Market Summary
Core Content
The document provides a comprehensive overview of the Hong Kong and Chinese stock markets, including key market indicators, technical analysis, sector updates, company-specific results, and economic calendar events. It highlights the performance of major indices, market sentiment, and the impact of external factors such as oil prices, US market trends, and regulatory changes on the Hong Kong and Chinese markets.
Major Market Indicators
Hang Seng Index (HSI)
- 21 Nov: 25,971 (+131)
- 20 Nov: 25,840 (-531)
- 19 Nov: 28,372 (+188)
- Market Turnover: HK$78.3 billion (21 Nov), HK$77.5 billion (20 Nov), HK$80.3 billion (19 Nov)
H-Shares Index (HSCEI)
- 21 Nov: 10,486 (+19)
- 20 Nov: 10,466 (-165)
- 19 Nov: 10,631 (+47)
- Market Turnover: HK$22.49 billion (21 Nov), HK$20.38 billion (20 Nov), HK$22.41 billion (19 Nov)
Technical Analysis
Hang Seng Index
- 10-day MA: 25,938
- 50-day MA: 26,213
- 250-day MA: 29,182
- 14-day RSI: 50.4
- Primary Resistance: 26,213
- Primary Support: 25,679
H-Shares Index
- 10-day MA: 10,518
- 50-day MA: 10,474
- 250-day MA: 11,555
- 14-day RSI: 50.7
- Primary Resistance: 10,500
- Primary Support: 10,418
Market Outlook
- The Hang Seng Index is expected to trade within the range of 25,800-26,200 today.
- US equities remained in a downward trend, but showed a rebound on Wednesday.
- The Fed may pause its rate hikes in Q1 2019, which could benefit emerging markets and Hong Kong stocks.
- Oil prices fell, dragging down the oil sector, with CNOOC (883) being the worst performer among blue-chips.
- Chinese airlines benefitted from lower fuel costs, with Air China (753) and China South Air (1055) rising by 1.8-1.9%.
Sector Update: Steel Industry
- There are market talks about the potential merger of Angang and Baowu Group to increase industry concentration and meet production targets.
- Angang and Baowu have denied the rumors and stated there are no discussions or negotiations on mergers.
- Analysts believe the merger might not bring significant synergy but could help reduce production capacity and support the industry.
- Magang (0323) and Angang are trading below book value with a prospective P/E of 5-6x, and Magang has a 7% dividend yield, making it a top pick in the sector.
Company Performance: Sasa (178.HK)
- Interim Profit: Rose 84.5% YoY to HK$203 million.
- Earnings per Share (EPS): HK6.7 cents.
- Interim Dividend: Increased to HK7 cents.
- Selling and Distribution Costs: Dropped 3.8 ppt YoY to 31.8% of revenue.
- Turnover from Continuing Operations: Increased 16.3% YoY.
- Hong Kong and Macau Turnover: Rose 18.5% YoY, contributing 85% of group revenue.
- Same Store Sales Growth (SSSG): 15.8% in the first half of FY18/19.
- Gross Profit Margin: Dropped 2.3 ppt to 40.2% due to a decline in house brand product sales.
- Chinese Customers: Accounted for 72.2% of retail sales in the first half of FY18/19, but their average ticket size is under pressure due to RMB depreciation.
- E-commerce Law Impact: Tightened regulations may affect buying agents, which account for 3% of turnover.
- Market Outlook: Share price may face downside risk due to weaker SSSG and average ticket size outlook.
