Hong Kong stock market closing review: Hang Seng Technology Index fell by 1.21%, technology stocks weakened, while mainland insurance companies rose against the trend.

Steven000 wrote a column · Apr 18, 2023 17:56

Hong Kong stock market closing review: The Hang Seng Index fell by 1.21%, with technology stocks weakening. Mainland insurance companies saw net inflows of 3.739 billion Hong Kong dollars throughout the day, while the total market turnover was 109.7 billion Hong Kong dollars.
The Hong Kong stock market performed poorly throughout the day, $Hang Seng TECH Index (800700.HK)$ falling by 1.21%, $Hang Seng Index (800000.HK)$ 、 $Hang Seng China Enterprises Index (800100.HK)$ down by 0.63% and 0.75% respectively. Mainland insurance companies saw net inflows of 3.739 billion Hong Kong dollars throughout the day, while the total market turnover was 109.7 billion Hong Kong dollars.

Hong Kong stock market closing review: Hang Seng Technology Index fell by 1.21%, technology stocks weakened, while mainland insurance companies rose against the...

On the trading board, the collective weakness of large-cap technology stocks dragged down the overall market, $XIAOMI-W (01810.HK)$ falling by nearly 2%, $TENCENT (00700.HK)$ 、 $KUAISHOU-W (01024.HK)$ Declined by more than 1%, $BIDU-SW (09888.HK)$ 、 $BABA-W (09988.HK)$ 、 $JD-SW (09618.HK)$ All experienced declines; sporting goods sector led the decline, $ANTA SPORTS (02020.HK)$ Discounted rights issue fell more than 7%, showing the worst performance. Yesterday's strong semiconductor stocks and electric power stocks fell significantly, with Shanghai Fudan and Semiconductor Manufacturing International Corporation both declining; auto stocks, casino stocks, mobile game stocks, GPT concept stocks, property management stocks, and HK based companies all fell. On the other hand, Q1 premium income of insurance companies rebounded, and mainland insurance companies remained strong in the weak market. $CPIC (02601.HK)$ Rose more than 4%, reaching a new high. Some coal industry and high-speed rail infrastructure stocks are popular. $CHINA COAL (01898.HK)$ Against the trend, it rose more than 4% and recorded 5 consecutive increases.
Specifically:
Sporting goods stocks led the decline, with Anta Sports performing the worst, falling over 7%. $BOSIDENG (03998.HK)$ 、 $XTEP INT'L (01368.HK)$ 、 $LI NING (02331.HK)$ 等纷纷走低。

On the news front, Anta Sports announced plans to issue 0.119 billion new shares at a price of HKD 99.18 per share. The number of shares to be issued represents approximately 4.20% of the expanded total number of issued shares; the total amount of proceeds from the subscription is expected to be approximately HKD 11.8 billion, intended to be used to repay the group's outstanding financial liabilities; and/or as the group's general working capital.
The semiconductor sector saw a pullback. $SHANGHAI FUDAN (01385.HK)$ Dropped more than 4%, $SMIC (00981.HK)$ It fell more than 3%. $HUA HONG SEMI (01347.HK)$ 、 $SOLOMON SYSTECH (02878.HK)$ Waiting for the decline.

Since the beginning of this year, with the successive sanctions from the United States, the Netherlands, and Japan, the domestic substitution of semiconductor equipment has continued to strengthen. However, after this round of turmoil, the industry has also experienced a wave of shareholding reduction. Some market analysts believe that the emergence of shareholding reduction in the market does not necessarily mean that the market has immediately reached its peak and officially entered a correction phase.
Electric power stocks have declined, $CHINA RES POWER (00836.HK)$ 、 $HUADIAN POWER (01071.HK)$ Dropped more than 4%, $CHINA POWER (02380.HK)$ 、 $HUANENG POWER (00902.HK)$ Wait for the decline.

