According to the Wise News app, the market is focusing on the U.S. non-farm payrolls data for May, which will be released this evening. The three major indexes of the Hong Kong stock market opened high and went low today. By afternoon, the decline further widened, with the Hang Seng Index falling more than 2% at one point and once again falling below the 3800 mark. As of the close, the Hang Seng Index fell 0.59%, or 109.85 points, to 18,366.95 points, with a daily turnover of HKD 133.112 billion. The Hang Seng China Enterprises Index fell 0.68% to 6,510.37 points. The Hang Seng Tech Index fell 1.78% to 3,772.47 points. For the whole week, the Hang Seng Index rose 1.59%, the China Enterprises Index rose 1.84%, and the Hang Seng Tech Index rose 2.21%.
Tianfeng Securities pointed out that since Q1 2024, the bottom of the Hong Kong stock market has been constantly rising. Since the end of April, multiple internal and external factors have resonated, bringing continuous gains to the market. After reaching a phased high on May 20, the three major indexes of the Hong Kong stock market have fallen back somewhat. Compared with the global market, the current Chinese assets still have cost-effectiveness. Based on the continuous introduction of multiple policy measures that exceeded expectations, the expectation of gradual repair, and the expectation of gradual improvement of the follow-up fundamentals, the bank believes that the current Hong Kong stock China concept still has valuation appeal and high risk-return ratio.
Blue chip performance
Xinyi Solar (00968) was under pressure all day. As of the close, it fell 5.94% to HKD 4.43, with a turnover of HKD 722 million, dragging the Hang Seng Index down 2.2 points. Daiwa pointed out that in the second half of the year, the production capacity of photovoltaic glass will rise, and the average selling price may also show a downward trend, which is not conducive to the industry's sentiment. The United States resumed tariffs on solar energy products from four Southeast Asian countries, and the bank is also concerned about the US launching a double-reversal investigation into Southeast Asia, which may reduce Southeast Asia's output. It is believed that the Group's production capacity is facing potential resistance.
As for other blue-chip stocks, Zijin Mining (02899) rose 2.7% to HKD 17.5, contributing 3.94 points to the Hang Seng Index; China Resources Power (00836) rose 2.33% to HKD 23.6, contributing 1.68 points to the Hang Seng Index; Xinyi Glass (00868) fell 5.44% to HKD 9.22, dragging the Hang Seng Index down 1.71 points; and Sunny Optical Technology (02382) fell 2.86% to HKD 47.55, dragging the Hang Seng Index down 1.59 points.
Hot sectors
On the market, large technology stocks generally fell. The United States launched a double-reversal investigation into Southeast Asia, and photovoltaic industry leader continued to be embroiled in production suspension. Photovoltaic stocks continued to fall. Apple concepts, auto stocks, beer stocks, CRO concept stocks, etc. all floated in red. On the other hand, the global interest rate cut trend accelerated, and gold stocks continued to rise; wind power stocks, water-related stocks, electric power stocks, shipping stocks, heavy infrastructure stocks, and mainland real estate stocks all rose.
1. Strong performance of wind power stocks. As of the close, Datang Renew (01798) rose 7.46% to HKD 2.16; China Longyuan (00916) rose 5.23% to HKD 8.05; China Suntien Green Energy (00956) rose 2.81% to HKD 4.03; Goldwind Science & Technology (02208) rose 1.89% to HKD 3.78.
The State Council recently issued an action plan for energy conservation and carbon reduction, promoting the orderly development of offshore wind power. Donghai Securities pointed out that since this year, wind power bids have been continuously launched across the country, with abundant project reserves, and onshore wind power construction has steadily advanced. Anhui Province and Gansu Province promote distributed wind power pilot projects to promote the development and utilization of distributed new energy; as for offshore wind power, various coastal provinces respond to the call of the "plan" to develop offshore wind power in an orderly manner. Jiangsu Province, Guangdong Province, Fujian Province and other places have gradually entered the intensive construction period of offshore wind projects, providing strong support for the newly added offshore wind power installation scale in 2024 to 2025, laying a solid foundation for the development of offshore wind power during the 15th Five-Year Plan period, and the trend of offshore wind power development is becoming increasingly clear.
