Hong Kong Stock Market Closing (09.19) | Hang Seng Index rose 2% to surpass the 18,000 mark. Technology, real estate, and consumer stocks strengthened. Hong Kong Exchanges and Clearing Limited surged over 5%

According to the Wise Finance APP, the Federal Reserve significantly cut interest rates by 50 basis points and hinted at another 50 basis point cut later this year. Today, the three major Hong Kong stock indexes collectively strengthened, with the Hang Seng Index successfully breaking the 18,000 mark. The Hang Seng Tech Index rose by 3.75% at one point during the day, reaching a new high since the adjustment. At the close, the Hang Seng Index rose by 2% or 353.14 points to 18013.16 points, with a total daily turnover of HKD 148.755 billion; the Hang Seng China Enterprises Index rose by 2.1% to 6305.51 points; and the Hang Seng Tech Index rose by 3.25% to 3651.56 points.

Ping An Securities stated that the Fed's interest rate cut will have a greater impact on Hong Kong stocks in terms of increased liquidity and the opening of domestic policy windows, coupled with AH still at high levels, providing some support for Hong Kong stocks in the short term. The key to further sustained upward movement of Hong Kong stocks lies in the degree of domestic policy easing and the recovery of domestic economic momentum. If domestic policies continue to strengthen, it will be beneficial for more funds to flow into Hong Kong stocks, providing more support for a rebound in Hong Kong stocks; if the easing is limited, Hong Kong stocks may continue to experience more volatile trading.

Performance of Blue Chip Stocks

China Resources Land (01109) led the blue chips. At the close, it rose by 7.77% to HKD 20.8, with a turnover of HKD 647 million, contributing 7.82 points to the Hang Seng Index. First Shanghai pointed out that China Resources Land has lean operational capabilities and a healthy financial structure, with signed sales ranking fourth in the industry. By the end of the first half of the year, the company's asset management scale increased by 5.1% to HKD 449.1 billion compared to the end of 23, which will help the company unleash its value and transform its business under the new industry development model.

In other blue chip stocks, Haier Smart Home (06690) rose by 7.69% to HKD 25.2, contributing 7.2 points to the Hang Seng Index; JD.com Group-SW (09618) rose by 7.19% to HKD 111.8, contributing 19.43 points to the Hang Seng Index; China Communications Construction (01038) fell by 2.25% to HKD 56.6, dragging down the Hang Seng Index by 1.35 points; Master Kong Holdings (00322) fell by 2.02% to HKD 10.66, dragging down the Hang Seng Index by 0.71 points.

Hot Sectors

On the market, large-cap technology stocks rose strongly, with JD.com up over 7%, Kuaishou and Meituan up over 4%; Alibaba, Baidu, Tencent, and others also rose. Real estate policies still have room for further action, with property and property management stocks performing strongly; multiple provinces and cities have implemented detailed rules for trading in old for new home appliances, leading to a surge in home appliance stocks; non-ferrous metal stocks, catering stocks, dairy stocks, heavy machinery stocks, gaming stocks, insurance stocks, and others have all risen. On the other hand, military stocks fell against the trend, with China Shipbuilding Defense down by 6.13%; some pharmaceutical stocks, cement stocks, and oil stocks performed poorly.

1. Property and property management stocks performed strongly. At the close, Sunac China Holdings (02777) rose by 12.31% to HKD 0.73; Country Garden Services Holdings (03383) rose by 9.09% to HKD 0.42; China SCE Group Holdings (02602) rose by 7.92% to HKD 19.36; China Resources Mixc Lifestyle Services (01209) rose by 7.08% to HKD 25.7.

The Federal Reserve cut interest rates for the first time since March 2020. Yan Yuejin, deputy director of the Shanghai E-House Real Estate Research Institute, pointed out that the Fed's rate cut has a positive impact on mortgage policies, and the probability and extent of LPR rate cuts from September to the end of the year will increase In addition, there has been much discussion recently about the "80 basis points reduction in existing home loans". After this policy, the possibility of a reduction in existing home loan interest rates has increased. CITIC Securities believes that there is still ample room for real estate policies. There is room for improvement in mortgage loan rates, provident fund loan quotas, personal income tax deduction for mortgage loan interest, existing home acquisition and storage, and home purchase settlement.

2. Home appliance stocks lead the gains. As of the close, Hisense Home Appliances (00921) rose by 14.49% to HKD 22.6; Midea Group (00300) rose by 8.71% to HKD 64.25; Haier Smart Home (06690) rose by 7.69% to HKD 25.2; TCL Electronics (01070) rose by 6.85% to HKD 4.99.

Most provinces and cities nationwide have introduced implementation plans for the old-for-new policy for home appliances. As of September 17th, approximately 30 provinces, municipalities, and autonomous regions have issued detailed regulations on the old-for-new subsidy categories and amounts, implementation methods, etc., with the vast majority already in effect. Guosen Securities pointed out that in August, home appliance retail sales stopped falling and rebounded, with white goods retail performance improving both online and offline; the effect of the old-for-new policy is expected to be gradually released, driving domestic demand for home appliances; in August, home appliance exports increased by 12%, with good growth in exports.

