00386 Overview

Morgan Stanley's Market Strategy: The report highlights new additions to the focus list for Hong Kong and Chinese markets, including GIGADEVICE and SINOPEC CORP, while removing SUNNY OPTICAL and ESPRESSIF.

Stock Performance: Notable stock movements include SINOPEC CORP and CHALCO showing gains, while GIGADEVICE and SUNNY OPTICAL experienced declines, with significant short selling activity reported across various stocks.

Market Opening Trends: The HSI opened 1.2% lower at 26,305, with significant declines in the HSCEI and HSTECH, while energy stocks like SINOPEC and PETROCHINA saw gains due to rising oil prices.

Loan Prime Rate Stability: China's 1Y Loan Prime Rate remains unchanged at 3%, aligning with forecasts, indicating stability in the financial sector.

Shipping and Gold Stocks Performance: Shipping stocks advanced at the open, with OOIL and COSCO SHIP HOLD rising, while gold stocks rallied due to increasing gold prices, with notable gains for SD GOLD and ZHAOJIN MINING.

Tech and Automotive Sector Movements: Tech stocks like TENCENT and JD-SW showed slight increases, while major players like BABA-W and NIO-SW experienced declines, reflecting mixed performance across the sector.

US Military Action: The US military killed Iran's Supreme Leader Ayatollah Ali Khamenei, prompting Iran to retaliate by attacking Middle Eastern countries and closing the Strait of Hormuz.

Oil Price Surge: Following the military action, international oil prices surged by over 10%, with Brent and New York oil futures both increasing by more than 5%.

Chinese Oil Stocks Performance: In Hong Kong, Chinese oil companies CNOOC, SINOPEC, and PetroChina saw their stock prices rise against market trends, with significant trading volumes reported.

Short Selling Data: The short selling ratios for the Chinese oil stocks indicated varying levels of market speculation, with CNOOC at 17.285%, SINOPEC at 22.220%, and PetroChina at 40.176%.

Expansion of Overseas Retail Market: Since 2018, Sinopec Hong Kong has been actively expanding its overseas retail market, focusing on establishing hydrogen fueling stations in various countries.

Current Operations in Singapore: The company currently operates four hydrogen fueling stations in Singapore, marking a significant step in SINOPEC CORP's brand expansion abroad.

Market Overview: The DJIA fell 1.3% as tech stocks were sold off, leading to a similar decline in the Hong Kong stock market, where the HSI ended down 1.7% at 26,567.

Financial Sector Performance: Major financial stocks like HSBC and HKEX dropped by 2.7% and 2.1%, respectively, while Bank of East Asia plunged 11% after reporting a significant profit drop and dividend cut.

Commodity and Gold Prices: Gold prices fell below USD 5,000/oz, impacting gold mining stocks, which saw declines of 5.9-7.6%. Oil prices also dropped nearly 3%, affecting major oil companies.

Tech Sector Decline: The tech sector experienced minor declines, with Tencent and Alibaba seeing drops of around 0.7% to 2.0%, while other tech stocks like Meituan and Baidu fell over 3%.

Market Performance: The Hang Seng Index (HSI) fell by 465 points (1.7%) to close at 26,567, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $257.58 billion.

Active Heavyweights: Major stocks like Meituan, Ping An, and HKEX saw significant drops, with Meituan down 3.2% and Ping An down 2.2%. Xiaomi was the only heavyweight to gain, closing up 0.9%.

Notable Declines: Several constituents of the HSI and HSCEI, including Zijin Mining and Sinopec Corp, experienced substantial losses, with Zijin Mining dropping 7.6% and Sinopec Corp down 5.1%.

Gainers and New Highs: Despite the overall market decline, some stocks like Haidilao and WH Group saw gains, with Haidilao up 3.1% and WH Group hitting a new high, closing up 0.9%.