20171227-凯基证券-Investment_Daily_5页_531kb

Market Summary

Core Market Indicators

The Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI) showed positive performance in the recent trading period. On 22 Dec, the HSI closed at 29,758 points, up +210 points from 21 Dec, while the HSCEI closed at 11,653 points, up +56 points. The market turnover for HSI was $71.8 billion on 22 Dec.

• HSI Performance:
  • 22 Dec: 29,758 points (+210)
  • 21 Dec: 29,367 points (+132)
  • 20 Dec: 29,234 points (-19)
• HSCEI Performance:
  • 22 Dec: 11,653 points (+56)
  • 21 Dec: 11,596 points (+91)
  • 20 Dec: 11,505 points (-36)

Technical Analysis

• HSI Technical Indicators:

  • 10-day MA: 29,148
  • 50-day MA: 28,943
  • 250-day MA: 26,056
  • 14-day RSI: 59.35
  • Primary Resistance: 30,000
  • Primary Support: 28,943
  • The HSI is above the 50-day moving average, with a bullish MACD gap. The first support is at 28,943, and the first resistance is at 30,000.

• HSCEI Technical Indicators:

  • 10-day MA: 11,487
  • 50-day MA: 11,554
  • 250-day MA: 10,676
  • 14-day RSI: 55.38
  • Primary Resistance: 11,921
  • Primary Support: 11,331

Key Market Highlights

• The HSI is expected to trade between 29,400-29,800 today.
• Major blue chips performed well, with Harmony Auto rising nearly 15% and Genscript Bio (1548) surging over 30%.
• Genscript Bio entered a collaboration with Janssen Biotech for CAR-T therapy development, and its application for an investigational new drug was accepted by the CFDA. Some brokerages expect the clinical trial to be approved as early as 2Q18.
• In 1H17, Genscript Bio reported a 19.2% YoY revenue increase to $63.4 million, and a 13.6% YoY net profit increase to $14.9 million.

Stock Market Activity

• Top 10 Most Actively Traded Stocks (SH-HK Connect Southbound):

  • TENCENT (700): Buy trades 314.75 billion, Sell trades 225.79 billion, Turnover 540.54 billion
  • ICBC (1398): Buy trades 282.18 billion, Sell trades 214.54 billion, Turnover 496.73 billion
  • C TRANSMISSION (658): Buy trades 216.04 billion, Sell trades 250.72 billion, Turnover 466.76 billion
  • SUNAC (1918): Buy trades 192.74 billion, Sell trades 114.25 billion, Turnover 306.99 billion
  • PING AN (2318): Buy trades 50.45 billion, Sell trades 215.46 billion, Turnover 265.91 billion
  • FULLSHARE (607): Buy trades 101.34 billion, Sell trades 129.81 billion, Turnover 231.15 billion
  • LEGENDHOLDING (3396): Buy trades 115.88 billion, Sell trades 106.13 billion, Turnover 222.00 billion
  • SMIC (981): Buy trades 139.85 billion, Sell trades 76.84 billion, Turnover 216.70 billion
  • CCB (939): Buy trades 37.26 billion, Sell trades 151.38 billion, Turnover 188.64 billion
  • PSBC (1658): Buy trades 139.17 billion, Sell trades 9.49 billion, Turnover 140.12 billion

• Top 10 Most Actively Traded Stocks (SZ-HK Connect Southbound):

  • GENSCRIPT BIO (1548): Buy trades 210.21 billion, Sell trades 193.19 billion, Turnover 403.39 billion
  • C TRANSMISSION (658): Buy trades 292.76 billion, Sell trades 84.04 billion, Turnover 376.81 billion
  • TENCENT (700): Buy trades 72.05 billion, Sell trades 106.07 billion, Turnover 178.13 billion
  • SUNAC (1918): Buy trades 63.57 billion, Sell trades 96.67 billion, Turnover 160.25 billion
  • ZTE (763): Buy trades 65.52 billion, Sell trades 43.04 billion, Turnover 108.56 billion
  • LIVZON PHARMA (1513): Buy trades 40.53 billion, Sell trades 37.93 billion, Turnover 78.46 billion
  • GOLDWIND (2208): Buy trades 40.03 billion, Sell trades 33.23 billion, Turnover 73.26 billion
  • GEELY AUTO (175): Buy trades 32.37 billion, Sell trades 27.23 billion, Turnover 59.60 billion
  • SMIC (981): Buy trades 27.05 billion, Sell trades 29.05 billion, Turnover 56.10 billion
  • CHINA SHENHUA (1088): Buy trades 50.89 billion, Sell trades 487.46 million, Turnover 51.38 billion

Short Sell Activity

• Top 10 Short Sell Stocks:
  • TENCENT (00700.HK): Short Sell 798.24M, Turnover 6.52B, Short Sell Ratio 12.25%
  • PING AN (02318.HK): Short Sell 596.72M, Turnover 3.46B, Short Sell Ratio 17.23%
  • ICBC (01398.HK): Short Sell 249.62M, Turnover 1.26B, Short Sell Ratio 19.83%
  • CCB (00939.HK): Short Sell 147.38M, Turnover 1.32B, Short Sell Ratio 11.18%
  • SHK PPT (00016.HK): Short Sell 135.75M, Turnover 396.24M, Short Sell Ratio 34.26%
  • SUNNY OPTICAL (02382.HK): Short Sell 129.10M, Turnover 612.82M, Short Sell Ratio 21.07%
  • BANK OF CHINA (03988.HK): Short Sell 114.17M, Turnover 706.08M, Short Sell Ratio 16.17%
  • AIA (01299.HK): Short Sell 91.05M, Turnover 910.87M, Short Sell Ratio 10.00%
  • GEELY AUTO (00175.HK): Short Sell 90.77M, Turnover 654.78M, Short Sell Ratio 13.86%
  • GALAXY ENT (00027.HK): Short Sell 87.71M, Turnover 854.73M, Short Sell Ratio 10.26%

China's Property Market Policy

• China aims to stabilize home prices by increasing the supply of rental homes.
• The government is encouraging developers to build more rental homes and allowing greater flexibility in land use.
• The rental market is currently estimated at RMB1.3 trillion, and is expected to grow to RMB4.2 trillion by 2030.
• Some developers, such as Vanke, are expanding their rental home portfolios.
• Property management companies are expected to benefit from the government's support policies.

Economic Calendars

• Mon & Tue: Markets closed in H.K., U.K., Germany, and France.
• Thu: Japan released Nov. Retail Trade (YoY) at 1.0%, up from -0.2%.
• Fri: Germany released Dec. CPI (YoY) at 1.5%, down from 1.8%.
• Sun: China released Dec. Official Manufacturing PMI at 51.7, down slightly from 51.8.

Disclaimer

• The information and opinions in this report are for informational purposes only.
• KGI Asia Ltd. does not make any warranty or guarantee regarding the accuracy or completeness of the information.
• No liability is accepted for any loss arising from the use of this report.