Review of Hong Kong stock market

On the 13th, Hong Kong stocks closed up 512 points at near highs in the morning, while the Hang Seng Index closed at 28027. It continued to be strong in the afternoon and continued to hover near the high level near 28000. The Anti-monopoly Bureau of the State Administration of Market Supervision and Administration has unconditionally approved Tencent Co., Ltd. to acquire the equity of Sogou Company. It will eventually reach a privatization agreement and become a wholly owned subsidiary. The news stimulated Tencent's share price to rise sharply, with a high opinion of 562.50 yuan. At the same time, we will drive science and technology stocks to build well in an all-round way.

Technology stocks and the new economy, which are at a disadvantage in recent days, have finally taken a turn for the better. However, it should be noted that strict regulatory measures will be introduced one after another. Therefore, it is appropriate to be cautious and avoid high-level pursuit. Tencent and BABA rose nearly 4 per cent; Bilibili Inc., Meituan, JD.com Group and Baidu rose more than 3 per cent and Smoore International Holdings Limited rose more than 6 per cent.

The Prospect of Hong Kong stocks

As of press time, the HS50 index fell 0.32% to 27802.0.

The Hang Seng Index finally made its way up, breaking through the five-day moving average. The main reason is that several giants of the Internet are favorable and exciting, and the disk becomes good-looking. The strongest thing in the market is the variety of carbon neutral trading mentioned in yesterday's headlines. Market funds are enthusiastically buying, and there is also relevant news in the session. There is also continuous catalysis of news in category 5G. The others are individual stocks of car dealers, many of which have reached record highs, which shows that the new energy vehicle industry still has something to do.

Note that at the forum of economic situation experts and entrepreneurs, an important speech said: "maintain the continuity and stability of macro policies and persist in not flooding; the recent measures to reduce reserve requirements should be structural. We will pay more attention to supporting small and medium-sized enterprises and labor-intensive industries to help alleviate the financing problem. This is a cooling of loose expectations.

In addition, the annual rate of CPI in the United States recorded 5.4% in June, the highest since August 2008. Inflation is rising and expectations of Fed tightening are rising. In this atmosphere, market sentiment may be affected. In the short term, pay attention to the pressure of the 10-day moving average and continue to observe the opportunities for carbon neutralization of photovoltaic.

A list of macro news

• The carbon emissions trading market will open on the 16th.

After a three-week delay, the national carbon emissions trading market will open on July 16. The opening ceremony of the national carbon market will be held at the same time in Beijing, Shanghai and Wuhan on Friday morning, followed by the first batch of trading. The industry estimates that the initial trading price of the national carbon market is about 30 yuan to 50 yuan per ton, slightly higher than the average level of the pilot areas. As the supply and demand of the national carbon market is more balanced in the first year, the initial market trading volume is not expected to be very high. According to intraday news reports, the State Council Information Office will hold a regular policy briefing at 10:00 on July 14 to introduce the launch of online trading in the national carbon emissions trading market.

• HKEx: more than 50 health and biotechnology companies have submitted listing applications

Hong Kong Exchanges and Clearing (00388.HK) announced today that as of the end of June this year, more than 50 health and biotechnology companies had submitted listing applications, including 19 biotech companies with no revenue and one international company. On the other hand, the Group pointed out that since the reform to the end of June this year, 67 medical and health companies have been listed in Hong Kong, raising HK $209 billion in initial public offerings, while 33 biotech companies have no revenue. the initial public offering raised HK $87 billion.

A list of individual stock news

• Delivery lesbians are considering changing their listing to Hong Kong, China, with a financing scale of US $1 billion.

According to people familiar with the matter, cargo Lala is considering changing the location of its initial public offering (IPO) from the United States to Hong Kong, China, raising up to US $1 billion (about HK $7.8 billion). People familiar with the matter stressed that cargo lesbians are at the stage of consideration and may finally decide to continue IPO in the United States. Cargo Lala said that the company continues to focus on the capital markets, but there is no specific IPO schedule and location.

• Bidley Holdings Public offering was subscribed for about 43.92 times at a price of HK $4.4 per share.

