Futu News reported on May 12 that the joint statement from the China-U.S. Geneva economic and trade talks was released, causing the three major Hong Kong stock indices to rise in the afternoon. $Hang Seng Index (800000.HK)$ Increased by 2.98%, $Hang Seng TECH Index (800700.HK)$ Increased by 5.16%, $Hang Seng China Enterprises Index (800100.HK)$ Increased by 3.01%.
As of the market close, there were 1,461 stocks in Hong Kong that rose, 689 that fell, and 976 that remained flat.
The performance of specific industries is shown in the following figure:
In the Sector, many Network Technology stocks rose, with JD-SW increasing by 6.39%, KUAISHOU-W by 6.15%, Alibaba-W by 6.15%, Baidu-SW by 5.03%, TENCENT by 4.63%, NTES-S by 3.18%, MEITUAN-W by 2.48%, while XIAOMI-W decreased by 1.46%.
Apple Supplier stocks rose, with COWELL increasing by 18.45%, AAC TECH by 15.37%, SUNNY OPTICAL by 14.83%, BYD Electronics by 13.79%, Q TECH by 13.45%, FIH by 3.70%, VSTECS by 3.13%, and TK GROUP HLDG by 0.93%.
Lithium Battery stocks strengthened, with BYD Electronics rising by 13.79%, BYD Company by 7.39%, Tianqi Lithium Corporation by 4.71%, LEOCH INT'L by 4.27%, TIANNENG POWER by 3.80%, GANFENGLITHIUM by 3.24%, Zhongchuang Xinhang by 1.34%, and CHAOWEI POWER by 0.77%.
Auto stocks performed well, with XIAOMI-W increasing by 10.64%, NIO-SW by 7.69%, BYD Company by 7.39%, Lixiang Automotive-W by 7.23%, Geely Auto by 3.38%, Great Wall Motor by 3.31%, LEAPMOTOR by 1.62%, while YADEA decreased by 1.32%.
China-Affiliated Brokerage stocks rose, with HOLLY FUTURES increasing by 14.44%, China International Capital Corporation by 7.24%, China Galaxy by 6.73%, China Merchants by 6.63%, HTSC by 5.78%, GF SEC by 4.17%, and Guotai Junan by 3.70%.
Shipping and Ports stocks rose broadly, with COSCO Shipping Holdings increasing by 8.52%, TIANXIANG Marine Transport by 6.79%, OOIL by 4.78%, COSCO SHIP ENGY by 4.34%, COSCO SHIP PORT by 3.80%, PACIFIC BASIN by 2.87%, CHINA MER PORT by 0.75%, and SITC by 0.24%.
In terms of individual stocks,$GCL TECH (03800.HK)$Increased by over 6%, some silicon companies may continue to reduce production, and Institutions are paying attention to corporate production restriction dynamics.
$XPENG-W (09868.HK)$Increased by over 10%, the application for the production license of the 'land aircraft carrier' flying vehicle has been accepted.
$LOPAL TECH (02465.HK)$Surged over 41%, the company signed a sales contract for cathode materials of lithium iron phosphate, expecting total sales to exceed 5 billion yuan.
$KUAISHOU-W (01024.HK)$Increased by over 6%, recently launched recruitment for the 618 shopping festival, with a special focus on foreign trade merchants to establish a 'Domestic Goods Category Day'.
$ANDRE JUICE (02218.HK)$Increased by nearly 4%, the stock price reached a new high last week, and the company's net profit grew by 60% year-on-year in the first quarter.
$GDS-SW (09698.HK)$Increased by nearly 7%, the company will fully benefit from the growth in demand for Datacenter due to Global AI development.
$GRAND PHARMA (00512.HK)$Increased by over 11%, with a cumulative increase of 35% this month, STC3141 is expected to provide a new treatment option for sepsis.
$JD-SW (09618.HK)$Increased by over 6%, the first quarter results will be announced tomorrow, and Institutions expect its growth momentum to continue into the first quarter.
$LAOPU GOLD (06181.HK)$Fell nearly 8%, recently announced a discounted share placement netting 2.7 billion Hong Kong dollars, facing a major test next month with the lifting of restrictions.
Top 10 transaction amounts today.
Hong Kong Stock Connect funds.
Regarding the Stock Connect, today the net outflow from the Hong Kong Stock Connect (southbound) is 18.528 billion Hong Kong dollars.
Institutional views
Citigroup: Raised the year-end target for the Hang Seng Index to 25,000 points, priority buy list includes TENCENT, BYD, and ANTA SPORTS.
Citigroup published a report stating that moderate government stimulus policies are expected to boost the local economy, which may be more relevant to the Consumer, Internet, Resources, and Technology sectors. The bank believes that the mainland and Hong Kong stock markets do not seem expensive, slightly below historical averages, thus maintaining a constructive outlook. The bank upgraded the Consumer sector to 'Buy' and favors domestic stocks, hoping to gain potential benefits from government stimulus measures; downgraded the Transportation sector to 'Neutral' based on rising trade tariffs in the USA. The bank also favors large Internet stocks and Technology stocks supported by government policies.
The institution has raised the Hang Seng Index year-end target from 24,500 points to 25,000 points, with a mid-year target of 26,000 points for next year. The MSCI Chinese Index year-end target has been raised from 78 points to 79 points, with a mid-year target of 82 points for next year. The institution's priority buy list for H-shares includes $TENCENT (00700.HK)$ 、 $HUANENG POWER (00902.HK)$ 、 $BYD COMPANY (01211.HK)$ 、 $AIA (01299.HK)$ And $ANTA SPORTS (02020.HK)$ 。
JPMorgan: Maintains a 'Neutral' rating for XIAOMI, expecting strong profit growth in the first quarter.
JPMorgan released a research report indicating that it expects strong profit growth for XIAOMI in the first quarter of this year, primarily driven by the robust performance of AIoT (AI Internet of Things) and electric vehicles, as well as stringent control over operating expenses, estimating that adjusted net profit will increase by 51% year-on-year to 9.8 billion yuan.
Looking ahead, the momentum of the Internet of Things remains strong, and electric vehicle deliveries are expected to exceed 0.35 million units. With the accelerated launch of the new model YU7, delivery volumes are expected to further increase in the second half of the year. The bank also predicts that the gross margin of Smart Phones will shrink in the second half due to a rise in component costs, while Internet services are likely to continue being the slowest-growing area.
Morgan Stanley: Believes that the stock prices of CHINA RES POWER and Huaneng Power International will rise in the next 30 days.
Morgan Stanley issued a technical research report, believing that $CHINA RES POWER (00836.HK)$ And $HUANENG POWER (00902.HK)$ The stock price is expected to rise over the next 30 days, based on the potential weakening of coal prices. The bank forecasts that coal power usage will remain weak in the coming month due to increased rainfall in South China, a rise in coal supply this month, and particularly high coal inventories at northern ports, which will further lower coal prices in the next month.
The bank estimates that the probability of the above scenario is about 60% to 70%. Currently, it gives "Buy" and "Market Perform" ratings for RUNH POWER and Huaneng Power International, Inc., with target prices of HKD 23.7 and HKD 5.5, respectively.
Editor/danial
