Hong Kong stock review: Hang Seng Index, China Index turned red at the end of the session, Tencent rose about 2%, and China's March export data exceeded expectations

Steven000 wrote a column · Apr 13, 2023 22:30

The net daily inflow of capital from the South was HK$3,297 billion, and the market turnover was HK$109.9 billion.

On April 13, due to the overnight decline in US stocks, Hong Kong stocks opened sharply lower in early trading. The three major indices all opened low and ran high. The Hang Seng Index and China Index turned up to 0.17% and 0.13% at the end of the session. Previously, they all fell more than 1.7%. The Hang Seng Technology Index narrowed to 0.17%, and once plummeted 2.7%. China's exports in US dollars surpassed year-on-year expectations in March, effectively boosting market confidence.

Hong Kong stock review: Hang Seng Index, China Index turned red at the end of the session, Tencent rose about 2%, and China's March export data exceeded expecta...

On the market, most large technology stocks have switched from falling to rising. $TENCENT (00700.HK)$ An increase of about 2%, $KUAISHOU-W (01024.HK)$ 、 $NTES-S (09999.HK)$ 、 $BIDU-SW (09888.HK)$ There was a slight increase, $BABA-W (09988.HK)$ 、 $JD-SW (09618.HK)$ Still down 2%; pharmaceutical stocks rallied throughout the day, and CRO concept stocks performed the best. $TIGERMED (03347.HK)$ 、 $GENSCRIPT BIO (01548.HK)$ The increase was higher; port shipping stocks, home appliance stocks, electricity stocks, and coal stocks showed active performance. On the other hand, strong semiconductor stocks declined significantly yesterday. $SMIC (00981.HK)$ It fell more than 3%, and domestic housing stocks, building materials and cement stocks, catering stocks, and Chinese brokerage stocks performed poorly. $SUNAC (01918.HK)$ The resumption of trading plummeted by more than 55%. The net daily inflow of capital from the South was HK$3,297 billion, and the market turnover was HK$109.9 billion.

Let's take a look specifically:

CRO concept stocks have collectively strengthened, $ASYMCHEM (06821.HK)$ An increase of more than 9%, $TIGERMED (03347.HK)$ Up nearly 9%, $GENSCRIPT BIO (01548.HK)$ 、 $WUXI BIO (02269.HK)$ An increase of nearly 8%, $PHARMARON (03759.HK)$ 、 $WUXI APPTEC (02359.HK)$ 、 $JOINN (06127.HK)$ As it rises, it goes up.

In terms of news, the Drug Evaluation Center (CDE) of the China Drug Administration recently issued the “Drug Evaluation Center's Specification for Accelerating the Evaluation of Innovative Drug Marketing License Applications (Trial)”, which aims to further speed up the review and approval of innovative drug types. In addition, this quarter will host major international academic conferences such as AACR, ASCO, and EHA. Among them, the AACR conference is expected to be held in Orlando, Florida, USA from April 14 to 19. At that time, more than 20 A+H innovative drug companies will disclose innovative drug data at this AACR.

Traditional Chinese medicine stocks are generally rising. $BAIYUNSHAN PH (00874.HK)$ An increase of more than 6%, $SHINEWAY PHARM (02877.HK)$ 、 $TONG REN TANG (01666.HK)$ An increase of more than 3%, $TRAD CHI MED (00570.HK)$ An increase of more than 2%.

Over the past year, the traditional Chinese medicine industry has maintained steady development. Pharmaceutical companies have stepped up research and development, and their investment in traditional Chinese medicine innovation has continued to increase. According to statistics, as of April 11, the 25 listed Chinese medicine companies that have disclosed their 2022 annual reports have achieved a total revenue of 231.67 billion yuan, an increase of 6.05% over the previous year. Open Source Securities pointed out that the Chinese medicine sector supports policy and performance in harmony, or is the main pharmaceutical race track.

Oil stocks had the highest gains. $CHINA OILFIELD (02883.HK)$ An increase of more than 3%, $CNOOC (00883.HK)$ An increase of nearly 2%, $PETROCHINA (00857.HK)$ Keep up.

The market expects the US government to make up its strategic oil reserves. International oil prices have risen for the second day in a row, hitting a new high this year. Overnight, US oil rose more than 2% to a five-month high of 83.26 US dollars/barrel, and oil reached a ten-week high.

Gold stocks rushed higher and retreated. $LINGBAO GOLD-1K (03330.HK)$ An increase of more than 12%, $CHINAGOLDINTL (02099.HK)$ An increase of more than 6%, $ZHAOJIN MINING (01818.HK)$ 、 $ZIJIN MINING (02899.HK)$ Keep up.

According to the news, the US core CPI for March was in line with expectations. International gold prices rose significantly last night, almost breaking through the previous stage of high prices. Gold has accumulated a cumulative increase of more than 10% this year. Since March, it has broken through the $2,000 mark several times and reached a new one-year high. UBS raised the target price of gold to $2,200, preferring to buy gold directly to hedge its portfolio, and the global strategy also favors gold. The US interest rate hike is gradually coming to an end, and the gold price trend is rising.

Domestic housing stocks generally fell, $SUNAC (01918.HK)$ fell by more than 55%, $RONSHINECHINA (03301.HK)$ A drop of more than 7%, $LOGAN GROUP (03380.HK)$ 、 $TIMES CHINA (01233.HK)$ 、 $ZHENRO PPT (06158.HK)$ fell by more than 6%, $KAISA GROUP (01638.HK)$ A drop of more than 5%, $COUNTRY GARDEN (02007.HK)$ Decreased by more than 2%.

Semiconductor stocks had the highest decline. $CE HUADA TECH (00085.HK)$ A drop of more than 7%, $SMIC (00981.HK)$ A drop of more than 3%, $SHANGHAI FUDAN (01385.HK)$ A drop of more than 2%, $SOLOMON SYSTECH (02878.HK)$ Decreased by more than 1%.

Individual Stock Changes: 1918 Sunac China

The resumption of trading in Sunac China closed down -56.11% to HK$2.01 per share, with a total market value of HK$10.952 billion. Previously, it was not possible to publish 2021 unaudited annual results on or before March 31, 2022, and resumed trading today after being suspended for more than a year. J.P. Morgan Chase's latest report gave Sunac China a “reduced holdings” rating. The target price was only HK$1 per share.

Looking ahead to the future market, the mainland economy is recovering moderately, but the recovery momentum is not smooth, and optimistic corporate profits may even be downgraded. Overseas, the Federal Reserve's interest rate hike cycle is nearing its end, which has also eased the valuation squeeze on Hong Kong stocks. The current macroeconomic environment is not favorable, but undervaluation combined with improved liquidity expectations also provides downside protection for Hong Kong stocks. Therefore, China and Thailand believe that it is difficult for Hong Kong stocks to rise in the medium term, and still regard April as a rebound window for Hong Kong stocks rather than the beginning of a mid-term rise.

At the index level, let's take a look at 21,000 points for now. Zhongtai International is optimistic about the Internet, semiconductor, biomedical, and Hong Kong real estate stocks, which are benefiting from the release of suppressed demand and benefiting from the “May 1st” holiday. Fundamental restoration determines that higher service categories such as gaming, catering, travel, hotels, and Hong Kong retail stocks can be selected; third, state-owned enterprises and central enterprises that benefit from the pre-issuance of local bonds, acceleration of construction, and marginal improvements in fundamentals and lower valuations.

Tomorrow's Stars: $WUXI BIO (02269.HK)$