Hong Kong stocks review: Hang Seng Tech Index fell 3%, biomedical, semiconductor, and new energy sectors declined

On the news front, WuXi AppTec achieved revenue of 8.964 billion yuan in the first quarter, a year-on-year increase of 5.77%; the net profit attributable to shareholders of listed companies was 2.168 billion yuan, a year-on-year increase of 31.97%. This is the first time since WuXi AppTec went public in 2018 that its quarterly revenue growth rate has dropped to single digits. On April 18th, Asymchem Laboratories saw a reduction of 0.11588 million shares by JP Morgan Chase, and after the reduction, its holding ratio decreased from 13.30% to 12.87%. On the same day, Wuxi Biologics saw a reduction of 4.2535 million shares by JP Morgan Chase, and after the reduction, its holding ratio decreased from 7.09% to 6.99%.

Today, the net inflow of southbound funds was 3.502 billion HKD, with a net inflow of 2.051 billion HKD through the Shanghai-Hong Kong Stock Connect and 1.451 billion HKD through the Shenzhen-Hong Kong Stock Connect.

Looking ahead, for Hong Kong stocks, the overall situation is to grind the bottom and break out, and the breakout ultimately depends on economic recovery and the pricing power of Chinese capital. Economic recovery affects the Internet sector, while the pricing power of Chinese capital affects cyclical stocks, finance, and real estate. In fact, the pricing power of Chinese capital in traditional sectors will become increasingly strong. In mature industries where foreign capital is not favored and industries are constantly being cleared, the targets that survive will be the king, especially some high-quality central and state-owned enterprises, and the pricing power of Chinese capital will become increasingly evident. Prior to the shift from hawkish to dovish stance by the Federal Reserve, overseas factors will likely continue to impact Hong Kong stocks, but with the recovery of the Chinese economy, overseas influences will gradually weaken, especially in the fourth quarter of this year, when the recovery of the Chinese economy will become the main variable driving Hong Kong stocks.

In the first quarter of 2023, the company signed 1,818 new contracts with a total value of 13.976 billion yuan, a year-on-year increase of 26.58%. As of March 31, 2023, the total value of the company's unfinished contracts was 65.962 billion yuan, a year-on-year increase of 3.54%.

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