Evaluation of Hong Kong stocks

Futu Information on May 11 | the Hang Seng Index ran high in the afternoon, the trading heat warmed up, and individual stocks rose more and fell less. By the close, the Hang Seng index was up 1.53% at 24602.06, while the state-owned enterprises index was up 1.24% at 9990.48. The main board had a turnover of HK $103.6 billion throughout the day, up slightly from the previous trading day.

In terms of the plate, gambling stocks rose generally, while Melco International and Sands China both rose by more than 3%. At present, the epidemic situation in Guangdong is basically under control. combined with the current situation of COVID-19 epidemic prevention and control in the province, and after organizing expert evaluation, it is decided that from 00:00 on May 9, the emergency response level of COVID-19 epidemic prevention and control in Guangdong Province will be adjusted from the second-level response to the third-level response to major public health emergencies in the province. In addition, Macao, also a city in the Greater Bay area, has gradually relaxed customs clearance restrictions in response to the stability of the epidemic. Zhuhai workers (including those holding Zhuhai residence permits) will be exempted from centralized isolation for 14 days from May 11.

Individual stocks$China Feihe Limited (06186.HK) $The volume fell 5.41% to HK $14.68, with a turnover of HK $716 million, with a total market capitalization of HK $131.1 billion. The company has risen since its listing and reached a new high of HK $16.50 a few days ago, with a total market capitalization exceeding HK $140 billion. The decline is obvious today, with a cumulative drop of 10% from the all-time high. The 10-day, 20-day and 30-day moving averages were lost in succession. Goldman Sachs Group lowered China Feihe Limited's earnings per share forecast for the second half of the year from 34 yuan per share to 33 yuan at the end of April.

$Tencent (00700.HK) $It strengthened further in the afternoon, rising as much as 4.02%, touching HK $434, with a turnover of HK $13.47 billion, with a total market capitalization of HK $4.15564 trillion. The stock has rebounded from HK $325.2 to HK $430 in less than two months, up 32 per cent and a market capitalization of more than HK $1,000bn. Tencent is about to release its first-quarter report on Wednesday, May 13, and institutions generally expect its first-quarter results to exceed expectations with the help of online gaming business.

"Bake the first strand"$01210.HK (Christine) $It rose sharply in the afternoon to close at HK $0.60, up 361%, with a turnover of HK $115.35 million, with a total market capitalization of HK $600m. The stock hit an all-time low of HK $0.098 on March 19th. It is reported that Christine issued a 2019 performance report (unaudited), showing that income during the period was 549 million yuan, down about 17.34% from the same period last year; net profit was a loss of 207 million yuan, which was Christine's seventh consecutive year of loss.

Green View China Real Estate (00095.HK) $There were several waves of rapid gains in the afternoon, which widened to 23 per cent at one point to HK $2.40, with the share price reaching its highest level since the end of January, with a turnover of HK $51.36 million and a total market capitalization of HK $12.1 billion.

Among the constituent stocks of the Hang Seng Index, individual stocks rose more than fell, with Sunny Optical leading the market; among the constituent stocks of the national index, Sunny Optical led the market.

In terms of funds for Hong Kong stock exchanges

As for Hong Kong Stock Connect, there was a net outflow of nearly HK $300 million from Hong Kong Stock Connect (southbound) today, reversing the previous net inflow trend.

Message surface

On the macro level, the central bank did not carry out reverse repurchase operations, as there was no reverse repurchase due today, and zero delivery and zero return was achieved on the same day.

The three-month Hong Kong dollar HIBOR fell 8 basis points to 1.23 per cent, the lowest in two years.

With regard to the epidemic, a spokesman for the National Health Commission: on May 10, there were no new deaths nationwide for 26 consecutive days, the number of existing severe cases dropped to less than 10 for the first time, and the number of confirmed cases imported from abroad dropped to less than 100. In the last 14 days, seven provinces reported new locally confirmed cases, and local cluster-related cases continued to increase. It is necessary to find out the source of infection and the route of transmission, do a good job in follow-up management, isolation treatment and medical observation, and cut off the chain of transmission.

