Hong Kong stocks will continue to show strength in the second trading day of 2023. Although the external environment is weak, it will not hinder the upward trend of Hong Kong stocks. With the spread of sectors increasing, the index Hang Seng rose more than 600 points, and the two highly volatile science and technology and real estate sectors once again speculated.
The Hong Kong stock market has made great efforts to pass 20,000 points in the new year, mainly due to “Chinese character stocks”. Lu Yuren said earlier this week that he is optimistic about “Chinese character stocks” in 2023. They showed their strength in the first two days of the new year, especially China’s Internet and real estate stocks last year. The two main sectors have declined sharply over the past two years, mainly due to policy tightening on the mainland, including strengthened supervision of technology and Internet stocks and the “three red lines” requirements for financing the mainland real estate sector. At that time, the grandfather mainly deflated these two bubble-filled sectors, in order to reduce the risk that the US interest rate hike can be expected last year.
With the thorough adjustment of the two major industries, most of the path to raising interest rates in the United States has been completed. The central government made a major policy shift in the fourth quarter of last year, shooting three arrows to support politics, while expressing a positive attitude towards the digital platform economy and private enterprises. In the process of changing the policy from tight to loose, the two sectors have improved significantly. Before and after the New Year, foreign investors gradually became more positive about mainland China or China’s stock market, and expressed optimistic views one after another.
DBS joins bullish ranks on Chinese plays
In the investment outlook just released by DBS Group, he provided positive comments on Chinese equities. According to Hou Weifu, the bank’s investment director, both stocks and bonds will experience sharp declines in 2022, and now is a good time to spread and balance risks. Investors are advised to allocate 60% equities and 40% bonds and raise the rating of bonds to “overweight”. Due to low valuations and bright outlook, Chinese stocks are more optimistic due to factors such as easing epidemic prevention policies and economic recovery. As Chinese consumption has not reached the corresponding level in recent years and the suppressed consumption power will be released, the profitability of domestic demand inventories will improve. With the mainland’s policy support and the help of two major Internet and technology companies in chip design, China’s semiconductor concept stocks can be used for long-term investment.
The science and technology network has become the major stock that has rebounded recently, and one of the major stocks, Tencent (700), has performed well. To avoid monopoly charges, the group distributes the shares invested in other science and technology companies in the form of dividends, which has become a factor for major South African shareholders to reduce their holdings and support the share price. the distribution of more than 170 billion shares of Meituan (3690). During Tencent’s crash last year, Duan Yongping, a well-known investor, repeatedly said he would increase his holdings, even when the Hong Kong stock market crashed in October last year. Recently, Duan Yongping revealed that he sold Tencent to Apple in the United States, thinking that Apple’s business is simple and straightforward, and he can confidently maintain it. Judging by the process of increasing his holdings in Tencent, Duan Yongping appears to have acted too quickly. When Tencent’s stock price fell in half, he was eager to increase his holdings. The process of asking for prices can also be considered quite painful.
Now that Tencent is on the uptrend, Apple in the US has started to decline as the new year begins. US tech stocks have recently been in the shadow of interest rate hikes and recession. Big stock Tesla is down. Mainland Tianqi’s lithium battery stock was also hit. Apple’s sales have slowed recently. The company’s concerns have also put pressure on its concept stocks. ‘ faster? Could it be that Tencent hasn’t finished its rise, but Apple hasn’t fallen enough?
Tencent showed its power ahead of Meituan’s net distribution on Thursday. Tencent climbed nearly 5% to close at 361 yuan; Meituan rose 2.6% to close at 181.3 yuan; Chongqing Banking and Insurance Regulatory Commission approved Alibaba’s capital increase (9988) Ant Consumer Finance to attract shareholders, Alibaba rose 9% to close at 96.4 yuan; its peer Ali Health (241) climbed 11% to close at 7.4 yuan; JD.com (9618) rose 7% to close at 241 yuan, making the Hang Seng Index hit a more than 5-month high, and finally closed at 20,793 points, an increase of 647 points; the KCI closed at 4,427 points, an increase of 193 points; the State Index recovered 7,000 points and closed at 7,065 points, an increase of 231 points. The market turnover was 149.6 billion yuan.
Educational and pharmaceutical titles are highly speculative
The sales area of new buildings during the New Year holidays in many mainland cities increased by more than 20% compared to the same period last year. The mainland’s real estate and property management stock has strengthened. Longfor (960) increased by almost 12%. , making it the best performing blue-chip stock. Last year, Country Garden (2007), the weakest blue-chip performer, climbed 7% to close at 2.89 yuan; its peer Country Garden Services (6098) climbed 12% to close at 21.65 yuan; CIFI (884) rose 13% to close at 1.29 yuan; CIFI Forever Top (1995) jumped 12% to close at HK$5.17.
There are many other stocks that have risen sharply. The official media published an article stating that vocational education has a bright and promising future, and the education headlines are speculating. Jiahong Education (1935) rose 23% to close at 1.37 yuan; Hope Education (1765) jumped 8.5% to close at 0.77 yuan; China Education Holdings (839) climbed 8% to close at 10.82 yuan. Chi-Med (013) has completed patient enrollment in the study of sorepineb in the treatment of primary immune thrombocytopenia. The main results of the study are expected to be announced in the second half of this year. The share price increased by 11% per close at 27.65 yuan. The rise of the market boom turned into an offside trap. Hygeia Medical (6078) placed 14.8 million new shares, raising a net fund of 785 million yuan. The placement price per share was 53.5 yuan, down about 8.8% from Tuesday’s close Hygeia Medical’s share price bucked the market It fell 4.2% to close at 56.2 yuan.
Jin Riku
