Hong Kong Stock Market Closing (06.11) | Hang Seng Index fell by 1.04%, gold stocks and shipping stocks declined, while MEITUAN-W rose by over 4% against the trend

According to the Wise Finance APP, strong non-farm data suppressed rate cut expectations, with the current market focusing on US CPI data and the Federal Reserve interest rate meeting. The Hong Kong stock market fell significantly in the morning session, with the Hang Seng Index briefly falling below the 18,000 mark. In the afternoon, the declines of the three major indices narrowed. As of the close, the Hang Seng Index fell by 1.04% or 190.61 points to 18,176.34 points, with a total turnover of HKD 139.806 billion; the Hang Seng China Enterprises Index fell by 0.9% to 6,452.06 points; and the Hang Seng Tech Index fell by 0.45% to 3,755.42 points.

TF Securities pointed out that looking ahead, against the backdrop of significantly improved sentiment from both domestic and foreign investors, the Hong Kong stock market has seen a significant rebound. The sustainability and upward potential in the future will depend on more solid fundamental data to complement it. During the period of economic recovery verification, a cautious and optimistic attitude is still maintained. In terms of allocation, on one hand, sectors with high dividend yields such as utilities, energy, finance, and telecommunications; on the other hand, the technology industry represented by semiconductors and the internet will continue to be the main driver of industrial transformation.

Performance of Blue Chip Stocks

Meituan-W (03690) led the blue chips. As of the close, it rose by 4.44% to HKD 115.3, with a turnover of HKD 8.224 billion, contributing 45.57 points to the Hang Seng Index. CMB International Securities pointed out that Meituan maintained robust revenue growth in the first quarter, with a year-on-year increase of 25% to RMB 73 billion, exceeding expectations by 6%. Adjusted net profit was RMB 7.5 billion, a year-on-year increase of 36%, exceeding expectations by 25%. For Meituan's revised forecast for the second quarter of this year, the bank expects group revenue to increase by 18% year-on-year, and core local business revenue to increase by 16%.

As for other blue chip stocks, Lenovo Group (00992) rose by 2.07% to HKD 10.86, contributing 2.73 points to the Hang Seng Index; BYD Company (01211) rose by 1.69% to HKD 228.4, contributing 6.31 points to the Hang Seng Index; Orient Overseas (00316) fell by 9.39% to HKD 125.5, dragging down the Hang Seng Index by 2.76 points; Henderson Land Development (00101) fell by 7.81% to HKD 6.85, dragging down the Hang Seng Index by 1.58 points.

Hot Sectors

On the market, large technology stocks generally declined, with Alibaba, Tencent, and others falling slightly, while Meituan rose by over 4%. Strong US non-farm data dampened rate cut expectations, leading to a significant pullback in commodities, including gold and other non-ferrous stocks, as well as oil stocks; the ceasefire resolution and delayed rate cut impacted expectations for shipping prices, with shipping stocks leading the declines; local stocks in Hong Kong, consumer stocks, auto stocks, and major financial stocks all declined. On the other hand, new stocks performed well today, with Suteng Juchuang surging by 65% at one point.

1. Decline in Gold and Other Non-Ferrous Metal Stocks. As of the close, Lingbao Gold (03330) fell by 9.12% to HKD 2.99; Aluminum Corporation of China (02600) fell by 5.1% to HKD 5.4; Luoyang Molybdenum (03993) fell by 5.05% to HKD 6.96; Jiangxi Copper (00358) fell by 4.74% to HKD 16.06 Affected by the much better-than-expected US non-farm payroll data on Friday night, the Fed's rate cut expectations have been postponed, and commodities have generally experienced a significant pullback. The seasonally adjusted non-farm employment in the US increased by 272,000 in May, well above the expected 185,000, while the People's Bank of China stopped buying gold, leading to a sharp decline in precious metal prices. Gold fell by 3.7% last Friday, marking the largest drop since August 2021. The COMEX gold futures main contract fell by 3.34%, marking the largest closing drop since April 22, 2022, closing at $2311.1 per ounce, hitting a low since May 8.

2. Shipping stocks plummeted today. At the close, COSCO Shipping Holdings (01919) fell by 12.9% to HKD 13.1; Orient Overseas International (00316) fell by 9.39% to HKD 125.5; COSCO Shipping Development (02866) fell by 7.83% to HKD 1.06; and Sinotrans Shipping (01308) fell by 3.02% to HKD 20.9.

The United Nations Security Council passed a resolution submitted by the United States related to the Gaza Strip on the 10th, calling for Hamas and Israel to accept a ceasefire agreement. Guotai Junan Futures pointed out that this may exert significant pressure on distant month contracts, dragging down the trend of near month contracts. In addition, CITIC Securities predicts that the Fed is inclined to control inflation risks, will not cut interest rates within the year, and will continue to suppress US demand and inflation. On Tuesday, the Baltic Dry Index (European route) fell by over 6%.

3. Hong Kong local stocks fell across the board. At the close, Henderson Land Development (00101) fell by 7.81% to HKD 6.85; Wharf Real Estate Investment (01997) fell by 4.52% to HKD 21.1; Link REIT (00823) fell by 4.42% to HKD 32.4; MTR Corporation (00066) fell by 3.47% to HKD 25.

According to data from the Hong Kong Immigration Department, during the Dragon Boat Festival holiday from June 8th to 10th, a total of 3.2375 million people entered and exited Hong Kong. The data shows that among the inbound visitors, there were 330,800 mainland visitors; among the outbound visitors, there were 1.1701 million Hong Kong residents. Analysts believe that the trend of Hong Kong residents traveling to the mainland for consumption has become a new norm, putting pressure on retail rents in the northern part of Hong Kong. In addition, on May 29, the Hong Kong Rating and Valuation Department announced that the private residential price index for April was 308.7 points, up 0.29% month-on-month for two consecutive months, a cumulative increase of 2.08%, but still a 13% year-on-year decline, and has not yet recovered from the decline at the beginning of the year.

4. Property stocks are under pressure. At the close, Shimao Group (00813) fell by 7.87% to HKD 0.82; Country Garden Development (01030) fell by 4.11% to HKD 1.4; Sunac China (01918) fell by 3.1% to HKD 1.25; and Future Land Development (02777) fell by 2.11% to HKD 0.93 According to data from the China Index Research Institute, during this year's Dragon Boat Festival holiday period (June 8th to June 10th), the daily average sales area of new houses in 30 representative cities decreased by about 16% compared to the holiday period in 2023, but increased by over 60% compared to the May Day holiday this year. In addition, several real estate companies have recently disclosed their sales performance for May 2024 and the first 5 months of the year. Shimao Group achieved a cumulative contract sales of 13.78 billion yuan in the first 5 months, a year-on-year decrease of 42.25%; Yuexiu Property achieved a cumulative contract sales of 40.92 billion yuan in the first 5 months, a year-on-year decrease of about 42.3%; and Country Garden achieved a cumulative contract sales of 19.754 billion yuan in the first 5 months, a year-on-year decrease of 44.67%.

Hot Stock Movements

1. Suteng Juchuang (02498) Hits a Record High, closing up 13.57% at HKD 90.8.

According to an announcement from the Shenzhen Stock Exchange, Suteng Juchuang has been included in the list of securities under the Hong Kong Stock Connect. In accordance with the relevant provisions of the "Shenzhen Stock Exchange Shenzhen-Hong Kong Stock Connect Business Implementation Measures," the list of securities under the Hong Kong Stock Connect has been adjusted and will take effect from June 11, 2024.

2. Sunac China Holdings (03377) Rises Against the Trend, closing up 6.67% at HKD 0.48.

Sunac China Holdings announced the transfer of 64.79% equity and related debt of Phase II of Yitigang in Beijing, with a total consideration of 4 billion yuan, taken over by China Life and Swire Properties. China Life contributed approximately 3.1 billion yuan, and Swire Properties contributed approximately 0.9 billion yuan, with each obtaining 49.895% and 14.895% equity of Yitigang Phase II, respectively.

3. Dongfang Zhenxuan (01797) Plunges. Closing down 9.27% at HKD 13.9.

Recently, Dong Yuhui's first independently hosted talk show officially launched. In this program, Dong Yuhui mentioned that due to live streaming, his parents have been harassed for a long time, and he strongly resists selling things, still not enjoying this job