Market Summary
Core Content
This document provides an overview of major market indicators, technical analysis, company updates, stock connect statistics, actively traded stocks, short sell data, and economic calendars for the Hong Kong and Chinese markets as of early November. It includes details on the Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI), their respective performance, technical indicators, and related market activity. Additionally, it highlights recent corporate results and upcoming events that may impact market sentiment.
Major Market Indicators
| Indicator |
10 Nov |
9 Nov |
8 Nov |
| HSI |
29,120 |
29,136 |
28,907 |
| HSI Change |
-15 |
+228 |
-86 |
| HSI Turnover (bn) |
36.57 |
37.48 |
46.70 |
| HSCEI |
11,745 |
11,744 |
11,576 |
| HSCEI Change |
+1 |
+168 |
-69 |
| HSCEI Turnover (bn) |
20.99 |
21.11 |
20.44 |
- The HSI closed at 29,120 points on 10 Nov, with a slight drop of 15 points.
- The HSCEI closed at 11,745 points, showing a minimal increase of 1 point.
- Market turnover increased significantly, reaching $109.4 billion on 10 Nov.
- Capital inflow to Chinese insurers and blue-chip stocks was strong, with some hitting all-time highs.
Technical Analysis
Hang Seng Index (HSI)
- Technical Indicators:
- 10-day MA: 28,705
- 50-day MA: 28,199
- 250-day MA: 25,255
- 14-day RSI: 65.26
- Key Levels:
- Resistance: 29,500 (primary), 30,000 (secondary)
- Support: 28,560 (primary), 28,199 (secondary)
- Trend: The index is climbing upwards, with the MACD bullish gap expanding. It surpassed 29,000 last week.
Hang Seng China Enterprises Index (HSCEI)
- Technical Indicators:
- 10-day MA: 11,615
- 50-day MA: 11,348
- 250-day MA: 10,445
- 14-day RSI: 60.69
- Key Levels:
- Resistance: 12,000 (primary)
- Support: 11,567 (primary)
- Trend: The HSCEI is also showing an upward trend, with technical indicators improving.
Company Updates
Hang Seng Index Company: Quarter Review
- Changes Effective 4 Dec:
- Removed: Cathay Pacific (293), Kun Lun (135)
- Added: Country Garden (2007), Sunny Optical (2382)
- Weighting:
- Country Garden: 0.99%
- Sunny Optical: 1.01%
- Fund Impact:
- Fund inflow for Sunny Optical and Country Garden: HK$1.59bn and HK$1.55bn respectively
- Fund outflow for Cathay Pacific and Kun Lun: 1.9 days and 4.6 days respectively
- Other Changes:
- GAC (2238) added to H share index
- Longyuan Power (916) excluded from H share index
- Tencent (700) weighting reduced from 11.58% to 10.0%
Swire Pacific (1972)
- Quarterly Operating Data:
- Occupancy rate for HK office: 99%
- Occupancy rates for major properties: 15%, 8%, 3%, 10%
- Retail sales growth: +5.4% for Hong Kong, +2.9% to +70.5% for mainland China
- Valuation:
- Trading at P/B of 0.7x, fair valuation
- Short-term share price range: HK$26 to HK$28
Sino Biopharm (1177)
- Q3 Results:
- Revenue increased 9.5% YoY to RMB1.15 billion
- Profit rose 38.9% YoY to RMB1.8 billion
- Declared third quarterly dividend of HK2 cents per share
- Performance Drivers:
- Stable revenue growth
- Reduced administrative expenses
- Non-ordinary income of RMB150 million
- Challenges:
- Oncology sales decreased by 9.3% YoY to RMB1.23 billion
- Expected improvement in the future with new drug approvals
- Valuation:
- Projected FY18 P/E ratio: 32.1x
- Valuation is not attractive compared to peers
- Not recommended to buy at current price
Stock Connect Statistics
SH-HK Connect
| Indicator |
Balance (RMB bn) |
% of Quota |
| SH Connect |
12.79 |
98.35% |
| SZ Connect |
12.83 |
98.65% |
| Combined Southbound |
16.78 |
79.91% |
Top 10 Most Actively Traded Stocks (SH-HK Connect Southbound)
| Stock Name |
Code |
Buy Trades (RMB) |
Sell Trades (RMB) |
Turnover (RMB) |
| ICBC |
1398 |
469,807,340 |
230,538,888 |
700,346,228 |
| SMIC |
981 |
220,119,390 |
249,726,246 |
469,845,636 |
| TENCENT |
700 |
