Daily Investment Strategy
Hang Seng Index fell 66 points on Monday
HSI opened 189 points lower, then rose 76 points to reach a peak of 20,086, and then fell again. It fell 66 points or 0.3% to close at 19,943 today; HSTECH fell 20 points or 0.5% to close at 3,989. HSCEI fell 33 points to close at 6,670. The market's full-day turnover totaled HK$112.4bn. It was rumored that BYD (1211) dealers in some regions had promotional activities. Market worried that BYD's profitability would be suffered. BYD's share price fell 3.4%. Catering stock Haidilao (6862) predicts that last year's profit will not be less than RMb1.3bn, the stock price rose 13.7%.
Durable goods orders excluding non-defense capital growth higher than consensus
The U.S. durable goods orders fell by 4.5% in January, a larger-than-expected 3.6% drop and the largest drop since April 2020. The sluggish domestic manufacturing industry has led to a decline in demand for ordered goods, but non-defense capital goods orders excluding aircraft increased by 0.8% MoM, which was significantly different with the consensus of -0.1% growth. This may imply that domestic manufacturing industry continues to invest in capital. The Manufacturing started to beoptimistic that the economy may not be worse than expectation. The subsequent rebound in the manufacturing PMI in February is one of the evidences.
The three major U.S. stock indexes rebounded on Monday. The Nasdaq rose 72 points, or 0.63%, to 11,466; the Dow Jones rose 72 points, or 0.22%, to 32,889. The S&P 500 rose 12 points, or 0.31%, to close at 3,982.
Chinese Gov. continue to tighten short video restriction
The China NRTA continue to tighten the development of short videos. NRTA held a meeting on 22 February to study strengthening the management of short videos. The key point is that the algorithm management needs to be implemented to promote the healthy development of short videos. It is believed that the intervention of the Chinese government may require these short video platform companies, such as TikTok or Kuaishou, to modify their algorithms, thereby affecting the number of contacts of the short video.
Hong Kong Stock Connect had a net inflow of HK$6.05bn on Monday, of which Tencent Holdings (0700) had the largest net inflow of HK$1.5bn; followed by Tracker Fund (2800). BYD (1211) recorded the largest net outflow of HK$200mn; followed by China Telecom (0728).
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