The Zhitong Finance App learned that the three major indices of Hong Kong stocks fell rapidly after opening low in early trading. The Hengke Index once fell 1.81%, then the decline gradually narrowed, and the Hang Seng Index and China Index turned red one after another in the afternoon. At the close, the Hang Seng Index rose 0.43% or 75.94 points to 17874.67 points, with a full day turnover of HK$91.923 billion; the Hang Seng State-owned Enterprises Index rose 0.44% to 6306.36 points; and the Hang Seng Technology Index fell 0.05% to 3501.29 points.

BOC International believes that in an environment of interest rate cuts+uncertainty, the high dividend strategy of Hong Kong stocks will still outperform. The medium- to long-term dimension benefits from three benefits: policy trends encourage listed companies to further raise dividend levels; in the context of an “asset shortage,” market demand for safe, stable, and high-yield bond-like assets will continue to be high; changes in accounting standards further facilitate the systematic allocation of high-dividend assets represented by long-term capital represented by insurance capital.

Blue chip stock performance

Ctrip Group-S (09961) led the blue chip increase. At the close, it rose 9.05% to HK$366.4, with a turnover of HK$1.456 billion, contributing 8.37 points to the Hang Seng Index. Ctrip Group announced results for the second quarter and first half of 2024. In the second quarter, the company's total revenue was RMB 12.788 billion, up 13.55% year on year; profit attributable to shareholders was 3.833 billion yuan, up 507.45% year on year. The total revenue for the first half of the year was 24.709 billion yuan, up 20.69% year on year; net profit was 8.145 billion yuan, up 103.32% year on year.

In terms of other blue-chip stocks, Master Kong Holdings (00322) rose 6.08% to HK$10.12, contributing 1.84 points to the Hang Seng Index; Sinopec (00386) rose 5.23% to HK$5.43, contributing 10.62 points to the Hang Seng Index; Alibaba-SW (09988) fell 4.02% to HK$79.95, dragging down the Hang Seng Index by 60.9 points; Haier Smart Home (06690) fell 3.33% to HK$23.2, dragging down the Hang Seng Index by 3.14 points.

In terms of popular sectors

On the market, large technology stocks had mixed ups and downs, and competition in the e-commerce industry intensified. Ali dropped more than 4% to lead the decline in Hengke's constituent stocks, NetEase rose nearly 3%, and Baidu rose more than 1%. The escalation of the situation in the Middle East was compounded by the suspension of exports in Libya, and oil prices jumped; OTA platforms were strong; Ctrip once surged 11%, while Tongcheng Travel closed up more than 6%; beer stocks, food stocks, coal stocks, property management stocks, and automobile stocks improved. On the other side, Jiantao's performance fell sharply; Jiantao's multilayer board fell by more than 10%; home appliance stocks, film and television stocks, education stocks, and gold stocks generally fell.

1. Oil stocks rose collectively. At the close, Kunlun Energy (00135) rose 8.56% to HK$7.86; Sinopec (00386) rose 5.23% to HK$5.43; CNPC (00857) rose 4.08% to HK$7.15; and CNOOC (00883) rose 3.38% to HK$21.4.

Oil prices surged more than 3% on Monday, spurred by tension in the Middle East and news that Libya has suspended oil exports. The government of eastern Libya announced on August 26 that all oil fields, terminals and oil facilities are facing “force majeure” and that all oil production and export will be suspended. On August 25, Lebanon and Israel attacked each other's internal targets. The conflict between the two sides suddenly escalated, causing widespread concern in the international community that the conflict would slide into a regional war.

In addition, oil companies have successively disclosed their interim results. CNPC achieved operating income of 1.6 trillion yuan (RMB, same below) in the first half of the year, an increase of 5% over the previous year; net profit of 88.61 billion yuan, an increase of 3.9%. The interim dividend was $0.22 per share, and the dividend amount was $40.26 billion, a record high for three consecutive years. Kunlun Energy obtained revenue of 92.922 billion yuan in the first half of the year, up 6.72% year on year; profit attributable to shareholders was 3.305 billion yuan, up 2.58% year on year; proposed interim dividend of 16.41 points per share.

2. Property management stocks continued to rise. At the close, Greentown Services (02869) rose 10.37% to HK$3.62; New Hope Services (03658) rose 7.83% to HK$1.79; Hejing Youhuo (03913) rose 6.45% to HK$0.33; and CNOOC Properties (02669) rose 5.71% to HK$4.63.

On August 23, the State Information Office held a press conference on the theme of “Promoting High-Quality Development”. Vice Minister of Housing and Construction Tung Jianguo mentioned studying the establishment of housing medical examinations, housing pensions, and housing insurance systems, and establishing a long-term mechanism for housing safety management throughout the life cycle. Currently, it is being piloted in 22 cities including Shanghai. CITIC Securities believes that by establishing a pension system at the institutional level and strengthening medical examinations in residential areas, residential property management has an opportunity to become an asset-light service blue ocean industry with sustainable cash flow.

