[Caihua Social News] on April 8, hundreds of billions of shares sold by major shareholders of Tencent (00700-HK), putting pressure on the early opening of Hong Kong stocks, with the Hang Seng Index opening 70 points lower. However, after 01299-HK received a sharp increase in its target price by Morgan Stanley, it strongly supported half of the rise in the Hang Seng Index, and the Hang Seng Index was able to return to the 29000-point level. After the sale of hundreds of billions of shares by Tencent's major shareholders, it also pushed up the trading volume of Hong Kong shares by more than HK $280 billion, making it the 10th largest trading volume of Hong Kong shares.
The United States may lift sanctions inconsistent with the Iranian nuclear deal, the market is expected to increase oil supply, oil prices are under pressure, oil stocks fell. Yesterday's sharp rise in maritime stocks, in the high profit market emerged, today under heavy selling pressure. Chip stocks, which were sought after yesterday, are divided today. A number of pharmaceutical stocks are favored by investors. Huang Guangyu founder of 00493-HK (Gome) returned to Gome to make a public appearance and immediately announced huge related transactions and the share price fell significantly from its high level.
Today, Hong Kong shares rose HK $6.2 per cent, or HK $5.75, to HK $99.1. the turnover was HK $3.91 billion, contributing 164p or 49 per cent to the Hang Seng index. Morgan Stanley sharply raised AIA's target price to HK $130 from HK $89 as AIA continued to expand its mainland operations and was approved by the BOC Insurance Regulatory Administration to set up a branch in Chengdu and Sichuan, with a revaluation.
On that day, the Hang Seng Index closed up 333.27 points, or 1.16%, at 29008.07 points, back above the 29000 point level. The Hang Seng China Enterprises Index rose 38.9 points, or 0.35%, to 11109.48. The Heng Biotechnology Index rose 6.26 points, or 0.07%, to 8458.11. Affected by the hundreds of billions of shares sold by Tencent's major shareholders, the turnover of Hong Kong stocks increased to HK $281.389 billion, ranking 10th among Hong Kong stocks.
The Hang Seng index of Hong Kong stocks fell first and then rose. The Hang Seng Index opened at a pre-market low of 70.68 points, or 0.25%; at 9:30, it saw an intraday low of 28587.11 points, down 87.69 points from yesterday's close of 28674.8 points; soon reversed the decline and rebounded at 9:35 in the early session of the session, picking up the ladder; it expanded in the afternoon and saw an intraday high of 29054.82 points at 14:25, up up 380.02 points; and the final closing power was above 29000 points, up 333 points, close to the all-day high.
The trading value of Hong Kong Stock Connect is HK $40.805 billion, while Beishui has a net inflow of HK $4.729 billion into Hong Kong stocks. April Hang Seng Index futures rose 454 points to 28995 points at 16:16; nearly 146000 contracts were traded and about 100000 open positions. In April, the Hang Seng China Enterprises Index rose 95 points to 11102 points, with 98000 contracts and more than 145000 open contracts.
00700-HK, the king of shares, was discounted for a rights issue by major shareholders after the market closed yesterday, and its share price continued to be soft this year, falling as low as HK $614 before falling as much as HK $15.50 or 2.5 per cent, before narrowing its decline to close down HK $1.5 or HK $9.50 at HK $620. Tencent announced that MIH TC, a wholly owned subsidiary of Prosus, a South African media group, sold about 192 million shares for a total consideration of HK $114.175 billion, accounting for about 2 per cent of the total number of shares issued. The allotment price per share is calculated at HK $595, a discount of 5.48 per cent to Tencent's closing price of HK $629.5 yesterday. Indirect ownership of Tencent by Prosus decreased from 30.86% to 28.86%. Naspers, Prosus and MIH TC will no longer be shareholders of Tencent. Prosus will not sell further shares for at least the next three years.
New economy stocks fluctuated slightly. Alibaba-SW (09988-HK) rose 0.5% or HK $1 to HK $223; Meituan-W (03690-HK) rose 0.9% or HK $2.80 to HK $320.8; Xiaomi-W (01810-HK) fell 0.4% or HK $0.10 to HK $26.2; Baidu-SW (09888-HK) fell 1.3% or HK $2.80 to HK $218.6 JD.com Group-SW (09618-HK) fell 1.1 per cent, or HK $3.60, to HK $320.8.
The United States may lift sanctions inconsistent with the Iranian nuclear deal, the market is expected to increase oil supply, oil prices are under pressure, oil stocks fell. China National Offshore Oil (00883-HK) fell 3.9 per cent, or HK $0.32, to HK $7.82, China Oilfield Services (02883-HK) fell 4.4 per cent, or HK $0.36, to HK $7.75, and China National Petroleum (00857-HK) fell 0.4 per cent, or HK $0.01, to HK $2.77. New York crude fell 0.59 per cent to $59.42 at 17:05. A U.S. government spokesman said the United States is prepared to lift sanctions against Iran "contrary to the 2015 comprehensive agreement on the Iranian nuclear issue" in order to restore compliance with the Iran nuclear agreement.
Yesterday's sharp rise in maritime stocks, in the high profit market emerged, today under heavy selling pressure. 01919-HK fell 9.4 per cent, or HK $1.28, to HK $12.38, 02866-HK fell 6.8 per cent, or HK $0.10, to HK $1.38, and 02039-HK fell 5.3 per cent, or HK $0.76, to HK $13.66.
Chip stocks, which were sought after yesterday, are divided today. 00981-HK fell 2.2 per cent, or HK $0.60, to HK $26.60, while 01347-HK maintained its uptrend, rising 5.4 per cent or HK $2.60 to HK $51.
A number of pharmaceutical stocks were sought after. 02005-HK rose 10.7 per cent or HK $0.47 to HK $4.88, Shandong Xinhua Pharmaceuticals (00719-HK) rose nearly 8 per cent or HK $0.36 to HK $4.88 and 06826-HK rose 7.5 per cent or HK $4.50 to HK $64.50.
On the other hand, its profit Industrial Group (01731-HK) rose 31.8 per cent, or HK $0.22, to HK $0.91 on a turnover of HK $26.3 million. Qili Industrial Group recently announced its annual results, with profits attributable to shareholders of US $10.36 million and total income of US $156 million, a decrease of 30%. It is proposed to pay a final dividend of HK1 cents per share and a special dividend of HK6 cents per share. At today's closing price, the dividend yield is nearly 7.7%.
Huang Guangyu, founder of 00493-HK, returned to Gome to make a public appearance and announced huge related transactions, with the share price falling 11.4 per cent, or HK $0.19, to HK $1.48; the transaction value was HK $702 million. Gome earlier rose nearly 16%, or HK $0.23, for two consecutive days. Gome announced that it would lease three properties in Beijing and Changsha from Huang Guangyu, the controlling shareholder, with a total rent of about 17.865 billion yuan. Gome will issue 9.924 billion shares to Huang Guangyu at HK $2.11 per share, paying a consideration of HK $17.576 billion, and the remaining consideration of about 290 million yuan will be paid through the transfer of all shares in HudsonAssets. Upon completion of the deal, Huang Guangyu and his concerted actors will increase their shareholding from 51.17 per cent to 65.52 per cent.
In April, Hong Kong stocks showed a pattern of one rise and one fall.
(Zhou Yanfeng / tr. by Phil Newell)