According to the Wisdom Financial APP, Hong Kong stocks performed poorly throughout the day, and the three major indexes collectively came under pressure and fell. At the close, the Hang Seng Index fell 0.16% or 28.90 points to 17,612.10 points, with a total daily turnover of 75.678 billion Hong Kong dollars; the Hang Seng China Enterprises Index fell 0.08% to 6,219.24 points; the Hang Seng Tech Index fell 1.13% to 3,468.94 points.

Tianfeng Securities pointed out that the carry trade of the Hong Kong dollar may suppress the liquidity of Hong Kong stocks, and there is no clear sign of overseas capital flowing into the Hong Kong market. The loose state of the Hong Kong dollar's funding is more the result of weak demand, and the appreciation of the Hong Kong dollar is awaiting the Fed's interest rate cut to make the US dollar lower than the Hong Kong dollar's borrowing rate. The steady recovery of the domestic economy will also help restore asset price expectations. US stocks may still be in a high volatility range, and the pressure of yen carry trade reversal may have been lifted. Against the backdrop of increasing macroeconomic uncertainties, the volatility of US stocks may be amplified.

Blue chip performance

Ping An Insurance (02318) rose 3.64% to lead the blue chips. At the close, it rose 3.64% to HK$35.55, with a turnover of 2.834 billion Hong Kong dollars, contributing 13.50 points to the Hang Seng Index. Ping An Insurance released its interim results for the six months ended June 30, 2024, with a total revenue of 554.097 billion yuan, an increase of 1.46% year-on-year; a net profit attributable to shareholders of the parent company of 74.619 billion yuan, an increase of 6.84% year-on-year; and earnings per share of 4.21 yuan.

As for other blue-chip stocks, Shenzhou International (02313) rose 2.15% to HK$66.45, contributing 1.86 points to the Hang Seng Index; Li Ning (02331) rose 2.15% to HK$14.24, contributing 1.14 points to the Hang Seng Index; Techtronic Industries (00669) fell 1.04% to HK$105, dragging down the Hang Seng Index by 2.76 points; Hansoh Pharma (03692) fell 6.91% to HK$17.24, dragging down the Hang Seng Index by 2.44 points.

Hot sectors

1. Insurance concept stocks rose against the market. As of the close, China Pacific Insurance (02601) rose 6.11% to HKD 19.80; Ping An Insurance (02318) rose 3.64% to HKD 35.55; China Life Insurance (02628) rose 2.06% to HKD 10.90.

China Ping An released its interim results for the six months ended June 30, 2024. The group achieved a total revenue of CNY 554.097 billion, a year-on-year increase of 1.46%; net income attributable to shareholders of the parent company was CNY 74.619 billion, a year-on-year increase of 6.84%; earnings per share were CNY 4.21. CICC believes that the improvement trend of China Ping An's life insurance business is evident. For companies with prudent operations, NBV growth, despite the complexity of measurement, will eventually translate into improved profitability.

Recently, Yin Jiang'ao, Director of the Insurance Supervision Department of the China Banking and Insurance Regulatory Commission, stated at a press conference that interest rate management is of utmost importance to insurance companies, especially life insurance companies, in their business operations. It is necessary to guide the industry to timely adjust the interest rates of life insurance products and establish a mechanism for linking the predetermined interest rates to market interest rates and dynamically adjust them.

At the same time, the transmission of the asset-side yield to the cost of liability funds will be accelerated, so that assets and liabilities are better matched, strengthening the rigid constraints of investment yield on settlement interest rates and bonus levels, promoting the realization and rationalization of customer benefits, and urging insurance companies to adjust the structure of their products, optimize the demonstration of policy rates, and rationally guide market expectations.

2. Shipping stocks led the decline. As of the close, OOIL (00316) fell 7.32% to HKD 106.40; Cosco Ship Engy (01138) fell 5.15% to HKD 8.66; Cosco Shipping Holdings (01919) fell 4.20% to HKD 10.48.

OOIL released its half-yearly results, achieving a total income of USD 4.646 billion, a year-on-year increase of 2.31%; net profit attributable to shareholders was USD 0.833 billion, a year-on-year decrease of 26.18%; basic earnings per share were USD 1.26. It plans to distribute an interim dividend of USD 0.63 per share and a special dividend of USD 0.17 per share. The announcement stated that in the first half of 2024, OOIL's overall cargo volume increased by 2% and total revenue increased by 2% year-on-year.

