Lu Yuren – Who dares to buy shares if the interest rate has not reached the top | Financial High Tea

Hong Kong stocks opened wide, and the Hang Seng Index stabilized on Tuesday amid a softer outside world. Unfortunately, the official media denied that the central “window guidance” brokerages stopped selling A shares. In addition, the exchange rate of Renzi fell, Hong Kong stocks were immediately discouraged, and the rebound failed to resume another round of downs , another 11-year low.

Foreign media recently pointed out that Chinese regulators recently called by way of telephone, asking brokerages to avoid investment measures that are likely to cause large market fluctuations on the eve of and during the CCP’s “20th National Congress” meeting. “China Securities Journal” quoted people close to the regulatory authorities to deny it, pointing out that the reports regarding brokers and fund managers receiving regulatory guidance to stabilize the market are untrue, and the regulators have not given window guidance to brokerages and fund companies recently. The newspaper also quoted a signed article published earlier by Yi Huiman, chairman of the China Securities Regulatory Commission, emphasizing that marketization and the rule of law should be adhered to to create a stable, transparent and predictable development environment. The capital market has extremely high standard requirements. It is necessary to adhere to “system establishment, non-intervention, and zero tolerance”, to further promote the reform of “delegation, regulation and service”, to give full play to the decisive role of the market in resource allocation, and to give better play to the role of the government.
The “window guidance” is intriguing

The Hong Kong stock market rebounded on the news at the end of Tuesday. In addition, there has been a sharp decline, and there may be opportunities to speculate on the rebound. However, the news quickly fell short. Together with the US 10-year bond interest rate hitting 4% the next night, the miniature fell to 7.2 under the strong US dollar. , the Hang Seng Index once fell 675 points to a low of 17184 points, and closed down 609 points to 17250 points; the HSCEI fell 191 points to 5958 points; the Kezhi Index fell 141 points to 3526 points, and the turnover rose to 108.7 billion yuan . There will be “guzi” with “window guidance” in the external power point solution, and the official media will deny it so quickly. It’s a bit intriguing to hear it.

The market started a new round of downtrend, and the decline was quite comprehensive. CSPC (1093) bucked the trend and rose 0.4%, being the only blue-chip stock that recorded a gain in the whole day. Large technology Internet stocks were sold across the board. Tencent (700) fell 2.4% to close at 274 yuan; JD.com (9618) fell 6% to close at 201 yuan. Local bank stocks were among the top losers. HSBC (005) once fell below the 40-yuan mark and closed nearly 6% lower at 40 yuan; Standard Chartered (2888) fell 5.7% to close at 47.15 yuan; Hang Seng (011) fell 3% to close at 118.2 Yuan. Utilities stocks that started to fall on Tuesday also fell once more. CLP (002) plunged 5% to close at 58.4 yuan; Electric Power (006) also fell 5% to close at 38.35 yuan; Gas (003) fell 4% to close at 6.8 yuan; Hong Kong Iron (066) fell 4% to close at 35.65 yuan.

Defensive stocks fell, and the mainland property stocks that had fallen to crippling became even more crippled. According to the city, an internal letter from Xuhui (884) came out, mentioning that although the company has more than 30 billion yuan in cash on hand, most of it cannot meet the needs of reasonable use. , CIFI shares plunged 32% to close at 0.86 yuan; Agile (3383) fell 5% to close at 2.03 yuan.
Corporate buybacks were significantly active in September

The Hang Seng Index has fallen by more than 10% this month. Since the interest rate has not yet peaked, investors may not dare to buy big even if they have money. Now, they are more willing to buy big, but the company uses its own funds to repurchase. Tencent announced earlier that it had cancelled 22.44 million shares previously repurchased, worth nearly HK$7 billion. According to Wind statistics, since the interim results period of Hong Kong stocks on September 1, a total of 110 companies have launched repurchases, of which 42 companies have repurchased more than 10 million yuan. In addition to Tencent, there are 12 companies including AIA (1299) that have made more repurchase efforts, and the repurchase amount in the month has exceeded 100 million Hong Kong dollars. Tencent bought back more than HK$5.2 billion in September alone, AIA bought back HK$2.7 billion, Xiaomi Group (1810), Swire A (019), Changshi (1113), Great Wall Motor (2333), Fosun International (656 ) and CNOOC (883) repurchased more than HK$200 million.

The data shows that as of last week, a total of 194 companies had repurchased regarding HK$59 billion, the number of repurchased companies increased by 46 year-on-year, and the total amount of repurchases increased by 134% year-on-year, even exceeding the return of HK$38.068 billion in 2021. The total amount of purchases hit a record high for the second year in a row. This trend reflects that some companies with sufficient funds believe that it is more straightforward and practical to buy back their own stocks rather than invest in other businesses.

In addition to the repurchase of large companies, there is a small company that is worth mentioning, that is, Yi Dazong (1733), a coal trader. This company started from a low of 0.84 yuan last year, and has been vigorously repurchasing, sometimes more than 10 million in a single day. The highest repurchase price went to 1.79 yuan, and it has been repurchasing at the 1.6 yuan level recently. The company has made a lot of money under the skyrocketing coal price. In addition to its low valuation, the company may be flooded. Some tea friends in Central have speculated that it will rebound from a low level.
Jin Riku

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