Yesterday (5.21) Hong Kong stocks came back unexpectedly.AovslotThe upbeat rhythm of the past few days has suddenly been disrupted! The Hang Seng Index fell more than 2%, and the Hengke Index fell more than 4% in trading. Today, Hong Kong stocks rebounded in early trading. At one point, the Hang Seng Index rose more than 1%, but it was a pity that it turned down in the afternoon. The Hang Seng Index closed up 0.31%, while the Hang Seng Index and Hang Seng China Enterprises Index closed greenly.
The Internet sector rose half and half, Alibaba Pictures rose more than 6%, Oriental selection rose nearly 3%; most Internet leaders rebounded, Kuaishou and bilibili rose more than 2%, Xiaomi Group and Tencent Holdings followed suit, while Meituan fell slightly by 0.66%. The intraday price of ETF (513770), the Internet leader in Hong Kong stocks, rose 1.29% in intraday trading, closing up 0.39%, with a daily turnover of 305 million yuan.
Looking back on the current round of Hong Kong stocks, which began before the Spring Festival and rose rapidly in April, the Hang Seng Index gained 10 consecutive gains from April 22 to May 6, the longest since 2018, according to Wind data.
As of today's close, the Hang Seng Index and the Heng Ke Index have risen 24.12% and 32.43% respectively since February. Among them, the Internet sector is undoubtedly the leader, with the China Securities Exchange and Hong Kong Stock Exchange Internet Index up 46.Aovslot.86%.
The market has been volatile for two days in a row. Is this round of Hong Kong stocks over? In fact, the problem can be broken down into two small problems.
1. Have Hong Kong stocks reached their peak?
From a valuation point of view, Hong Kong stocks are still difficult to say to the top. Take the fierce rise of the Internet sector as an example, as of May 21, the price-to-earnings ratio of the China Securities and Hong Kong Stock Exchange Internet Index PE was 31.36 times earnings, which is at the relatively low level of 37.14% quartile in the past decade, and the ratio of performance to price is still high.
Citic Securities said the rally in Hong Kong stocks was driven by valuation repair after a reversal of three years of pessimistic expectations accumulated by investors. Compared with late January this year, the current liquidity and trading environment of Hong Kong stocks have been significantly improved, and the performance-to-price ratio of valuation and performance matching dimension is still significant.
2. Can we return to the upward trend in the future?
Analysts pointed out that the driving force of Hong Kong stocks mainly comes from the recovery of the mainland economy, especially the current market rumors of Hong Kong stock dividend tax relief policy, if implemented, will have a significant positive impact on the valuation of Hong Kong stocks. It will not only attract more capital inflows, but will also further boost market confidence and push up share prices.
In terms of specific allocation, Feng Chencheng, fund manager of Hong Kong Internet ETF (513770), believes that the performance of the leading companies in the Hong Kong Internet sector has improved significantly, and the Internet industry, which began in 2022, has reduced costs and increased efficiency, making the industry competition tend to be stable. It is no longer the only change in the business philosophy of the income acceleration theory, which makes all companies focus on the key business with high gross profit margin, rather than the horse racing enclosure for new business. In May, companies announced their first-quarter results one after another. Represented by Tencent, its profit margin reached a record high, and its adjusted net profit increased by 54% compared with the same period last year, greatly exceeding market expectations. In addition to solid growth in performance, Internet companies' strong cash flow offers the potential to increase shareholder returns, while China's policy risks and overcapacity have a limited impact on Internet companies.
As the preferred sector for foreign investors to allocate Chinese assets, the relatively stable RMB exchange rate and signs of a rebound in the economic bottom (the real GDP growth rate in the first quarter was higher than expected), especially the determination of high-level fixed tone to stabilize real estate and resolve China's macroeconomic structural problems, will help to enhance the willingness of foreign investors to allocate Chinese assets.
In terms of layout tools, Hong Kong Internet ETF (513770) tracks the China Securities and Hong Kong Stock Exchange Internet Index (931637). Heavyweights converge different Internet subdivision track leading companies, such as Tencent Holdings, Meituan, Xiaomi Group, Kuaishou, and so on. Among them, positions in Tencent Holdings, Meituan, Xiaomi Group, Kuaishou, JD.com have a health weight of nearly 70%, and the top 10 components weigh more than 80%, with outstanding leading attributes. As of May 22nd, the average daily turnover of Hong Kong stock Internet ETF (513770) reached 248 million yuan, which can be traded within the day with good liquidity!
Risk Tip: Hong Kong stocks Internet ETF passively tracks the China Securities and Hong Kong Stock Exchange Internet Index, which is based on 2016.12.30 and released at 2021.1.11, and the composition of the index stocks is timely adjusted in accordance with the rules governing the compilation of the index. In this paper, the index stocks are only displayed, and the individual stocks are not described as any form of investment advice, nor do they represent the position information and trading trends of any fund under the manager. The risk level of the fund assessed by the fund manager is R4-medium-high risk, and the risk level of the fund assessed by the fund manager is R4-medium-high risk, which is suitable for investors of active type (C4) or above. Any information that appears in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only and the investor is responsible for any discretionary investment behavior. In addition, any point of view, analysis and forecast in this article does not constitute any form of investment advice to the reader, nor is it liable for direct or indirect losses arising from the use of the contents of this article. Fund investment is risky, the past performance of the fund does not represent its future performance, and the performance of other funds managed by fund managers does not constitute a guarantee of fund performance, so fund investment should be cautious.