On February 14, the Hong Kong market ushered in the first trading day of the Year of the Dragon, and the two major indexes opened low and went high, ushering in a "good start". At present, A-shares are still in the market break, and the performance of Hong Kong stocks on the first day of the new year may bring more confidence to the market.
According to the data, the Hang Seng Technology Index fell more than 2% at the open, but then turned red shortly after, as of **, the Hang Seng Technology Index **226%, the Hang Seng Index edged up 084%。At the same time, the performance of some popular Hong Kong stocks is also remarkable, but the "WuXi system" fell sharply today.
WuXi AppTec plummeted
Hong Kong stocks opened lower and went higher, and Hong Kong's Hang Seng Index closed up 084%；The Hang Seng Tech Index closed up 226%。Most of the technology stocks were higher, Tencent rose nearly 1%, and Meituan rose 565%, Alibaba rose more than 2%. The performance of holiday concept stocks was eye-catching, with Oriental Selection and China Literature Group rising nearly 7%; Domestic financial stocks made efforts in the afternoon, and China Merchants Bank rose nearly 5%.
WuXi ** suffered a sharp decline. As of the end of **, WuXi AppTec fell by more than 18%, WuXi XDC fell by more than 8%, and WuXi Biologics fell by more than 9%.
On the news side, on February 13, WuXi AppTec issued two voluntary announcements, saying that "WuXi AppTec has noted that a U.S. lawmaker sent a letter to the U.S. Department of Commerce, the Treasury Department, and the Department of Defense on February 12, 2024, regarding the company. We have always welcomed regulatory oversight of our industry, and our company has successfully passed US** scrutiny on several occasions in the past. However, the Company strongly opposes misleading allegations, inaccurate determinations, and anticipatory actions that are not subject to due process against our company. The Company firmly believes that WuXi AppTec has not, is and will not pose a significant risk to the United States in the past, and will not pose a significant risk to the United States, and that the United States will come to the same conclusion even if the United States re-examines the Company. In fact, WuXi AppTec is one of the key contributors to the global pharmaceutical and life sciences industry. ”
It is understood that WuXi AppTec announced in January this year that the company noticed that in a draft version of the Biosafety Act submitted to the U.S. House of Representatives on January 25, 2024 (hereinafter referred to as the "Biosafety Bill"), TheTherapeutics AppTec was mentioned, and a similar draft bill was recently proposed in the U.S. Senate. The draft biosecurity law has not yet entered into force, and the subsequent legislative process requires the U.S. House of Representatives and the U.S. Senate to vote on their respective versions of the bill to form a final version after review by the relevant committees. As a result, the content of the draft biosafety law (including the part referring to WuXi AppTec) is still subject to further consideration and possible changes. The Company is closely following the progress of the legislative process for this draft together with its consultants.
WuXi AppTec stated that the company has always complied with the laws and regulations of the countries in which it operates, including China and the United States. For more than 20 years, WuXi AppTec has been a trusted partner to the global healthcare industry by adhering to the company's core values of "doing the right thing, doing it well", and has continued to provide drug development and manufacturing services to thousands of customers in the U.S. and around the world, helping to bring innovative drugs to market for the benefit of patients around the world. The company will continue to serve customers and help patients around the world.
Keep is because of a repurchase announcement that caused huge attention in the market, Keep rose more than 15% intraday, as of ** up 569%。
On February 14, Keep announced that it would launch a share repurchase plan, and 16 million Hong Kong dollars would be invested in this repurchase. According to the announcement, the board of directors of Keep believes that the share repurchase can show the company's confidence in its business outlook and prospects, and will ultimately bring benefits to the company and create value for shareholders. At the same time, the Company's existing financial resources are sufficient to cover share repurchases while maintaining a healthy financial position. According to the announcement, the money comes from the company's own financial resources other than the proceeds of the listing. According to Keep's financial report for the first half of 2023, as of June 30, 2023, Keep's total assets were 23900 million yuan (the same below), including 21700 million yuan in current assets and 2$200 million in non-current assets, of which cash and cash equivalents were 14800 million yuan.
The valuation of Hong Kong stocks has reached the bottom of the market
For the current Hong Kong market, Guotai Junan believes that the sentiment indicators have shown signs of bottoming, and the sentiment of Hang Seng Technology is close to the lower edge of panic. The current Hang Seng Index Greed Panic Indicator is down 15% week-on-week2%, with a current value of 42, below the average of the last three years. The Hang Seng Technology Greed Fear Indicator fell 10% week-on-week to the current value of 34, close to the bottom of 28, which may mean that Hang Seng Technology is oversold in the short term.
Guotai Junan** pointed out that the current price-earnings ratio of the Hang Seng Index has reached the historical bottom area, and the risk premium is at a historical high. 1) The current P/E ratio of the Hang Seng Index** is 806x, which is 2x standard deviation 8. below the historical mean71x, has reached the historical bottom range. According to the trend pattern of the historical P/E ratio, the index is located at 9There is strong support around the 0 times** P/E ratio. 2) The valuation level and the risk premium relative to the bond represent the expected rate of return for investors. Although this does not determine the direction of change, it still has certain reference significance for short-term timing because it intuitively reflects the long and short trend of the market. The Hang Seng Index risk premium has been climbing since the beginning of the year and is currently valued at 84%, which is close to 2 standard deviations above the historical mean (8.).5%), the cost-effective space opens.
Looking ahead, Zheshang International said that it continues to be cautious about the short-term trend of the Hong Kong market, but the cost performance of the left side allocation in the medium and long term has been further enhanced. In terms of allocation, we will continue to emphasize maintaining a diversified and balanced allocation of industry sectors. In a weak market environment, focus on sectors such as energy, banking, telecommunications and utilities with solid performance, share prices and dividends. At the same time, it is recommended to retain part of the layout of pro-cyclical, favorable policy and prosperous industries, including consumption, brokerages and TMT that benefit from favorable policies; Pharmaceuticals and the Internet, which are sensitive to capital; **, electronics, medicine, etc., which are highly prosperous or are expected to improve significantly.
CICC believes that the overall dumbbell allocation strategy in the current environment is still effective until more favorable policies are realized. Stable cash flow sectors (high dividend ratios, such as telecommunications, utilities and energy), high-end technology upgrading sectors (technology hardware, semiconductors) and mid-end advantageous industries going overseas (construction machinery, automobiles and parts, new energy and photovoltaics, some products and brand consumption, etc.) will be the three main lines of core attention.
Recently, Yang Delong, chief economist of Qianhai Open Source, also pointed out that the Year of the Dragon is worth looking forward to. He believes that now the market is already in the position of the historical bottom area, and there are many consumer stocks that have fallen for three years, and new energy has fallen for two years, which is enough from the perspective of time and space for adjustment. Therefore, the ** opportunity in 2024 is actually the opportunity to fall out, and these high-quality ** that have been killed by mistake, and some high-quality ** already have a relatively obvious allocation value.
Editor-in-charge: Ye Shuyun.
Proofreading: Gao Yuan.
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