[Caihua Social News] on April 9, Hong Kong stocks maintained a pattern of rising and falling day by day, with up and down fluctuations reaching 547 points, but finally fell by 309 points, the 29000-point mark could not be maintained, and the turnover shrank to HK $141.9 billion. There are only three trading days this week, down 238.94 points or 0.8 per cent.
New economy stock ATMX is generally soft, but Tencent (00700-HK) is stable, ending two consecutive declines, up 0.1 per cent. Blu-ray Garbo Service (02606-HK) has a turnover of HK $4.824 billion, making it the third largest active share. 09959-HK, in which Tencent is the majority shareholder, was listed on its first day of trading today, earning HK $870 per hand on paper. Wuxi Biologics (02269-HK) temporarily saw the end of three consecutive gains, down 4.9%. Steel stocks kept rising, while Chongqing Iron and Steel (01053-HK) rose another 24.1 per cent. Property management stocks were bearish by JPMorgan Chase, and the stock price was under pressure.
Steel stocks are rising all the time. Chongqing Iron and Steel (01053-HK) rose a further HK $24.1 per cent, or HK $0.34, to HK $1.75, a three-year and three-month high, and rose for four days, up 62 per cent or HK $0.67. 00347-HK also rose 4.4 per cent, or HK $0.20, to HK $4.72, while 00323-HK rose 2.3 per cent, or HK $0.07, to HK $3.13. Chongqing Iron and Steel Co., Ltd. is expected to increase its net profit by about 1.08 billion yuan in the first quarter, an increase of 258.8 times over the same period last year. The US government earlier announced a US $2.3 trillion infrastructure plan for the maintenance of roads, railways, and public transport systems, as well as various public works projects such as airports, coastal ports, and inland waterways, which are good for the prospects of the steel market.
Hong Kong stocks fell at the close of the day. The Hang Seng Index fell 309.27 points, or 1.07%, to close at 28698.8, losing the 29000-point mark. The Hang Seng China Enterprises Index fell 132.11 points, or 1.19%, to 10977.37. The Heng Biotechnology Index fell 152.18 points, or 1.8%, to 8305.93. The transaction volume was reduced to HK $141.913 billion. The Hang Seng Index opened 144.37 points, or 0.5%, higher at 29152.55 points before the session, which is already an intraday high. The early session of the market turned into a decline at 9:32, the decline widened after noon and reached an intraday low of 28604.55 points at 13:58, down as much as 403.52 points from yesterday's close of 29008.07 points. The whole day's volatility reached 547.89 points, and finally closed close to the low, down 309 points.
The trading value of Hong Kong Stock Connect has shrunk to HK $26.834 billion, while the net inflow of North Water shares has reached HK $1.46 billion. April Hang Seng Index futures fell 412 points to 28611 points at 16:10, with more than 108000 contracts traded and about 101000 open positions. In April, the Hang Seng China Enterprises Index fell 174 points to 10938 points, with 69000 contracts traded and more than 146000 open contracts.
ATMX, the new economy stock, was generally soft, but 00700-HK held steady, ending two consecutive declines, up 0.1 per cent or HK $0.50 to HK $620.5. Foreign news agencies quoted a number of sources as saying that China's antitrust regulator plans to approve Tencent's deal to privatize Sogou, the third largest search engine company in the mainland. The State Administration of Market Supervision and Administration does not object to Tencent's acquisition of the remaining 60 per cent stake in Sogou for $3.5 billion, but only if Tencent is willing to set up a special mechanism to ensure data security, which is the first case approved by the State Administration of Market Supervision and Administration.
Meituan-W (03690-HK) fell 2.1 per cent, or HK $6.80, to HK $314. Mainland media reported that in order to explore and solve the problem of "big data killing familiarity", representatives of 10 Internet platform enterprises, including JD.com, Meituan, and Ctrip, signed the "commitment of platform Enterprises to maintain Fair Competition and Market order."
Alibaba-SW (09988-HK) fell 2.2 per cent, or HK $5, to HK $218. Xiaomi-W (01810-HK) fell 1.9 per cent, or HK $0.50, to HK $25.70.
