Hong Kong stocks quickly rose after opening low in early trading. Since then, they have fluctuated in a narrow range throughout the day, and the Hengke Index has returned to the 4,400 point mark.
The Zhitong Finance App learned that Hong Kong stocks rose rapidly after opening low in early trading. Since then, there has been a narrow fluctuation trend throughout the day, and the Hengke Index has returned to the 4,400 mark. By the close, the Hang Seng Index rose 0.21% or 41.34 points to 19705.51 points. Market trading was further reduced from the previous day, with a full-day turnover of HK$114.671 billion; the Hang Seng State-owned Enterprises Index rose 0.12% to 7090.86 points; and the Hang Seng Technology Index rose 0.41% to 4413.08 points.
Sino-Thai International said that after experiencing an increase in the price increase of Hong Kong stocks from the end of September to the beginning of October, transactions and volatility gradually declined, and market popularity also declined markedly. Currently, the market has entered a policy gap period. The transaction amount of Hong Kong stocks has shrunk drastically, and the profit effect is weakening. Combining the strengthening of the US dollar is not good for the short-term performance of Hong Kong stocks. However, the Hang Seng Index has technical support at 19,500 points in the short term. The key to future resilience lies in the sustainability of economic recovery momentum.
Blue chip stock performance
China Biopharmaceutical (01177) performed well. At the close, it rose 3.36% to HK$3.38, with a turnover of HK$0.245 billion, contributing 1.85 points to the Hang Seng Index. On November 20, China Biopharmaceutical announced the signing of an equity investment and strategic cooperation agreement with Lixin Pharmaceutical. Based on this, China Biopharmaceutical raised its own capital to invest in Lixin Pharmaceutical and reached a strategic cooperation on LM-108 and a number of potential future innovative bispecific antibodies or antibody-conjugated drugs (ADCs) in mainland China.
In terms of other blue chips, Shenzhou International (02313) rose 6.14% to HK$61.35, contributing 4.83 points; Hanson Pharmaceuticals (03692) rose 4.08% to HK$17.86, contributing 1.36 points to the Hang Seng Index; Master Kong Holdings (00322) fell 2.92% to HK$10.64, dragging down 1.03 points; Zhongsheng Holdings (00881) fell 1.93% to HK$17.32, dragging down the Hang Seng Index by 0.45 points.
In terms of popular sectors
On the market, large technology stocks had mixed ups and downs. Meituan and Tencent rose more than 1%, while Alibaba continued to fall 0.59%. AI applications at home and abroad continued to be catalyzed. AI application concept stocks exploded, and Huiliang Technology soared 37%; Bitcoin climbed to 0.093 million US dollars, cryptocurrency concept stocks strengthened, and Oke Cloud Chain rose more than 10%; most pharmaceutical stocks showed strong performance, and Lai Kai Pharmaceutical's volume soared by more than 48%. The company announced that it had reached a clinical cooperation with Lilly on a “new drug for obesity”. On the other side, the automobile industry chain, domestic housing stocks, etc. declined; the performance of paper stocks was divided, with Chenming Paper's debt overdue by more than 1.8 billion dollars, and the stock price plummeted by nearly 23%.
1. AI application concept stocks exploded. At the close, Huiliang Technology (01860) rose 37.44% to HK$8.37; Jinshanyun (03896) rose 26.72% to HK$3.13; FOURTH PARADIGM (06682) rose 19.67% to HK$43.8; Yidu Technology (02158) rose 18.85% to HK$5.99; Innovation and Wisdom (02121) rose 8.07% to HK$5.09; Weimeng Group (02013) rose 6.02% to HK$1.76.
Recently, AI applications at home and abroad have continued to be catalyzed. As of the close of trading on November 20, local time, the US AI e-commerce concept stock AppLovin had a cumulative increase of 706% during the year; domestic AI products are also accelerating. According to the newly released AI Product Application List (APP), Doubao, Baidu Wen Xiaoyan, and Moonshot Kimi all have more than 10 million monthly active users. The agency believes that recent data on overseas AI application vendors and AI application visits shows that some business models for AI applications are gradually becoming clear, users' willingness to pay is gradually increasing, and the inflection point of profit growth is gradually showing, which is expected to positively reflect the domestic AI application industry.
2. The Bitcoin concept had the highest rise. At the close, Ouke Cloud Chain (01499) rose 10.89% to HK$0.224; Meitu (01357) rose 10.44% to HK$3.28; Xinhuo Technology Holdings (01611) rose 8.72% to HK$2.37; and Xiongan Technology (01647) rose 8% to HK$0.108.
Bitcoin hit another record high on Tuesday, once soaring to $93,625, a cumulative increase of about 40% since Trump won the election. Since the beginning of the year, Bitcoin has surged more than 100%. Notably, according to the Hong Kong Securities Regulatory Commission, on October 28, Ye Zhiheng, executive director of the Intermediaries Department of the Hong Kong Securities Regulatory Commission, said that at present, virtual assets have become an important agenda for the Hong Kong Securities Regulatory Commission and major financial regulators, and there is quite a large virtual asset trading volume in the market. Compared with 2023, Hong Kong's virtual asset trading volume recorded the biggest year-on-year increase in history in 2024.
3. Pharmaceutical stocks are mostly strong. At the close, Lai LAEKNA-B (02105) rose 48.3% to HK$15.72; Keji Pharmaceutical-B (02171) rose 12.52% to HK$7.37; Rongchang Biotech (09995) rose 11.17% to HK$18.12; and IMMUNEONCO-B (01541) rose 9.92% to HK$8.42.
Haitong Securities pointed out that in the context of US dollar interest rate cuts, the moderate recovery of investment and financing in the biomedical industry has become a definite trend. As of November 5, 2024, the total annual amount of overseas biomedical investment and financing has reached 45.3 billion US dollars, exceeding 41.7 billion US dollars for the whole of 2023 and 44.2 billion US dollars in 2022. The domestic demand side is still bottoming out. The bank believes that at present, domestic biomedical investment and financing is still at the stage of policy support. It is expected that state-owned investment guidance funds, local financial investment, capital market IPOs, and refinancing will gradually reverse the downward trend in biomedical investment and financing.
4. Domestic housing stocks were generally lower. At the close, R&F Properties (02777) fell 4.98% to HK$1.91; Sunac China (01918) fell 4.04% to HK$2.61; Agile Group (03383) fell 3.53% to HK$0.82; and Shimao Group (00813) fell 2.48% to HK$1.18.
Following Beijing and Shanghai, Shenzhen also officially announced the abolition of standards for ordinary housing and non-ordinary housing. Shenzhen issued a document clarifying that standards for ordinary housing and non-ordinary housing will be abolished from December 1, 2024. Individuals who buy homes for 2 years or more (including 2 years) and sell them abroad are exempt from VAT. Individuals who buy a home for less than 2 years and sell it abroad will pay VAT in full at a rate of 5%.
Guangzhou Anju Group announced that it will acquire commercial housing with an inventory of 90 square meters or less throughout the city as guaranteed housing, and developers interested in participating can sign up from November 18 to December 18. Guoxin Securities pointed out that as demand-side policy effects became apparent at the end of September, sales volume and price indicators all improved marginally, but development investment has yet to improve. Subsequent interpretations of the real estate sector will depend on the progress of implementation of policies such as recycling of existing land and renovation and expansion of urban villages, and the sustainability of the property market volume and price restoration.
Popular volatile stocks
1. SPROCOMM INTEL (01401) stock price has plummeted. At the close, it was down 87.96% to HK$1.5.
On November 19, the Hong Kong Securities Regulatory Commission issued an announcement stating that SPROCOMM INTEL's shares are highly concentrated. The Securities Regulatory Commission warns that since shares are highly concentrated in a small number of shareholders, even if a small number of shares are traded, the price of the company's shares may fluctuate greatly. Shareholders and interested investors should act carefully when trading the company's shares.
2. Chenming Paper (01812) fell sharply throughout the day. At the close, it was down 22.94% to HK$1.31.
Chenming Paper announced that due to the slump in the paper business, the company is facing a debt overdue of up to 2.394 billion yuan. Affected by this, about 71.7% of production capacity has been forced to stop production and limit production, affecting monthly pulp and paper production of about 0.58 million tons and paper sales of about 0.35 million tons. The company is making every effort to raise working capital and actively resume production.
3. Lai LAEKNA-B (02105) picked up in the afternoon. At the close, it rose 48.3% to HK$15.72.
Laikai Pharmaceuticals announced in the afternoon that the Group has signed a clinical cooperation agreement with Eli Lilly to support and accelerate the global clinical development of LAE102 for obesity treatment. Eli Lilly will be responsible for carrying out a Phase I study in the US and covering the associated costs. The Group reserves the global interest in LAE102.
4. The performance of the “Jinshan System” soared after that. At the close, Jinshan Cloud (03896) rose 26.72% to HK$3.13; Jinshan Software (03888) rose 9.42% to HK$31.95.
Jinshanyun announced results for the third quarter of 2024, with total revenue reaching RMB 1.886 billion, an increase of 16.0%; adjusted EBITDA reached 0.19 billion yuan, and the adjusted EBITDA rate reached 9.8%. It continued to improve steadily on the basis of the correction in the previous two quarters, and a sharp increase of 12.6 percentage points over the previous year.
Jinshan Software achieved revenue of about 2.915 billion yuan in the third quarter, up 42% year on year and 18% month on month; operating profit of about 1.144 billion yuan, up 204% year on year, up 44% month on month; profit attributable to parent company owners was about 0.413 billion yuan, up 13.51 times year on year, up 5% month on month.
5. Hong Kong Broadband (01310) resumed trading and increased. At the close, it was up 6.73% to HK$4.6.
Hong Kong Broadband announced that the board of directors has received a non-binding proposal from China Mobile Hong Kong, indicating that it may make a cash purchase offer to purchase all of the company's issued common shares. The terms of these proposals are still being discussed between the company and China Mobile Hong Kong. According to previous rumors, China Mobile is willing to buy the shares held by the major shareholders of Hong Kong Broadband for at least HK$5 per share.
