As of last night’s close, the US stock market Nasdaq fell for four consecutive days, and most Chinese concept stocks rose.
This article is from “Selected Stocks in China”, this column is jointly produced by Futu Securities and the company
1. Review of the performance of the concept stock market during the week
1.1 Overall performance of China Concept Stock Equal Weight Index
As of the close last night, the Nasdaq stock market fell for four consecutive days, and most Chinese concept stocks rose.
Since January 1, 2015, the China Concept Stocks Equal Weight Index has risen by 276.37%, outperforming the S&P 500 Index, with a relative return rate of 163.32%. The overall performance is significantly better than the US stock market.
Note: The constituent stocks of the China Concept Stocks Equal Weight Index include 59 companies that have constructed a portfolio of equal weight China concept stocks, and select China concept stocks with a market value of more than 1 billion US dollars (excluding the stocks of state-owned enterprises listed in many places), and adjust it every six months.
This year, the Chinese concept stock index has risen 33.92%, which is 124.20% relative to the S&P 500 index. This week, the China Concept Stock Index fell -0.01%, and 54.76% of the stocks in the sample rose.
1.2 Chinese concept stocks rose TOP10
1. NIO’s share price soared nearly 23% this Wednesday (October 14), and continued on Thursday and Friday.Continued to set a new high for listing, closing Friday at 28.48 US dollars per share, the current market value of 38.42 billion US dollars.
This week, JPMorgan Chase gave Weilai an overweight rating in its latest report, and admitted that “we have missed the major uptrend of Weilai since the beginning of the year.” It raised its target price to US$40 and Citigroup raised its target price to US$33.2. .
2, FridayVipshop closed up 9.92% to US$19.40, with a market value of 13.114 billion Dollar.
In the past 52 weeks of trading, Vipshop’s stock price fluctuated between a low of $9.30 and a high of $24.46. For now, 25 Wall Street analysts have given a consensus rating on Vipshop stock as “overweight.”
In addition, according to a set of data recently released by the National Bureau of Statistics, from January to July 2020, the total retail sales of cosmetics products across the country achieved a cumulative year-on-year increase of 1%. In March, the total retail sales of cosmetics at that time It fell by 13.2%.
1.3 Chinese concept stocks fell TOP10
1. Huya’s stock price fell sharply this week by -13.96%. The stock prices of Douyu and Huya have been fully reflected in the company’s one-to-one valuation. Analysts expect that as the two companies enter the merger phase, the financial prospects of the two companies will deteriorate in the next 12 to 18 months, because the merger period may cause a reduction in monetization capabilities and bring pressure to invest in new projects.
2. Bilibili fell -9.50% this week, basically giving up last week’s gains. Station B has also appeared in the recent wave of US stocks and Chinese concept stocks returning to Hong Kong. This time the listing in Hong Kong, the market still has a lot of doubts about the growth of Station B.
On the one hand, Station B, which has been expanding wildly in recent years, seems to be facing some problems recently. The latest MAU data growth has stagnated, the epidemic is over, and the traffic dividend seems to have come to an end. Once the market expects to switch from user growth to profitability data, then Station B The challenge will be huge.
On the other hand, in the video field, the market value of station B is now the same as that of the long video leaderIqiyi The difference is almost the same. With the revenue and the number of users lagging behind iQiyi, what is the reason for the continued rise in the share price of Station B?
Second, key industry company news
1. MINISO officially landed on the New York Stock Exchange, and closed up more than 4% on the first trading day
China’s largest “10 yuan store” MINISO officially landed on the NYSE,The opening price on the first day was reported at 24.40 US dollars, an increase of 22% from the issue price of 20 US dollars, but then the increase narrowed all the way, closing up 4.4% that day, the total market value of 6.347 billion US dollars, down 1.58% after the market.
2. TSMC’s financial report exceeds expectations, and the forecast for annual revenue growth has been revised up to 30%
TSMC third quarter net profit of 137.3 billion Taiwan dollars and revenue of 356.43 billion Taiwan dollars, both exceeding market expectations . The company raised its annual revenue growth forecast to 30%, compared with the previous forecast of 20%, and the fourth quarter operating gross profit margin is expected to be 40.5%-42.5%. The company said at the telephone conference that 3nm process chips will be used in smart phones and high-performance computer platforms in 2022. TSMC fluctuated and closed down 0.51%.
3. Weilai bucked the trend and rose by nearly 6%, continuing to record highs
Following the nearly 23% surge on Wednesday, NIO rose sharply again on Thursday, reaching a new high of 29.23 US dollars during the intraday market. It closed up 5.92% on the same day, and the turnover was 10.752 billion. It has increased by about 30% in the past two days. The current market value 37.864 billion US dollars. Previously, JPMorgan Chase was optimistic about it and raised its target price to $40. Citigroup raised its target price to $33.2.
4. Shells rose by more than 6%, with a total market value approaching US$80 billion
Shell opened low and moved high on Thursday, and it rose 9% during the session.It hit a record high of US$71.4 and closed up 6.62% to US$69.72, with a total market value of US$79.716 billion. Since the IPO was first listed on August 13, Shell’s share price has doubled, which is 248% higher than the IPO price of $20/ADS.
5. The United States wants to take action against the Ant Group? Response from the Ministry of Foreign Affairs
According to two sources quoted on October 14th, the U.S. State Department has submitted a proposal to the Trump administration. In Alibaba‘s Ant Group is expected to be included in the trade blacklist before going public.
In response, the spokesperson of the Ministry of Foreign Affairs Zhao Lijian responded on October 15th that China has consistently opposed the US’s generalization of national security concepts, abuse of national power, and unreasonable suppression of foreign companies’ hegemonic behavior. The United States should earnestly respect the principles of market economy and fair competition, abide by international economic and trade rules, and provide an open, fair, just, and non-discriminatory business environment for companies from all countries to invest and operate in the United States. China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises. Alibaba closed down 0.52% in US stocks, which was the second consecutive day of decline, but rose 0.52% after the market.
6. The merger agreement is finalized, Douyu surged 12%, but Huya fell over 11%
On October 12, Huya Douyu jointly announced that it had formally accepted the merger invitation proposed by the major shareholder Tencent for a strategic merger. After the merger is completed, Douyu will become a private wholly-owned subsidiary of Huya and will be delisted from Nasdaq. Douyu closed up 12% that day, but Huya fell more than 11%.
III. Summary and Overview
This week, the weighted index of concept stocks fell -0.01%, and the stock prices of Weilai and Vipshop rose well. In this week’s sample, 31 of the 56 Chinese concept stocks rose. Generally speaking, the outstanding performance of the winning bid of the weighted portfolio of the concept stocks further reflects the relative excess returns of the Chinese concept stocks.
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