Jinwu Financial News | The Hang Seng Index is closed all day on Friday (11th) for the Chung Yeung Festival holiday. The Hang Seng Index closed at 21251 on Thursday (10th), up 614 points or 2.98%. The national index rose 3.5% to 7620; the technical index rose 2.1% to 4,736. According to reports, China and Europe will continue negotiations on the electric vehicle countervailing case, and electric vehicle stocks will work together. BYD (01211) rose 4.4%; NIO (09866) jumped 4.6%; major banks expect the central government to stimulate consumption, and related stocks are trending. Jiumaojiu (09922) surged 8.9%; Haidilao (06862) rose 5.9%;

The Dow closed 42,863 points on Friday (11th), up 409 points or 0.97%, and the index rose 0.61% to 5815 points; the NASDAQ rose 0.33% to 18,342 points; an unexpected increase in J.P. Morgan Chase's net interest income spurred a maximum surge of 5.5%, the strongest since May 2023, and still rose 4.4%. Goldman Sachs rose 2.5% as the strongest performing Dow constituent stocks; Goldman Sachs rose 2.5%; Wells Fargo's investment banking revenue surged last quarter, offsetting the decline in net interest income and 5.6% next week. The stock prices of Bank of America and Citibank, which were released, also rose 5% respectively and 3.6%. Tesla (Tesla)'s newly released autonomous taxi Cybercab lacked details on the product and revenue model, leaving investors disappointed. Stock prices plummeted 8.8%. At the same time, ride-hailing platforms Uber and Lyft are expected to be insignificantly threatened by Cybercab. Their stock prices rose 10.7% and 9.6%, respectively. The Asia-Pacific stock market moved individually this morning (14th). The Nikkei 225 Index now reports 39,605 points, up 224 points, or 0.57%. The South Korea Composite Index is currently at 2,609 points, up 12 points, or 0.49%. Hong Kong stocks may further benefit from the bailout introduced by the central government.

Market Focus: Ctrip Group-S (09961)

According to data from the first day of the 11th holiday, tickets for many scenic spots were sold out on the first day of the holiday. Domestic scenic spot ticket orders increased 37% compared to last year, and homestay reservations increased 55% year over year. At the same time, outbound travel has also seen an explosion. The number of outbound travel orders on the first day of the National Day increased by nearly 40% compared to last year. The Group's results for the second quarter of 2024 exceeded expectations, and overseas business continued to grow rapidly. The Group achieved net revenue of 12.8 billion yuan (RMB, same below) in the second quarter, up 14% year on year; adjusted EBITDA was 4.4 billion yuan, and the adjusted EBITDA profit margin was 35%, up 2 pct year on year; the Group's domestic hotel and air ticket reservation volume increased by about 20% year on year in the second quarter, mainly due to rapid growth in outbound and local travel. Among them, outbound hotel and air ticket reservations in the second quarter have fully recovered to 100% of the same period before the 2019 pandemic, significantly exceeding the industry average international flight recovery rate of more than 70%. The Group's integration of artificial intelligence has been improving content delivery, passenger experience and operations. The Group is also seizing outbound and inbound tourism, and the penetration of overseas and low-tier cities as future opportunities, and is optimistic about future long-term development.

Target price $550 Stop loss price $436

(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)

Author: Dr. Tang Sheng-hing, Chairman of the Hong Kong Association of Equities Analysts