HK - Market Strategy 03 (Dec 17 - Dec 25)

[winston]

JPM Top 10 OW-rated High Yielders for HK Mkt (Table)

Shares│2022-23E Avg. Div Yields

CNOOC (00883.HK)│17.5%
SINOPEC SEG (02386.HK)│15.1%
SINOPEC CORP (00386.HK)│14.3%
CNBM (03323.HK)│12.6%
CCB (00939.HK)│9.7%
PETROCHINA (00857.HK)│9.4%
CGS (06881.HK)│9.1%
CHINA MOBILE (00941.HK)│8.9%
PICC GROUP (01339.HK)│8.9%
PSBC (01658.HK)│8%

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6






http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

Citi: 20th CPC Party Congress Displays Blueprint; LT Top Picks Incl. BYD; CHINA MOBILE Liked Next 2 Quarters

The Communist Party of China (CPC) convened the 20th CPC National Congress yesterday, at which China continued to display its blueprint for building a socialist modern China, said Citigroup.

The Congress acknowledged China's success in tackling poverty in the past decade, and aimed to build a modern socialist society with focus on local consumption by 2035E.

In the long run, industries that should most benefit from this direction may involve automation, technology, electric vehicles, clean energies and consumer.

Citigroup's top picks for these sectors were JD-SW (09618.HK), BYD COMPANY, LI NING (02331.HK), MENGNIU DAIRY (02319.HK) and TECHTRONIC IND (00669.HK).

Related News: CMS Intl. Foresees JD.com 3Q Rev. to Balloon 11.3%, Rating Overweight

Hong Kong banks, mainland telecoms and oil and gas sectors were relative safe havens in the next two quarters (4Q22 and 1Q23), in wake of rising USD interest rate and mainland's anti-epidemic policy.

Citigroup rated BOC HONG KONG (02388.HK), CHINA MOBILE (00941.HK) and PETROCHINA (00857.HK) at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

CICC: HK Equities Face 3 Headwinds, Expected to Remain Volatile in Near-term

Hong Kong equities are facing three different kinds of pressures in terms of capital -- 1. the fiscal tightening by the U.S. Federal Reserve undermining liquidity
2. China's growth impacting earnings forecasts and
3. the geopolitical tensions hampering risk appetite

In the near term, the Fed will likely maintain its "hawkish" stance amid the high inflationary pressure, implying that the risk-aversion sentiment will continue to run high among global investors.

As such, CICC forecast that Hong Kong equities will likely remain volatile in the near term.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[behappyalways]

港股看衰! 中國帝制再現 香港股價創下自2008年最大跌幅 投資人憂心中國政治害經濟│記者 許庭瑋│【國際大現場】20221025│三立新聞台
https://m.youtube.com/watch?v=isN6yEw6vV8

[behappyalways]

Chinese Stocks In Hong Kong Record Best Week Since 2015 Amid Fresh Optimism For Easing Covid Restrictions
https://www.zerohedge.com/markets/china ... ovid-pivot

[behappyalways]

Short-Covers Unwind One Of The Most-Crowded Trades
https://www.zerohedge.com/markets/short ... ded-trades

[winston]

Rare signal suggests Hong Kong stock market has hit rock bottom

The 14-month Relative Strength Index of Hong Kong’s Hang Seng stock index this month completed the turnaround — dropping below 30 and then surging back above that key threshold — for the first time since October 1967.

If it holds true, it could mark the end of the pain induced by almost three years of pandemic lockdowns, a backlash against big tech companies that breached government policies and a property implosion that bankrupted some of the biggest developers.

Source: Bloomberg

https://www.thestandard.com.hk/breaking ... ttom%C2%A0

[winston]

JPM Continues to Like CN Tech, Deep Cyclicals; Top Picks AAC TECH, ASMPT, etc.

Driven by China's reopening, expectations of global inflation peaking out and signs of restocking, Asian tech shares have rebounded roughly 20% since mid-October, JPMorgan commented.

However, the broker believed that the tech sector is not entirely out of the woods yet and the downcycles for certain sub-sectors may linger into next year.

JPMorgan reiterated its bullish view on Chinese tech shares and deep cyclicals, contending that the demand revival in China, will serve as a positive driver for broader consumer tech names in the coming three to four months.

AAC TECH (02018.HK), Largan, Maxscend (300782.SZ), Chindata Group (CD.US) and ASMPT (00522.HK) were selected as the top picks.

Shares│Ratings│TPs
AAC TECH (02018.HK) │Overweight│HKD23
Largan (3008.TW)│Overweight│TWD2,500
Maxscend (300782.SZ) │Overweight│RMB150
Chindata Group (CD.US)│Overweight│USD10
ASMPT(00522.HK) | Overweight│HKD75

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

Hong Kong retail investors are selling Hang Seng members while global funds power stock market rebound, Goldman says

Retail investors have been cutting their holdings as stock prices recover from multi-year lows

They may favour lower-risk assets such as time deposits to shun market volatility, says Natixis’s Gary Ng

by Jiaxing Li

They sold Hang Seng constituent members as the market recovered from multi-year lows toward the end of October, even as global funds and mainland Chinese investors charged in, analysts at the Wall Street bank said in a report.

Retail investors held an estimated US$210 billion of stocks, or about 8 per cent of the market’s free float.

Source: SCMP

https://www.scmp.com/business/china-bus ... e=homepage

[winston]

Stanley Chik's Views on Overall Mkt Outlook in 2023

Hong Kong equities have been tracking robust uptick so far in 2023, with the expectations for “return to normalcy”, upcoming border reboot and Chinese government potentially loosening its regulatory grip on the internet sector driving the HSI to elevate by 6.4% in the space of three trading days, said Stanley Chik, a research head at Bright Smart.

Chik outlined three major factors that could dictate the direction of the investment markets this year, which were global economic performance, central banks’ stances and development of pandemic situation.

In terms of global economic performance, Chik remarked that investors’ confidence towards China, the U.S. and the European Union will inevitably be dampened due to the increasing likelihood of recessions, risk-aversion sentiment and concerns over corporates’ earnings outlook. Companies’ business results, therefore, will likely become the focus of investors over the coming one to two quarters.

In terms of the direction of interest rates, Chik contended that, given the lingering inflationary pressure, central banks around the world may not have too much room to adjust the level of interest rates. The fact that none of the Federal Reserve officials sees 2023 as a suitable time to reduce interest rates suggested a discrepancy between the central bank’s agenda and market expectations.

Lastly, while the world appears to be returning to normalcy, the latest pandemic situation in mainland China remains unclear and its impacts on the economy and supply chains are likewise difficult to assess. Meanwhile, the Chinese government’s upcoming approach to address the debt issues of property developers and economic stimulus measures will also become focal points of investors.

Overall, Chik believed that investors should have more clarity on the direction of the overall market in the second half of 2023 as they gather more economic data and the pandemic-induced impacts gradually subside.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 095633/all