Hong Kong stocks closed (09.06) | The Hang Seng Index fell by 0.04%. Real estate and property management stocks led the way throughout the day. SUNAC (01918) surged 1.8 times in the past 3 days.

The Hang Seng Index opened down 0.28% in Hong Kong. In the morning session, the Hang Seng Index fell rapidly after a lower opening, dropping nearly 200 points at one point. In the afternoon, the index slightly rebounded and turned positive briefly, but then fell again. At the close, the Hang Seng Index fell 0.04% or 6.93 points to 18,449.98 points, with a total turnover of HKD 92.928 billion. The Hang Seng China Enterprises Index rose 0.11% to 6,403.7 points, while the Hang Seng Tech Index fell 0.4% to 4,176.84 points. BOCOM INTL pointed out that the short selling of Hong Kong stocks is currently relatively high, which means the potential for upward momentum should not be underestimated. Although the proportion of short selling relative to market value has fallen to a reasonable level, the proportion relative to trading volume remains high. This means that under extremely low valuations and with the implementation of strong policies, the market's upward momentum should not be underestimated. Blue-chip stocks performance: CG SERVICES (06098) led the gains in blue-chip stocks. At the close, it rose 5.85% to HKD 10.14, with a turnover of HKD 902 million, contributing 2.05 points to the Hang Seng Index. EB SECURITIES recently pointed out that as a leading property management company, the company has brand and scale advantages. After restructuring its operations in the first half of 2023, it is expected to return to a high-quality growth trajectory. The rating was maintained as "Buy". In other blue-chip stocks, LONGFOR GROUP (00960) rose 4.56% to HKD 17.9, contributing 2.44 points to the Hang Seng Index; Semiconductor Manufacturing International Corporation (00981) rose 2.39% to HKD 21.45, contributing 3.39 points to the Hang Seng Index; TECHTRONIC IND (00669) fell 2.72% to HKD 76.9, dragging down the Hang Seng Index by 5.47 points; SHENZHOU INTL (02313) fell 2.72% to HKD 77, dragging down the Hang Seng Index by 2.91 points. Hot sectors: On the market, real estate and property management stocks rose against the trend today, with satellite and wireless communications, film and entertainment, and semiconductor sectors leading the gains. In addition, most large-cap technology stocks fell, while biopharmaceuticals, shipping and ports, and education sectors lagged behind. 1. Real estate and property management stocks surged. At the close, EVERGRANDE (03333) rose 82.86% to HKD 0.64; SUNAC (01918) rose 68.35% to HKD 2.66; SHIMAO GROUP (00813) rose 53.09% to HKD 1.24; SUNAC SERVICES (01516) rose 12.98% to HKD 2.96; EVERG SERVICES (06666) rose 11.39% to HKD 0.88. Chinese Securities Daily commented that to further boost the real estate market and stabilize the confidence and expectations of potential homebuyers, restrictive policies on real estate purchases and sales in non-tier-one hot cities could be removed on a case-by-case basis as soon as possible. Morgan Stanley pointed out that excluding the net loss in the first half of the year, the core profit of the real estate sector fell by 6% year-on-year, while property management companies on average grew by 6% year-on-year. The differentiation between state-owned enterprises and private enterprises still exists. Although there are industry fluctuations, some companies' growth has not deviated. CICC believes that the policy intensity and implementation progress have exceeded market expectations, and it is expected to drive the recovery of the real estate market in high-tier cities above the high-energy level and the recovery of the fundamentals. CICC continues to be optimistic about the performance of real estate stocks in the next 3 to 6 months. The list of stocks eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect has recently been adjusted. SUNAC is the only real estate company that was included in the adjustments, which took effect from September 5. The stock has achieved a cumulative increase of more than 180% over the past three trading days. It is reported that the company was removed from the Stock Connect list on July 11, 2022. Industry insiders believe that SUNAC's re-inclusion in the Stock Connect program is expected to receive liquidity support from southbound funds. In addition, SUNAC released a poster on September 4th, showing that its Beijing project "Rongchuang Yihao Courtyard" is hot selling, with prices starting from 30 million yuan per unit and a total subscription amount of 5.62 billion yuan. 2. Oil stocks rebounded in the late trading session. At the close, China Oilfield Services (02883) rose 2.99% to HKD 9.63; CNOOC (00883) rose 2.19% to HKD 14; KUNLUN ENERGY (00135) rose 1.32% to HKD 6.15; PetroChina (00857) rose 0.17% to HKD 5.85. Official Saudi news agency, Saudi Press Agency, announced that the measure of reducing daily oil production by 1 million barrels in Saudi Arabia will be extended until December. This will keep Saudi Arabia's daily production at around 9 million barrels, the lowest level in years. As global oil demand reaches record highs, the global crude oil market is tightening, and oil prices have regained their summer rally. Saudi Arabia's actions exceeded market expectations. Goldman Sachs stated that Saudi Arabia and Russia's decision to extend voluntary production cuts until the end of the year creates bullish risks for oil prospects. OPEC stated in its monthly oil market report released on Thursday that with the improvement in the global economic growth outlook, the organization believes that the oil market outlook for the second half of this year is healthy and maintains its strong oil demand forecast for 2024. 