Judging from the latest results disclosed by property companies, Greentown Services had a net profit of 0.505 billion yuan in the first half of the year, an increase of 21.5% over the previous year. By the end of the first half of the year, the company's management area reached 0.482 billion square meters, an increase of 16.2% over the previous year. CNOOC Properties' net profit for the first half of the year was $0.738 billion, up 15.97% year over year. It plans to pay an interim dividend of HK8.5 cents per share, compared to HK5.5 cents in the same period last year. New Hope Service's net profit for the first half of the year was $0.118 billion, up 7.89% year over year, and the interim dividend increased to HK$0.09 per share.

3. Some coal stocks picked up. At the close, Yankuang Energy (01171) rose 3.25% to HK$10.16; China Shenhua (01088) rose 2.68% to HK$34.45; Shougang Resources (00639) rose 2.33% to HK$2.64; and China Coal Energy (01898) rose 2.07% to HK$9.35.

According to Open Source Securities, the interim reports of listed coal companies have been released one after another. Among them, China Coal Energy and Shanghai Energy announced mid-term dividend plans. Among them, China Coal Energy A shares paid a cash dividend of 0.221 yuan (tax included) per share, and Shanghai Energy paid a cash dividend of 0.2 yuan (tax included) per share, with a dividend ratio of 30.65%. The two coal central enterprises have implemented mid-term dividends or indicates that future dividends are expected to be rolled out from central coal enterprises to local state-owned enterprises. Everbright Securities said that the coal market is currently running smoothly and is still optimistic about supporting coal prices during the peak summer demand season. Coal prices are expected to start a seasonal rise from the end of August to mid-October.

4. Auto stocks performed brilliantly. At the close, Zero Sports Auto (09863) rose 5.42% to HK$20.6; Geely Auto (00175) rose 4.75% to HK$8.6; Xiaopeng Motor-W (09868) rose 4.3% to HK$30.3; and Ideal Automobile-W (02015) rose 2.19% to HK$83.95.

Trade-in subsidies were increased in late July, and the subsidy standards for new energy passenger vehicles and passenger vehicles with fuel emissions of 2.0 liters or less were raised from 0.01 million yuan and 7,000 yuan to 0.02 million yuan and 0.015 million yuan. According to the data, as of August 23, the total number of registered users registered on the car trade-in information platform exceeded 1.1 million, received more than 0.7 million applications for car scrapping and renewal subsidies, adding more than 0.01 million in a single day. This policy has led to the stabilization of passenger car retail sales. According to the Passenger Federation, passenger car retail sales were 0.907 million units on August 1-18, up 8% year on year; retail sales of new energy vehicles were 0.49 million units, up 58% year on year.

Furthermore, Zero Sports Auto announced yesterday that Chairman and CEO Zhu Jiangming and shareholder Fu Liquan plan to increase their holdings of the company's H shares within six months from the date of the announcement. The amount of increase in holdings will not exceed RMB 0.3 billion or the equivalent of HKD. Xiaopeng Motors also recently announced that it has received additional holdings from CEO He Xiaopeng. From August 21 to 23, he bought 1 million H shares at an average price of about HK$27.13 per share and 1.42 million American Depositary Shares at an average price of about $7.02 per share.

Popular volatile stocks

1. The volume of Asia Cement (China) (00743) plummeted. At the close, it fell 26.49% to HK$2.22.

Asia Cement announced that the resolution proposed by the controlling shareholder Asia Cement Co., Ltd. to privatize the company through an agreed arrangement was not approved by the planned shareholders at the court meeting. As a result, privatization proposals and plans have lapsed. According to the Takeover Code, the offeror cannot announce another offer for shares within 12 months.

2. Maoyan Entertainment (01896) fell sharply after the results. At the close, it fell 8.33% to HK$6.27.

Maogan Entertainment announced 2024 interim results, with revenue of RMB 2.171 billion (same unit), a decrease of 1.2% year on year; adjusted net profit of 0.352 billion yuan, a decrease of 22.8% year on year; profit attributable to company owners of 0.285 billion yuan, a decrease of 29.96% year on year; and profit per share of 0.25 yuan.

3. Yadi Holdings (01585) rose significantly. At the close, it rose 7.89% to HK$10.94.

Bank of America Securities pointed out that considering the trade-in subsidy and the accelerated promotion of the new national standard, Yadi's earnings forecast per share for this year and next two years was raised by 3% and 5%, and the earnings forecast per share for the following year was raised by 9%. The bank raised its target price for Yadi from HK$12.6 to HK$14.1 and raised its rating to “buy”.

4. Master Kong Holdings (00322) opened low and moved higher. At the close, it rose 6.08% to HK$3.12.

Master Kong Holdings announced 2024 interim results, with revenue of 41.201 billion yuan (RMB, same below), up 0.7% year on year; profit attributable to company owners was 1.885 billion yuan, up 15.1% year on year; after deducting non-net profit of 1.718 billion yuan, up 43.33% year on year. Profits exceeded expectations, mainly due to a better-than-budgeted decline in raw material costs.