Hong Kong Stock Market Closing (03.21) | Hang Seng Index rose by 1.93%, with strength in property, non-ferrous metals, and consumer stocks. SUNNY OPTICAL plummeted by 13% after its performance report

According to the information from the Wise Finance app, the Federal Reserve announced as scheduled to maintain the interest rate unchanged and to maintain the guidance of three interest rate cuts within the year. The market adjusted its expectations for a rate cut by the Federal Reserve in June. The Hang Seng Index fluctuated at a high level throughout the day, approaching the 17,000 mark during trading. As of the close, the Hang Seng Index rose by 1.93% or 320.03 points to 16863.1 points, with a total daily turnover of 118.051 billion Hong Kong dollars; the Hang Seng China Enterprises Index rose by 1.75% to 5905.27 points; and the Hang Seng TECH Index rose by 0.89% to 3582.9 points.

Cinda Securities pointed out that trading sentiment in the Hong Kong stock market is marginally warming up, and it is recommended to pay attention to changes in overseas interest rate cut expectations and domestic capital market policy trends. In the short term, the strong push of capital market policies will help improve the fundamentals of the Hong Kong stock market. Subsequent domestic capital market policies are expected to continue to strengthen, the certainty of the Federal Reserve's monetary policy easing is strong, and the long-term allocation cost-effectiveness of the Hong Kong stock market is increasing.

Performance of Blue Chip Stocks

SUNNY OPTICAL (02382) led the decline among blue-chip stocks after its performance. As of the close, it fell by 13.16% to 46.85 Hong Kong dollars, with a turnover of 1.657 billion Hong Kong dollars, dragging down the Hang Seng Index by 7.84 points. Goldman Sachs pointed out that SUNNY OPTICAL's net profit in the second half of last year was 663 million RMB, which is 6% lower than the midpoint of the guidance, and 6% and 18% lower than the bank's and market's forecasts, respectively. The management of SUNNY OPTICAL believes that the pricing pressure on mobile phone lenses and camera modules comes from competition and the downgrading of specifications for smartphone cameras.

As for other blue-chip stocks, China Resources Gas (01378) rose by 5.83% to 7.62 Hong Kong dollars, contributing 1.83 points to the Hang Seng Index; The Hong Kong and China Gas (00003) rose by 5.69% to 6.32 Hong Kong dollars, contributing 5.92 points to the Hang Seng Index; Xinyi Solar (00968) fell by 1.71% to 6.32 Hong Kong dollars, dragging down the Hang Seng Index by 0.85 points; China Unicom (00762) fell by 0.53% to 5.66 Hong Kong dollars, dragging down the Hang Seng Index by 0.29 points.

Hot Sectors

On the market, most large technology stocks were trading higher, with Meituan up nearly 4% and Tencent up nearly 1% after its performance; spot gold hit a new historical high again, with gold stocks showing collective strength; the real estate sector recently received substantial positive news, with property and property management stocks generally rising; catering stocks, gaming stocks, non-ferrous metal stocks, beer stocks, and bank stocks all rose. On the other hand, SUNNY OPTICAL plummeted by 13% due to lower-than-expected performance.

1. Strong Performance of Property Stocks. As of the close, Longfor Group (00960) rose by 5.57% to 10.62 Hong Kong dollars; China Overseas Development (00688) rose by 4.54% to 11.06 Hong Kong dollars; China Resources Land (01109) rose by 3.7% to 25.25 Hong Kong dollars; Longfor Group (03380) rose by 3.51% to HKD 0.59.

The Office of the Leading Group for the Pilot Reform of the Approval System for Construction Projects in Guangzhou publicly solicited opinions on the revision of the "Guangzhou Commercial Housing Project Overview and Pre-sale Permit Optimization Approval Implementation Plan" on March 19. The draft updates the expression of "first-phase residential projects" to "projects applying for pre-sale for the first time" and deletes the content of "the first-phase residential projects must not exceed 50% of the total construction volume." In terms of optimization measures, there is no limit on the number of residential projects applying for pre-sale for the first time and the number of construction planning permits involved.

CITIC Securities pointed out that the real estate sector welcomed some substantial positive news this week, with Hangzhou completely lifting restrictions on the purchase of second-hand homes and adjusting the exemption period for real estate value-added tax to two years. At the same time, Vanke's largest shareholder, Shenzhen Metro Group, plans to subscribe to no more than 30% of the shares of Zhongjin Yinli Consumer REIT through strategic placement, driving a significant increase in the real estate sector.

