Main board turnover was HK $ 137.797 billion throughout the day, a slight decrease from the previous trading day.
Editor’s note: This article comes from “Futura News” , edited by Antonio , Ericcui.
Hong Kong stocks review
Futu News March 24th | The Hang Seng Index expanded its gains in the afternoon, trading heat picked up, and individual stocks generally rose. As of the close, the Hang Seng Index rose 4.46% to 22663.49 points; the state-owned enterprise index rose 4.94% to 9144.44 points. Main board turnover was HK $ 137.797 billion throughout the day, a slight decrease from the previous trading day.
Quote source: Futu Securities
In terms of sectors, the industry sector generally rose. The gold and precious metals sectors saw the largest gains. Hengxing Gold, Zhaojin Mining, Shandong Gold, etc. rose more than 10%. The concept of pork was strong, Wanzhou International rose 10.74%, COFCO Meat rose 7.34%; telecommunications stocks rose collectively, China Unicom rose 10%, China Telecom rose 8.57%, China Mobile rose 6.09%; domestic insurance stocks also rose collectively, China Pacific Insurance, China property and casualty insurance rose more than 6%; domestic property stocks, Chinese brokerage stocks and domestic banking stocks rose. Huawei, Apple, cars, beer and other concepts have been active.
In terms of individual stocks, $ 达利 食品 (03799.HK) $ rebounded significantly today, It rose 6.84% to HK $ 4.84, with a turnover of 43.056 million Hong Kong dollars, with the latest total market value of 66.279 billion Hong Kong dollars. Dali Foods (03799.HK) held a board meeting on March 29 to approve the annual results. CICC Research reports that it is expected that Dali Foods’ revenue in 2019 will increase by 2.3% year-on-year, and the growth rate of revenue in 2H19 will rebound to about 4%; net profit is expected to increase by 3% year-on-year. The gross profit margin continued to expand, and the expense ratio remained stable. The epidemic situation may cause short-term effects, and the logic of long-term steady growth remains unchanged. We maintain our Outperform rating, but lower our target price by 10% to HK $ 6.0, which still has room to increase compared to the current price.
$Alibaba-SW(09988.HK)$ has resumed the uptrend in the afternoon, and the stock price has risen more than 2%. Emerging market investment leader Mobils said it is now buying When entering Alibaba. There have been previous reports that SoftBank is preparing to sell some of its Alibaba stock. Mobils said that “Softbank’s sell-off may cause Ali’s stock price to fall, but Ali is really a model sample of globalization.”
Among the constituent stocks of the Hang Seng Index, individual stocks generally rose, and Wanzhou International led the gains. Among the constituent stocks of the H-Share Index, Geely Automobile led the gains.
Market sentiment
With regard to the Hong Kong Stock Connect, the net inflow of the Hong Kong Stock Connect (Southbound) today is over HK $ 5.5 billion, and the net inflow has increased recently.
Quote source: Futu Securities
Message surface
On the macro level, the People’s Bank of China does not carry out reverse repurchase operations, and no reverse repurchase expires today.
In terms of epidemic situation, according to the global real-time epidemic data released by Johns Hopkins University in the United States, as of 14:09 on the 23rd of Beijing time, there were more than 16,500 deaths from new coronary pneumonia worldwide. A total of 381,621 cases were diagnosed worldwide, of which 46,442 were diagnosed in the United States.
In terms of stimulating consumption, in order to further boost consumer confidence and help resume work and production, consumer coupons have been issued through Alipay in many places across the country. It is reported that from March 26, Guangxi will issue 100 million yuan of consumer vouchers through Alipay to encourage local consumers. Previously, Nanjing, Hefei, Zhejiang, Jinan and other places have also announced that they will issue consumer vouchers.
In terms of real estate, on March 24th, Shanghai E-House Real Estate Research Institute released the latest “China’s 100 Cities House Price Report”. The report shows that in January-February, the average transaction price of new commercial housing in 100 cities across the country was 16,073 yuan / square meter, a year-on-year increase of 20.2%. Although the housing transaction market in January-February this year is relatively deserted, as the online signing and filing projects are generally high-priced projects, resulting in a relatively high increase in transaction prices. Taking into account the pressure of subsequent housing companies to destock, it is expected that there will be price cuts in various places. At the same time, as more low-price items enter the market and online signing, objectively the subsequent price rise curve will go down.