06909.HK announced that the final offer price had been set at HK $4.40 per offer share, while the net proceeds from the global offering were about HK $627 million, or 1000 shares per share, which is expected to be listed on July 15, 2021. The Hong Kong offer shares initially offered under the Hong Kong Public offer have been substantially oversubscribed. This is equivalent to approximately 43.92 times the total of 15 million Hong Kong offer shares initially available for subscription under the Hong Kong Public offering (before the exercise of the over-allotment option). The final number of offer shares under the Hong Kong public offering has increased to 45 million shares, equivalent to 30 per cent of the total number of shares initially available for subscription under the global offering (before the exercise of the over-allotment option).

• Meituan-W completes issuing 11.3526 million shares to Tencent

Meituan-W (03690.HK) announced that all the prerequisites for Tencent's subscription as set out in the Tencent subscription Agreement have been met. As a result, Tencent's subscription was completed on July 13, 2021. After the completion of Tencent's subscription, the company has allocated and issued 11.3526 million Tencent subscription shares to Tencent.

• Shenye Group and Tencent Company sign Strategic Cooperation Framework Agreement

According to news from Shenye Group, this morning, Shenye Group and Tencent (00700.HK) held a signing ceremony of strategic cooperation agreement in Tencent Binhai Mansion. Shenye Group and Tencent agreed that the two sides will establish and consolidate strategic cooperative relations in accordance with the principles of "voluntary win-win, mutual benefit and common development". The signing of the strategic cooperation agreement between Shenye Group and Tencent means that the project of the two companies jointly building a demonstration benchmark for digital transformation and development has been officially launched, and the two sides will rely on their respective resources, technological advantages and construction experience. carry out all-round cooperation in the fields of happiness and health industry, future urban operation, smart real estate, smart park, smart operation, urban infrastructure, financial capital, digital transformation and so on. Promote the development of Shenye Group in the transformation of enterprise digitalization and intelligence.

• Weichai Power plans to acquire 39.31% stake in Weichai Leiwo

Weichai Power (02338.HK) announced that on July 13, 2021, the company entered into an Apos share transfer agreement with Apos and Weichai Leiwo respectively. According to this, the company has agreed to purchase about 38.62% of the shares in Weichai Leiwo from Apos, with an consideration of RMB 968 million, and to enter into a Qingte share transfer agreement with Qingte and Weichai Leiwo. Accordingly, the company has agreed to purchase about 0.69% equity interest in Weichai Leiwo from Qingte. The consideration is RMB 17.2982 million. Upon completion of the above acquisitions, the company will become the holder of approximately 39.31% of the total equity of Weichai Leiwo, and the company will be accounted for as an associate of the company.

• China Energy Construction subsidiary signed the EPC contract for the 360MW photovoltaic power station project in Lagos, Nigeria, involving US $244 million

China Energy Construction (03996.HK) announced that China Gezhouba Group International Engineering Co., Ltd., a subsidiary of the company's subsidiary China Gezhouba Group Co., Ltd. recently signed an EPC contract for the 360MW photovoltaic power station project in Lagos, Nigeria. The project is located in Lagos Province, Nigeria, and its main work is to build a new 360 MW photovoltaic power station and supporting facilities. The contract value of the project is about US $244 million and the contract duration is 24 months.

• China carbon Neutralization completes the opening of carbon emissions trading account in Shenzhen Emission right Exchange

China carbon Neutralization (01372.HK) announced that China carbon Green Development (Shenzhen) Co., Ltd., a wholly-owned subsidiary of China carbon Neutralization Development Group Co., Ltd., has recently become a trading member of Shenzhen emissions Exchange and completed the opening of a carbon emissions trading account, which is an important step for the group to actively expand its trading capacity and develop carbon asset management at home and abroad. Following the announcement by the Group on April 29 this year that the Group had successfully opened accounts on the world's two major voluntary emission reduction trading platforms and completed the acquisition of more than 3 million tons of internationally certified emission reductions on May 24, the successful opening of an account in the Shenzhen Emission Exchange has further enhanced the Group's competitive position as a carbon asset trader and manager in the domestic and foreign carbon market. In view of the fact that the national unified carbon market will be launched this month, the group will actively participate in domestic carbon asset trading and carbon asset management. The Group is confident that it will implement the strategy of international and domestic carbon asset development and trading as planned, and continue to consolidate the Group's position in the field of carbon neutralization.