National Bureau of Statistics data shows that in March, the power generation was 717.3 billion kilowatt hours, an increase of 5.1% year-on-year. The cumulative power generation in the first quarter of this year was 2.07 trillion kilowatt hours, an increase of 2.4% year-on-year.
Mainland insurance companies rose across the board, with China Pacific Insurance rising over 4% to hit a new high. $CHINA LIFE (02628.HK)$ Up nearly 3%, $PING AN (02318.HK)$ 、 $NCI (01336.HK)$ 、 $ZA ONLINE (06060.HK)$ all showing increases.

On the news front, Ping An's total premium income in March was around 67.904 billion yuan, a year-on-year increase of 7.23%. Among them, property insurance premium income was 26.984 billion yuan, a year-on-year increase of 5.87%; China Pacific Insurance's Q1 property insurance premium income increased by 16.8%; Taiping property insurance's original premium income was around 8.512 billion yuan, a year-on-year increase of 19.65%. Haitong International's research report pointed out that since February 2023, the growth rate of premiums has significantly improved, with the bank expecting some insurers to achieve positive growth in New Business Value (NBV) in Q1. In the future, under the trend of improving macroeconomic conditions, the demand for insurance products will gradually recover.
Coal stocks continue to rise. $CHINA QINFA (00866.HK)$ rising more than 6%, $CHINA COAL (01898.HK)$ 、 $SOUTHGOBI (01878.HK)$ Increased by more than 4%. $PER ENERGY (02798.HK)$ Followed by an increase.

According to data from the National Bureau of Statistics, coal production has steadily increased and imports have increased significantly. In March, the production of raw coal was 0.42 billion tons, a year-on-year increase of 4.3%. From January to March, the production of raw coal was 1.15 billion tons, a year-on-year increase of 5.5%. Guosen Securities pointed out that in the medium to long term, there is a strong expectation of economic recovery in 2023. Although coal demand may weaken seasonally, considering the high dividend yield of the sector and the overall stable performance in the first quarter, the industry maintains an "overweight" rating.
Metal mineral stocks are performing actively. $GREENTECH INTL (00195.HK)$ Increasing by over 24%. $CHI KINGSTONE (01380.HK)$ Rising more than 13%. $GANFENGLITHIUM (01772.HK)$ 、 $TIANQI LITHIUM (09696.HK)$ Rising more than 2%. $CHINA RAREEARTH (00769.HK)$ 、 $CGN MINING (01164.HK)$ Wait for the follow-up increase.

On the news front, on April 15th, the Central Economic Planning Committee of Myanmar's Wa State issued a notice, announcing the suspension of all mining and excavation of mineral resources after August 1st this year. For companies and enterprises with contracts in effect and still in operation, a three-month period is given for subsequent arrangements. Myanmar is an important source of imported tin resources for China, and Wa State is the main producing area of tin ore in Myanmar. According to the International Tin Association, the tin ore production in Wa State accounts for over 70% of Myanmar's total production, raising concerns about supply risks. As for lithium batteries, data shows that as of the 18th, the spot price of battery-grade lithium carbonate was 0.1875 million/ton, a decrease of over 70% from the peak of 0.6 million/ton in November last year. A review of various brokerages' viewpoints indicates a consensus that the lithium price is expected to see a temporary bottoming out.
Today, the net inflow of southbound funds is 3.738 billion Hong Kong dollars, with a net inflow of 1.331 billion Hong Kong dollars through the Shanghai-Hong Kong Stock Connect and 2.407 billion Hong Kong dollars through the Shenzhen-Hong Kong Stock Connect.

Looking ahead, the logic of 'rising in the east and falling in the west' will once again play out. The second quarter may usher in a window for buying Hong Kong stocks, and it is recommended to position oneself in growth sectors at a low point. With the domestic economy in a state of weak recovery, potential positive policy catalysts may emerge. Combined with the prospect of the US dollar and US Treasury yields re-entering a downward channel, this will significantly benefit Hong Kong stocks in growth sectors, especially in industries related to internet services, and platform economy which are connected to domestic demand. In addition, gradual improvement in overseas liquidity will benefit the Hang Seng Tech Index and innovative drugs, among others.

Stars of Tomorrow: $TIME INTERCON (01729.HK)$