Financial联社 October 22nd news (Editor: Hu Jiarong) Hong Kong's three major indexes collectively rose today. As of the close, the Hang Seng Index rose by 0.10% to close at 20,498.95 points; the technology index rose by 0.66% to close at 4,521.63 points; the state-owned enterprise index rose by 0.31% to close at 7,363 points.

Note: Hang Seng Index

From the chart above, the Hang Seng Index exhibited a volatile trend during the day, and there was a slight decline at one point. Regarding the performance of the Hong Kong stock market, Zhongtai International analysis stated that in the short term, the market expects additional fiscal policies that may be introduced by the National People's Congress, but it is expected that the scale and deficit ratio of these policies may be more cautious.

On the other hand, it is highly likely that the pace of interest rate cuts by the Federal Reserve in the fourth quarter will slow down, and the approaching U.S. presidential election will bring more political volatility. It is not ruled out that fiscal policies may need to leave enough room to cope with the increasing uncertainty in the external environment in the fourth quarter.

Zhongtai International also pointed out that in the short term, the market is likely to continue to fluctuate. From the perspectives of valuation and risk premium, the Hang Seng Index will be more attractive below 19,500, but in the short term, there is technical support between 19,700 and 20,100. The selling pressure in the area with heavy trading volume above 21,200 points of the Hang Seng Index will be relatively high, requiring more significant catalysts to stabilize. The current strategy mainly focuses on capturing range fluctuations.

Today's Market

From the market performance perspective, some individual stocks, such as autos, securities, nuclear power, and electrical utility stocks, led the gains.

Car sales in September continued to boost confidence, with Geely Auto rising over 7%.

Among auto stocks, Geely Auto (00175.HK), Li Auto Inc - W (02015.HK), Great Wall Motor (02333.HK) rose by 7.06%, 4.99%, 3.17% respectively.

Note: Performance of auto stocks.

In 2024, the global electric vehicle market has seen significant growth. According to the latest data from the market research company Rho Motion, the global electric vehicle sales reached 1.7 million units in September, with China's market performing particularly well, reaching a high of 1.1 million units, accounting for 66% of the global total sales.

This growth trend is also reflected in the cumulative sales from the beginning of the year to the end of September. Globally, a total of 11.5 million electric vehicles were sold, with China's market leading by a significant margin with 7.2 million units sold, achieving a year-on-year growth rate of 35%, further solidifying its leading position in the global electric vehicle market.

In the domestic market, new energy vehicle production and sales have also reached a historic high. In September, new energy vehicle production and sales reached 1.307 million units and 1.287 million units respectively, with a month-on-month growth of 19.7% and 17%, and a year-on-year growth of 48.8% and 42.3%. The sales of new vehicles accounted for 45.8% of the total new vehicle sales.

Interchangeable convenience continues to boost brokerages, with China Merchants Securities rising over 3%.

Among brokerage stocks, China Merchants Securities (06099.HK), Shenwan Hongyuan (06806.HK), China Galaxy (06881.HK) rose by 3.37%, 2.16%, 2.13% respectively.

Note: The performance of securities stocks.

In recent news, the People's Bank of China has created the Securities, Fund, Insurance Company Interchange Facility (SFISF). To ensure smooth operation of the tools, the China Securities Regulatory Commission has approved China Citic Securities, China International Capital Corporation, Guotai Junan, Huatai Securities, Shenwan Hongyuan, GF Securities, Caitong Securities, Everbright Securities, Zhongtai Securities, Zheshang Securities, Guosen Securities, East Money Information, China Galaxy Securities, China Merchants Securities, East Money Information Securities, China Securities Co.,ltd., Industrial Securities, Huaxia Fund, E Fund Management, and Jiashi Fund, a total of 20 companies to carry out exchange convenience operations. The first batch of applications has exceeded 200 billion yuan.

Nuclear power stocks collectively strengthened, CGN Mining surged over 19%.

In the nuclear power sector, CGN Mining (01164.HK), CGN New Energy Fund (01811.HK), and CGN Power (01816.HK) rose by 19.59%, 3.98%, and 1.34% respectively.

Note: Performance of nuclear power stocks.

In terms of news, in order to develop data centers and meet the growing demands of artificial intelligence and cloud computing, American tech giants have set their sights on clean energy nuclear power for electricity generation. For example, on October 16, AWS announced a cooperation with Dominion to deploy SMRs near the North Anna nuclear power station in Virginia. According to media reports, nearly half of the data centers in the United States are located in Virginia, and 70% of global internet traffic flows through the data center valley in the northern part of the state.

In September, the national cumulative installed power generation capacity increased by over 14% year-on-year, with Harbin Electric rising nearly 6%.

Within the electric power sector, Harbin Electric (01133.HK), China Huadian Corporation, and Huadian Power International Corporation (01071.HK) rose by 5.73%, 4.81%, and 4.44% respectively.

Note: Performance of electrical utilities stocks.

In terms of news, on October 21st, the National Energy Administration released the national electricity industry statistics for January-September. As of the end of September, the country's cumulative installed electricity generation capacity is approximately 3.16 billion kilowatts, a year-on-year increase of 14.1%. Among them, the installed capacity for solar power generation is approximately 0.77 billion kilowatts, a year-on-year increase of 48.3%; the installed capacity for wind power is approximately 0.48 billion kilowatts, a year-on-year increase of 19.8%.

Southbound funds.

Today, the southbound funds continue to have a net inflow, with an amount of 5.906 billion Hong Kong dollars. Since the beginning of this year, the cumulative inflow from the south is 529.4 billion Hong Kong dollars.

Note: The performance of southbound funds since the beginning of this year.

Individual stocks are fluctuating.

[Meilan Airport's stock surged more than 8%, establishes joint venture with Singapore Changi Airport]

Meilan Airport (00357.HK) surged by 8.59%, closing at 9.23 Hong Kong dollars. In terms of news, Meilan Airport announced that Changi International Airport and Hainan Meilan International Airport Corporation Limited have signed a joint venture agreement. The joint venture company will manage non-aviation businesses at Haikou Meilan International Airport. Hainan Meilan International Airport holds 51% of the shares, while Changi holds 49%. In addition, the joint venture company will exclusively manage Meilan Airport's retail, dining, advertising, leisure, and other services from January 2025 for a period of 10 years.

UBTECH rose more than 20% and officially released the all-new generation of industrial humanoid robot Walker S1.

UBTECH (09880.HK) rose by 20.07%, closing at 107.70 Hong Kong dollars. In terms of news, UBTECH recently officially released the all-new generation of industrial humanoid robot Walker S1 and has entered automotive factory training.