Southbound funds sold more than 800 million net on January 16: a large sell-off of Meituan, Wuxi Biologics and New Oriental Online
News from the Financial Associated Press on January 16 (edited by Ma Yijie)According to Wind data, the transaction volume of southbound funds was 49.549 billion Hong Kong dollars today, with a net sale of 845 million Hong Kong dollars that day. Among them, the Shanghai-Hong Kong Stock Connect net sold 1.871 billion Hong Kong dollars, and the Shenzhen-Hong Kong Stock Connect net bought 1.036 billion Hong Kong dollars.
According to exchange data, southbound funds on January 16:
Substantial net buying: CNOOC (00883.HK), WuXi Biologics (02269.HK), Koolearn (01797.HK)
Substantial net selling: Meituan-W (03690.HK), Hong Kong Stock Exchange (00388.HK), China Construction Bank (00939.HK), Geely Automobile (00175.HK), Tencent Holdings (00700.HK), Kuaishou- W (01024.HK), BYD (01211.HK)
Investment points:
CNOOC rose 1.39% today, with a net purchase of 138 million Hong Kong dollars
On the news, the U.S. Energy Information Administration (EIA) predicted in a monthly report released on Tuesday that global consumption of liquid fuels such as gasoline and diesel may reach an all-time high in 2024 as the new crown epidemic subsides and the global economy fully opens. In addition, a number of major banks issued positive reports stating that CNOOC’s output last year was 620 million barrels of oil, and this year’s production target is 650 million to 660 million barrels, an increase of 5% to 6% year-on-year, mainly supported by the launch of nine new projects . At the same time, the group updated the three-year compound annual growth rate target of production from this year to 2025 to be 6%.
WuXi Biologics rose 1.79% today, with a net purchase of HK$364 million
BOCOM International issued a research report saying that it gave the pharmaceutical industry a leading rating. Looking forward to 2023, with the rebound in medical demand and the slowdown of policies aimed at reducing prices of innovative products, the performance and valuation of the sector are expected to usher in a reversal, and it is recommended to actively allocate. In the direction of biotechnology, as the tail enterprises are cleared and the concentration of the industry increases, enterprises with innovative capabilities will benefit.
New Oriental Online fell 6.63% today, with a net purchase of 248 million Hong Kong dollars
In response to the cooperation with CCTV Spring Festival Gala, Dongfang Selection said that the live broadcast cooperation event is not the CCTV Spring Festival Gala, but the CCTV Network Spring Festival Gala on January 14. Currently, Dong Yuhui’s event posters are on display. In addition, Koolearn will announce its results on January 17. Overall, the agency expects that Koolearn’s revenue in the first half of FY23 will be 1.9-2 billion yuan. In terms of net profit, major banks generally estimate that the net profit of New Oriental Online will be about 465-550 million yuan.
Meituan fell 3.27% today, with a net sale of 1.539 billion Hong Kong dollars
The data shows that Nanxia Capital has sold Meituan net for 7 consecutive trading days, with a total of about 2.85867 billion Hong Kong dollars. Tencent’s dividends for Meituan shares will be credited to the account on March 24. HSBC Research released a report stating that the key indicator that needs to be paid attention to this year is profit growth. Among the 37 key industries in the Hang Seng Index, about 46% of the industries are expected to achieve a turning point in profit growth this year, such as the Internet and beverages, which are expected to be achieved this year. Better earnings growth.
The Hong Kong Stock Exchange fell 1.46% today, with a net sale of 469 million Hong Kong dollars
On January 16, the Hang Seng Index rose to 21,947 points intraday, setting a new high for more than half a year. Guotai Junan said that it is currently in the second stage of the “three-stage rocket” of the Hong Kong stock bull market, and there is still a lot of room for repair in the future. In the first stage, since November, the Hang Seng Index has transformed from a valuation trap to a value depression, and this process has ended. In the second stage, the recovery of overseas liquidity is accelerating. At the same time, the impact of the domestic epidemic has passed to the darkest moment. It is expected to start the road to economic recovery. The short-term upside is expected to be 4%-9%. In the third stage, we can still look forward to the upward revision of the Hang Seng Index’s profit growth forecast brought about by the improvement of macro conditions, which will open up further room for Hong Kong stocks to rise.
China Construction Bank rose 0.59% today, with a net sale of 405 million Hong Kong dollars
According to the news, CCB Housing Leasing Fund and Vanke jointly set up a sub-fund of 10 billion yuan. Huaxi Securities pointed out that since the beginning of the year, under the boost of economic recovery expectations, the banking sector index has recorded a small absolute positive return, but the current absolute valuation level is low. In the next stage, we will focus on the real improvement of economic prosperity indicators, which will drive the recovery of industry fundamentals. The value space is expected to be further fixed.
Geely Automobile fell 3.3% today, with a net sale of 261 million Hong Kong dollars; BYD shares fell 1.65% today, with a net sale of 106 million Hong Kong dollars
On the news, Volkswagen expects the growth rate of China’s auto market to accelerate to 4%-5% in 2023. However, Tesla’s price cuts are still causing aftershocks in the auto market. According to media reports, Tesla’s price cuts have also impacted second-hand car manufacturers, and the sales of used cars of many domestic electric car brands, including Xpeng and Jikrypton, have also been backlogged. According to industry analysts, Tesla’s price cuts will have a comprehensive impact on the auto industry, and will spread to the new car market.
Tencent Holdings fell 0.32% today, with a net sale of 187 million Hong Kong dollars
On the news side, Tencent issued a notice stating that in 2022, Tencent discovered and investigated more than 70 cases of violations of the “Tencent high-voltage line”, more than 100 people were fired, and more than 10 people were transferred to the public security organs for suspected crimes. At the same time, the number of cases and personnel investigated and dealt with throughout the year has increased compared with 2021.
Kuaishou fell 3.9% today, with a net sale of 206 million Hong Kong dollars
Guosheng Securities pointed out that Kuaishou Live launched the “New Year Super Broadcast” event. From January 10 to January 18, Kuaishou Live will link high-quality talent anchors in the station to bring 22 special live broadcasts, covering music, dance, funny, opera, etc. Multiple tracks. Zhongtai International released a research report saying that after the introduction of optimization measures for epidemic prevention and control, the logistics problems affecting Kuaishou’s e-commerce business have been greatly improved, and consumption is still under pressure in the short term, but it will gradually recover with macro improvements. In the future, Kuaishou will pay more attention to the contribution of e-commerce full-link algorithms, and incorporate product return rate, negative review rate, and report rate into the recommended production model, which will help improve user experience and enhance user life cycle value, which will benefit long-term business development.