During the Spring Festival, the Hang Seng Index of Hong Kong stocks hit a new high in November, and the auto sector was popular, and the cumulative increase exceeded 9%.
News from the Financial Associated Press on January 27 (edited by Ma Yijie)Hong Kong’s Hang Seng Index and Hang Seng Technology Index closed slightly higher today. During the Spring Festival, the Hang Seng Index rose by 2.92%, hitting a new high in nearly 11 months; the Hang Seng Technology Index rose by 5.35%, hitting a new high in nearly half a year.
In addition, during the two trading days of the Hong Kong stock market opening during the Spring Festival, the Hang Seng Hong Kong Stock Connect Index rose by 3.12% and the Hang Seng AH H Index rose by 2.84%, which has certain forward-looking significance for the A-share market following the festival.
Note: The trend of the Hang Seng Index as of Friday’s close, the Hang Seng Index rose 0.54% to 22688.90 points; the Hang Seng Technology Index closed up 1.04% to 4813.23 points; the State Enterprise Index closed up 0.87% to 7773.61 points. Software development, food, auto retail, real estate and other sectors strengthened. Among them, Shang Tang rose by 20%, China Innovation Aviation rose by nearly 17%, and Weilong rose by more than 15%.
Note: market performance
On the whole, the concept of economic recovery during the Spring Festival is still the main line of attention in the Hong Kong stock market, but the trading volume on the second trading day following the festival is slightly flat.
Huatai Securities released a Hong Kong stock strategy report saying that the recent large inflow of overseas active funds may be the driving force for the Hong Kong stock market. Secondly, the position of public funds in Hong Kong stocks rose from 4.3% to 5.8% in the fourth quarter of last year, and it was restored to the position in the fourth quarter of 2020, which also helped the market.
In terms of industries, public funds increased positions in the media, medicine, and computer industries in the fourth quarter of last year; foreign funds increased positions in food and beverage, coal, and computer industries. Domestic and foreign capital have jointly increased positions in media, medicine, and computer industries, and domestic and foreign capital have relatively consistent expectations for the recovery of platform economic policies. The bank pointed out that the overweight ratio of foreign capital in food and beverage and other consumer industries and coal, petroleum and petrochemical industries has increased, while domestic capital has significantly reduced its positions in food and beverage and other large consumer industries as well as coal, petroleum and petrochemical industries.
[Real estate stocks collectively rose Country Garden rose 6%]
Among real estate stocks, Country Garden (02007.HK) rose 6.23%, Longfor Group (00960.HK) rose 4.25%, and Ronshine China (03301.HK) rose 2.59%.
Note: On the news of the performance of real estate stocks, the leading real estate company Country Garden recently announced that it has obtained RMB term loan financing of up to US$50 million equivalent. The proceeds of this loan will be used by the company to finance general working capital needs, including but not limited to Refinance outstanding debt. In addition, according to the latest data released by “Kerui Shanghai”, the Shanghai property market once once more appeared in the “thousand people lottery”.
[The popularity of film and television stocks continues, Lemon Film and Television rose nearly 4%]
Among the film and television stocks, Lemon Film and Television (09857.HK) rose 3.90%, IMAX China (01970.HK) rose 3.02%, and Orange Sky Golden Harvest (01132.HK) rose 2.27%.
Note: In terms of news regarding the performance of film and television stocks, according to Maoyan Professional Edition data, as of 16:00 on January 27, the total box office of this year’s Spring Festival stalls exceeded 6.5 billion. Guotai Junan pointed out that the box office of the Spring Festival in 2023 will exceed that of the same period in 2022, the average number of people per game will increase, and the average ticket price will decrease, which will drive the demand for movie viewing to pick up and boost the confidence of the film industry throughout the year. In the case that the box office performance of the first day of junior high school is not as good as that of 2022, the total box office of the second to fourth day of junior high school is higher than that of the same period in 2022, and the total box office of the Spring Festival stalls in 2023 is already higher than that of the same period of 2022. In addition, the films released during the Spring Festival in 2023 have a good reputation, the industrialization level of domestic films has improved, the uncertainty of content quality has continued to decline, and the film industry has returned to healthy development.
[Auto stocks continue to rise, Brilliance China rose more than 6%]
Among auto stocks, Brilliance China (01114.HK) rose 6.09%, BYD (01211.HK) rose 2.58%, and Ideal Auto (02015.HK) rose 2.04%.
Note: The performance of auto stocks was stimulated by Tesla’s positive financial report, and the market’s expectations for the auto sector increased. During the Spring Festival, the Hong Kong stock auto sector rose by more than 9%. Tesla previously announced that both revenue and profit in the fourth quarter of 2022 will be stronger than market expectations. In terms of the automotive business, Tesla’s production and delivery volume in the fourth quarter both exceeded the 400,000 mark, and the annual production and delivery volume in 2022 exceeded the 1.3 million mark, an increase of 47% and 40% respectively.
[Food and beverage stocks traded flat, Parkson China rose nearly 2%]
As one of the most popular sectors before the holiday, catering stocks have a relatively flat trend following the holiday. Yum China (09987.HK) rose 1.9%, Hailunsi (09869.HK) rose 1.64%, and Jiumaojiu (09922.HK) rose 1.59%.
Note: The performance data of catering stocks shows that offline catering in many cities recovered better during the Spring Festival. Among them, promotional activities were launched during the Spring Festival in Shenzhen, with a total of 200 million yuan in catering digital RMB red envelopes. The passenger flow and turnover of key monitoring business districts increased by 27% and 21% respectively year-on-year.
[Airline stocks are weaker than expected and Meilan Airport fell more than 2%]
As one of the main sectors of recovery logic, aviation stocks performed lower than expected following the holiday. Meilan Airport (00357.HK) fell 2.5%, Air China (00753.HK) fell 2.5%, and Cathay Pacific (00293.HK) fell 2.05%.
Note: According to the statistics of Huatai Securities, during the Spring Festival, the number of passengers transported by Sanya Airport recovered to 87% of the same period in 2019, and the number of takeoffs and landings at the airport recovered to 100%. In addition, as of January 23, domestic air ticket bookings from January 26 to January 31 increased by 33% year-on-year in 2022, exceeding the same period in 2019.
Market stock news and changes
[SenseTime rose nearly 20% and the leading position of visual AI is stable]
SenseTime once rose by more than 21% in intraday trading today, and its market value once once more exceeded the 90 billion mark. On the news side, IDC recently released a report stating that the computer vision market in the first half of 2022 will reach US$976 million. Constitutes a 42.3% market share. Everbright Securities stated that SenseTime, as the leader of domestic computer vision software, has realized the smooth implementation of AI business, and is actively transforming to the artificial intelligence as a service (AIaaS) model, which is expected to achieve high-quality and more stable revenue growth.
【Innovative Aviation rose nearly 17% and its market share ranked third in the industry】
On the news, according to the latest data from the China Automotive Power Battery Industry Innovation Alliance, in 2022, China Innovation Aviation’s cumulative installed capacity will reach 19.24GWh, with a market share of 6.53%, ranking third. In addition, according to the latest data from the Hong Kong Stock Exchange, on January 18, JPMorgan Chase’s long position in Zhongxinhang’s H shares increased from 0.86% to 7.62%. JPMorgan Chase acquired the guaranteed interests of 17.98 million H shares of China Innovation Aviation.
