Evaluation of Hong Kong stocks

The three major indexes of Hong Kong stocks closed down, while the Hang Seng Index fell 1% in early trading, and then rebounded and rose at one point. By the close, the Hang Seng Index was down 0.63% at 24377 points, and the National Index was down 0.72% at 9990 points.

Plate aspectTelecom stocks bucked the trend today, with China Mobile Limited and China Unicom up nearly 2 per cent, PCCW, HKT Trust and HKT-SS and Hong Kong Broadband up more than 1 per cent, and China Telecom Corporation nearly 1 per cent.

Home appliance stocks rose across the board. Hisense Home Appliances rose 4.2%. TCL Electronics rose more than 12%, setting a new high for more than five years. TCL Communications acquisition was approved by a high vote. in addition, the company is about to announce its interim results on August 25.

Apple Inc's concept stock fell, Gao Wei Electronics fell 6.51%, Qiu Ti Technology fell nearly 4%, and Sunny Optical fell 2.83%. Tianfeng International analyst Guo Mingyi pointed out that the issuance of a Wechat "ban" by the United States or the removal of Wechat App by Apple Inc will have a great impact on iPhone shipments.

The semiconductor sector fell, with Shanghai Fudan down nearly 10 per cent, Semiconductor Manufacturing International Corporation down more than 7 per cent and Hua Hong Semiconductor nearly 3 per cent. HSBC said in a report that it raised its target price for Semiconductor Manufacturing International Corporation from HK $18.20 to HK $22.70, while its rating was downgraded from "hold" to "underweight".

The trend of SaaS concept stocks diverged, with Kingdee International Software Group and Duiba down 5%, vobile group up 1%, and China Youzan fell more than 4% in early trading before rebounding to close up 4%.

Individual stocks，$Tencent (00700.HK) $The decline widened in the afternoon, falling nearly 5% at one point, and the intraday low hit HK $501, closing down 4.83%.

$99 (09922.HK) $The afternoon increase expanded, closing up 12.67% to HK $15.56, a new all-time high. Recently, 99 Mao raised 830 million yuan in the way of placing. According to the market point of view, as the leader of Chinese fast fashion catering, the business model can be replicated and has long-term brand potential energy. After increasing the operating cash flow through this rights issue, the supply chain capacity is enhanced. It is expected to further form synergy through horizontal investment.

Cathay Pacific Airways (00293.HK) $It closed down 7.12%, approaching its lowest level in nearly 12 years. According to the South China Morning Post, a new aviation company has applied to the Hong Kong Civil Aviation Department to become the fifth passenger airline in Hong Kong to reduce Cathay Pacific's monopoly. The Hong Kong Civil Aviation Department confirmed that Greater Bay area Airlines submitted its application for an Air Operation license (AOC) in July and is currently in the process of reviewing it. The key figure behind "Greater Bay area Airlines" is Huang Chubao, known as "Shenzhen Li Jiacheng", who is also the chairman of East China Sea Airlines.

$TCL Electronics (01070.HK) $At one point in the afternoon, it rose by more than 15%, a five-year high. It is worth noting that the company will disclose the report on the 25th of this month. On the news side, TCL Electronics held a special general meeting of shareholders on July 28th to consider the acquisition of TCL Communications and the sale of Maojia International and other related matters.

$Coolpad Group (02369.HK) $At one point, it rose more than 28% in intraday trading, and closed up 21%. On August 8, Coolpad officially announced that it would hold the launch of its first thousand yuan 5G mobile phone, the coolpad X10, on August 12. According to its poster message, the coolpad X10 will be supported by Tianyi Telecom Terminal and will be equipped with Ziguang Zhanrui chip.

$CANSINOBIO-B (06185.HK) $It fell by more than 8%. According to media reports, Science and Technology Innovation Board and CANSINOBIO are expected to go public this week. CANSINOBIO will apply for the purchase on July 31, usually 8-14 days after the completion of the application for new shares. CANSINOBIO's listing time window may be August 10-14.

$China National Building Material (03323.HK) $It hit another all-time high in early trading, breaking through HK $14 to HK $14.08, and the stock has risen 70.7% since July. Then the profit market sprang up and began to turn around and close down 8%.

In terms of funds for Hong Kong stock exchanges

As for Hong Kong Stock Connect, there was a net inflow of HK $4.054 billion from Hong Kong Stock Connect (southbound) today.

Message surface

Economic dataThe national consumer price (CPI) rose 2.7% year-on-year in July 2020, according to data released by the National Bureau of Statistics on the 10th. Of this total, food prices rose by 13.2%, while non-food prices remained unchanged. In food, pork prices rose 85.7%, affecting CPI to rise by about 2.32%. From January to July, consumer prices nationwide rose 3.7 percent over the same period last year.

