Evaluation of Hong Kong stocks

The Hang Seng Index fell more than 700 points, or 2.55%, while the Hang Seng Technology Index closed down 2.34% at 9967.

Plate aspectGeneral pullback of new economy stocksMeituan fell by more than 5 per cent, BABA by nearly 2 per cent, JD.com Group by more than 1 per cent and Alibaba Health Information Technology by nearly 4 per cent.

The military industrial stocks collectively fell sharply.CNAC Science and Technology fell nearly 15%, China Shipbuilding Defense fell nearly 7%, China Aerospace Wanyuan fell 8%, and Aerospace Holdings fell nearly 3%.

The pharmaceutical sector generally fell, the leader of CROPharmaron Beijing Co., Ltd.* fell more than 7 per cent. Chunli Medical fell nearly 10%, and pharmaceutical stocks such as Tigermed, Wuxi Apptec and INNOVENT BIO also fell about 5%.

Individual stocks$Tencent (00700.HK) $It closed down 6.26%, and today's turnover reached HK $36.4 billion. According to a research report published by UBS, Wechat continues to open up Wechat's ecosystem, links with short film products, and opens up film dynamics and external search functions. It is believed that there will be cash opportunities for advertising, payment, subscription and reward in the long run, while the related factors are not reflected in the stock price and are rated as "buy" with a target price of HK $830.

$Hong Kong Exchanges and Clearing (00388.HK) $It closed down 7.23% and rose 8.33% yesterday to a new high. China International Capital Corporation said in a research report that the trend since January is accelerating the realization of the HKEx's long-term trend, with southward inflows, the new economy and the listing of US-listed Chinese stocks also landing more than expected, raising the HKEx's target price by 23 per cent to HK $634.

China Jinmao (00817.HK) $It fell more than 16%, a two-year low. China's Jinmao announced last night that the profit attributable to the company's owners for the year ended December 31, 2020, excluding fair value income on investment properties, would fall by about 40% to 50% compared with the year ended December 31, 2019.

$Sihuan Medicine (00460.HK) $Soared by more than 28%. January 26 news, Sihuan Pharmaceutical announced today that the company has signed a framework agreement to acquire Beijing Kangming Baiao. Kangming Baiao is an innovation-driven biological company dedicated to the research and development of multi-functional antibody drugs such as double-antibody and double-anti-ADC. It is a national high-tech enterprise and Zhongguancun high-tech enterprise. After the completion of the acquisition, the company will become the owner of Cumming Baiao.

$Tsingtao Brewery (00168.HK) $Go up against the trend, up more than 7%. Lyon issued a research report, raising Tsingtao Brewery's target price from HK $83 to HK $92 and lowering its net profit forecast for 2020-2022 by 1% to 3%. Due to its low valuation, it is more optimistic and maintains its "buy" investment rating.

In terms of funds for Hong Kong stock exchanges

As for Hong Kong Stock Connect, there was a net inflow of HK $14.172 billion from Hong Kong Stock Connect (southbound) today.

Message surface

LiquidityThe people's Bank of China launched a reverse repurchase operation of 2 billion yuan today, with a net withdrawal of 78 billion yuan on the same day as 80 billion yuan of reverse repurchase expired today. According to 21 Caijing, Ma Jun, a member of the central bank's monetary policy committee, said bubbles have emerged in some areas. China's major stock market indices rose sharply last year, to nearly 30%, and such a bull market in the face of a sharp decline in economic growth is unlikely to have nothing to do with money.

Industrial economyTian Yulong, chief engineer and spokesman of the Ministry of Industry and Information Technology, said that the industrial economy has maintained a steady recovery and the development of emerging industries has been accelerated, and the situation is very good. In 2020, the total amount of accounts owed to private and small and medium-sized enterprises totaled 186.5 billion yuan, which played an important role in improving the production and operation of enterprises.

In terms of enterprise industryHuang Libin, spokesman for the Ministry of Industry and Information Technology, said that in accordance with the central government's unified plan to further expand opening up, the restrictions on foreign equity ratio for passenger cars and no more than two joint ventures will be lifted in 2022, when foreign investment in cars will be fully opened up.

Civil aviationStarting from 00: 00 on January 27, passengers who buy tickets during the Spring Festival from January 28 to March 8 can apply for a free refund or at least one rescheduling, the Civil Aviation Administration said. According to data released by Qunar, an online travel platform, as of yesterday, the average price of air ticket booking fell to 651.36 yuan, the lowest in the past five years.

Lithium battery industryAccording to the China Light Industry Information Center, in December 2020, the national output of lithium-ion batteries was 2.17 billion, an increase of 26.4 percent over the same period last year, and the output of lead-acid batteries was 24.901 million kVA, an increase of 20.9 percent over the same period last year. From January to December, among the main products of the national battery manufacturing industry, the output of lithium-ion batteries was 18.85 billion, an increase of 14.4 percent over the same period last year, and the output of lead-acid batteries was 227.356 million kilovolt-ampere, an increase of 16.1 percent over the same period last year.

Institutional viewpoint

HSBC researchWith the mainland mutual fund industry booming, mainland investors are flocking to the Hong Kong stock market, where valuations are more straightforward, according to a research report. In an optimistic scenario, southward capital inflows in the first quarter of this year are expected to reach 350 billion yuan (the same below), equivalent to 5.1% of the total stock trading volume of Hong Kong stocks (about 6.8 trillion yuan) in the last quarter of last year, and is expected to reach 800 billion yuan (equivalent to a year-on-year increase of 32%). Focus on rare and valuable stocks.

LeonAccording to the report, China's Ministry of Housing and Construction, together with 10 other government departments, issued a notice earlier suggesting that the services of property management companies be strengthened and improved. Even if the details have not been released, it is believed that it will be beneficial to large property management companies. It is expected that the core profits of the property management companies covered by the bank rose 21.4% to 166% year-on-year last year, and their performance continued to be solid.

China International Capital CorporationIt is pointed out that the price reduction results of most of the medical insurance negotiations at the end of December 2020 are better than the market expectations, and the policy pessimistic expectation has lifted the suppression on the market. We believe that the expectation of the market for the pharmaceutical innovation industry chain has been greatly improved, and the industry chain is expected to become the core of the market allocation. For innovative drug enterprises, we believe that the approved listing and sales volume of innovative varieties will continue to drive performance growth, and the leading enterprises have entered the product harvest period. For innovative drug outsourcing services, the current global new drug R & D outsourcing orders are transferred to China, mainly due to China's low cost and high efficiency.