• DongFeng Motor Group: Zhixin Semiconductor IGBT Module officially put into production

DongFeng Motor Group (00489.HK) issued an announcement that recently, the first mass-produced car gauge-level IGBT module product in Central China was removed from the Zhixin semiconductor module packaging factory of Zhixin Technology Co., Ltd. (Zhixin technology), which is an important practice of Dongfeng Automobile Group's independent control of key technology core resources of new energy vehicles, and also the first fruit of strategic cooperation between Dongfeng Automobile Group and CRRC Corporation. In June 2019, Zhixin Technology (82% owned by Dongfeng Automobile Group) and CRRC Corporation jointly established Zhixin Semiconductor Co., Ltd. (Zhixin Semiconductor) in Wuhan, which aims to achieve independent control of IGBT core resources. Among them, Zhixin Technology holds a 53% stake in Zhixin Semiconductor. With the joint efforts of both sides, over the past two years, an automotive power semiconductor production line based on the world-class sixth-generation IGBT technology was completed in Dongfeng New Energy vehicle Industry Park No. 1, and the first batch of products were officially off the line. Zhixin Semiconductor Project has a total planned production capacity of 1.2 million, and the first phase will achieve the packaging capacity of 300000 all-car gauge-level modules per year, and build a power semiconductor industrialization base.

• Genting Xinyao-B has reached a strategic partnership with Sipai Health to develop innovative health care solutions for patients.

Genting Xinyao-B (01952.HK) announced that the company has entered into a strategic partnership with Sippai Health Technology Co., Ltd. (Sippai Health), a provider of pharmacy and health care services in the field of oncology. The company's strategic cooperation with Sippai Health aims to explore innovative medical and health service solutions in the field of oncology and special disease treatment through Sippai Health's national directly patient-oriented pharmacy network, including a new service model to address the urgent medical needs of patients in a wide range of diseases. This partnership makes it easier for the company to provide new drugs to more patients.

• Pioneering Pharmaceutical Industry-B:GT20029 New Drug Research (IND) for the treatment of androgenic alopecia and acne is licensed by FDA in the United States

Pioneering Pharmaceutical-B (09939.HK) announced that it has been approved by the US Food and Drug Administration (FDA) for the study of a new drug (IND) (clinical trial) of GT20029 for the treatment of androgenic alopecia and acne in the United States. A randomized, double-blind, placebo-controlled, parallel grouping, dose-increasing study was conducted to evaluate the safety, tolerance and pharmacokinetics of GT20029 after local single and multiple dose increments. According to the announcement, the group has been laying out a targeted proteolytic chimera (PROTAC) platform since 2018. GT20029, targeting androgen receptor (AR), is the first compound independently developed by the group based on the PROTAC platform. As far as the directors know, GT20029 is the first topical PROTAC compound in the world to enter the clinical stage. The Phase I clinical trial of GT20029 in the treatment of androgenic alopecia and acne in China was approved by the Drug Evaluation Center (CDE) of the State Drug Administration of China in April 2021, and the first subject administration is expected in July 2021.

• Jingdong Jingdian expects the profit attributable to shareholders to increase significantly by not less than 400% in the medium term.

00710.HK announced that during the six-month period ended June 30, 2021, the Group is expected to achieve a significant increase in profit attributable to shareholders, which is not less than 400% compared with the six-month period ended June 30, 2021. The announcement said that mainly due to the increase in the number of thin-film transistors and touch screen display modules sold by the group to Chinese customers, the region's economy has recovered rapidly from the impact of COVID-19 since the second half of 2020.

• Xtep International's net profit increased by not less than 65% in the first half of the year.

Xtep International (01368.HK) announced on July 13 that Xtep's international net profit had increased by no less than 65 per cent year-on-year in the six months ended June 30, 2021. Among them, retail sales of Xtep's main brand increased by 40 per cent in the first half of the year compared with the same period last year. With regard to performance changes, Xtep International said in the announcement that the increase in net profit was mainly due to a substantial increase in replenishment orders from Xtep's main brand agents due to strong retail performance; the company has stepped up promotion efforts on a number of online platforms, social media and live streaming channels to promote sales, and Xtep's e-commerce business has accelerated growth. After the successful restructuring of Xtep's children's business in product design and quality, brand positioning and retail network management, the sales momentum was strong, resulting in better-than-expected comprehensive income growth during the period.

