Market News

Hong Kong stocks rose today, supported by Meituan (03690.HK), with individual stocks contributing 80 points to the rise of the Hang Seng Index. In January this year, the US core personal consumption expenditure price index (PCE) rose 0.4 per cent on a monthly basis, while the Dow and Nasdaq rose 0.12 per cent and 0.9 per cent respectively overnight. At the time of writing, the yield on US 10-year bonds was 4.26 per cent, the US exchange rate index rose to 104.17, Dow futures fell 11:00 or 0.03 per cent, and Nasdaq futures rose 0.22 per cent. China's official manufacturing PMI recorded 49.1 in February (market expectation 49), official non-manufacturing PMI recorded 51.4 in February (market expectation 50.7), and Caixin manufacturing PMI rose slightly to 50.9 in February (market expectation 50.7). The Shanghai Composite Index rose 11:00 or 0.4 per cent to close at 3027 points, while the Shenzhen Composite Index rose 1.1 per cent and the mainland gem index rose 0.9 per cent, while turnover on the Shanghai and Shenzhen stock markets totaled 1.06 trillion yuan. The Hang Seng Index fell to a rise after opening as low as 120 points this morning, rising as high as 16651 points, up 78 points or 0.5% for the whole day, to close at 16589 points; the national index rose 50 points or 0.9% to close at 5728 points; and the Hang Seng Technology Index rose 56 points or 1.7% to close at 3488 points. The Hang Seng Index will take effect after quarterly market inspection (no change in blue chip, inclusion of China Unicom (00762.HK) and exclusion of medium rise (00881.HK)). The total daily turnover of the big market is 121.832 billion yuan, and the southbound transactions of Shanghai, Shenzhen and Hong Kong Stock Connect have a net inflow of 3.63 billion yuan and 2.028 billion yuan. Unicom was included in the national index stocks after the close of trading, and the share price rose by the end of the day, with a sharp bounce of nearly 7% throughout the day. The shares of Xiaopeng (09868.HK) and 09866.HK were up 8.2% and 6.2% respectively. The Hang Seng Index is down 136 points or 0.8% this week, the National Index is down 36 points or 0.62% this week, and the Hang Seng Index is up 88 points or 2.6% this week. UBS reported that mainland government-backed funds had a net inflow of more than 410 billion yuan into A-shares through ETF this year, and the scale of entry into the market is expected to increase further, while the Hong Kong government announced a budget in the middle of the week to completely abolish hot moves in the property market, including the abolition of buyer Stamp Duty (BSD), New Home Stamp Duty (NRSD) and additional Stamp Duty (SSD). [Unicom is very popular with Meituan for 10%] Meituan's shares jumped 10.8% to 88.4 yuan throughout the day, with a turnover of more than 9.6 billion yuan. There is a price reduction war for cloud services in the mainland, with 09988.HK and 00700.HK up 0.2% and 0.1%, JD.com (09618.HK) up 1.7% and 03896.HK down 2.5%. NetEase (09999.HK)'s non-GAAP continuing operating net profit and quarterly income fell slightly below market expectations in the fourth quarter of last year, with its shares down 1.9 per cent for the day. According to a report released by Daiwa, NetEase's online game revenue and earnings in the fourth quarter of last year were 5% and 7% lower than market expectations, respectively, but the quarterly dividend was higher than the bank's expectations. It is believed that new games will be launched in the future. For example, "The Legend of the Condor Heroes" at the end of March and "Yan Yun 16 Sheng" in the second quarter will become a short-term catalyst for the stock price to maintain its "buy" rating, raising the target price from 215yuan to 220yuan. [new World shares fell by 4 billion in shopping malls] The market width of Hong Kong stocks did not change much today. The rise and fall ratio of the main board stocks was 22: 18 (24: 19 the day before), while 33 shares of the Hang Seng Index rose today, while 43 shares fell, with a rise-fall ratio of 40: 52 (46: 50 the previous day). The market sold 20.126 billion yuan today, accounting for 18.4% of the turnover of 109.379 billion yuan of available short-selling shares (12.835% the day before last). New World Development (00017.HK) shares fell 6.8% to 9.2 yuan throughout the day, and the company announced at noon that it would sell all its interests in the shopping mall and car park in Discovery Park, Tsuen Wan, to Chinachem to optimize its portfolio with a total cash consideration of 4.02 billion yuan. The commercial properties for sale, including Discovery Park Shopping Centre, with a total area of about 630000 square feet and a car park with 1000 parking spaces, will be completed within April this year. New World Development will continue to sell non-core assets and speed up the return of funds to develop core businesses. Citigroup issued a report saying that there is an urgent need for New World Development to implement an active deleveraging program more quickly to maintain its "sell" rating, lowering its target price from 9.2 yuan to 8.18 yuan, reflecting a 70% discount on net asset value per share. The bank pointed out that New World operates in a difficult macro environment, and local residential projects mainly involve Kai Tak and Wong Chuk Hang, which are estimated to have slow sales and low profit margins; a large proportion of residential buildings in the mainland also drag down the overall valuation; the debt ratio is still high and continues to be negative cash flow. The sale of NWS (00659.HK) for $22 billion is a good step, but it is still insufficient to meet offshore debt and interest expenses.