[Caihua Social News] on September 30, Hong Kong stocks closed in September with a rise in the market, with all three major indexes rising, shaking at high levels throughout the day. But looking back at September, the Hang Seng index fell as much as 1718 points or 6.8 per cent; if you look back at the third quarter, it fell by 968.14 points or nearly 4 per cent. Today, the Hong Kong Stock Connect continued to be closed, and the turnover rebounded slightly to nearly 100 billion yuan.
The Hang Seng Technology Index rose 1.58 per cent to 7000 again after three days. ATMX rose across the board, with BABA-SW (09988-HK) leading a rise of 3.8%. The group said the company had great valuation potential. Investors regained their old love for BYD shares, and the share price of Byd Company Limited (01211-HK) hit an all-time high. Inner room stocks and glass stocks are the outstanding sectors of daily performance.
BABA rose 3.8 per cent, or HK $10.2, to HK $275.6, contributing 46 points to a rise in the Hang Seng index and was the most actively traded share, at HK $9.671 billion. Wu Wei, chief financial officer of BABA Group, revealed on investors in 2020 that the huge potential value of the group has not yet been realized. Based on the adjusted EBITA multiplied by 25 times the lowest valuation level of the industry, the equity value of the core trading market of BABA's core business will reach US $725 billion, close to BABA's current total market capitalization. however, it still does not include new businesses such as Hema, Tmall International, Cainiao Logistics and Aliyun. BABA Group expects Aliyun to make a profit in fiscal year 2021. The cash flow of Cainiao's business activities will become regular in fiscal year 2021.
The Hang Seng Index closed at 23459.05 points, up 183.52 points, or 0.79%. The Hang Seng China Enterprises Index rose 115.85 points, or 1.25%, to 9397.37. The Hang Seng Technology Index rose 110.34 points, or 1.58%, to close at 7087.64 points, returning to the 7000 level again. The transaction volume rebounded slightly to HK $98.725 billion.
Japanese and Hong Kong stocks did not follow the decline of US stocks before trading. China's manufacturing purchasing managers' index (PMI) was 51.5 per cent in September, up 0.5 per cent from the previous month, indicating a rebound in the manufacturing sector. The crack in the Hang Seng Index opened 273.36 points, or 1.17% higher, and the rally intensified at the beginning of the session, and reached an intraday high of 23780.87 points at 10:38, up as much as 505.34 points from yesterday's close of 23275.53 points. The rally turned smooth after noon, reaching an intraday low of 23368.49 points at 14:14, up at least 92.96 points. October Hang Seng Index futures rose 182 points to 23444 points at 16:22, with 142000 contracts and about 122000 open positions. In October, Hang Seng China Enterprises Index futures rose 93 points to 9385 points, with more than 111000 contracts traded and more than 196000 open contracts.
The Hang Seng Technology Index rose 1.58 per cent to 7000 again after three days. ATMX rose across the board, led by BABA-SW (09988-HK), up 3.8 per cent, or HK $10.2, to HK $275.6 and the most actively traded share, at HK $9.671 billion. Wu Wei, chief financial officer of BABA Group, revealed on investors in 2020 that the huge potential value of the group has not yet been realized. Based on the adjusted EBITA multiplied by 25 times the lowest valuation level of the industry, the equity value of the core trading market of BABA's core business will reach US $725 billion, close to BABA's current total market capitalization. however, it still does not include new businesses such as Hema, Tmall International, Cainiao Logistics and Aliyun. BABA Group expects Aliyun to make a profit in fiscal year 2021. The cash flow of Cainiao's business activities will become regular in fiscal year 2021.
Meituan commented-W (03690-HK) also rose 3 per cent or HK $7.20 to HK $241.8. The Shanghai Municipal people's Government and Meituan Dianping Group signed a strategic cooperation framework agreement on September 29th. The two sides will give full play to Shanghai's advantages such as complete information infrastructure, rich application scenarios and massive data collection. we will strengthen cooperation on major projects in the areas of intelligent transportation, digital business circle and industry digital transformation.
Tencent (00700-HK) rose 1.2 per cent, or HK $6, to HK $511.5. Tencent's "go!" Lord "for the new round of approval of domestic online games.
XIAOMI-W (01810-HK) also played 2 or 0.40 Hong Kong dollars to close at 20.45 Hong Kong dollars. Lei Jun, chairman of XIAOMI, said at the 2020 meeting of China Green Company that XIAOMI's intelligent factory has now been completed and put into production, with a production capacity of one million mobile phones. The second phase is about to build tens of millions of ultra-high-end smartphone production lines, all unmanned, with an estimated annual output value of 50 to 60 billion yuan and less than 100 workers.