3. CRO concept stocks declined. At the close, WuXi AppTec (02359) fell 6.03% to HKD 81; Pharmaron Beijing (03759) fell 5.53% to HKD 17.08; FRONTAGE (01521) fell 4.15% to HKD 2.08; Joinn Laboratories (06127) fell 3.51% to HKD 14.84. Soochow believes that the domestic clinical CRO industry is still in its early stages with low industry concentration. Under the background of stricter industry regulation and the emergence of the advantages of top companies in terms of project experience, SOP quality management system, and integrated platform capabilities, the market share of top companies in the industry is expected to significantly increase. Improvement. At the same time, affected by the downturn in bio-pharmaceutical investment and financing, the industry's demand release is under pressure, which will accelerate the pace of small and medium-sized clinical CRO clearing. Pacific Securities pointed out that in terms of CXO, according to data from Bio World, global emerging biotechnology investment has shown clear positive growth year-on-year, with a 33% increase in Q2 compared to the same period last year, and a 10% increase compared to Q1. However, due to factors such as the economic situation and capital market conditions, the domestic situation is still in a slump.4. Shipping sector fell today. As of the closing, COSCO Shipping Energy Transportation (01138) fell 5.9%, to HKD 7.81; The Pacific Shipping (02343) fell 3.54%, to HKD 2.18; SITC (01308) fell 3.01%, to HKD 14.2; OOIL (00316) fell 2.66%, to HKD 102.4. On September 5th, shipping index (Europe) futures rose sharply, with multiple contracts including the main contract EC2404 hitting the limit up at one point. EC2404 closed at 969.0 points, an increase of 9.75%. On September 6th, the main contract for shipping index (Europe) futures fell more than 2%. Gao Mingyu, Chief Analyst of the Energy Division at Guotou Anxin Futures, said that from a fundamental perspective, it is difficult to judge whether the European replenishment cycle will start in the spring of next year, but the delivery time for large container ships is relatively certain and the oversupply pattern is difficult to change. The expectation of weak fundamentals may gradually be reflected in trading, especially considering that the current main contract price is already more than 70 points higher than the spot price, which may face certain pressure. In addition, Saudi Arabia and Russia officially announced the extension of crude oil production reduction measures until the end of 2023, further exacerbating the market's expectation of weakened future demand. Hot Stocks 1. GOME RETAIL (00493) surged with high volume, institutions optimistic about the recovery of home terminal sales Galaxy Securities believes that the official attitude towards real estate support is clear, and it is optimistic about the release of reasonable housing demand. At the same time, the Ministry of Commerce has called for the organization of the "Home Renovation Consumption Season" nationwide from September to December. With the call from the Ministry of Commerce, it is expected that all parties will actively participate and organize a series of substantial and attractive activities, which will stimulate consumer desire and coincide with the traditionally prosperous season in September and October. The recovery of terminal sales of home furnishings during the event is optimistic. As of the closing, the stock rose 24.07%, to HKD 0.067. 2. STAR CM (06698) surged in the afternoon, the company stated that it will take legal action against rumors STAR CM announced that it is conducting further investigations into the suspension of broadcasting "China's Got Talent" by Zhejiang TV and certain events revealed in recent media reports. The company is fully supporting and cooperating with the investigation, providing all necessary assistance. The company stated that it expects the investigation results to reveal the truth of the events and bring peace to the deceased. The company also stated that it has appointed a law firm to take legal action to protect its own rights against the large number of false rumors fabricated and disseminated on the Internet and media. As of the closing, the stock rose 17.85%, to HKD 29.05. 3. SILKWAVE INC (00471) rose at the end of the day due to the signing of a service agreement for L-band satellite services Huawei launched the "HUAWEI Mate 60 Pro Pioneer Plan" for the new generation Mate flagship, which went on sale on Huawei Mall. According to official mall information, the Mate 60 Pro is equipped with satellite communication using high orbit TianTong satellite services. SILKWAVE INC announced earlier that it has signed a service agreement with a satellite communication operator in Shanghai. As the service provider, the company will provide necessary L-band spectrum capacity and related technologies, while the operator will provide satellite-related services including mobile communication and navigation services in mainland China. As of the closing, the stock rose 11.54%, to HKD 0.435. 4. CHINASOFT INT'L (00354) reaches a new high in nearly half a year, HarmonyOS 4 upgrade surpasses 10 million HarmonyOS announced that the HarmonyOS 4 upgrade has surpassed 10 million and more public beta upgrade models have been announced. In addition, analyst Guo Mingyu's latest survey and estimation on September 5th stated that the demand for Mate 60 Pro has been strong since it went on sale on August 29th, and the shipment plan for the second half of 2023 has increased by about 20% to 5.5 million-6 million units. Bank of America Securities recently pointed out that if ChinaSoft's major customer Huawei makes further progress in the smartphone business, it will further promote the group's revenue growth. As of the closing, the stock rose 7.62%, to HKD 5.93.