2. Gold stocks rose across the board. At the close, Zhaojin Mining (01818) rose by 6.95% to HKD 9.54; Shandong Gold (01787) rose by 5.76% to HKD 15.78; China Gold International (02099) rose by 4.03% to HKD 49.05; Lingbao Gold (03330) rose by 3.85% to HKD 2.7.

The Federal Reserve decided to keep the interest rate unchanged in the range of 5.25%-5.5% and reiterated the expectation of three rate cuts this year. Spot gold continued to rise, reaching as high as $2222.65 per ounce, hitting a new historical high. China Youzheng Securities pointed out that with the adjustment of market expectations, the gold price is maintaining high volatility. Although occasional economic surprises may occur in the short term, they will not affect the overall trend of inflation starting to decline from 2023.

3. Bitcoin concept stocks rose. At the close, Boyaa Interactive (00434) rose by 18.42% to HKD 2.25; Newborn Town (01611) rose by 11.59% to HKD 3.37; OSL Group (00863) rose by 8.7% to HKD 7.87; Meitu (01357) rose by 2.51% to HKD 3.67.

Bitcoin turned higher on Wednesday, reversing the morning's decline as investors temporarily halted recent selling and began to consider the latest policy decisions of the Federal Reserve. Bitcoin rebounded strongly, breaking through the $68,000 mark with a 24-hour increase of 6.92%. A research report by the cryptocurrency tax platform CoinLedger previously pointed out that Bitcoin has only halved three times so far, but the average price of Bitcoin has soared by 400% in the year following the last two halvings. Depending on whether Bitcoin reaches $69,000 in April's halving, the research predicts a future price of $115,000 Gambling stocks rebounded today. As of the close, MGM China (02282) rose by 4.27% to HKD 12.2; Galaxy Entertainment (00027) rose by 3.82% to HKD 40.8; Sands China (01928) rose by 3.55% to HKD 21.9; Melco International Development (00880) rose by 3.03% to HKD 2.38.

The Macao Government Tourism Office announced earlier that starting from March 6, mainland China has added Xi'an, Shaanxi Province and Qingdao, Shandong Province as "individual travel" cities for Hong Kong and Macao. This adjustment aims to actively expand customer sources, expand the mainland market, and promote the accelerated recovery of the tourism economy. UBS pointed out that the operating expenses, competitive environment, and non-gambling business development of Macao casino companies are turning positive, and the industry outlook is optimistic, with Sands China being the top choice. In terms of demand, Macao casino companies generally hold an optimistic attitude towards the sustainability of mid-term gambling revenue recovery, and non-gambling activities also enhance Macao's attractiveness.

Hot Stocks

1. Pop Mart (09992) surged after performance announcement, closing up by 15.99% at HKD 28.65.

Pop Mart achieved a revenue of RMB 6.3 billion in 2023, a year-on-year increase of 36.5%; adjusted net profit was RMB 1.19 billion, a year-on-year increase of 107.6%, both revenue and net profit reaching historical highs. In addition, the company plans to distribute 35% of its profits as dividends, amounting to RMB 378 million, the largest dividend payout since Pop Mart went public.

2. Ping An Healthcare (01833) significantly rose, closing up by 6.83% at HKD 13.14.

Ping An Healthcare recorded a full-year revenue of RMB 4.67 billion in 2023, with a significantly narrowed net loss of 47.6% year-on-year to RMB 330 million. Among them, strategic businesses showed strong growth, with revenue from medical, health, and wellness services on the insurance and financial client side reaching RMB 2.2 billion, a year-on-year increase of 14.8%, and revenue from enterprise employee health management services on the enterprise side reaching RMB 1.08 billion, a year-on-year increase of 81.2%. The business structure has been continuously optimized, driving the company's gross profit margin to increase by 5.4 percentage points year-on-year to 32.3%, with accelerated profitability expected.

3. XPeng-W (09868) under pressure all day, closing down by 6.54% at HKD 37.9.

XPeng Motors' 144 form submitted to the U.S. Securities and Exchange Commission shows that Alibaba's subsidiary Taobao China Holding Limited plans to sell 33 million shares of XPeng Motors ADS, with a total value of approximately USD 314 million The sale date is around March 20, 2024.

IPO Debut

Migao Group (09879) opened high and closed low. As of the close, it rose by 0.25% to HKD 4.09.

Migao Group globally issued 225 million shares, with a final issue price of HKD 4.08 per share, raising approximately HKD 863 million globally, with 1,000 shares per lot. It is reported that Migao Group is a domestic potassium fertilizer company in China, mainly engaged in various potassium fertilizer products, including potassium chloride, potassium sulfate, potassium nitrate, and compound fertilizers. During the past performance record period, Migao Group's main products were potassium chloride and potassium sulfate