However, NetEase, Inc-SW (09999-HK) fell for five consecutive days, falling 3.9% or HK $5.60 against the market to HK $137.9, a nearly three-month low. The cumulative decline was 7.7%, or HK $11.50. The State Press and publication Administration has approved a new round of domestic online games, including NetEase, Inc's "War Roar." According to a recent report by Nomura, it is estimated that NetEase, Inc's income rose 24% in the third quarter, of which online game revenue increased by 19%, but was dragged down by a 1.2-fold increase in expenditure, and the operating profit margin is expected to fall 9 percentage points to 17.6%.
Ping An Healthcare And Technology (01833-HK) also fell 7.5 per cent, or HK $8.05, against the market slide to HK $99.25, falling below the $100 mark due to a discounted rights issue. Ping An Healthcare And Technology announced that the placement of 80 million new shares at 98.2 yuan is equivalent to expanding the share capital by about 7%, the placing price is discounted by about 8.5% from yesterday's closing price, and the allotment proceeds are 7.856 billion yuan, which will be used to expand the self-built medical team, increase investment in scientific and technological research and development, enrich the product range of members, broaden the network of sales channels, and potential strategic investment.
Investors regained their love affair with BYD shares, with Byd Company Limited (01211-HK) rising 12.2 per cent, or HK $13.20, to close at HK $121.4, a new high for the market, and an intraday high of HK $121.5. Wu Zhixin, deputy general manager of the China Automotive Technology Research Center, said that the development of Neidi new energy vehicles will accelerate in the next 15 years, and it is expected that there will be more than 160 million new energy vehicles in 2035, accounting for 50 to 60 per cent of the overall car market. Fellow BYD Electronic (00285-HK) also did well, rising 9.7 per cent, or HK $3.45, to HK $38.95.
Inner housing stocks were well built, led by China Evergrande Group (03333-HK), who rose 19.4 per cent, or HK $3.20, to HK $19.70. 00754-HK rose 6 per cent, or HK $1.04, to HK $18.28. China Resources Land (01109-HK) rose 5.9 per cent, or HK $1.95, to HK $34.90. China Evergrande Group announced that Evergrande Property Services has submitted a listing application form for the listing and trading of shares on the main board of the Stock Exchange and plans to conduct a global offering of shares after approval for listing. In addition, the company recently held talks with strategic investors holding a total of 130 billion yuan of Evergrande real estate, and signed a supplementary agreement with strategic investors holding a total of 86.3 billion yuan of Evergrande real estate on September 29. Strategic investors have agreed not to require buybacks and continue to hold interests in Evergrande real estate, and the proportion of equity in Evergrande real estate remains unchanged.
Glass stocks are another popular sector. Flat Glass Group (06865-HK) rose 10.2 per cent, or HK $1.91, to HK $20.55; Xinyi Solar (00968-HK) rose 7.3 per cent or HK $0.84 to HK $12.28; Fuyao Glass Industry Group (03606-HK) rose 4.4 or HK $1.20 to HK $28.4; and 00868-HK rose 4 per cent or HK $0.60 to HK $15.58. Glass stocks have been bullish recently, and UBS reported that Fuyao Glass will benefit from the growing popularity of all-glass roofs and heads-up displays (HUD). The group is expected to achieve a compound annual profit growth rate of 16% from 2019 to 2024, leading to a rise in its valuation. HSBC reported that Xinyi Glass would benefit from the rise in the price of float glass and the company's profits would hit a new high.
On the other hand, semi-new shares C-LINKS (01463-HK) rose 39.4 per cent, or HK $0.56, to close at HK $1.98, with a turnover of HK $28.3 million. It hit a new closing high since it went public on March 27.
Shares in 01811-HK plunged 26.3 per cent, or 35 cents, to an eight-month low of HK $0.98 as a result of the cancellation of the privatisation plan, with a transaction value of HK $146 million.
On the news side, the price of the Hong Kong dollar continued to be strong, triggering the strong-side convertibility undertaking of 7.75 to US $1. The Hong Kong Monetary Authority took over the selling order of the US dollar again during the New York session, injecting HK $7.626 billion into the market to defend the Hong Kong dollar peg rate system and maintain the stability of the Hong Kong dollar. The aggregate balance of Hong Kong's banking system increased to HK $251.2 billion on October 5th.
During the National Day holiday, the Hong Kong market of the HKEx will be closed from October 1 to 2 and will be traded as usual on October 5.
(Zhou Yanfeng / tr. by Phil Newell)