Blu-ray Garbo Services (02606-HK) traded HK $4.824 billion, making it the third-largest active share, falling 0.8 per cent, or HK $0.40, to HK $51.50. On March 22nd, Blu-ray Garbo Services announced that country Garden Services would acquire a number of H-shares and domestic shares of Blu-ray Garbo Services under a conditional agreement with a total cash consideration of about HK $6.47 billion. Upon completion of the deal, country Garden Services will become a major shareholder in Blu-ray Garbo with a 71.17 per cent stake. Blu-ray Garbo will become a subsidiary of country Garden Services, its financial results will be incorporated into the financial statements of country Garden Services Group, and it is recommended that Blu-ray Garbo be delisted.
09959-HK, a mainland supplier of supply chain financial technology solutions and a major shareholder of Tencent, closed on its first day of trading at HK $19.32, 9.9 per cent or HK $1.74 higher than its share price of Rmb17.58. at 500 shares, it made a book profit of HK $870. The turnover was HK $3.924 billion, making it the fourth largest active share.
Wuxi Biologics (02269-HK) temporarily saw the end of three consecutive gains, falling 4.9 per cent, or HK $5.20, to HK $102. Wuxi Biologics rose 10.1 per cent, or HK $9.85, in the previous three trading days. Wuxi Biologics announced in early April that he would streamline the shareholding structure of Yaoming Hyde and reduce the administrative costs and expenses of the joint venture.
China National Offshore Oil (00883-HK) rebounded against the market, rising 1.2 per cent, or HK $0.09, to HK $7.91. CNOOC announced that the V platform, its booming operating company in the Bohai Sea, caught fire on April 5 and put out the fire on April 6. So far, there has been no crude oil spill and no environmental pollution. A total of 102 people on the platform were evacuated that night, while 3 others were missing and have not yet been recovered. The biggest impact of the accident on the company's output this year is about 600000 barrels, accounting for about 0.1% of the annual output, and other impacts need to be assessed. Affected by the incident, the company's shares fell 3.9 per cent against the market yesterday.
Property management stocks were bearish by JPMorgan Chase, and the stock price was under pressure. China Shipping property (02669-HK) fell 6.9%, or HK $0.51, to HK $7.01, 03319-HK fell 5.9%, or HK $2.10, to HK $33.33, and Greentown Services (02869-HK) fell 5.9%, or HK $0.76, to HK $12.02. JPMorgan Chase reported that domestic property management stocks have risen 49% since 2021, far higher than the 3% increase in the state-owned enterprise index over the same period. It takes a cautious view of the industry and reduces the target prices of a number of property management stocks.
On the other hand, Century United Holdings (01959-HK) rose 46.3 per cent, or HK $0.31, to close at HK $0.98 on a turnover of HK $40.5 million. Century United Holdings announced that on April 8, 2021, the company's subsidiary has signed a strategic cooperation framework agreement with Guangzhou Wancheng Wanchong New Energy Technology Co., Ltd., from April 2021 to March 2024, the two sides agreed to carry out in-depth cooperation in the field of new energy vehicle charging network construction and operation. Luo Houjie, Co-Chairman and CEO of Century, said that the company plans to build 126 new energy vehicle charging stations in the Greater Bay area in the next five years.
Sunshine Paper (02002-HK) discounted rights issue, fell 11.4 per cent, or 0.21 Hong Kong dollars, to close at 1.64 Hong Kong dollars; transaction value of 68.7 million Hong Kong dollars. Sunshine announced that it intends to issue up to 120 million shares through placing agents on April 8, 2021, accounting for about 12.77 per cent of the expanded share capital. The placing price is HK $1.50 per share, a discount of about 18.92% from the closing price on April 8. HK $180 million will be raised mainly for general working capital.
Hong Kong stocks continued to be cloudy and sunny, with the Hang Seng Index scrambling at the edge of 29000.
(Zhou Yanfeng / tr. by Phil Newell)