On May 15, Futu News reported that the three major indexes of Hong Kong stocks all fell,$Hang Seng Index (800000.HK)$ down 0.79%,$Hang Seng Index (800000.HK)$ down 1.56%,$Hang Seng China Enterprises Index (800100.HK)$ down 0.97%.
By the close, 716 Hong Kong stocks rose, 1,322 fell, and 1,092 closed flat.
The performance of specific industries is shown in the following figure:
In terms of Sector.
Network Technology stocks fell, JD-SW dropped 4.38%, MEITUAN-W fell 2.87%, KUAISHOU-W fell 2.07%, Baidu Group-SW dropped 1.43%, NTES-S rose 1.20%, Alibaba-W dropped 1.15%, XIAOMI-W fell 0.50%, and TENCENT declined 0.19%.
Semiconductor stocks mostly declined, Semiconductor Manufacturing International Corporation fell 3.40%, INNOPOWER dropped 3.29%, HUA HONG SEMI fell 3.19%, CE HUADA TECH dropped 2.04%, HG SEMI fell 2.04%, Beike Micro rose 2.01%, SMART-CORE dropped 0.60%, and SHANGHAI FUDAN fell 0.37%.
Digital Health stocks generally declined, PA GOODDOCTOR fell 5.69%, JD HEALTH dropped 2.50%, Medtronic Healthcare rose 2.25%, ALI HEALTH fell 2.24%, ZA ONLINE dropped 2.01%, and Dingdang Health rose 1.39%.
Nonferrous Metals stocks mostly declined, GANFENGLITHIUM dropped 4.26%, CMOC Group Limited fell 3.04%, ZHAOJIN MINING dropped 2.13%, CHINAHONGQIAO fell 2.11%, JIANGXI COPPER dropped 2.04%, Zijin Mining Group fell 2.04%, SD GOLD dropped 1.75%, and Jl Mag Rare-Earth ended flat.
Golden Industrial Concept stocks mostly declined, TONGGUAN GOLD fell 5.34%, CHI SILVER GP dropped 3.35%, Chifeng Jilong Gold Mining fell 2.61%, LINGBAO GOLD dropped 2.31%, ZHAOJIN MINING fell 2.13%, Zijin Mining Group dropped 2.04%, SD GOLD fell 1.75%, and CHINAGOLDINTL rose 0.19%.
Sporting Goods stocks generally declined, YUE YUEN IND dropped 2.62%, TOPSPORTS fell 2.42%, ANTA SPORTS dropped 2.11%, LI NING fell 2.04%, XTEP INT'L dropped 1.44%, 361 DEGREES rose 0.23%, CHINA DONGXIANG ended flat, and POU SHENG INT'L ended flat.
In terms of individual stocks.
$SUNNY OPTICAL (02382.HK)$A decline of 3.29%, the global Smart Phone shipment growth rate has slowed down in the first quarter, and the company's optical products performed mediocre.
$WEIMOB INC (02013.HK)$An increase of 19.3%, WeChat established an e-commerce product department, and the market anticipates accelerated commercialization of WeChat.
$BOSIDENG (03998.HK)$An increase of 3.42%, the company launched a spring and summer product series, and JPMorgan is bullish on the stable growth of spring and summer series sales.
$H&H INTL HLDG (01112.HK)$Up by 17.89%, the growth of infant formula exceeded expectations in the first quarter, and high single-digit growth is expected for the whole year.
$CARSGEN-B (02171.HK)$Up by 5.13%, the company plans to repurchase no more than 1% of its shares, with CT041 expected to submit an NDA in the first half of the year.
Top 10 transaction amounts today.
Hong Kong Stock Connect funds.
Regarding the Hong Kong Stock Connect, today the net outflow of the southbound trading was 0.221 billion Hong Kong dollars.
Institutional views
Goldman Sachs: Maintains overweight rating on Chinese stocks, recommends focusing on multiple main lines to capture thematic excess returns.
Goldman Sachs released a report today stating that it raised the 12-month targets for the MSCI Chinese Index and the CSI 300 Index to 84 points and 4600 points respectively, indicating potential increases of 11% and 17%, essentially returning to the index forecast levels prior to the market shock caused by President Trump's announcement of tariff hikes on April 2.
Goldman Sachs maintained its overweight rating on Chinese stocks and suggested focusing on multiple main lines to capture thematic excess returns. Among domestically-driven sectors, Goldman Sachs believes that the Internet and service industries will benefit from consumption recovery and accelerated digital transformation. At the same time, during the policy easing cycle, quality regional banks and leading real estate companies are expected to see valuation recovery. In areas benefiting from policy stimulation, the infrastructure industry chain, including building materials, Construction Machinery, and new energy vehicles, is expected to solidify its development momentum.
Focusing on the theme of structural growth, Goldman Sachs suggests paying attention to selected AI industry chains, such as computing infrastructure (GPU servers, optical modules), vertical application scenarios (smart driving, industrial software); emerging market exporters, such as manufacturing leaders expanding into the ASEAN and Middle Eastern markets; and high-dividend State-owned Enterprise Reform symbols related to shareholder returns, and Consumer white horses increasing stock buyback efforts.
The Goldman Sachs report pointed out that the key assumptions underpinning these forecasts are a 40% effective tariff rate by the USA on China by 2025, a 4.6% actual GDP growth rate in China, a ratio of general fiscal deficit expenditure to GDP of 13%, and an exchange rate of 7 for the dollar against the yuan by mid-June next year.
Editor/Lee