2. Gold stocks continue to rise. As of the close, Lingbao Gold (03330) rose 4.11% to HKD 3.29; Zhaojin Mining (01818) rose 3.14% to HKD 15.1; Zijin Mining (02899) rose 2.7% to HKD 17.5; and China Gold International (02099) rose 1.03% to HKD 53.7.
In May, the small non-farm data in the United States was lower than expected, and the expected interest rate cut by the Federal Reserve increased. The Bank of Canada cut interest rates for the first time in four years, becoming the first central bank in the G7 countries to cut interest rates and stating that there is a reason to expect further interest rate cuts; the European Central Bank also announced a 25 basis point interest rate cut as scheduled. On Thursday, the gold price climbed to a two-week high, closing at $2,375.60 per ounce. Institutions believe that the Bank of Canada and the European Central Bank have taken the lead in opening up optimistic economic growth expectations through interest rate cuts, and the geopolitical risks caused by Israel's tactical attack deployment against Lebanon, coupled with the updated demand pulling up, may make the price of precious metals easier to rise than fall. The current market is focusing on Friday's non-farm employment data.
3. Shares of heavy machinery rose. At the close, Lonking (03339) rose 3.16% to HKD 1.63; Sinotruk (03808) rose 3.09% to HKD 19.36; Sany International (00631) rose 1.14% to HKD 5.31.
The China Construction Machinery Industry Association released its May sales flash report for its major products. According to statistics, 17,824 various excavators were sold in May, a year-on-year increase of 6.04%, of which 8,518 were sold in China, a year-on-year increase of 29.2%; 9,306 were exported, a year-on-year decrease of 8.92%. Soochow Securities previously pointed out that looking forward to the second half of the year, the downstream end of domestic infrastructure investment continues to improve, coupled with the upward trend of updated demand, the construction machinery domestic sales inflection point is obvious, and a new round of upward cycle is expected to begin; looking at overseas markets, due to the high base number last year + short-term high inventory resulting in the export growth rate is temporarily under pressure, the overseas high base number effect disappears in the second half of the year, the dealers go to inventory end, and it is expected that the overseas growth rate will rebound in the second half of 2024.
4. Photovoltaic stocks continue to fall. At the close, Xinyi Green Energy (00968) fell 5.94% to HKD 4.43; Xinyi Glass (00868) fell 5.44% to HKD 9.22; Flat Glass (06865) fell 4.34% to HKD 14.56; Xinte Energy (01799) fell 0.88% to HKD 8.98.
Southeast Asian photovoltaic manufacturers are mired in production stoppage turmoil. Longi Green Energy, Trina Solar and ARTS have made the latest response to rumors of production stoppage. Industry experts believe that with the obstruction of exporting to the United States via Southeast Asia and the expensive production costs of Southeast Asian photovoltaic manufacturing capacity, production stoppage and observation may be a reasonable choice. According to SEMI China PV Standards Committee Joint Secretary-General Lu Jinbiao, "This is a direct "double reverse" of photovoltaic products produced in Southeast Asia, which is limited to all battery or component products, regardless of whether the entire industry chain is in Southeast Asia or not. The dumping rate on the application form exceeds 100%, and the tax rate after the ruling will be very high, making it impossible to export to the United States."
Popular fluctuating stocks
1. Eastbuy (01797) stopped falling and turned to rise, closing up 2.41% at HKD 15.32.
The founder of New Oriental and CEO of Eastbuy, Yu Minhong, released an open letter apologizing to customers, shareholders and investors. Yu Minhong mentioned that in the public opinion arena, "Eastbuy did a mess", was just a humble expression between friends, and he himself had said similar things in more than one occasion. He said, "I will take responsibility for all those who trust and support us to the end."
2. Easy Searching Technology (02550) debuted strongly. At the close, it rose 91.72% to HKD 11.12.
Easy Searching Technology globally issued 14.8025 million shares at a price of HKD 5.8 per share, with 500 shares per lot, and the net proceeds amounted to approximately HKD 40.7 million. It is reported that Easy Searching Technology provides digital reading platform services, digital marketing services, online game distribution services, and other digital content services. During the past performance record period, the company's revenue came primarily from advertising services provided through digital reading platform services and digital marketing services, which accounted for over 90.0%.