Hong Kong stock market closing (11.01) | Hang Seng Index rose by 0.93%, rare earth concept stocks surged, Li Auto-W plummeted over 9% after earnings

According to Zhitong Finance APP, the three major indices of the Hong Kong stock market fluctuated higher in the morning session. Near noon, both the Hang Seng Index and the Hang Seng China Enterprises Index rose over 1%. In the afternoon, the gains narrowed, and the Hang Seng Technology Index fell back and once again lost the 4500-point mark. By the close, the Hang Seng Index rose 0.93% or 189.1 points, closing at 20506.43 points, with a total turnover of HKD 141.483 billion; the Hang Seng China Enterprises Index rose 1.08%, closing at 7342.66 points; the Hang Seng Technology Index fell 0.34%, closing at 4483.91 points. For the week, the Hang Seng Index fell 0.41%, the China Enterprises Index fell 0.58%, and the Technology Index fell 1.19%.

CICC stated that due to the sensitivity of the Hong Kong stock market's sentiment and capital to overseas changes, tariff policies may bring a greater short-term impact than the A-shares. However, the firm believes there is no need for excessive concern: firstly, external pressures will lead to "stress-induced" policy stimuli, thereby promoting market recovery and rebound; secondly, if there is no impact, it means there is no need to expect too much stimulus, and the market will mainly focus on the current fluctuating situation, while the structural advantages of Hong Kong stocks make them more resilient.

Blue Chip Performance

Li Auto-W (02015) plummeted after its earnings report. By the close, it fell 9.59%, closing at HKD 97.1, with a turnover of HKD 3.298 billion, dragging down the Hang Seng Index by 23.19 points. UBS stated that Li Auto's gross margin for the third quarter reached 20.9%, which was surprising; R&D expenses decreased by 15% quarter-on-quarter, indicating that cost optimization has been effective. Li Auto expects fourth-quarter vehicle deliveries to be between 160,000 and 170,000 units, implying monthly deliveries of 53,000 to 57,000 units by the end of the year. Although this guidance seems not particularly optimistic, if the target is set with a priority on gross margin rather than sales volume, it could be an encouraging signal for Li Auto and the high-end electric vehicle market.

In other blue-chip stocks, Sands China (01928) rose 5.45%, closing at HKD 20.9, contributing 4.32 points to the Hang Seng Index; Orient Overseas International (00316) rose 5.01%, closing at HKD 111, contributing 1.12 points; SMIC (00981) fell 4.81%, closing at HKD 25.75, dragging down the Hang Seng Index by 8.88 points; Sunny Optical Technology (02382) fell 3.65%, closing at HKD 48.8, dragging down the Hang Seng Index by 2.3 points.

Popular Sectors

On the market, most large technology stocks rose, with Tencent up over 3%, Meituan up over 2%, and JD.com and Kuaishou both up over 1%. The suspension of production in Myanmar is favorable for medium and heavy rare earths, causing rare earth concept stocks to soar; Jinli Permanent Magnet surged over 40%; the top 100 sales turned positive year-on-year, with most domestic property stocks performing well; the Ministry of Commerce promoted new consumption policies, leading to a rise in restaurant stocks, with Helen's rising 20%; non-ferrous stocks, gaming stocks, heavy infrastructure, and domestic bank stocks all rose. On the other hand, Apple’s Greater China business faced pressure in the fourth fiscal quarter, leading to a widespread decline in Apple concept stocks; chip stocks and photovoltaic stocks saw expanded losses in the afternoon; automotive stocks, cryptocurrency concept stocks, and film and television stocks were all in the red.

1. Rare earth concept stocks collectively soared. By the close, Jinli Permanent Magnet (06680) rose 44.03%, closing at HKD 10.86; China Rare Earth (00769) rose 19.05%, closing at HKD 0.5 According to reports, the Kachin Independence Army in Myanmar recently announced that it has taken control of the country's rare earth mining areas, but did not disclose how it would handle mining activities. Canadian rare earth and battery metals research firm Adams Intelligence released an investment advisory stating that the control of the area by rebel forces may affect rare earth concentrate exports. It is reported that Myanmar mainly produces medium and heavy rare earth ion ores and is the third-largest source of rare earth raw materials in the world. Additionally, according to the General Administration of Customs, from January to September 2024, China imported 31,000 tons of rare earth oxides from Myanmar, a year-on-year decrease of 3%, accounting for 74.9% of the total oxide imports during the same period.

Regarding whether this event will affect rare earth prices, relevant personnel from Northern Rare Earth stated that with reduced supply, the raw material side may face a tight balance. Huatai Securities believes that the suspension of mining in Myanmar and the limited supply of medium and heavy rare earths in China due to environmental reasons may lead to a shortage in the supply-demand pattern of medium and heavy rare earths. If raw material inventories are depleted, prices of medium and heavy rare earths may rise significantly. The supply-demand pattern of light rare earths will also improve, but domestic supply still has potential, and the degree of shortage may be weaker than that of medium and heavy rare earths.

2. Most property stocks rose. As of the close, China Overseas Land & Investment (00688) rose 4.31% to HKD 15.5; China Resources Land (01109) rose 3.48% to HKD 26.75; Longfor Group (00960) rose 3.33% to HKD 13.04; Sunac China (01918) rose 3.31% to HKD 2.81.

Data from the CR Research Center shows that in October, the top 100 real estate companies achieved a sales turnover of RMB 435.49 billion, a month-on-month increase of 73%, reaching the second-highest performance scale of the year. Year-on-year, it increased by 7.1%, marking the first month of positive year-on-year growth in performance this year. Cumulative performance reached RMB 3,069.31 billion, a year-on-year decrease of 32.7%, with the decline narrowing by 3.9 percentage points compared to September. Additionally, data from the China Index Academy also shows that in October, the sales of the top 100 real estate companies increased by 10.53% year-on-year and 67.45% month-on-month.