• Wuxi Biologics expects the profits belonging to the company's equity shareholders to increase by more than 135% in the medium term compared with the same period last year.

Wuxi Biologics (02269.HK) announced that the group expects profits attributable to equity shareholders to increase by more than 135 per cent in the six months to June 30, compared with profits attributable to equity shareholders in the same period last year. According to the announcement, the growth is mainly due to the accelerated and efficient implementation of existing and newly introduced COVID-19 projects in the first half of 2021 to support and empower global customers to fight the epidemic and increase revenue accordingly. With the leading technology platform, the best project delivery time in the industry and excellent project implementation record, the Group's new comprehensive project revenue and market share have increased significantly. The strategy of "winning drug molecules" has been successfully implemented to introduce more late-stage projects into the R & D pipeline and improve short-term revenue.

• The retail value of Chow Tai Fook Jewellery increased by 69.8% in the first quarter compared with the same period last year, and the average selling prices of the same store were all good.

Chow Tai Fook Jewellery (01929.HK) announced that in the three months to June 30, 2021, the company achieved a 69.8% increase in retail value, a 42.8% increase in same-store sales in mainland China, and an 110.4% increase in same-store sales in Hong Kong and Macau. Same-store sales in mainland China, Hong Kong and Macau maintained encouraging growth in the first quarter, the announcement said. Supported by a buoyant consumer atmosphere, same-store sales in mainland China grew by 42.8% during the quarter. Although the main border crossings between mainland China and Hong Kong, China remain closed, same-store sales in Hong Kong and Macau continue to recover. Same-store sales growth rose sharply to 110.4%, thanks to improved local consumer demand and a low base effect. During the quarter, same-store sales in Hong Kong, China increased by 49.6%, while in Macau, China, same-store sales increased by 1602.2% due to a rebound in tourist consumption after the reopening of border crossings.

• The People's Insurance's original insurance premium income increased 1.9% to 341.528 billion yuan in the first half of the year compared with the same period last year.

The People's Insurance (01339.HK) issued an announcement From January 1, 2021 to June 30, 2021, the original insurance premiums earned by the company's subsidiaries China people's property Insurance Co., Ltd. (PICC property Insurance), China people's Life Insurance Co., Ltd. (PICC) and China people's Health Insurance Co., Ltd. (PICC Health) are 251.825 billion yuan, 64.133 billion yuan and 25.57 billion yuan respectively. It totaled 341.528 billion yuan, an increase of 1.9% over the same period last year.

• PICC Property and Casualty's premium income in the first half of the year increased by 2.5% to 251.825 billion yuan compared with the same period last year.

PICC Property and Casualty (02328.HK) reported that the company's original insurance premium income in the first half of 2021 was about 251.825 billion yuan, an increase of 2.5 per cent year-on-year.

Selected analysis

• Citic Lyon: reiterate Yuzhou Group's "buy" rating target price of HK $2.62

Citic Lyon recently released a research report that Yuzhou Group (01628) delivered Shanghai Yuzhou Jin Maoyue and Hefei Yuzhou Galaxy PARK two key projects as scheduled, highly ensuring medium-term profits. The bank expects Yuzhou's profits to recover gradually in the first half of this year as cash flow improves and is expected to maintain the industry's highest dividend yield of 17.4 per cent. Lyon is optimistic about the future development of the company and reiterates its "buy" rating, with a target price of HK $2.62. Yuzhou Jin Maoyue, a project jointly developed by Yuzhou and China Jinmao (00817) in Shanghai, was successfully completed and delivered in late June and will receive recognized revenue by the middle of this year, with an expected gross profit margin of about 20 per cent, the report said. The bank said Yuzhou Galaxy PARK, located in Hefei in May, had realized recognized income, with a 100 per cent stake in Yuzhou and an estimated gross profit margin of about 22 per cent. Lyon believes that the smooth delivery of these two representative projects is enough to show that the company's target of 12 billion yuan in the first half of this year can be achieved smoothly.