G Sachs Ranks Cloud and Data Center as Top Choice in China's Internet Sector, Preferring BABA-W, GDS-SW, and More
Goldman Sachs Report: Goldman Sachs has upgraded the cloud & data center sector to its top preference, driven by anticipated AI growth and positive trends in data center orders and capital expenditure.
Preferred Stocks: The firm favors stocks such as BABA-W, GDS-SW, and VNET Group in the cloud & data center sector, while also showing interest in TENCENT and NTES-S in the gaming sector.
Mobility and E-commerce: In the mobility and e-commerce segments, Goldman Sachs prefers DiDi Global, Full Truck Alliance, and KUAISHOU-W.
Market Insights: CICC maintains an optimistic forecast for the HSI at 26,000, recommending a 'Dividend + Tech Internet' strategy as a base allocation.
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<Midday Update> HSI Ends Midday at 26,705, Gaining 138 Points; HSTI Reaches 5,367, Up 7 Points; ZIJIN MINING Surges Over 4%; HK & CHINA GAS, CK ASSET, WH GROUP, TIANGONG INT'L, and CONCH VENTURE Achieve New Record Highs
Market Performance: The Hang Seng Index (HSI) rose by 138 points (0.5%) to 26,705, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw slight gains.
Active Heavyweights: Notable movements included HKEX (+0.9%), PING AN (+0.4%), and TENCENT (+0.2%), while XIAOMI, BABA, and MEITUAN experienced minor declines.
Significant Movers: ZIJIN MINING surged by 4.7%, CHINAHONGQIAO increased by 3.9%, and CNOOC rose by 3.7%, while YUM CHINA fell by 4.6%.
Short Selling Trends: High short selling ratios were observed in several stocks, with YUM CHINA at 47.6% and MEITUAN at 25.8%, indicating significant market speculation.
CN SAMR Calls on Alibaba and Tencent to Address 'Involutionary' Competition Issues
Regulatory Action: China's State Administration for Market Regulation (SAMR) summoned major platform companies, including Alibaba, Douyin, Baidu, Tencent, JD, and Meituan, to ensure compliance with various laws and regulations.
Focus on Fair Competition: The SAMR emphasized the need for these companies to regulate their promotional activities and eliminate "involutionary" competition to maintain a fair market environment.
HKD3.7B Net Inflow to TRACKER FUND from Southbound Trading
Southbound Trading Inflows: TRACKER FUND (02800.HK) experienced significant net inflows of HKD3.7 billion, with the highest inflow of HKD2.5 billion in Shanghai-Hong Kong Stock Connect.
Short Selling Activity: Notable short selling figures included TRACKER FUND at $6.83 billion (37.94% ratio), BABA-W at $1.67 billion (15.43% ratio), and TENCENT at $1.35 billion (9.485% ratio).
Net Outflows: YOFC (06869.HK) saw a net outflow of HKD148.7 million, with a short selling amount of $338.64 million (11.959% ratio).
Overall Trading Summary: The total Southbound Trading net outflow was HKD0, accounting for 39.12% of the total transaction amount of HKD100.76 billion.
HSI Closes 465 Points Lower; AIA and Stanchart Drop 4%; Commodity Stocks Decline
Market Overview: The DJIA fell 1.3% as tech stocks were sold off, leading to a similar decline in the Hong Kong stock market, where the HSI ended down 1.7% at 26,567.
Financial Sector Performance: Major financial stocks like HSBC and HKEX dropped by 2.7% and 2.1%, respectively, while Bank of East Asia plunged 11% after reporting a significant profit drop and dividend cut.
Commodity and Gold Prices: Gold prices fell below USD 5,000/oz, impacting gold mining stocks, which saw declines of 5.9-7.6%. Oil prices also dropped nearly 3%, affecting major oil companies.
Tech Sector Decline: The tech sector experienced minor declines, with Tencent and Alibaba seeing drops of around 0.7% to 2.0%, while other tech stocks like Meituan and Baidu fell over 3%.
<Full-day Summary> HSI Falls by 465 Points; HSTI Declines by 48 Points; MEITUAN Drops More Than 3%; WH GROUP, SHK PPT, TIANGONG INT'L, MINTH GROUP, and CH OVS G OCEANS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 465 points (1.7%) to close at 26,567, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $257.58 billion.
Active Heavyweights: Major stocks like Meituan, Ping An, and HKEX saw significant drops, with Meituan down 3.2% and Ping An down 2.2%. Xiaomi was the only heavyweight to gain, closing up 0.9%.
Notable Declines: Several constituents of the HSI and HSCEI, including Zijin Mining and Sinopec Corp, experienced substantial losses, with Zijin Mining dropping 7.6% and Sinopec Corp down 5.1%.
Gainers and New Highs: Despite the overall market decline, some stocks like Haidilao and WH Group saw gains, with Haidilao up 3.1% and WH Group hitting a new high, closing up 0.9%.
<Midday Update> HSI Falls 484 Points; HSTI Declines by 89 Points; MEITUAN Drops More Than 4%; CLP HOLDINGS, TIANGONG INT'L, MINTH GROUP, and CH OVS G OCEANS Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 484 points (1.8%) to 26,547, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.6% and 1.7%, respectively.
Active Heavyweights: Major stocks like Meituan, Ping An, Alibaba, and Tencent saw significant drops, with Meituan down 4.5% and Tencent down 1.7%, amidst high short selling activity.
