earnmoneywithcryptogames| Hong Kong stocks are warming up! Technology index surged nearly 2% real estate stocks ranked among the top performers

Financial Associated Press, May 9 (Editor Hu Jiarong) Hong Kong stocks rebounded today after two consecutive days of adjustment, and the Hang Seng Technology Index once rose more than 2% in intraday trading. By the close, the Hang Seng Index was up 1.Earnmoneywithcryptogames.22% to close at 18537.81 points, the science and technology index rose 1.95% to close at 3947.41 points, and the state-owned enterprises index rose 1.61% to close at 6560.67 points.

Judging from the chart above, the technology index performed strongly and led its constituent stocks.EarnmoneywithcryptogamesBounce back. Specifically, shares of BYD Electronics (01347.HK), Huahong Semiconductor (01347.HK), Lenovo Group (00992.HK) and 00981.HK rose 9.22%, 8.81%, 8.72% and 4.71%, respectively.

The Hong Kong stock market may still rebound.

It comes at a time when the technology index is rising, which makes investors wonder whether Hong Kong stocks will repeat the strong performance of last month. Dai Kang, chief asset research officer of Guangfa Securities, pointed out that Hong Kong stocks have benefited significantly from the global capital rebalancing brought about by the rise in the Hong Kong stock market last month-the lower the valuation, the better. He also pointed out that previous large-scale upward movements of Hong Kong stocks need to have a significant improvement in earnings, which is still in a profit-building period.

Guangfa Securities pointed out that the current valuation level of the Hang Seng Index still has a certain ratio of performance to price. As of May 7, 2024, the Hang Seng Index forward PE is 8.97 times, below the average-1STD that has rarely stayed since 2010 (cheap), and the Hang Seng Index ERP, based on interest rates on 10Y Treasuries, is near the historical average since 2010 (reasonable).

Guotai Junan Securities also promotes a similar view that Hong Kong stocks will have some differences and shocks after the recent sharp rise, but with the reduction of uncertainty in China's economic and policy areas, there is still room for Hong Kong stocks.

Today's market

From the market performance point of view, real estate, shipping, medicine, batteries and other stocks strengthened. Coal stocks, which rose yesterday, adjusted.

Hangzhou announced the lifting of purchase restrictions and the World Trade Group rose by more than 33%.

Among the real estate stocks, Shimao Group (00813.HK), Agile Group (03383.HK) and 02777.HK Real Estate rose 33.33%, 13.46% and 8.70% respectively.

In terms of news, the Office of the leading Group for the stable and healthy Development of the Hangzhou Real Estate Market issued a notice on optimizing and adjusting the regulation and control policies of the real estate market on May 9. Among them, it is mentioned that the housing purchase restrictions will be completely abolished, housing will be purchased within the scope of the city, and the qualification of housing purchase will no longer be examined.

Shipping stocks continue to strengthen Cosco Sea Control rose nearly 16%

Among shipping stocks, COSCO Haifa (02866.HK), COSCO Marine Holdings (01919.HK) and Oriental overseas International (00316.HK) rose 15.85%, 6.93% and 6.12% respectively.

In terms of news, the intraday increase of the main contract of Container Index (European Line) futures increased by nearly 12%, continuing to hit a new high since listing. Huatai Securities pointed out that the profits of the shipping port sector improved in the first quarter due to the rebound in export demand and repeated geo-conflicts.

Multiple benefits stimulate the pharmaceutical stock Zaiding Pharmaceutical to rise by more than 20%.

Among pharmaceutical stocks, Zaiding Pharmaceutical (09688.HK), Clover Bio-B (02197.HK) and Baiji Shenzhou (06160.HK) rose 20.82%, 7.69% and 5.43%, respectively.

In terms of news, National Healthcare Security Administration recently pointed out that it is necessary to deeply study and improve the drug price formation mechanism, and take targeted price policy measures for different stages of the drug life cycle. We should give full play to the price discovery function of different channels such as retail pharmacies and online pharmacies, promote the control of unfair and discriminatory high prices, guide enterprises to set prices independently and rationally, and promote the development of high-quality innovation in the pharmaceutical industry.

Coupled with the continued activity of synthetic organisms. This hot spot comes from the 2024 Government work report, which points out that the active development of emerging growth points such as biological manufacturing, commercial aerospace and low-altitude economy highlights the importance of biological manufacturing as a new quality productivity and has been continuously recognized by the country.

Battery stocks are boosted by positive policies. China's graphite is up 9%.

Among battery stocks, China Graphite (02237.HK), BYD Electronics (00285.HK) and Ganfeng Lithium (01772.HK) rose 9.26%, 9.22% and 7.62%, respectively.

In terms of news, on May 8, the Ministry of Industry and Information Technology publicly solicited opinions on the regulatory conditions and announcement management measures of the lithium battery industry (draft for soliciting opinions). Among them, it is proposed to guide enterprises to reduce manufacturing projects that simply expand production capacity, strengthen technological innovation, improve product quality and reduce production costs.

Analysts believe that lithium batteries show a phased dislocation between supply and demand, and high-end production capacity is still not enough. According to SMM data quoted by China Galaxy Securities Research News, the global lithium battery production capacity is expected to reach 3100GWh, 4300GWh and 5700GWh in 2023, 2024 and 2025, which is about 3.1,3.2,3.3 times of demand.

Some coal stocks are weakening. Institutions say short-term coal prices are under pressure.

Among coal stocks, Mongolia Coking Coal (00975.HK), China Qinfa (00866.HK) and China Coal Energy (01878.HK) fell 2.85%, 1.56% and 1.17%, respectively.

In terms of news, Guojin Securities said that looking forward to the future, coal prices in the port market are expected to bottom out and rebound in May after the pressure on coal prices in the off-season from March to April is reduced, but the increase is limited. From the experience of 1-2M24 coal price fluctuation, whether the port can successfully remove the stock is an important condition of whether the market coal price can be adjusted after the off-season.

From the demand side of the brokerage, heating demand shrinks from March to April, thermal coal consumption enters the traditional off-season, and real estate and infrastructure are still adjusted at the bottom, and the recovery of the non-power sector is slow, so ports accumulate warehouses and coal prices are reduced; it is expected that the demand for coal reserves in the lower reaches of the power plant before the summer peak in May will stimulate the port to depot and boost coal prices.

Southward fund

Southbound funds today suspended 20 consecutive trading days of net inflows until the close, with a southbound net outflow of HK $4.17 billion.

News and changes of individual stocks

[Lijin Science and Technology has increased by nearly 16% and the trend of integrated die casting industry has accelerated]

00558.HK rose 15.73 per cent to HK $4.34. In terms of news, Northeast Securities previously pointed out that recently, a number of integrated die-casting models have been made public, and the trend of integrated die-casting industry has accelerated. It is expected that automobile lightweight will still form a strong support for the demand for large-scale die-casting machines for a long time in the future. In addition, the company has more than 90% of the market share of super-large die-casting machines.

[Lenovo Group rose nearly 9% AIPC products sold well in the first quarter]

Lenovo Group (00992.HK) rose 8.72% to close at HK$10.22. On the news front, Lenovo has officially released a number of new AIPC products at the Innovation and Technology Conference. According to the TechInsights report, Lenovo shipped 10.8 million notebook computers globally in 2024Q1, a year-on-year increase of 12%, which was higher than the 7% growth rate in the entire market, and led the way with a market share of 23%.