The 20,000-point mark of Hong Kong stocks continued to show resilience. The Hang Seng Index once plunged 378 points on the settlement day of the futures index, fell below the 20,000 mark, and reached a low of 19,645 points. Before the market closed, it rebounded to 19,949 points, down only 74 points; Down 32 points; the KSE closed at 4227 points, down 21 points.
The futures index will be inserted first and then bounced on the settlement day, pulling down the settlement price calculated by the average price. I don’t know if the short position will take the opportunity to close the position, and there will be no rollover to the next month. However, there is a risk of the Fed meeting on interest rates next month, which makes people particularly wary.
August is the peak season for listed companies to announce their performance. This year’s performance report generally reflects the impact of rising costs caused by the epidemic and the Russian-Ukrainian war. Listed companies generally recorded performance regressions. Except for individual industries that benefited from skyrocketing cycles such as shipping and energy sectors, they did not. Losses have already been counted. Losing money and being able to control the situation is called winning when you lose less. In this environment, companies that can grow are worth taking a second look.
BOCHK is proud to grow against the current trend
Yesterday, Lu Yuren talked about the deeds of Zheng Haiquan, the first Chinese senior class, and believed that if HSBC (005) continued its development line of not being in the middle or not in the west, it would be very difficult to operate in the future. BOC Hong Kong (2388) announced yesterday that its interim profit was 14.4 billion yuan, up 6.1% year-on-year and 26.4% higher than the second half of 2021. In contrast, HSBC’s Hong Kong business declined by 16% year-on-year in the second quarter.
In the first half of the year, the local business environment was quite numb, and the performance of BOC Hong Kong went up against the current. The group explained that the net interest margin during the period was 0.99%. Including the capital income or cost of foreign exchange swap contracts 3, the adjusted net interest margin was 1.13%, an increase of 3 basis points year-on-year. The management is proud to point out that this is mainly because the Group seized the opportunity of rising market interest rates and actively Assets and liabilities were actively managed, and the return on assets continued to improve. In addition, compared with the second half of 2021, the Group’s net operating income before impairment provision increased by 3.3 billion yuan or 13.8%, mainly due to the net interest income and net trading performance after taking into account the capital income or cost of foreign exchange swap contracts. The increase in revenue and the decline in operating expenses offset the impact of the decline in net service fee and commission income and the increase in the net provision for impairment losses. Profit for the period increased by RMB 3.009 billion or 26.4% compared with the second half of the previous year. Cost-to-income ratio It is 28.7%, which is a better level in the local banking industry, which shows that a certain degree of initiative has been taken in operation.
In the past, Chinese banks felt more conservative and less aggressive, but now this situation is happening to multinational banks. It seems that the board of directors of HSBC is the same as it is, and it sings to shareholders’ opinions or accountability requirements. Banks are a business affected by policies. The mainland advocates a timetable for peaking carbon emissions. While BOC Hong Kong sings harmony, business strategies will follow the trend, and gradually there will be differences in performance.
Since the Democratic Party of the United States advocated a return to the Asia-Pacific region and listed China as a competitor, there has been an undercurrent of globalization. Now the contradictions have surfaced, and the global industry has formed two camps. Some people call it hemisphericization. Competition is like Tesla in the United States and BYD (1211) in China. BYD just announced its results. Benefiting from the new energy vehicle sales, the net profit in the first half of the year increased by 2.1 times to nearly 3.59 billion yuan. At present, Tesla still has the first-mover advantage in the marginal profit rate, but as BYD competes with a one-stop industrial chain, it is not yet predictable who will die in the future.
The inner room was blown by the credit wind again
There will be good companies in any market, but if there are good companies, they will immediately jump in and buy them. It seems that after BYD announced strong growth, the stock price fell slightly by 0.5% to close at 263 yuan. Hong Kong stocks and even the global economy are facing the headwind of US interest rate hikes in the short term. Don’t worry about not having the opportunity to buy good stocks. The most important thing is to do your own risk management, because there is a lot of bad news, and it will break out at any time. According to foreign reports, China Huarong (2799) and China Cinda (1359), the four major asset management companies in China, are currently facing severe credit losses in the mainland property industry, causing their bonds to plummet. It is unlikely that it will be able to bail out the real estate industry until it takes care of its own finances. Mainland property and property management stocks were immediately under pressure. Longfor (960) fell 2% to close at 25.35 yuan; Country Garden (2007) fell 4% to close at 2.49 yuan; Country Garden Services (6098) fell 3% to close at 15.2 yuan. CIFI (884)’s interim net profit fell by 80% to RMB 731 million, and its share price fell by 9% to close at RMB 2.35. Before the world is peaceful, you can buy goods if you have money, but you must be patient and slow to choose, and the wind is high and the waves are rushing. It is best to play carefully.
Jin Riku