3. Non-ferrous metal stocks rose across the board today. At the close, Luoyang Molybdenum (03993) rose by 6.6% to HKD 6.14; Aluminum Corporation of China (02600) rose by 6.37% to HKD 5.01; Ganfeng Lithium (01772) rose by 5.13% to HKD 16.82; Jiangxi Copper (00358) rose by 2.89% to HKD 12.82.

Pacific Securities stated that with the start of the interest rate cut cycle, data support for a soft landing expectation is strengthening, coupled with the upcoming peak demand season, they are optimistic about the upward trend in base metal prices. Minmetals Securities believes that the market currently expects 3 interest rate cuts in 2024, and the specific trading pace next depends on market expectations, whether it is a trading recession expectation or a re-inflation expectation. If it is a trading recession expectation, gold may perform stronger and copper may fluctuate weaker; if it is a re-inflation trading expectation, both gold and copper have upward momentum, with copper's increase potentially higher, similar to the market situation at the beginning of this year.

4. Consumer stocks perform well. At the close, Jiumaojiu (09922) rose by 10.96% to HKD 2.43; Haidilao (06862) rose by 7.15% to HKD 13.48; China Resources Beer (00291) rose by 5.18% to HKD 23.35; Mengniu Dairy (02319) rose by 4.87% to HKD 13.36; China Duty Free (01880) rose by 4.04% to HKD 41.2; Tongcheng Travel (00780) rose by 3.73% to HKD 14.46.

During this year's Mid-Autumn Festival holiday, dining consumption showed a booming trend. It is reported that during the 3-day Mid-Autumn holiday in 2024, Haidilao Hot Pot nationwide received over 5 million customers; Xiabuxiabu's sales nationwide were good, with customer traffic in Jiangsu, Shenzhen, and Xinjiang increasing by about 200% year-on-year. In terms of travel, data from Tongcheng Travel shows that during this year's Mid-Autumn holiday, the platform's international flight bookings increased by over 160% year-on-year, and international hotel bookings increased by nearly 140% year-on-year In addition, during the Mid-Autumn Festival holiday, the world tour listening session of the well-known American rapper Kanye West in Haikou drove local consumption. The sales of duty-free shops on the outlying islands of the city increased by 4.5% year-on-year and 21.5% month-on-month.

5. Insurance stocks rose all day. As of the close, China Ping An (02318) rose by 4.06% to HKD 37.2; New China Life (01336) rose by 3.86% to HKD 16.68; China Taiping (02601) rose by 3.69% to HKD 21.1; China Pacific Insurance (00966) rose by 3.62% to HKD 9.73.

According to statistical data, in the first half of 2024, the five listed insurance companies in Hong Kong have achieved more than 90% of the full-year net profit of last year; the five insurance companies have cumulatively achieved operating income of RMB 1.27 trillion and a net profit of RMB 171.799 billion, with year-on-year growth rates of 7.41% and 12.55% respectively. Guotai Junan Securities predicts that regulatory guidance to lower product pricing rates in the industry is beneficial for reducing debt costs, effectively lowering long-term interest rate risk. At the same time, strong customer savings demand combined with channel fee control in banking and insurance, product structure optimization, etc., are expected to achieve a prosperous growth in New Business Value (NBV) for the whole year.

Hot Stocks on the Move

1. Lao Pu Gold (06181) hits a new high again. As of the close, it rose by 11.97% to HKD 130.

On September 10, the adjustment of the list of stocks eligible for the Hong Kong Stock Connect officially took effect, with Lao Pu Gold being included in the list, and the expected improvement in the company's liquidity is likely to drive the stock price further. In addition, the company recently released its interim financial report showing rapid growth in revenue and profit, with net profit increasing by nearly 200% year-on-year.

2. Dongyue Group (00189) shows strong performance. As of the close, it rose by 8% to HKD 5.94.

On September 14, the Ministry of Ecology and Environment issued a letter soliciting opinions on the plan for setting and allocating the total quotas for the consumption of ozone-depleting substances and hydrofluorocarbons in 2025. The plan preliminarily set the total quotas and distribution plan for second-generation refrigerants (HCFCs) and third-generation refrigerants (HFCs) in 2025, and explained the preparation of the plan.

3. Hong Kong Exchanges and Clearing Limited (00388) significantly rose, as of the close, it rose by 5.77% to HKD 238.2.

Charles Li, CEO of Hong Kong Exchanges and Clearing Limited, pointed out that a large number of new listings are expected to follow one after another recently. Hong Kong's refinancing scale has reached USD 20 billion so far this year, with about 100 listing applications waiting to be processed, including applications planning to raise USD 1 billion. In addition, the Federal Reserve has significantly cut interest rates by 50 basis points and hinted at another 50 basis points cut later this year