222,789,120 |
192,853,920 |
415,643,040 |
| SUNAC |
1918 |
185,789,900 |
113,243,100 |
299,033,000 |
| CPIC |
2601 |
234,385,250 |
41,309,480 |
275,694,730 |
| PING AN |
2318 |
237,637,900 |
33,542,150 |
271,180,050 |
| NCI |
1336 |
170,605,615 |
82,266,630 |
252,872,245 |
| GEELY AUTO |
175 |
149,179,200 |
95,837,850 |
245,017,050 |
| AAC TECH |
2018 |
192,632,500 |
34,164,000 |
226,796,500 |
| FOSUN INTL |
656 |
103,554,820 |
111,868,432 |
215,423,252 |
Top 10 Most Actively Traded Stocks (SZ-HK Connect Southbound)
| Stock Name |
Code |
Buy Trades (RMB) |
Sell Trades (RMB) |
Turnover (RMB) |
| ZTE |
763 |
249,430,140 |
76,854,760 |
326,284,900 |
| SMIC |
981 |
193,109,470 |
115,728,360 |
308,837,830 |
| PING AN |
2318 |
206,472,900 |
6,326,925 |
212,799,825 |
| TENCENT |
700 |
195,868,320 |
13,635,760 |
209,504,080 |
| NCI |
1336 |
97,748,260 |
42,312,380 |
140,060,640 |
| GOLDWIND |
2208 |
82,993,836 |
55,702,886 |
138,696,722 |
| FOSUN INTL |
656 |
45,317,010 |
80,812,130 |
126,129,140 |
| SUNNY OPTICAL |
2382 |
59,142,000 |
42,040,000 |
101,182,000 |
| AAC TECH |
2018 |
94,688,200 |
6,162,650 |
100,850,850 |
| SUNAC |
1918 |
65,214,750 |
22,234,150 |
87,448,900 |
Ten Most Actively Traded Stocks
| Stock Name |
Code |
Change |
Closed Price |
Turnover (Million) |
| TENCENT |
700 |
-0.62% |
385.40 |
6645.9 |
| PING AN |
2318 |
+3.20% |
75.80 |
4129.8 |
| CHINA LIFE |
2628 |
+0.73% |
27.70 |
2138.0 |
| CHINA MOBILE |
941 |
+0.82% |
80.30 |
2007.1 |
| SMIC |
981 |
-2.26% |
13.84 |
1831.2 |
| CCB |
939 |
-0.73% |
6.83 |
1828.0 |
| ICBC |
1398 |
-1.12% |
6.20 |
1793.4 |
| SUNNY OPTICAL |
2382 |
+0.79% |
140.60 |
1682.3 |
| CHINA LIT |
772 |
-3.46% |
100.40 |
1555.6 |
| AAC TECH |
2018 |
+3.93% |
169.40 |
1555.2 |
Ten Short Sell Stocks
| Stock Name |
Code |
Short Sell (RMB) |
Turnover (RMB) |
Short Sell Ratio |
| PING AN |
02318.HK |
1.11B |
4.13B |
26.96% |
| TENCENT |
00700.HK |
952.62M |
6.65B |
14.33% |
| ICBC |
01398.HK |
401.76M |
1.79B |
22.40% |
| AAC TECH |
02018.HK |
399.90M |
1.56B |
25.71% |
| BANK OF CHINA |
03988.HK |
278.29M |
1.23B |
22.70% |
| CCB |
00939.HK |
250.61M |
1.83B |
13.71% |
| CHINA LIFE |
02628.HK |
239.53M |
2.14B |
11.20% |
| AIA |
01299.HK |
204.71M |
1.26B |
16.19% |
| PETROCHINA |
00857.HK |
151.74M |
793.12M |
19.13% |
| CNOOC |
00883.HK |
141.51M |
674.21M |
20.99% |
Economic Calendars
| Date |
Country |
Event |
Survey |
Prior |
| Tue |
China |
Oct. Retail Sales (YoY) |
10.4% |
10.3% |
|
China |
Oct. Industrial Production (YoY) |
6.3% |
6.6% |
|
China |
Oct. Fixed Assets Ex-Rural (YoY YTD) |
7.3% |
7.5% |
|
Eurozone |
3Q GDP (YoY) |
2.5% |
2.5% |
|
U.K. |
Oct. CPI (YoY) |
3.2% |
3.0% |
|
Eurozone |
Major central bank officials speak |
- |
- |
| Wed |
H.K. |
Tencent (0700) releases 3Q earnings |
- |
- |
|
Japan |
3Q GDP (YoY) |
1.5% |
2.5% |
|
U.S. |
Oct. CPI (YoY) |
2.0% |
2.2% |
|
U.S. |
Oct. Advance Retail Sales (MoM) |
0.1% |
1.6% |
| Thu |
Eurozone |
Oct. CPI (YoY Finalized) |
1.4% |
1.5% |
|
U.S. |
Initial Jobless Claims (Nov. 11) |
- |
239K |
|
U.S. |
Continuing Claims (Nov. 4) |
- |
1,901K |
|
U.S. |
Oct. Industrial Production (MoM) |
0.4% |
0.3% |
| Fri |
U.S. |
Oct. New Housing Starts |
1,188K |
1,127K |
- The MSCI quarterly review is expected on Tuesday.
- The U.S. and Eurozone will release key economic data this week.
- The U.S. CPI and retail sales data will be closely watched.
- The European Central Bank meeting is a key event for market focus.
Disclaimer
- The information and opinions in this report are for informational purposes only.
- No liability is accepted for any loss arising from the use of this report.
- This report is not an invitation or offer to buy or sell securities.
- It is subject to change without notice.
- KGI Asia Ltd. does not guarantee the accuracy or completeness of the data.
