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%

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 & 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