Hong Kong Stock Market Midday Review | Hang Seng Index rises by 0.75%, financial policies boost the strength of Chinese brokerage sector
The Hang Seng Index rose 0.75% at midday to 20,229 points, while the Hang Seng Tech Index increased by 1.03%. The People's Bank of China introduced a policy of stock repurchase and additional loans to boost Chinese securities firms, with CMS rising by over 12%. The coal sector attracted repurchases and additional holdings due to dividend yields exceeding interest rates, leading to a 2.14% increase in Yanzhou Coal Mining. Semiconductor stocks rebounded, with SMIC rising by over 4%
According to the information from the Wise Finance app, as of the midday close, the Hang Seng Index rose by 0.75% to 20,229 points. The Hang Seng Tech Index increased by 1.03%.
SFISF's stock repurchase and increased holdings through refinancing have been implemented, leading to a strong rise in Chinese brokerage stocks. China Merchants Securities (06099) surged by over 12%; Everbright Securities (06178) rose by 7%; Shenwan Hongyuan (06806) increased by 8.7%; and CICC (03908) went up by 6%.
There are new developments in the equity transfer of the three major AMCs. China Cinda (01359) surged by over 13%; CITIC Financial Assets (02799) rose by over 8%.
The central bank has introduced two new tools, and the coal sector generally offers high dividends. Some companies still have dividend yields of 8%-9%, with the 2.25% interest rate generally lower than the dividend yield. Major shareholders and listed companies are motivated to promote stock repurchases and increased holdings, thereby driving up stock prices and realizing a reassessment of the value of the coal sector. Yanzhou Coal Mining (01171) rose by 2.14%; China Shenhua (01088) increased by 1.59%.
TSMC's performance and guidance exceeded expectations, with institutions optimistic about continued growth in industry end sales. Semiconductor stocks rebounded in early trading, with SMIC (00981) rising by over 4% and Hua Hong Semiconductor (01347) increasing by 4%.
Android smartphone shipments in the fourth quarter are expected to further recover, with BYD Electronics (00285) rising by 5.85% and GoerTek (02018) increasing by 4.19%