Notable Declines: Companies such as Zijin Mining and China Life faced substantial losses, with Zijin Mining dropping 5.2% and China Life down 4.9%, reflecting a broader trend of declining stock prices.
Gainers and Losers: Healthyway Inc. experienced a notable increase of 18.8%, while Mongol Mining and Fit Hon Teng saw significant declines of 13.7% and 11.3%, respectively, indicating volatility in the market.
<Midday Update> HSI Ends Midday at 26,705, Gaining 138 Points; HSTI Reaches 5,367, Up 7 Points; ZIJIN MINING Surges Over 4%; HK & CHINA GAS, CK ASSET, WH GROUP, TIANGONG INT'L, and CONCH VENTURE Achieve New Record Highs
Market Performance: The Hang Seng Index (HSI) rose by 138 points (0.5%) to 26,705, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw slight gains.
Active Heavyweights: Notable movements included HKEX (+0.9%), PING AN (+0.4%), and TENCENT (+0.2%), while XIAOMI, BABA, and MEITUAN experienced minor declines.
Significant Movers: ZIJIN MINING surged by 4.7%, CHINAHONGQIAO increased by 3.9%, and CNOOC rose by 3.7%, while YUM CHINA fell by 4.6%.
Short Selling Trends: High short selling ratios were observed in several stocks, with YUM CHINA at 47.6% and MEITUAN at 25.8%, indicating significant market speculation.
CN SAMR Calls on Alibaba and Tencent to Address 'Involutionary' Competition Issues
Regulatory Action: China's State Administration for Market Regulation (SAMR) summoned major platform companies, including Alibaba, Douyin, Baidu, Tencent, JD, and Meituan, to ensure compliance with various laws and regulations.
Focus on Fair Competition: The SAMR emphasized the need for these companies to regulate their promotional activities and eliminate "involutionary" competition to maintain a fair market environment.
HKD3.7B Net Inflow to TRACKER FUND from Southbound Trading
Southbound Trading Inflows: TRACKER FUND (02800.HK) experienced significant net inflows of HKD3.7 billion, with the highest inflow of HKD2.5 billion in Shanghai-Hong Kong Stock Connect.
Short Selling Activity: Notable short selling figures included TRACKER FUND at $6.83 billion (37.94% ratio), BABA-W at $1.67 billion (15.43% ratio), and TENCENT at $1.35 billion (9.485% ratio).
Net Outflows: YOFC (06869.HK) saw a net outflow of HKD148.7 million, with a short selling amount of $338.64 million (11.959% ratio).
Overall Trading Summary: The total Southbound Trading net outflow was HKD0, accounting for 39.12% of the total transaction amount of HKD100.76 billion.
HSI Closes 465 Points Lower; AIA and Stanchart Drop 4%; Commodity Stocks Decline
Market Overview: The DJIA fell 1.3% as tech stocks were sold off, leading to a similar decline in the Hong Kong stock market, where the HSI ended down 1.7% at 26,567.
Financial Sector Performance: Major financial stocks like HSBC and HKEX dropped by 2.7% and 2.1%, respectively, while Bank of East Asia plunged 11% after reporting a significant profit drop and dividend cut.
Commodity and Gold Prices: Gold prices fell below USD 5,000/oz, impacting gold mining stocks, which saw declines of 5.9-7.6%. Oil prices also dropped nearly 3%, affecting major oil companies.
Tech Sector Decline: The tech sector experienced minor declines, with Tencent and Alibaba seeing drops of around 0.7% to 2.0%, while other tech stocks like Meituan and Baidu fell over 3%.
<Full-day Summary> HSI Falls by 465 Points; HSTI Declines by 48 Points; MEITUAN Drops More Than 3%; WH GROUP, SHK PPT, TIANGONG INT'L, MINTH GROUP, and CH OVS G OCEANS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 465 points (1.7%) to close at 26,567, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $257.58 billion.
Active Heavyweights: Major stocks like Meituan, Ping An, and HKEX saw significant drops, with Meituan down 3.2% and Ping An down 2.2%. Xiaomi was the only heavyweight to gain, closing up 0.9%.
Notable Declines: Several constituents of the HSI and HSCEI, including Zijin Mining and Sinopec Corp, experienced substantial losses, with Zijin Mining dropping 7.6% and Sinopec Corp down 5.1%.
Gainers and New Highs: Despite the overall market decline, some stocks like Haidilao and WH Group saw gains, with Haidilao up 3.1% and WH Group hitting a new high, closing up 0.9%.
<Midday Update> HSI Falls 484 Points; HSTI Declines by 89 Points; MEITUAN Drops More Than 4%; CLP HOLDINGS, TIANGONG INT'L, MINTH GROUP, and CH OVS G OCEANS Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 484 points (1.8%) to 26,547, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.6% and 1.7%, respectively.
Active Heavyweights: Major stocks like Meituan, Ping An, Alibaba, and Tencent saw significant drops, with Meituan down 4.5% and Tencent down 1.7%, amidst high short selling activity.
Notable Declines: Companies such as Zijin Mining and China Life faced substantial losses, with Zijin Mining dropping 5.2% and China Life down 4.9%, reflecting a broader trend of declining stock prices.
Gainers and Losers: Healthyway Inc. experienced a notable increase of 18.8%, while Mongol Mining and Fit Hon Teng saw significant declines of 13.7% and 11.3%, respectively, indicating volatility in the market.