Stock Connect Statistics
SH-HK Connect
- Balance (RMB bn): 51.41 (SH), 51.31 (SZ), 83.26 (Combined Southbound)
- Balance as % of Quota Amount: 98.9%, 98.7%, 99.1%
Top 10 Most Actively Traded Stocks (Southbound)
| Stock Name |
Code |
Buy Trades (HKD) |
Sell Trades (HKD) |
Turnover (HKD) |
| TENCENT |
700 |
406,443,660 |
83,584,120 |
490,027,780 |
| SUNAC |
1918 |
218,142,650 |
226,893,600 |
445,036,250 |
| GEELY AUTO |
175 |
93,140,620 |
90,379,320 |
183,519,940 |
| CHINA OVERSEAS |
688 |
61,570,500 |
50,808,800 |
112,379,300 |
| FUTURE LAND |
1030 |
39,093,680 |
65,855,960 |
104,949,640 |
| EVERGRANDE |
3333 |
48,026,920 |
51,285,610 |
99,312,530 |
| SMIC |
981 |
46,469,460 |
41,793,525 |
88,262,985 |
| SUNNY OPTICAL |
2382 |
27,609,925 |
52,090,430 |
79,700,355 |
| CPIC |
2601 |
28,172,070 |
48,344,230 |
76,516,300 |
| CHINA SOUTH AIR |
1055 |
9,976,600 |
66,184,500 |
76,161,100 |
Top 10 Most Actively Traded Stocks
| Stock Name |
Code |
Change (%) |
Closed Price |
Turnover (Million) |
| TENCENT |
700 |
+2.84% |
289.60 |
6417.6 |
| PING AN |
2318 |
+0.13% |
75.30 |
2688.1 |
| AIA |
1299 |
+1.12% |
63.45 |
1459.0 |
| CCB |
939 |
+0.31% |
6.50 |
1256.0 |
| XIAOMI-W |
1810 |
+0.68% |
14.84 |
1162.5 |
| CNOOC |
883 |
-2.45% |
12.72 |
1092.9 |
| GEELY AUTO |
175 |
+4.66% |
15.28 |
994.3 |
| SUNAC |
1918 |
+3.59% |
26.00 |
949.0 |
| CHINA MOBILE |
941 |
-1.31% |
75.50 |
919.2 |
| EVERGRANDE |
3333 |
+5.42% |
21.40 |
904.0 |
Ten Short Sell Stocks
| Stock Name |
Code |
Short Sell (Million) |
Turnover (Million) |
Short Sell Ratio (%) |
| TENCENT |
00700.HK |
729.72 |
6.42 |
11.37 |
| PING AN |
02318.HK |
472.06 |
2.69 |
17.56 |
| CCB |
00939.HK |
453.33 |
1.26 |
36.09 |
| TRACKER FUND |
02800.HK |
316.63 |
454.63 |
69.65 |
| CSOP A50 ETF |
02822.HK |
286.90 |
397.52 |
72.17 |
| ICBC |
01398.HK |
277.21 |
766.52 |
36.17 |
| AIA |
01299.HK |
274.86 |
1.46 |
18.84 |
| EVERGRANDE |
03333.HK |
273.83 |
904.05 |
30.29 |
| CHINA MOBILE |
00941.HK |
271.84 |
919.20 |
29.57 |
| SUNAC |
01918.HK |
253.09 |
949.02 |
26.67 |
Economic Calendar Highlights
| Date |
Country |
Event |
Survey |
Prior |
| Mon |
Hong Kong |
CSPC Pharma (1093), Xiaomi-W (1810) Results |
- |
- |
| Tue |
US |
Oct. Housing Starts |
1,225K |
1,201K |
| Tue |
US |
Oct. Building Permits |
1,260K |
1,270K |
| Wed |
US |
Oct. Durable Goods Orders MoM |
-2.0% |
0.7% |
| Wed |
US |
Initial Jobless Claim (Till Nov 17) |
- |
- |
| Wed |
US |
Continuing Jobless Claim (Till Nov 10) |
- |
- |
| Wed |
US |
Oct. Existing Home Sales |
5.20M |
5.15M |
| Wed |
Hong Kong |
Sasa (178), Vitasoy (345) Results |
- |
- |
| Thu |
US |
Market will close (Thanksgiving Day) |
- |
- |
| Thu |
Euro Zone |
Nov. Consumer Confidence |
- |
-2.7 |
| Thu |
Hong Kong |
Sino Biopharm (1177), Meituan-W (3690) Results |
- |
- |
| Fri |
US |
Nov. Markit Manufacturing PMI |
56.0 |
55.7 |
| Fri |
Euro Zone |
Nov. Markit Manufacturing PMI |
52.0 |
- |
Disclaimer
- Some equity research and earnings estimates are available on KGIEWORLD.COM.
- The information and opinions in this report are based on internal research and are subject to change.
- No liability is accepted for any use of the report or its contents.
- This report is for informational purposes only and may not be reproduced or published without prior written consent from KGI Asia Ltd.
