In the morning session, the three major Hong Kong stock indexes opened higher, then fluctuated and fell back. In the afternoon, they collectively rose, with the Hang Seng Index up 0.88% to 16,618.32 points. In terms of blue-chip stocks, China Merchants Bank led the gains with an increase of 4.33%. Tencent Holdings rose nearly 4%, leading the gains in the technology and internet sector
According to the Vantage News APP, the three major Hong Kong stock indexes opened higher in the morning, then fluctuated and fell back, and collectively rose in the afternoon. The Hang Seng Index rose by 0.88% or 144.68 points to close at 16618.32 points, with a total daily turnover of HKD 108.652 billion; the Hang Seng China Enterprises Index rose by 1.23% to 5825.42 points; and the Hang Seng Tech Index rose by 1% to 3471.49 points by the close.
Guoyuan International pointed out that based on the market environment, the bank believes that the current investment focus should be on finding structural opportunities. Last week, the Hang Seng Index fell again, indicating that the previous rebound was still only due to short-term external factors. The lack of long-term upward momentum remains a challenge for Hong Kong stocks. Until the fundamental support issues are resolved, Hong Kong stocks still face the possibility of fluctuating lower in the medium term.
Performance of Blue Chip Stocks
China Merchants Bank (03968) led the blue chips. By the close, it rose by 4.33% to HKD 31.3, with a turnover of HKD 10.67 billion, contributing 7.92 points to the Hang Seng Index. BOC International pointed out that China Merchants Bank's performance last year showed stable growth in profits in the fourth quarter of last year, with excellent asset quality. Its non-performing loan ratio reached 0.95% by the end of last year, still at the low end of the industry. In addition, the company's dividend payout ratio increased by 2 percentage points to 35% year-on-year last year, and it is expected that China Merchants Bank's average return on average equity (ROAE) will reach 15.8% this year, the highest among its peers.
In other blue chip stocks, Tencent Holdings (00700) rose by 3.74% to HKD 299.4, contributing 50.98 points to the Hang Seng Index; Baidu Group-SW (09888) rose by 3.67% to HKD 104.4, contributing 4.12 points to the Hang Seng Index; China Gas Holdings (00881) fell by 4.87% to HKD 12.5, dragging down the Hang Seng Index by 0.8 points; and Xinyi Solar Holdings (00968) fell by 3.41% to HKD 5.95, dragging down the Hang Seng Index by 1.63 points.
Hot Sectors
On the market, large-cap tech stocks showed mixed movements today, with Tencent leading the tech stocks with a nearly 4% increase; the real estate sector received positive news, with most property stocks trading higher; Bitcoin prices returned to $70,000, leading to a general rise in related concept stocks; mobile gaming stocks, auto stocks, and bank stocks all rose. On the other hand, the non-ferrous stocks that surged yesterday generally fell today; Apple concept stocks, CRO concept stocks, and coal stocks performed weakly.
1. Rise in Bitcoin Concept Stocks. By the close, OSL Group (00863) rose by 8.4% to HKD 8.13; Blueport Interactive (08267) rose by 6.41% to HKD 0.83; and New Fire Technology Holdings (01611) rose by 4.42% to HKD 3.54.
On Monday, spot Bitcoin ETFs surged by about 11%. The CME Bitcoin futures BTC main contract was at $71,075, up 6.84% from the New York closing price last Friday; the CME Ethereum futures DCR main contract was at $3,637.5, up 6.17% from last Friday According to reports, on January 11th, the U.S. Securities and Exchange Commission (SEC) officially approved the listing and trading of 11 Bitcoin spot ETFs. As of March 20th, the total assets under management of Bitcoin ETFs reached $58.721 billion according to coinglass data. According to Goldman Sachs, in the futures market, the number of open Bitcoin contracts hit a new high, exceeding 33,000 contracts with a nominal value of nearly $12 billion.
2. Auto stocks generally rose. At the close, Leapmotor (09863) rose by 5.66% to HK$25.2; Geely Automobile (00175) rose by 3.49% to HK$9.19; BYD Company (01211) rose by 2.37% to HK$216.
Open Source Securities pointed out that in the short term, due to the continued presence of price cuts since 2023, consumers are adopting a wait-and-see attitude, limiting the stimulating effect on sales. However, in the long term, after prices stabilize relatively, substantial discounts are expected to boost end sales. In terms of sales, passenger car sales in the first half of March saw a high increase due to the low base effect, and a surge in total quarterly sales growth can be expected in the latter half of the month. Looking ahead, with multiple factors such as the introduction of policies for trading in old cars for new ones, continuous release of new car models, offline events like auto shows, and the expected stabilization of price cuts, the follow-up sales growth in the passenger car market is promising. In addition, China's auto market has entered an era of "incremental and stock coexistence," with ample space for scrappage and repurchase demand.
3. Most real estate stocks rose. At the close, Longfor Group (03380) rose by 3.39% to HK$0.61; Shimao Group (00813) rose by 3.16% to HK$0.49; Longfor Group (00960) rose by 3% to HK$10.98.
Recently, there have been frequent positive developments in the real estate industry. A picture of a document circulated online recently, showing a notice from the Shenzhen Planning and Natural Resources Bureau regarding the cessation of the implementation of the "Notice on Implementing the Residential Unit Type Ratio Requirements in Accordance with National Policies," with the main content being the abolition of Document No. 688 of Shenzhen Planning and Natural Resources Bureau on implementing the residential unit type ratio requirements in accordance with national policies. An official from the Shenzhen Planning and Natural Resources Bureau confirmed the authenticity of this document. Some industry insiders stated that the "70/90 policy" was originally intended to curb high housing prices, but now with changes in supply and demand in the real estate market, as well as changes in the real estate market conditions, policies will also be adjusted in response to market changes, and the supply of large-sized units in the new housing market may further increase in the future.
4. Gold stocks collectively fell. At the close, Lingbao Gold (03330) fell by 4.84% to HK$2.36; Zijin Mining (02899) fell by 2.59% to HK$15.04; China Gold International (02099) fell by 1.32% to HK$48.5.
Guotai Junan Futures pointed out that at the highly anticipated Federal Reserve interest rate meeting on Thursday, the Federal Reserve raised its expectations for economic growth and inflation, with more positive descriptions of the economy and employment. The dot plot seems more dovish than expected, and recent strong economic and inflation data have not changed officials' expectations for three interest rate cuts this year. At the same time, Powell's positive stance on discussing the structure of the balance sheet suggests that overall, efforts to stabilize dollar liquidity have once again pushed up precious metals However, the US Markit manufacturing PMI, existing home sales, and weekly initial jobless claims announced during the week were better than expected. The low probability of a US attack and the distant timing of interest rate cuts provide room for a pullback in gold prices at high levels, so it is not advisable to chase the rise.
Hot Stocks
1. Leapmotor (09863) rose after its performance report, closing up 5.66% at HKD 25.2.
Leapmotor achieved revenue of RMB 16.747 billion in 2023, a year-on-year increase of 35.22%. In 2023, Leapmotor achieved a positive full-year gross profit margin for the first time, at 0.5%. Adjusted for rebates to the dealer channel on the same basis as new forces, the full-year gross profit margin reached 11.6%. In addition, operating cash flow also turned positive for the full year for the first time, reaching RMB 1.08 billion.
2. China Resources Land (02669) plunged in the afternoon, closing down 24.5% at HKD 4.5.
China Resources Land released its 2023 annual results, with revenue of RMB 13.051 billion, a year-on-year increase of 19.7%. The company's attributable profit to shareholders was RMB 1.3425 billion, a year-on-year increase of 22.8%. It declared a final dividend of 8.5 HK cents, compared to 8 HK cents in the same period last year.
3. Yuexiu Property (00270) was under pressure throughout the day, closing down 17.63% at HKD 3.83.
Citi pointed out that the company's net profit fell by 34.5% year-on-year last year, with a loss of approximately RMB 706 million in the fourth quarter of last year, mainly due to the decline in the asset book value of developing property projects. The company announced a final dividend of 12.33 HK cents for 2023, a significant decrease of 71.1% year-on-year. The dividend payout ratio decreased by 19 percentage points to 65%, lower than expected.
4. Zhejiang Hangzhou Bay Ningbo Expressway (00576) hit a new low, closing down 15.59% at HKD 5.09.
Zhejiang Hangzhou Bay Ningbo Expressway released its annual results, with revenue of RMB 16.965 billion during the period, an increase of 10.65% year-on-year. The company's attributable profit to owners increased by 0.87% to RMB 5.224 billion. Basic earnings per share were 112.95 cents. It plans to distribute a final dividend of 32 cents per share, compared to 37.5 cents in the same period last year.
Newly Listed Stocks
Melco Royal Palace (02536) performed strongly . As of the close, it rose 15.38 %, to HKD 3 .
Melco Royal Palace issued approximately 143 million shares, priced at HKD 2.6 per share, with 1000 shares per board lot, raising a net amount of approximately HKD 1.941 billion. It is reported that Melco Royal Palace was spun off from Far East Consortium, a comprehensive entertainment group integrating gaming and leisure businesses, with main operations in the Czech Republic and Austria. It owns a comprehensive resort in the Czech Republic and two physical casinos, as well as operating three hotels in Germany and one in Austria, covering various services such as accommodation, dining, and conferences