Financial news on August 19th: On Monday, the three major stock indexes in the Hong Kong stock market opened higher collectively. The Hang Seng Index rose by 0.8% to 17,569.66 points, the Hang Seng TECH Index rose by 1.66% to 3,516.36 points, the State-owned Enterprises Index rose by 0.88% to 6,215.82 points, and the H-share Index rose by 0.09% to 3,588.96 points.
In the technology sector, Alibaba rose by 1.5%, Tencent Holdings rose by 1.34%, JD.com rose by 5.18%, Xiaomi Corporation rose by 1.04%, NetEase-S rose by 2.68%, Meituan rose by 1.95%, Kuaishou rose by 0.68%, and Bilibili-W rose by 2.17%. Automotive stocks opened higher across the board, with Li Auto rising by over 4%; real estate stocks generally rose, with China Jinmao rising by nearly 7%.
Corporate News
Results of the Hang Seng Index quarterly review: No changes in the constituents of the Hang Seng Index, the Hang Seng TECH Index removed Ping An Healthcare and Technology Company (01833.HK) and added ASM Pacific Technology (00522.HK).
Hang Seng Indexes Company: The Hang Seng China Enterprises Index removed SenseTime Group (00020.HK) and JD Logistics (02618.HK), and added Best Inc. (01519.HK) and New Oriental Education &amp; Technology Group (09901.HK).
China Jinmao (00817.HK): Expected a significant year-on-year increase of 130% in net profit for the first half of the year.
China Power International Development (02380.HK): Total consolidated electricity sales volume for the first 7 months was 76.5872 billion kilowatt-hours, a year-on-year increase of 32.65%.
ZTE Corporation (00763.HK) reported a net profit of 5.732 billion yuan in the first half of 2024, compared to 5.472 billion yuan in the same period last year.
According to documents from the Hong Kong Exchanges and Clearing Limited, UBS Group's long position in Bilibili (09626.HK) increased from 4.64% to 5.24% on August 12th.
Sunac China Holdings (02777.HK): Total sales revenue in July was approximately 780 million yuan.
Leapmotor (09863.HK): Leapmotor C11 cumulative sales exceeded 160,000 units.
Dingdong Health (09886.HK) announced its interim results, with a narrowed loss of approximately 23.5%.
Institutional Views
CITIC Securities: From various indicators such as valuation levels, trading volume, and fund behavior, the Hong Kong stock market is showing clear bottoming characteristics again. With the gradual disclosure of interim performance reports, the profits of heavyweight stocks in the Hong Kong stock market have frequently exceeded expectations. In particular, internet companies such as Tencent (00700) and Alibaba (09988) have conducted a large number of share buybacks this year, which is expected to significantly increase shareholder cash return rates. Looking ahead, with the temporary easing of external disturbances, the prominent bottoming characteristics of the Hong Kong stock market, and the gradual realization of performance expectations, it is judged that active foreign capital will return to the Hong Kong stock market on a monthly basis. At the same time, passive foreign capital may also have a demand to replenish Hong Kong stock positions during the MSCI quarterly rebalancing at the end of August. Therefore, it is expected that the Hong Kong stock market will usher in a monthly-level valuation recovery trend, with internet and consumer industries that have more significant valuation and performance expectation differentials expected to benefit more
TF Securities: Compared to global markets, Chinese assets still offer good value for money. With expectations of gradual recovery and anticipation of improving fundamentals, Chinese concept stocks in the Hong Kong stock market still have attractive valuations and high risk-return ratios. Leading internet companies have shown impressive profit performance, Chinese concept stocks continue to rebound, so it is recommended to continue paying attention to Chinese concept stocks in the Hong Kong stock market.
Guosen Securities: Two weeks ago, Hong Kong stocks reached relatively low valuations, triggering a bottom-fishing signal according to the risk premium model, but it was not immediately activated. This week, Tencent, Alibaba, and JD.com released their earnings. The release of earnings by these heavyweight stocks to some extent dispelled the market's final concerns about bottom-fishing in Hong Kong stocks, leading to signs of a rebound in Hong Kong stocks this Friday. From a technical perspective, the Hang Seng Index futures price has broken above the 120-day moving average during the U.S. trading session - currently one of the few reliable potential support trend lines for the Hang Seng Index. If the Hang Seng Index can close above the 120-day moving average (around 17500+) on Monday, the pattern of a rebound in Hong Kong stocks will be largely established. In the medium term, it is recommended to maintain positions in Hengqin Utilities, Hang Seng Hong Kong 35, and Hang Seng Financials; and consider increasing exposure to Hang Seng Internet.
CITIC Securities: The low-altitude economy policy continues to exert efforts, and a trend of developing low-altitude economic industry clusters in city clusters such as the Yangtze River Delta, the Pearl River Delta, Beijing-Tianjin-Hebei, and Sichuan-Chongqing is forming. Considering the development sequence of the industrial chain, in the short term, it is recommended to focus on the upstream and midstream of the industrial chain, and suggest paying attention to targets related to air traffic control systems, integrated smart transportation providers, airport information technology providers, and geospatial information technology providers

STECH

07300

00HSI

02800

07200

03690

89618

09618

Hong Kong's three major indices opened higher: the Hang Seng Index rose by 0.8% to 17,569.66 points, the Hang Seng TECH Index rose by 1.66% to 3,516.36 points, and the State-owned Enterprise Index rose by 0.88% to 6,215.82 points. JD.com rose by over 5%, while Alibaba rose by 1.5%. The results of the quarterly review of the Hang Seng Index were announced, with no changes in constituent stocks, and updates were made to the constituent stocks of the Technology and Enterprise Indices. CITIC Securities believes that Hong Kong stocks are showing bottoming characteristics, and as mid-year performance reports gradually disclose, heavyweight stocks such as Tencent and Alibaba are exceeding profit expectations

- Hong Kong stocks opened higher on Monday, with the Hang Seng Index up 0.8% at 17569.66 points, led by gains in the technology sector including Alibaba, Tencent, JD.com, and others.
- Corporate news revealed changes in index components, with Hang Seng Tech Index removing Ping An Healthcare and adding ASMPT, while China Jinmao expected a significant 130% increase in H1 net profit.
- Analysts foresee a potential rebound in Hong Kong stocks driven by improved earnings, attractive valuations, and the ongoing trend of Chinese assets offering good risk-return ratios, particularly in the internet and consumer sectors.

China Finance Online

Hang Seng TECH Index

FI CSOP HSI

Hang Seng Index

TRACKER FUND

FL2 CSOP HSI

MEITUAN

JD-SWR

JD-SW

JD.com

Hong Kong Stock Market Opening: Hang Seng Index up 0.8%, Hang Seng TECH Index up 1.66%, most tech stocks are rising with JD.com up over 5%