In terms of automobiles, the China Automobile Dealers Association ’s survey of 1,271 second-hand car markets and resident merchants provided by 31 provinces, cities and second-hand car associations across the country shows that, as of March 23,The reopening rate of the trading market reached 97.56%. Resale rate of resident merchants was 98%.
In terms of the Olympic Games, many Japanese media have speculated that the direct economic loss caused by the postponement of the Tokyo Olympic Games will be about 6 billion U.S. dollars. The “Japan Times” reported that the loss caused by the postponement of the Olympic Games was about 5.8 billion U.S. dollars, and the “Nikkei Shimbun” believed that the losses were between 5.4 billion U.S. dollars and 6.3 billion U.S. dollars. These losses were only the losses of the Olympic Games itself and the financial costs caused by the delay of one year . If the Olympics were cancelled, the losses would reach $ 41 billion.
In terms of semiconductors, according to foreign media reports, the latest report released by Counterpoint shows that Samsung has surpassed Apple to become the third largest mobile chip manufacturer in the world. In 2019, in the global mobile chip market, Samsung grabbed 14.1% of the market share, Apple’s total share was 13.1%, and Qualcomm and MediaTek became the top two in this segment with market shares of 33.4% and 24.6%, respectively. .
In terms of games, App Annie has officially released the “Top 52 Global Publishers in 2020” list. The publishers’ 52 list is selected based on the app store revenue estimates of the past year. The companies on the list this year are from 12 Countries and regions, of which Tencent, Netease, Activision Blizzard ranked the top three.
In terms of mobile phones, Lu Weibing, President of Xiaomi Group China and General Manager of the Redmi brand, said at the Redmi K30 Pro flagship new product launch today that Xiaomi Home’s offline rework rate exceeded 90%, and the supply chain rework rate exceeded 80%. K30 Pro Full production. It is reported that on the 19th of this month, Xiaomi officially announced that 1800+ Xiaomi stores nationwide officially resumed business.
Institutional perspective
Shen Wanhongyuan: In the context of short-term shocks, we must adhere to the sustainability of medium- and long-term economic growth. It is expected that economic policy will focus on sufficient fiscal expansion, and demand for residential consumption, especially the consumption of large-scale optional goods. And service consumption for a more direct stimulus. The huge impact of the epidemic has gradually emerged in different ways in China and overseas. The global economy is facing major shocks in the short term, and monetary policy and liquidity alone are far from enough.
CITIC Securities: The epidemic triggered violent global market fluctuations, and “liquidity” triggered overseas funds to sell off offshore China-related assets, from three dimensions: the fundamentals (relative valuation level, market dividend rate and market risk compensation premium) Judging the characteristics of the market bottom, the Hong Kong stock market has a long-term safety margin. Compared with history, after the market is normalized, it is expected to correspond to a high certainty return of more than 20%. Southbound funds ’recent net purchases have reached record highs, mainly flowing into the stocks of companies in banks, technology and other industries. Under the global liquidity run, Chinese leading companies focusing on the listing of Hong Kong stocks are currently the best choice. H-shares have a clear price-performance ratio.
Barclays Bank: 2020 WTI crude oil and Brent crude oil prices are expected to be reduced by 12 US dollars / barrel, respectively, to 28USD / barrel and USD 31 / barrel. Until the new crown pneumonia epidemic turns, oil prices may still be under pressure.
CICC: This round of domestic epidemic has already had a rapid and profound impact on the auto market. The decline in demand throughout the year may be similar to that of Japan during the financial crisis. Overseas epidemics are still rapidly heating up. Long, wide-ranging, and low-transparency. It is expected that the suspension of production cuts by overseas companies will bring supply-side restrictions on domestic auto production with better resumption, and also bring export pressure on domestic parts and components. It is estimated that in 2020 China’s passenger car sales will decline by about 12.5%.
International Monetary Fund (IMF): The new crown virus epidemic will cause the global economy to fall into recession in 2020. The extent may be more severe than the recession caused by the global financial crisis in 2008-2009, but world economic output should be in Recovery in 2021. IMF President Georgiyeva welcomes the unconventional fiscal actions already taken in many countries to strengthen health systems and protect affected businesses and workers. She also expresses the measures taken by central banks to relax monetary policy sure. “More measures are needed, especially financially,” she said.