$MEITUAN-W (03690.HK)$ It is worth noting that most global s...
$MEITUAN-W(03690.HK$ It is worth noting that most global stock markets have experienced positive growth in the past two weeks, while Hong Kong stocks have clearly led the global stock market. Yan Xiang, an analyst at Fangzheng Securities, believes that looking back at the market trend of major stock indices after the end of several sharp declines in the global stock market since 1970, it can be found that Hong Kong stocks have declined significantly during the previous sharp declines, but the rebound was also stronger after the collapse ended. In particular, in the medium term of three to six months, they showed characteristics of high elasticity. Yan Xiang believes that industries with high growth attributes in Hong Kong stocks, such as information technology and healthcare, have ranked high in terms of growth in previous market reversals. In the three months after the end of the sharp decline in 2000, the Hong Kong stock information technology industry rose 39%, ranking 3rd in the 33 industry indices of Hong Kong stocks, A-shares, and US stocks; in the three months after the 2008 crash ended, the Hong Kong stock information technology industry rose 31%, ranking 3rd; in the three months after the collapse ended in 2020, the Hong Kong stock healthcare industry rose 43%, ranking 5th. According to Jinglin Asset's latest report, short-term liquidity problems combined with fluctuating foreign confidence caused some leading companies in the industry to experience a rare concentrated decline. The relative competitiveness and fundamentals of these companies did not change much, but the market value changed nearly 40% within two months. The current valuation level can be said to be a rare undervaluation. In particular, the market value of Chinese companies listed overseas has fallen to the point where the market value of some companies is well worth privatizing.
Jing Lin also said that seeing that many companies in the portfolio use their net cash to continue to buy back the company's shares. As long as these companies have the ability to continue to generate relatively strong net cash flow and external investors don't buy them, the listed companies will continue to buy back more shares on their own, increasing the earnings per share for the remaining shareholders. “So in addition to continuously reviewing the fundamentals of these companies in the portfolio, what we can do is use extreme market sentiment and extreme prices brought about by the liquidity crisis, focus the portfolio adjustments more intensively, and wait for later valuation fixes. $TRIP.COM-S(09961.HK$ $TENCENT(00700.HK$
Jing Lin also said that seeing that many companies in the portfolio use their net cash to continue to buy back the company's shares. As long as these companies have the ability to continue to generate relatively strong net cash flow and external investors don't buy them, the listed companies will continue to buy back more shares on their own, increasing the earnings per share for the remaining shareholders. “So in addition to continuously reviewing the fundamentals of these companies in the portfolio, what we can do is use extreme market sentiment and extreme prices brought about by the liquidity crisis, focus the portfolio adjustments more intensively, and wait for later valuation fixes. $TRIP.COM-S(09961.HK$ $TENCENT(00700.HK$
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