.HK), Agile Group (03383.HK), and Sino-Ocean Group (03377.HK) rose by 14.49%, 10.71%, and 10.34% respectively.

Note: performance of real estate stocks.

In terms of news, from January to September 2024, both national real estate investment and sales data have improved, especially the significant improvement in sales data. According to the National Bureau of Statistics, the total investment in real estate development was 7868 billion yuan, a year-on-year decrease of 10.1%, narrowing by 0.1 percentage points; the sales area of newly built commercial housing was 702.84 million square meters, a year-on-year decrease of 17.1%, narrowing by 0.9 percentage points; the sales of newly built commercial housing were 6888 billion yuan, a year-on-year decrease of 22.7%, also narrowing by 0.9 percentage points.

Coal stocks slightly strengthened, with China Qinfa rising by 15%.

Among coal stocks, China Qinfa (00866.HK), SouthGobi (01878.HK), and Yancoal Aus (03668.HK) rose by 15%, 3.15%, and 2.09% respectively.

Note: Performance of coal mining stocks.

On the news front, Morgan Stanley's fund report stated that since late September, various national ministries have intensively proposed a series of measures to relax monetary policy, stabilize the stock market, and support the real estate sector, greatly boosting market confidence. Among them, interest rate cuts and reserve requirement reductions are expected to increase monetary supply, promote investment to drive coal consumption, and lower existing home loan rates to stimulate real estate consumption and boost demand for black commodities. Currently, both thermal coal and coking coal prices are relatively low, with significant upward elasticity as macro expectations improve, future policies gradually come into effect, demand improves, and coal prices have great potential for upside.

External news triggered weakness in petroleum stocks, with Sino Oil & Gas Holdings falling nearly 7%.

Among petroleum stocks, Sino Oil & Gas Holdings (00702.HK), Kunlun Energy (00135.HK), and PetroChina (00857.HK) fell by 6.90%, 2.41%, and 1.49% respectively.

Note: Performance of petroleum stocks.

On the news front, the Israeli Defense Forces recently carried out continuous hours-long strikes against Iran, targeting air defense facilities, missile factories, unmanned aerial vehicle research and production facilities, missile launch bases, among others. However, it did not involve the previously speculated nuclear facilities or oil installations, nor did it include any "decapitation operations" against senior leaders.

Since Iran's missile strike against Israel on October 1st, the world has been watching how Israel will retaliate, and whether it will involve Iranian oil facilities. Goldman Sachs analysts believe that if the oil market completely or partially loses Iran's crude oil production capacity, the price of Brent crude oil could rise to $90 per barrel.

Southbound funds.

The net inflow of Southbound funds continued today, with an amount of 6.282 billion Hong Kong dollars. Since the beginning of this year, a total of 553.786 billion Hong Kong dollars has flowed in.

Note: Performance of Southbound funds

Individual stocks are fluctuating.

Miniso rose nearly 8%, with institutions stating that overseas markets continue to exert strong force.

Miniso (09896.HK) rose by 7.64%, closing at 36.65 Hong Kong dollars. GTJA expects that in 2024 Q3, the growth of overseas agents will be stronger than expected, while domestic performance may be slightly weaker than expected. They anticipate a revenue growth rate of approximately 18.3% in 2024 Q3, corresponding to an operating income of around 4.484 billion yuan; they also predict a domestic revenue growth rate of about 7.0% in 2024 Q3, with overseas direct sales and agent market growth rates corresponding to 55% and 28% respectively.

Horizon Robotics rose over 5%, with automotive solutions as the main component of its income composition in the first half of the year.

Horizon Robotics-W (09660.HK) rose by 5.26%, closing at 4.20 Hong Kong dollars. Data from the Smart Automobile Research Institute shows that in the first half of this year, Horizon Robotics ranked first in the Chinese market with a 28.65% market share in the intelligent driving solutions installed in domestic passenger vehicles of independent brands; in the forward-looking integral computing solution market, Horizon Robotics ranked first with a 33.73% market share. Caitong Securities pointed out that Horizon Robotics' income composition is mainly focused on automotive solutions, with accumulated installations in specific vehicle models exceeding 270 by the end of the first half of the year.