Hang Seng Index Goes Down More Than 1% