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<On Move> Alibaba Leads Market; HSTECH Surges Over 3% to Reclaim 5,000; CATL Jumps 9%
Recommend 7 Positive 4 Negative 6 |
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Hopes for progress in US-Iran negotiations, coupled with China reporting 1Q26 YoY growth of 5% (forecast +4.8%), lifted Hong Kong equities further today (16th). Overnight (15th), the DJIA and Nasdaq fell 0.2% and rose 1.6%, respectively. At the time of writing, the US 2-year Treasury yield declined to 3.753%, while the US 10-year Treasury yield stood at 4.256%. The US Dollar Index rose to 98.15. DJIA futures last gained 18 points or 0.04%, while Nasdaq futures added 65 points or 0.25%. China reported March Added Value of Industries Above Designated Scale rising 5.7% YoY (market consensus 5.3%), March Total Retail Sales of Social Consumer Goods increasing 1.7% YoY (consensus 2.4%), and 1Q26 Urban Fixed Asset Investment growing 1.7% YoY (consensus 1.9%). The Shanghai Composite Index closed up 28 points or 0.7% at 4,055, the Shenzhen Component Index rose 2.1%, and the ChiNext Index advanced 3.2%. Total turnover on the Shanghai and Shenzhen markets reached RMB2.34 trillion. The HSI opened 175 points higher and extended gains, once rising 455 points to an intraday peak of 26,403. It closed up 446 points or 1.7% at 26,394. The HSCEI gained 186 points or 2.1% to 8,905. The HSTECH reclaimed the 5,000 mark, surging 180 points or 3.7% to close at 5,092. Total market turnover amounted to HKD256.228 billion. Southbound trading turnover totaled HKD106.492 billion, with net inflow of HKD4.291 billion today (previous trading day: net inflow of HKD4.221 billion). Sigenergy (06656.HK), a major Chinese provider of stackable distributed solar-storage integrated solutions, debuted on its first trading day, closing at HKD659.5, up 103.4% from its listing price of HKD324.2. Full-day turnover reached HKD4.596 billion. Excluding fees, each board lot of 100 shares generated a book gain of HKD33,530. HSTECH Reclaims 5,000; Alibaba and Baidu Strong Technology stocks were sought after. Alibaba Cloud will raise prices for certain MU model unit services by 2% to 7% from mid-next month. BABA-W (09988.HK) climbed 5.6% with turnover of HKD17.1 billion. BIDU-SW (09888.HK) jumped 7.7% to close at HKD123.3. Kingsoft Cloud (03896.HK) and TENCENT (00700.HK) rose 6.4% and 3.6%, respectively, while LENOVO GROUP (00992.HK) gained 4.9%. AI-related stocks Zhipu (02513.HK) and MiniMax-W (00100.HK) advanced 1.8% and 6.3%, respectively. Deep Tech (01384.HK) surged 29.5% with turnover of HKD3.07 billion. Xunce (03317.HK) rose 10.5% with turnover exceeding HKD2.1 billion. Jefferies released a report previewing 1Q26 results for Chinas internet and technology sector, expecting AI-driven cloud revenue acceleration and better-than-expected performance in logistics and e-commerce. Based on previews of around 20 companies across industries over the past two weeks, cloud service providers outperformed expectations; vertical segments progressed in line with or above expectations; the logistics sector benefited from the "anti-involution" trend and strong execution; and online shopping and entertainment businesses were broadly in line with forecasts. The broker expects positive surprises including higher-than-expected intelligent cloud infrastructure revenue at BIDU (09888.HK), and stronger-than-expected 1Q26 earnings at JD-SW (09618.HK) and JD LOGISTICS (02618.HK). It forecasts BIDUs AI cloud infrastructure revenue to grow more than 40% YoY, significantly above market consensus. Alibaba Cloud revenue is also expected to rise 40% YoY, driven by surging AI demand and higher token consumption. 1,300 Stocks Rise; CATL Gains Post-Results Market breadth improved, with the ratio of advancers to decliners on the Main Board at 32:19. A total of 1,327 stocks rose (up 3.01%). Among HSI constituents, 61 stocks advanced while 26 declined, with a ratio of 68:29 (previous session: 68:32). Short selling amounted to HKD43.936 billion, accounting for 20.185% of turnover of HKD217.666 billion in eligible securities. Battery maker CATL (03750.HK) surged 9% to close at HKD714.5, with turnover of HKD4.089 billion. CLSA noted in a report that CATLs 1Q26 net profit rose 49% YoY to RMB20.7 billion, while declining 10% QoQ. Despite rising lithium prices since the beginning of the year, the company demonstrated resilience, with 1Q26 results slightly beating expectations. Gross margin was 24.8% in 1Q26, up 0.4 ppts YoY but down 3.4 ppts QoQ, slightly below expectations but better than market concerns. The broker expects 2026 to mark the trough for gross margin and anticipates improvement from 2Q26 onward, supported by cost pass-through. It raised earnings forecasts for 20262028 by 2% to 3% and lifted the TP for CATLs H shares to HKD740 from HKD710, reiterating a Conviction List Buy rating. (wl/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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