Market Highlights: Recent news of a RMB3.9bn bill fraud at ABC (1288.HK) and a similar case at CITIC Bank (998.HK) has raised concerns about Chinese banking stocks. Additionally, the possibility of production cuts between OPEC and Russia led to a brief rally in oil prices, but the denial from OPEC officials caused prices to fall below the session's high. This uncertainty is expected to keep oil prices highly volatile.
Equity Indices: The Hang Seng Index (HSI) closed at 19,196, up 0.8% with a YTD decline of 12.4%. The HSCEI closed at 8,029, up 0.9% with a YTD decline of 16.9%. The Shanghai Composite (Shanghai Comp) closed at 2,656, down 2.9% with a YTD decline of 25.0%. The Shenzhen Composite (Shenzhen Comp) closed at 1,629, down 4.2% with a YTD decline of 29.4%.
Hong Kong Market Turnover: HSI turnover was HK$25.1bn, down 0.28%. HSCCI turnover was HK$4.7bn, up 5.35%. HSCEI turnover was HK$12.9bn, down 11.71%. Main Board turnover was HK$75.5bn, down 0.92%.
Analysis: Country Garden's Forest City project in Malaysia has a positive outlook. The project is in the fast-developing Iskandar Region Economic Corridor, offering significant potential. The company's management has initiated share buybacks, indicating confidence in its future. The stock is currently trading at a favorable valuation of 4.9x P/E, lower than the sector average of 6.7x, with a dividend yield of 6.4%.
Today's Top Picks
China Rail Cons (1186): Last Close: HK$7.26; Target: HK$7.90; Stop-loss: HK$7.00; Reason: 9-day RSI shows bottom divergence, share price rallied with increasing turnover.
Sands China Ltd (1928): Last Close: HK$26.20; Target: HK$27.95; Stop-loss: HK$25.00; Reason: RSI rose above 50, showing strong share price momentum.
Sector Performance Overview
Best Performing Sectors
Sector
Daily Change (%)
5-Day Change (%)
1-Month Change (%)
Gaming
3.9
12.5
-8.8
Infrastructure
3.5
9.0
-18.1
Chinese Telecoms
2.2
6.3
-6.2
Sports Accessories
1.9
-1.9
-15.2
Coal
1.9
7.4
-15.2
Toll Road
1.6
3.3
-13.7
Aluminum
1.5
5.0
-9.1
Local Property
1.2
2.5
-13.5
Chinese Property
1.0
3.0
-20.0
Oil-related
1.0
2.7
-16.9
Logistics
0.9
2.0
-13.2
IPP
0.7
0.3
-18.1
Local Banks
0.7
1.7
-16.2
HK Consumer Group
0.7
2.4
-10.9
Chinese Banks
0.6
2.4
-14.7
Major Stocks in Best Performing Sectors
Gaming: Galaxy Ent. (27), SJM Hldg (880), Wynn Macau (1128), Sands China (1928), MGM China (2282)
Infrastructure: China Railway (390), China Railway Cons. (1186), CSR Corp. (1766), China Comm. Cons. (1800), China Machinery Eng. (1829)
Chinese Telecoms: China Telecom (728), China Unicom (762), China Mobile (941)
Sports Accessories: 361 Degrees (1361), Xtep Int'l (1368), Peak Sport (1968), Anta Sports (2020), Li Ning (2331)
Coal: China Shenhua (1088), Yanzhou Coal (1171), China Coal (1898)