Fitch Bohua pointed out that the Red Sea crisis is still the main uncertain factor affecting demand for container shipping. Once the crisis is resolved, the market may face the problem of overcapacity again, which may lead to a further decline in freight rates. Shanghai International Futures said that in early August, the quotes from various shipping companies gradually converged to the midpoint of USD 8,500. It is expected that freight rates may further decline in late August. Overall, there is no sign of an end to the geopolitical conflicts, and subsequent relaxation of supply in shipping capacity and frequent downward adjustments in spot freight rates have slightly weakened market confidence.

3. Golden industrial concept stocks generally weakened. As of the close, Lingbao Gold (03330) fell 5.44% to HKD 3.30; China Gold Intl (02099) fell 2.16% to HKD 40.70; SD Gold (01787) fell 0.95% to HKD 16.68.

On Thursday, during the U.S. session, spot gold fell to $2480, the first time since August 16. The latest report from Shinhan Bank suggests that there is an imminent risk of consolidation or correction in the gold market. After the latest rebound reached a new record, the price of gold showed signs of exhaustion, especially considering the muted response to the weak U.S. job growth and the minutes of the Federal Open Market Committee meeting, which almost confirmed a rate cut in September. Guotou Anxin Futures stated that the rate cut expectations are already priced in, and there is a risk of a temporary correction in international gold prices.

UBS Group expects that as the Federal Reserve begins to cut interest rates, the holding cost of gold will decrease, leading to further inflow of funds into gold ETFs. Seasonal demand will drive the physical demand for gold in China and India to rebound. In addition, central banks around the world are still buying gold, and emerging market central banks still have room to increase their shareholding of gold.

Popular fluctuating stocks

1. Time Angel (06699) had a strong performance throughout the day, closing at HKD 61.40, up 17.40%.

Time Angel has released its interim performance report, with revenue of approximately CNY 0.8615 billion, a year-on-year increase of 39.8%; adjusted net profit of approximately CNY 71.7 million, a year-on-year increase of 95.8%. During the reporting period, the total number of cases reached approximately 152,900, a 60.3% increase from approximately 95,400, with international market cases reaching 57,600, accounting for 37.7% of the total cases.

Sinolink Securities pointed out that Time Angel's global business layout is gradually entering a period of harvest, with continuous expansion in international markets. With the increase in sales scale, the cost is expected to be diluted, and the loss in international markets is expected to further narrow.

2. Ping An Insurance (02318) rose after its results, closing at HKD 35.55, up 3.64%.

Ping An Insurance released its semi-annual results, with a total income of CNY 554.097 billion, a year-on-year increase of 1.46%; net profit attributable to shareholders of the parent company of CNY 74.619 billion, a year-on-year increase of 6.84%. At the same time, a mid-term dividend of CNY 0.93 per share in cash will be distributed to shareholders. For the first half of 2024, the group achieved an operating profit attributable to shareholders of the parent company of CNY 78.482 billion, with an annualized operating ROE of 16.4%. Growth was achieved in the three core businesses of life and health insurance, property insurance, and banking.

CICC pointed out that China Ping An's first-half performance met the bank's expectations, and believed that the trend of improvement in the life insurance business is evident. Looking at the various indicators of Ping An Life Insurance's business, the bank is optimistic about the company's future operating trends.

AAC Technologies (02018) surged again, closing up 4.80% at HK$106.40.

Morgan Stanley believes that AAC Technologies' first-half performance exceeded expectations, with a strong recovery in profit margins. Management has expressed continued bullishness in the stable revenue performance and the potential for further profit margin recovery this year, benefiting from the turnaround of the optical business from loss to profit. The improvement in gross margin has been more significant than expected, and the company believes this trend will continue in the second half of the year. Goldman Sachs stated that AAC Technologies' first-half revenue and gross margin were both higher than the market's expectations, and they maintain an optimistic outlook for the company, expecting further improvement in its future performance.

COSCO Shipping Energy Transportation (01138) declined throughout the day, closing down 5.15% at HK$8.66.

COSCO Shipping Energy Transportation announced that it plans to hold a board of directors meeting on August 29 to approve its interim results. HSBC previously pointed out that COSCO Shipping Energy Transportation's first-half performance preliminarily showed weaker profits than expected, and the second quarter's recurring net profit also recorded a year-on-year decline. The bank believes that potential replenishment of inventory in mainland China and an increase in OPEC+ production are key catalysts for COSCO Shipping Energy Transportation's recent stock price, but any signs of potential demand weakness could impact short-term profit recovery and lead to futures premium trading.