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

[winston]

HSBC Research Introduces 4 Key Investment Themes, Recommends 10 Selected Stocks

HSBC Global Research remarked that the market's start to 2023 was relatively unremarkable but it anticipated the Swap Connect and forthcoming market reform policy measures to further drive market growth.

The broker outlined four key investment themes:
1. Decreasing interest rates
2. Fast-growing laggards
3. Artificial intelligence and
4. SOE reform

Additionally, with the RMB becoming more internationalized and the HSI becoming more tech-driven, Hong Kong could flourish into the "Nasdaq of the East".

Source: AAstocks.com

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Hong Kong stocks poised to rebound as monetary easing boosts China’s economic recovery, says Hang Seng Qianhai Fund Management

More supportive fiscal and monetary policies expected to address China’s uneven recovery, says the fund and HSBC Global Private Banking

by Iris Ouyang

Source: SCMP

https://www.scmp.com/business/banking-f ... 8ce99d7e8a

[winston]

China stimulus: Hong Kong stock outlook unclear amid fears rate cuts are too little, too late while double-dip risk grows

The impact of an expected moderate cut to benchmark lending rates will be quite small, Nomura strategists say

China’s problems are difficult to solve through incremental easing, Societe Generale economist says

by Mia Castagnone

Source: SCMP

https://www.scmp.com/business/banking-f ... 5c92601911

[winston]

What is Hong Kong's new dual HKD/RMB share counter?

By Georgina Lee and Winni Zhou

The HKEX is also rolling out a market-maker program, so that any price differences between the two counters because of the yuan's moves can be reduced.

Source: Reuters

https://www.reuters.com/markets/currenc ... 023-06-16/

[behappyalways]

Are shorts going to get caught off-sides in Hong Kong?

https://twitter.com/Mayhem4Markets/stat ... 7936684033

[winston]

Five firms kicked off indexes

Five companies, including some mainland developers, will be kicked out from the Hang Seng family of indexes, due to the prolonged suspension of their shares.

Developer CIFI (0884) and its property management unit CIFI Ever Sunshine Services Group (1995), along with Redco Properties (1622), Jiayuan International (2768), and investment bank China Renaissance (1911) will be removed from a series of indexes including Hang Seng Composite Index.

These companies' stock prices will be adjusted downward to the lowest system price, namely HK$0.0001, at the market open next Monday and such price will be used for index calculation during the entire day.

These stocks will be removed from the relevant indexes at HK$0.0001 after the market closes on the same day and the corresponding constituent changes will come into effect next Tuesday.

The Hang Seng Indexes Company will announce the results of the latest quarterly review of the Hang Seng family of indexes on August 18.

Source: The Standard

https://www.thestandard.com.hk/section- ... ff-indexes

[winston]

STRATEGY – GREATER CHINA
Alpha Picks: July Conviction Calls

Chinese equities rebounded more than 3% in June on hopes of a new round of stimulus.

We do expect further support from the government, given the weak economic confidence.

China risks sliding into a vicious cycle if households and the private sector continue to deleverage.

We add CG Services and Li Auto to our BUY list.

Source: UOBKH

https://research.uobkayhian.com/content ... 4eb7f3ec59

[winston]

Hong Kong’s Largest ETF Sees Record Turnover, Spike in Shorts

Traded value of the Tracker Fund of Hong Kong reached nearly HK$20 billion ($2.6 billion), surpassing its previous peak in March of last year when Chinese stocks were in freefall.

Mainland investors trading via the link with Hong Kong, contributed nearly half of the turnover as they moved to offload shares.

Meanwhile, short-selling turnover in the ETF on Wednesday reached HK$15.3 billion, nearly matching the record of HK$15.7 billion set in March 2022.

Source: Bloomberg

https://finance.yahoo.com/news/hong-kon ... 20600.html

[winston]

Mainland Investors’ $1 Billion Bet On Hong Kong Stocks

On Wednesday, Mainland investors bought $2.11 billion of Hong Kong-listed stocks in the 10th largest net buy day ever.

We noted the very large inflows/outflows via Southbound Stock Connect that we speculated were related to buying and selling of Hong Kong-listed ETFs and not stocks.

The Hong Kong Tracker Fund (2800 HK) had a one-day inflow of $793 million, which solves that mystery as Mainland investors buy the dip in Hong Kong stocks.

Source: Forbes

https://www.forbes.com/sites/brendanahe ... 07c9423517

[winston]

Schroders Notes 3 Potential Catalysts for Asian Equities, Cheap Valuations for A/ H Shrs

Schroders noted that it remains neutral to optimistic on the overall growth outlook for Asia in the second half of the year, with China expected to achieve its full-year growth target of around 5% this year.

According to the asset manager, the key challenge for the investment market in China is the lack of confidence.

Much of this has to do with the fact that recovery in the mainland real estate market, is lagging slightly. Real estate investment accounts for a significant portion of the overall wealth investment of mainland households.

When the outlook for the property market is uncertain, mainland households will become more cautious in terms of additional spending and investment.

Related News: StanChart Foresees CN GDP to Grow 5.4% in 2023 with 1% Annual Average CPI Inflation

Schroders is still waiting to see what support measures will be introduced to support the real estate market. In addition, if the economic stimulus policies launched by Chinese authorities are effective in boosting investor confidence, there is room for A-shares and Hong Kong stocks to catch up significantly in the second half of the year.

The market is also concerned about PBOC's monetary policy direction. Schroders believed that there is no risk of rising inflation in China, and that there is room for further easing of monetary policy.

Schroder remains bullish on three potential positive factors for Asian equities in the long term, including positive earnings growth for Asian companies, valuations for both A-shares and Hong Kong stocks remaining cheap, and supportive policies for specific strategic sectors in the mainland, which are expected to take over from the real estate sector as a major driver of Chinese economy.

Related News: CN 2Q GDP Hikes 6.3% YoY, Behind Forecast

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN