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

[behappyalways]

A good watch. Watch esp 13:40


22.03.15【豐富│東南西北龍鳳配】Pt.2 香港股價還回得去嗎？
https://m.youtube.com/watch?v=d_iTIpQlM0c

[winston]

Investors sell off $49b Chinese shares

Foreign investors have sold off a record HK$49 billion worth of Chinese shares in the first three months this year.

By Friday's close, net sales by offshore investors this year totalled almost 40 billion yuan (HK$49.2 billion), on track to mark the worst quarter since Hong Kong's stock connect scheme with mainland began in 2014 the report said.

The sell-off marks a sharp contrast from 2021, when net inflows through the scheme topped 430 billion yuan, the report added.

Source: Reuters

https://www.thestandard.com.hk/section- ... ese-shares

[behappyalways]

"Uninvestable", JPMorgan Says Chinese Stocks Are A Buy
https://www.zerohedge.com/markets/one-w ... ks-are-buy

[behappyalways]

Dozens of Hong Kong firms halted after missing earnings deadline
https://www.theedgesingapore.com/news/c ... s-deadline

[winston]

STRATEGY – GREATER CHINA

What Is In The Price?

Even with the oversold rebound on 16 Mar 22, Chinese equities are still trading at an
attractive 10.9x 12-month forward PE.

We expect further legs to the rally in 2Q22, driven by easing of COVID-19 restrictions and kicking in of reflationary policies.

We recommend going long on benchmark blue chips and beneficiaries of policy easing;
sector-wise, these would be internet, commodities and renewables.

Sustained high commodity prices and further US sanctions are the key risks in 2H22.

Source: UOBKH

https://research.uobkayhian.com/content ... 8c068bb5a8

[winston]

Feeling downbeat on Hong Kong stock market? Follow buy-backs as tonic for higher returns, Haitong says

Hang Seng Index members gained 19 per cent on average one year after repurchases, according to Haitong Securities, based on five waves of buying since 2008

The latest episode, fuelled by Alibaba and Tencent buy-backs, suggests the trend could persist

by Zhang Shidong

Hong Kong-listed firms have spent HK$42 billion (US$5.4 billion) buying back their own stock since May. That exceeded the HK$7.6 billion to HK$26.1 billion range in the previous five rounds.

The Hang Seng Index trades at a 13 per cent discount to the net asset value and is the second cheapest globally after Brazil, in terms of the price-to-earnings ratio.

Source: SCMP

https://www.scmp.com/business/china-bus ... -buy-backs

[behappyalways]

In Latest Crackdown, China Targets Big Tech's "Abuse Of Algorithms" That Influence Public Opinion
https://www.zerohedge.com/technology/ch ... ic-opinion

[winston]

BofA: Premature to Invest in CN Equities; Corporates' Earnings Will Likely Not Improve until 1H23

Bank of America (BAC.US) published a research report, stating that, at the moment, it remains premature to invest in Chinese equities and that despite the increasingly enticing valuation, the earnings forecasts for the companies will likely continue to be reduced.

Given that China's credit cycle typically leads the gross domestic product cycle by 12 to 18 months, with the earnings trend of the companies basically in line with the nominal GDP growth, the credit growth of the country has only just bottomed, indicating that the GDP and earnings growth will likely not improve until 1H23, the report added.

Source: AAStocks Financial News

[winston]

HSBC Research's TPs on 13 Buy-rated, Big SOE H-shrs with Over US$10B Mkt Cap (Table)


Stocks｜Ratings｜TPs (HK$)

CHINA MOBILE (00941.HK) | Buy｜71
CHINA TELECOM (00728.HK)｜Buy｜4.1
CNOOC (00883.HK)｜Buy｜13.1
ICBC (01398.HK)｜Buy｜7
CCB (00939.HK)｜Buy｜8.7
CITIC SEC (06030.HK)｜Buy｜23.5
BANKCOMM (03328.HK)｜Buy｜6.5
COSCO SHIP HOLD (01919.HK)｜Buy｜22
CITIC (00267.HK)｜Buy｜10.4
CHINA RAILWAY｜Buy｜6.6
CHINA OVERSEAS (00688.HK)｜Buy｜29
CHINA RES LAND (01109.HK)｜Buy｜47.4
CHINA LONGYUAN (00916.HK)｜Buy｜22.6

Source: AAStocks Financial News

[winston]

Hedge Fund Cuts China Stocks to Zero in Year Worse Than 2008

This year could be even worse for fund managers than 2008.

Macro funds, which often trade in equity, bond and commodity markets, averaged a 7.4% loss in the first quarter, the worst performance among eight hedge fund strategies.

Investors have resumed selling Chinese stocks after last month’s vow to stabilize markets yielded few concrete measures so far.

Source: Bloomberg

https://finance.yahoo.com/news/hedge-fu ... 00937.html