Phoenix News Hong Kong Stocks | After the Hang Seng Index opened higher on Friday, the initial period consolidated at the 28,000-28200 level. The index trend improved after 10:30 and turned bullish after rising to the same day high of 28415.15 points in the afternoon, with a full-day fluctuation of 400.86 points. The Hang Seng Index closed at 28336.43 points, up 436.82 points, or 1.57%, with a turnover of 183.904 billion yuan. The National Index closed at 10996.06 points, up 221.79 points, or 2.06%; the Red Chip Index closed at 4127 points, up 61.98 points, or 1.52%. All three indices are improving, with the national index trending better. Chinese science network stocks improved. Xiaomi (1810), Kuaishou (1024), Meituan (3690) and Tencent (0700) rose 6.276%, 5.263%, 5.08% and 2.31% respectively, becoming the main upward drivers of the national index. Domestic demand stocks such as Mengniu (2319) and China Resources Beer (0291) increased by 4.29% and 2.964% respectively, which became the driving force behind the Red Chip Index.
The Hang Seng Index closed with a positive candle, climbed back to the 100 SMA and returned to the Baoji Plus channel, but the transaction amount failed to match. If you refer to it along with the previous trend, it becomes a favorable pattern of the “Morning Star”. It is expected that the Hang Seng Index has reached the end of the short term. The gap between the MACD fast and slow line narrowed, and the trend improved. Shares rose by 1,136 and fell by 672 throughout the day. Overall market conditions were favorable.
China announced that the profit of industrial enterprises above scale from January to February this year was about 1.11 trillion yuan, a sharp increase of 1.79 times year-on-year, with an average increase of 31.2% over two years. The reason for the sharp rise in data was the low base effect. Driven by the local New Year, industrial production and sales growth accelerated, corporate revenue and profits recovered at an accelerated pace, and profit levels clearly rebounded.
The three major US stock indices improved last Friday. They fell overnight but ADR rose. The two are at odds. It is expected that the Hang Seng Index may open higher, but if it fails to break above the 27,800 level, the index may turn back to weakness.
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Chizicheng Technology (9911) is a Chinese Internet company that has expanded its social networking, game, and tool application products to more than 200 countries and regions, with global user traffic exceeding 1.2 billion. Akazicheng is centered on social networking services, and its traffic ecosystem is dominated by Yiyo, MICO, and YOHO social apps. MICO is an open social networking app with over 100 million downloads worldwide. YiYO and YOHO focus on video and voice room social networking, respectively, and the prospects are broad. The company announced that in Q4 2020, the average monthly activity of social apps reached 13.18 million.
The company recently announced its 2020 full-year results and handed over a brilliant report card. Benefiting from the rapid development of social networking services, including an increase in the number of users, expanded market coverage and more diversified monetization methods, the Group's revenue surged 203.2% to 1.18 billion yuan (RMB, same below) last year, net profit increased 67.1% to 110 million yuan, and adjusted net profit increased 41.5% to 150 million yuan. As products gradually enter the harvest period, it is expected to contribute more revenue and profits in the next few years, and the company's performance will maintain rapid growth.
Last year, the pandemic caused social apps to continue to be popular. For example, the voice social networking platform Clubhouse was popular around the world earlier. Recently, the number of weekly active users has exceeded 10 million. Meanwhile, the launch of the dating app Bumble in the US and the acquisition of the video social networking app Azar by Tinder's parent company Match Group have all attracted more investors' attention in the social networking sector. It is worth mentioning that YoHo in Chizicheng just focuses on voice room social networking and is expected to seize the huge market opportunities of voice social networking, while the other core product, MICO, has already entered the harvest period after recent efforts. The group also plans to expand its revenue channels, such as developing social games, brand marketing, etc. on the basis of social platforms. The format is likely to be similar to Kuaishou (1024), with great potential for growth.