CITIC Securities believes that since October, there has been a significant improvement in the real estate fundamentals, but the differences in sales performance among companies are also widening. With the joint promotion of demand-side and supply-side policies, the stabilization of the real estate market is expected to continue to be realized. It is anticipated that some creditworthy leading central state-owned enterprises will be able to significantly optimize asset quality through the replenishment of land reserves in a relatively short time, achieving a positive cycle of sales and land acquisition.

3. Restaurant stocks surged significantly. As of the close, Helen's (09869) rose 20.09% to HKD 2.75; Xiaobuxiang (00520) rose 7% to HKD 1.07; Jiumaojiu (09922) rose 2.68% to HKD 3.45; Haidilao (06862) rose 1.66% to HKD 15.94.

The State Council Information Office held a press conference this morning, where Deputy Minister of Commerce Sheng Qiuping introduced that the Ministry of Commerce will work with relevant departments to launch a series of new policies in the consumption sector. Five cities will introduce supporting policies. For example, Shanghai and Guangzhou will launch support and reward policies for first stores and first exhibitions; Beijing, Tianjin, Shanghai, and Chongqing will issue consumption vouchers for dining, cultural tourism, sports, and other services. Guosen Securities previously stated that considering the recent frequent issuance of consumption-promoting measures, the restaurant sector is expected to benefit from both the fundamentals and sector sentiment, balancing operational performance certainty with expectations of gradual recovery in the consumption environment 4. Apple concept stocks fell today. As of the close, Q Technology (01478) fell 5.29% to HKD 4.83; Sunny Optical (02382) fell 3.65% to HKD 48.8; GoerTek (01415) fell 3.11% to HKD 23.35; BYD Electronics (00285) fell 2.84% to HKD 32.55.

Apple released its financial results for the fourth fiscal quarter of 2024 (ending September 28, 2024). According to the financial report, Apple’s revenue for the quarter was USD 94.93 billion, a year-on-year increase of 6%; net profit was USD 14.736 billion, a year-on-year decrease of 35.81%, mainly due to a one-time tax expense of USD 10.2 billion resulting from a European Union ruling earlier this year. In the fourth fiscal quarter, Apple's iPhone business performed steadily, with revenue of USD 46.222 billion, a year-on-year increase of 5.52%. However, Apple's Greater China business faced pressure, achieving revenue of USD 15.033 billion in the quarter, compared to USD 15.084 billion in the same period last year, with analysts expecting USD 15.8 billion.

Popular Active Stocks

1. Jianbei Miao Miao (02161) released a positive profit alert. As of the close, up 21.88%, at HKD 1.17 .

Jianbei Miao Miao issued a positive profit alert at noon, expecting that the consolidated profit attributable to shareholders for the six months ending September 30, 2024, will increase by no less than 50% year-on-year. This is mainly due to the strong sales momentum of the group's core brands, especially the He Jigong in the branded medicine division and the Baoji Wan in the traditional Chinese medicine division. The group's concentrated traditional Chinese medicine granule business continues to grow, providing further support.

2. Rongchang Biologics (09995) rose again. As of the close, up 14.61%, at HKD 19.3 .

Rongchang Biologics recently announced its performance for the first three quarters of 2024, with operating revenue of approximately RMB 1.209 billion, a year-on-year increase of 57.1%; losses of approximately RMB 1.071 billion, a year-on-year increase of 3.96%. In the third quarter alone, the company achieved revenue of RMB 470 million, a year-on-year increase of 34.6%; gross margin of 82.1%, an increase of 5.8 percentage points year-on-year; losses of RMB 290 million, a decrease in losses of 32.6% compared to the second quarter.

3. Aimee Vaccine (06660) was strong throughout the day. As of the close, up 11.32%, at HKD 8.36 .

Aimee Vaccine announced that its independently developed 13-valent conjugate pneumonia vaccine has submitted a drug registration application to the National Medical Products Administration. The completed unblinded results of the Phase III clinical study show that this vaccine has good immunogenicity and safety, meeting the clinical preset goals. In addition, Aimee Biopharmaceuticals Limited, a subsidiary of the group, has obtained the corresponding drug production license for this product.

4. Hong Kong Broadband (01310) rose after earnings. As of the close, up 4.96%, at HKD 3.6 . Hong Kong Broadband announced its full-year results for the period ending August this year, with a revenue of HKD 10.651 billion, a year-on-year decrease of 9%. The profit attributable to shareholders was HKD 10.277 million, compared to a loss of HKD 1.267 billion in the same period last year, achieving a turnaround; EBITDA increased by 3% year-on-year to HKD 2.365 billion, with earnings per share of HKD 0.08. A final dividend of HKD 0.165 was declared, down from HKD 0.20 in the same period last year, making the total dividend for the year HKD 0.315.

New Stock Listing

Evergreen Marine Corporation (02510) showed weak performance . As of the close, it fell 1.91%, closing at HKD 4.1.

Evergreen Marine Corporation priced its shares at HKD 4.18, issuing a total of 251 million shares, with a net proceeds of approximately HKD 941 million. It is reported that Evergreen Marine Corporation is a container shipping company focused on the Asia-Pacific region. By fleet size, the company ranks 21st among global container shipping companies as of January 1, 2024, with a market share of 0.3%, and ranks sixth among container shipping companies focused on the Asia-Pacific region in December 2023, with a market share of 2.3%