Tesla, Inc., according to monthly data released by the National passenger car Market Information Association, Tesla, Inc. 's retail sales of Model 3 models in China reached 3635 in April, ranking third on the list of new energy passenger cars in China in April. From January to April, the cumulative sales of the Model 3 reached 19705, ranking first on the list of new energy passenger cars.

In terms of pork, wholesale pork prices fell 1.7% month-on-month from May 1 to 9, according to the Ministry of Agriculture and villages. On this basis, wholesale pork prices have fallen for the 11th week in a row.

In terms of gold, the World Gold Council today (11th) released data showing that global gold ETF positions increased by 170t in April, achieving a net inflow for the sixth consecutive month, equivalent to a net inflow of US $9.3 billion, with a total position of 3355 tons, setting an all-time high with gold ETF. The data show that the size of global gold ETF has increased by 80 per cent in the past year.

In terms of financial marketization, on May 9, according to the pre-disclosure information listed on the classified Shanghai United property Exchange, Shanghai International Trust Co., Ltd. will transfer 49% of the equity of JPMorgan Fund. Morgan Capital Management, the asset management company of JPMorgan Chase, intends to acquire a 100% stake in the capital investment fund company. If the transaction is completed, Shanghai Investment Morgan Fund Co., Ltd. will become the first wholly foreign-owned public fund company in China.

In terms of automobiles, according to the China Association of Automobile Manufacturers, the production and sales of commercial vehicles completed 514000 and 534000 respectively in April, the highest level in history, up 37.8% and 37.7% respectively from the previous month, and 31.3% and 31.6% respectively from the same period last year. Among them, heavy trucks grew the fastest, with production and sales of 175000 and 191000 respectively, an increase of 48.3% and 61% respectively over the same period last year.

China Automobile Association released data on China's automobile production and sales in April, showing that China's car sales in April were 2.07 million, up 4.4% from the same period last year to 5.761 million from January to April, down 31.1% from the same period last year. Sales of new energy vehicles in China fell 26.5% in April from a year earlier.

In terms of data centers, data company IDC released the artificial Intelligence Infrastructure Market (second half of 2019) tracking report, saying that the artificial intelligence infrastructure market reached $2.09 billion in 2019, an increase of 58.7 percent over the same period last year. Among them, GPU server accounts for 96.1% of the market share. IDC predicts that China's GPU server market will reach 6.4 billion US dollars by 2024.

Institutional viewpoint

Morgan Stanley: the coronavirus crisis is likely to put an end to 30 years of deflation and herald a renewed acceleration of inflationary pressure, which is likely to exceed the target of central banks. So far, major central banks have cut interest rates and increased bond purchases, while governments have launched more than $8 trillion in stimulus measures to mitigate the impact of an economic shutdown designed to stop the spread of the virus. This, together with possible measures to address growing wealth inequality, will begin to boost inflation.

UBS Wealth Management: the current price of gold recently hovered around the $1700 mark. As real interest rates and the dollar fall, money will flow back into gold, keeping the gold price target at $1800 for the coming year.

Bank of China Securities: the stock market volatility still exists, but the risk is controllable, so we need to grasp the opportunity of plate layout with performance certainty. Export data exceeded expectations, and domestic demand led fundamentals to pick up month-on-month in the second quarter. In May, the base effect and the early backlog of order demand faded, short-term external demand is still facing greater pressure. In terms of domestic demand, with the gradual progress of the resumption of work, there are signs of recovery in automobile and real estate sales, and domestic demand is picking up. Overall, the domestic fundamentals will gradually repair from the trough in the first quarter, and the domestic economy will show the characteristics of "cold outside and hot inside" in the second quarter.

Chief Economist of the World Trade Organization (WTO): China's long-term strategy has been to move up the "value chain", shifting from investment-led growth to consumption-led growth, and increasing the share of services in overall consumption. Therefore, regardless of the pandemic crisis, we see many factors driving the transformation of the supply chain in China and globally. Between now and 20 years from now, China's position in global trade and the global economy will be very different. The COVID-19 pandemic and the broader global trade policy debate have only accelerated trends that have taken place.