The price of agricultural productsAccording to the Ministry of Agriculture and villages, the wholesale price index of agricultural products was 118.28 on Aug. 10, up 0. 08 points from last Friday. 57, up 0.12 points from last Friday. As of 14: 00:00 today, the average price of pork in the national agricultural products wholesale market was 48.55 yuan, up 0.2 percent from last Friday, while eggs was 8.33 yuan, down 4.3 percent from last Friday.

Monetary policyYi Gang, governor of the people's Bank of China, said that the biggest challenge in the second half of the year is how to accurately drip irrigation to the real economy. The support of the real economy must focus on small and medium-sized enterprises, especially small and micro enterprises. In the second half of the year, the people's Bank of China has two precise support policies, one is to extend loans to small and micro enterprises until the end of March next year, and the other is to support the issuance of credit loans to small and micro enterprises. This year's goal is to enable accounts receivable financing to provide 800 billion financing for small and micro enterprises, which has now provided more than 5700 billion.

In terms of photovoltaic industry chainAccording to the data released by Solarzoom, the price index of polysilicon in the photovoltaic industry has stabilized and rebounded since mid-late June 2020, and has accelerated in the last two weeks, and the rising trend has been transmitted to wafers and batteries. On July 25, Tongwei, a leading photovoltaic company, raised the price of the battery wafer; on July 31, Longji, one of the leading photovoltaic enterprises, raised the price of the wafer for the second time.

Institutional viewpoint

Chen Guo team of Anxin Securities believes that in a volatile environment, the leading stocks of some strong sectors have entered a rest and recuperation, and market divisions have intensified, as more and more investors allocate assets to the medicine + technology + consumer track, trading is becoming more and more crowded and alpha returns are beginning to decline. Some investors are optimistic about the market switching to the financial real estate cycle, and we think that affected by the epidemic, it is still too early for the economy to fully recover to the pre-epidemic level, so the conditions for the market to fully switch to the financial real estate cycle are not yet available. It is still recommended to stick to the growth track, and the pullback during the shock consolidation period is a buying opportunity. We believe that the market is a volatile pattern in the short term, which is affected by external factors in the short term, and a new round of overall rising market still needs to wait.

CITIC, Qin Peijing and others believe that in the context of the controllable impact of trade friction disputes, potential incremental funds are still abundant in the future, and short-term market shocks open room for incremental funds. Configuration, in the reporting season, experienced a short-term pullback in medicine, must-have consumption and technology sector leader can still rely on excellent semi-annual report to obtain excess income. For new entrants, we suggest a more forward-looking layout of the potential leaders in the fourth-quarter rally, focusing on three main lines: first, sectors that benefit from a weak dollar and rising commodity / energy prices, including gold, non-ferrous metals and chemicals; and second, alternative consumption types that benefit from economic recovery and consumption recovery, including cars, home appliances, home decoration, branded clothing and leisure services. Third, insurance and banks whose absolute valuations are low enough and have relatively fully digested the negative factors.

Guotai Junan strategist Li Shaojun said that earnings repair hedge risk preference downward, capital behavior shows that external shocks are weakened, the shock pattern is expected to continue. The relative income of the pro-cyclical sector is predictable, consumption is sound, science and technology is temporarily suspended, and banks / building materials / machinery / home appliances / cars / new energy are recommended. Consumption and medicine still have long-term allocation value, and stress tests show that although the quantile of consumption and medicine valuation is more than 95%, the current valuation contains profit expectations that are not too high. From the perspective of the China News, the fundamentals of high valuations in the consumer and pharmaceutical sectors are solid.

Wen Bin, chief researcher of China's China Minsheng Banking Corp, said when interpreting the July CPI data that the year-on-year CPI rose slightly more than expected in July, mainly due to food prices and tail warping factors, and inflation was generally controllable. With the accelerated recovery of economic and social development and the implementation of various measures to ensure supply and stabilize prices, market supply and demand are expected to maintain a balance, and the price level will remain stable as a whole in structural fluctuations. In the next stage, there is still plenty of room for monetary policy.

Citic Construction Investment issued a statement saying that from the perspective of the stock market, the economy is still in the process of recovery, monetary policy is normalized, and the market is still in the process of shock. Loose global liquidity and economic recovery have helped to support commodity prices. From the perspective of industry configuration, it is suggested that investors should adopt the method of balanced allocation to seize market opportunities. From the point of view of the matching of the industry boom and valuation level, investors tend to moderately overmatch the cycle, finance and other relatively low valuation sectors, while there is a good margin of safety, it can be accompanied by economic recovery to obtain a certain driving force.

Huatai said in a post that the volatility of the market has increased significantly since August, reflecting increased market differences, and subsequent market expectations are expected to move towards a consistent process again or further bias the style towards value stocks. In terms of policy guidance, the central bank's monetary policy in the second quarter once again clearly defined cross-cyclical adjustment, which actually reserved policy space for the future "14th five-year Plan". On this basis, the slow bull foundation of the A-share market may be more solid.