On December 1, the three major indexes of Hong Kong stocks collectively closed down, among them, the Hang Seng Index fell 125%, the state-owned enterprises index fell 164%, the Hang Seng Tech Index fell 176%。
In terms of sub-sectors, auto dealers, auto stocks, and auto parts stocks fell across the board. Among them, Meidong Automobile (01268HK) fell 1757%, Zhongsheng Holdings (00881.HK) fell 61%, Xpeng Motors-W (09868.HK) fell 513%, BOE Varitronix (00710.)HK) fell 318%。
In terms of news, according to the data of the Passenger Association, from November 1 to 26, the passenger car market retailed 13890,000 units, up 17% y/y and down 12% m/m. During the same period, the retail sales of new energy vehicles were 5630,000 units, up 33% y/y and down 7% m/m.
In addition, the latest "China Auto Dealer Inventory Warning Index Survey" released by the China Automobile Dealers Association shows that the inventory warning index of China's auto dealers in November 2023 is 604%, down 49 percentage points, up 18 percentage points, the inventory warning index is above the boom and wither line, and the automobile circulation industry is in a recession range.
Domestic real estate stocks and property management stocks all performed sluggishly, CIFI Holding Group (00884.)HK) fell 484%, China Evergrande (03333.).HK) fell 48%, Greentown Services (02869.)HK) fell 741%, Evergrande Property (06666.HK) fell 566%。
Internet stocks also generally declinedMeituan-W (03690.)HK) fell 298%, which has fallen by more than 20% since November;Tencent Holdings (00700.)HK) fell 245%, Alibaba-SW (09988.)HK) fell 124%, Group-SW (09888.)HK) fell 103%。
Regarding the continuous decline in Meituan's stock price, the industry believes that Meituan's performance in the third quarter is lower than expected or the main reason. After Meituan's third-quarter earnings report, Morgan Stanley and Goldman Sachs lowered their price targetsGoldman Sachs lowered its target price to HK$176 from HK$205. Morgan Stanley downgraded Meituan to Equal, with a target price of HK$120.
Market analysis said that not only Meituan, but also the overall valuation logic of the Internet has changed, and the market has given a change from high-valuation growth stocks to utility stocks with a price-to-earnings ratio of only a dozen times, which is a problem for the overall development of the industry.
Otherwise,Home appliance stocks, Apple concepts, cosmetics, sporting goods stocks, holiday concepts, aviation stocks and other sub-consumer tracks all fell first, while rare earth concepts, heavy machinery stocks, logistics stocks and other stocks also weakened.
On the list of gainers, education stocks continue to **. Among them, Scholar Education (01769.)HK) rose 765%, up more than 110% in the past 10 trading days. On the news side, the cumulative number of shares repurchased in the past three months was 330,000 shares. Other Concept Stocks, Excellence Education Group (03978.)HK) rose 1154%, Chengshi Foreign Education (01565.)HK) rose 68%, New Oriental-S (09901.)HK) rose 254%。
CICC Research Report pointed out that in 2023, with the easing of the epidemic and the resumption of offline activities, the K12 education and training industry will enter a period of deepening and verification of business transformation, and the favorable policies for vocational education will be reaffirmed, and the overall sector will recover after the double reduction. The bank believes that there is still room for repair in the sectors represented by K12 education and training.
The Hotels & Resorts sector was also active. Among them, Shangri-La (Asia) (00069HK) rose 388%, Huazhu Group-S (01179.).HK) rose 313%。On the news side, Huazhu Group recently released its financial report for the third quarter of 2023. According to the data, Huazhu Group's operating performance in the third quarter rose steadily, and compared with the second quarter, the company's revenue and profit continued to recover, and the revenue growth rate exceeded the previous guidance.
In terms of popular stocks,Weibo-s(09898.)HK) fell 1092%, the company announced that it intends to offer convertible senior bonds due 2030 with a total principal amount of US$300 million, subject to market conditions and other factors. In addition, affected by the performance of less than expected, Zhihu-W (02390.HK) fell 714%。
Author: Bottle