In June, Hong Kong stocks were uncharacteristically sluggish in the off-season. With local banks and Chinese stocks doing well, the Hang Seng Index rose for two consecutive days. Seeing that the Hong Kong stock market is going strong, Central tea friends are looking for reasons. There is a ghostly explanation that July 1 is approaching. This year is the 25th anniversary of the return of China. Sneak up and fry.
It is difficult for utilities to leave Hong Kong
Friends of tea, the 25th anniversary of China’s return to China is a big day. In the past, leaders of 5 and 10 countries would visit Hong Kong. This year, no arrangements have been announced. The SAR celebrations have been hit by the epidemic, which seems to be inferior to previous years. However, even the Legislative Council had to announce its adjournment yesterday, which was a bit unusual for such a big event. The market naturally speculated that the national leader would come to Hong Kong.
The wind that Lu Yuren received is that because of the epidemic in Hong Kong, the time of the top leader going south will be shortened, but he will still witness the oath of the new team, and there will be a small number of activities at the same time. Since the top leader will come to Hong Kong, the stock market will naturally rise first to congratulate him. canal.
The 25th anniversary of China’s return to China is such a big event, it goes without saying that the central government attaches importance to it. The stock market situation is changing, and the infinite government will be so stupid that it must not be allowed to fall, or it can only be allowed to rise. The 7.1 celebration can be regarded as a positive factor. During the period, the chance of a sharp decline is relatively small. As for whether the whole process will rise, it depends on the changes in the objective environment. Anyway, the big family sneaked up and started to fry and drink the soup, and asked the fryers to live on their own.
The Hang Seng Index closed at 21,559 points yesterday, up 395 points; the HSCEI closed at 7,549 points, up 149 points; the KSE Index closed at 4,760 points, up 102 points, with a turnover of 119.3 billion yuan, and the trading momentum was not outstanding. Utilities stocks did not run this year. After the stock price of Gas (003) fell to a low level in recent years due to the decline in profit and the suspension of bonus shares, it was the turn of CLP (002) to issue a profit warning and expect a loss in the mid-term. The stock price bucked the market and plunged 7% to close at 67.4 Yuan, the worst-performing blue-chip stock.
CLP issued a profit warning this time because of an accident in its Australian business. It is not the first time for CLP to enter overseas and lose hands. Some experts in the energy business say that CLP is doing power plants overseas. It’s safe, so CLP sighed that it was difficult to eat after leaving Hong Kong. This shortcoming did not appear today, so Lu Yuren has reminded in the past two or three years that CLP’s overseas business is something to be careful about.
Utilities have been unfavorable for the past few years. The rise in energy prices has increased the cost of power generation, and at the same time, the interest rate has risen, and the utility stocks, which sell stable incomes, have become a negative environment. In the era of rapid economic growth in the last century, buying utility stocks was a long-term and profitable investment. However, as the society develops and matures, the local market is saturated, and foreign business is not as good as Hong Kong’s. The growth of utility stocks slows down and the valuation is lowered. position is gradually shaken.
It is the turn of biotech stocks to run out
Interest rate hikes are bad for utilities, but continue to be a stimulus for bank stocks. The United States will raise interest rates in July. The market expects that the interest rate spread will widen. Local bank stocks are positive. HSBC (005) rose nearly 4% to close at 51.4 yuan; Hang Seng Bank (011) rose 1% to close at 139.7 yuan; Bank of China Hong Kong (2388) rose 2.6% to close at 31.65 yuan; Standard Chartered (2888) rose 6% to close at 59.45 yuan; Bank of East Asia (023) rose 1.3% to close at 11.26 yuan.
Mainland stocks have the feeling of being swayed by flaps. This time, it is the turn of biotech stocks to run out. Innovent Bio (1801)’s new indication for the treatment of esophageal squamous cell carcinoma has been approved by the mainland. The stock price rose 14% to close at 30.6 yuan ; WuXi Biologics (2269) rose 5% to close at 71.1 yuan; BeiGene (6160) rose 5.3% to close at 91.95 yuan; Kangfang Bio (9926) rose 15.5% to close at 22.15 yuan; CSPC (1093) rose 4.5% to close at 7.44 yuan. Ali Health (241) soared 12% to close at 5.56 yuan, the best performing blue-chip stock.
Nannan Resources (1229), a “penny stock” of coal, issued a profit announcement, expecting to turn losses into profits for the full year. The stock price surged 9 times to close at 0.75 yuan.
Hitoshi Rikuha
