HK Stocks Close Higher. Ganfeng Lithium Soars 13%, Smoore Intl Jumps 7%

Market Watcher11-19 16:26

Hong Kong stock market higher on Monday. The Hang Seng Index (HSI) rose by 0.44%, the Hang Seng China Enterprises Index (HSCEI) increased by 0.36%, the Hang Seng Tech Index (HSTECH) gained 1.23%, and the Hang Seng China-Affiliated Corporations Index (HSCCI) was up by 0.31%.

In terms of industry sectors, the tobacco stocks saw significant gains, with SMOORE INTL rising by 7.42%. The gold sector also performed well, with ZIJIN MINING up by 4.70%. The Apple concept stocks showed notable increases, with BYD ELECTRONIC surging by 6.33%. The property management sector also saw gains, with CG SERVICES increasing by 6.19%. The electric equipment sector followed, with SH ELECTRIC rising by 6.12%. The semiconductor sector also performed well, with SMIC up by 2.46%.

SF HOLDING plans to issue 170 million H shares with an offer price ranging from HKD 32.3 to HKD 36.3, aiming to raise up to HKD 6.17 billion. The stock is expected to be listed on November 27.

BABA-W fell by 1.22%. Alibaba Group's chairman, Joe Tsai, mentioned at the International Financial Leaders Investment Summit that the global supply chain is becoming fragmented, impacting China's manufacturing sector in the short term but benefiting developing countries in the long run. Alibaba's dual primary listing in Hong Kong and New York allows it to access mainland investors, providing liquidity. Tsai also discussed the importance of AI and cloud technology, as well as changes in the global supply chain and China's manufacturing position. Additionally, Alibaba has provided initial price guidance for its $5 billion dual currency bond, consisting of a U.S. dollar tranche and an offshore yuan tranche with various maturities.

XIAOMI-W dropped by 1.74%. As of the week ending November 17, Nio had 3,800 insurance registrations, Tesla had 17,100, and Xiaomi had 5,700. Last week, Li Auto had 12,300 insurance registrations, Xpeng had 6,300, Zeekr had 6,000, Leapmotor had 8,500, and Aiways had 7,200.

TRIP.COM-S surged by 5.81% after reporting better-than-expected quarterly earnings.

XPENG-W rose by 3.49%. Xpeng Inc., the hottest electric vehicle stock in China, is facing an earnings test after a 93% run. While Tesla Inc. is grabbing the headlines, investors have rapidly warmed to Xpeng's product strategy.

GANFENGLITHIUM surged by 13.28%, and TIANQI LITHIUM rose by 9.80%. Lithium carbonate futures recently returned to 80,000 yuan. In addition, lithium carbonate futures have been rising steadily, from 68,600 yuan on October 18 to 81,300 yuan now, with a cumulative increase of 18.59% during the period.

NIO-SW increased by 5.15%. As of the week ending November 17, Nio had 3,800 insurance registrations, Tesla had 17,100, and Xiaomi had 5,700. Last week, Li Auto had 12,300 insurance registrations, Xpeng had 6,300.

Benefiting from multiple positive news, most Hong Kong auto stocks strengthened. According to insiders, the team of U.S. President-elect Trump plans to prioritize "building a federal framework for fully autonomous vehicles" as a priority for the U.S. Department of Transportation. If new regulations make fully autonomous vehicles possible, Tesla CEO Elon Musk, a major donor to Trump, will directly benefit. This news boosted the stock prices of electric vehicle companies listed in the U.S.

According to the research team of the New Energy Division of Shanghai Steel Union, "The core of this round of rising market is the continuous destocking pressure caused by short-term demand exceeding expectations, thereby promoting the market to restore the price level of this variety." From the perspective of automobile sales, in October this year, the production and sales of new energy vehicles completed 1.463 million and 1.43 million units, respectively, a year-on-year increase of 48% and 49.6%; from January to October this year, the sales of new energy vehicles in China accounted for 39.6% of the total sales of new cars.

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