MB-CUNI@EC2602A(17101.HK)

Morgan Stanley lists investment ratings and target price valuation forecasts for Chinese telecom stocks (Table)

Morgan Stanley released a report listing investment ratings and target prices for Chinese telecom stocks. China Telecom is in line with the market, target price HKD 5.5; China Unicom is in line with the market, target price HKD 8; China Mobile is in line with the market, target price HKD 85; China Tower is rated as overweight, target price HKD 12.5; China Communications Services is in line with the market, target price HKD 4.4. Projected price-to-earnings ratios and dividend yields are also included

Morgan Stanley downgraded the rating of Chinese telecom stocks to "Neutral" as the driving factors of the rising cycle over the past few years have ended

Morgan Stanley downgraded the industry rating of Greater China's telecom operators from "Attractive" to "Neutral," believing that the rising cycle of the past few years has ended. Although the outlook for internet data centers is strong, the macro environment and deflationary pressures are affecting mobile business, with an expected industry service revenue growth of 1.7% by 2026. The bank prefers fixed-line over mobile, believing that the adoption of AI by state-owned enterprises could become a potential catalyst for the three major telecom operators

The Hang Seng Index's intraday increase expanded to 2%, and the Hang Seng Technology Index rose by 1.4%. CNOOC and CHINAHONGQIAO both increased by over 5%, while SINOPEC CORP, CHINA TELECOM, and CHINA UNICOM rose by over 4%

The Hang Seng Index's gains expanded to over 400 points, reaching a four-and-a-half-year high, led by weighted financials, the three major oil companies, local real estate, and Chinese telecom stocks, while gold mining stocks surged along with gold prices

The Hang Seng Index's gain has expanded to over 400 points, reaching a four-and-a-half-year high, currently reported at 27,562 points, up 435 points or 1.6%. Major financial stocks performed strongly, with HSBC rising 2.5%, BOC HONG KONG up 1.6%, and STANCHART increasing by 2.2%. Chinese telecom stocks and the three major oil companies also rebounded with the market, rising between 3.9% and 4%. Local property stocks continue to be strong, with the private residential price index reaching a one-and-a-half-year high

Morning Trend | CHINA TELECOM faces pressure with increased volume, support lost, will the main force take action?

On January 27th, China Telecom (728.HK) continued to show weak performance during the trading session, experiencing a slight decline in the morning and then slowly moving downward throughout the day, with continuous capital outflows and significantly increased trading volume compared to previous periods, leading to a cautious market atmosphere. From the market perspective, the bears clearly held the initiative, with the closing price approaching the key technical level of 5.35 yuan, becoming a focal point for the bulls and bears during the day. In the short term, the rebound brought by a slight increase in institutional holdings last week has been almost exhausted, coupled with a lack of news and a general weakening of risk appetite in A/H shares, resulting in insufficient buying momentum in the market. The telecommunications sector has recently shown overall weak performance, lacking new industry catalysts, and the expectations for traditional buybacks and mergers and acquisitions have been fully digested by the market, causing most leading stocks to decline simultaneously, affecting investor sentiment. There are no significant collaborations or policy stimuli within the sector, leading funds to primarily choose to avoid risks or adjust their positions. It is noteworthy that heavyweight stocks, including China Unicom, have also weakened simultaneously, indicating that the entire telecommunications sector is under capital pressure, and short-term reversal signals have yet to appear. In terms of technical analysis, the short-term MACD has entered the bearish zone, and the main moving average system has shown a death cross and is turning downward, with increasing inertia downward pressure. If 5.35 yuan is lost, it may trigger more programmatic selling and stop-loss orders to escape, so attention should be paid to intraday trading volume and market fluctuations. If there is a significant order from the main force to intervene and rebound, it may temporarily ease the weakness, but a reversal is difficult to be optimistic about. The strategy recommendation is to focus on risk control in the short term, avoid the risk of sudden declines, and do not recommend recklessly increasing positions against the trend before right-side signals appear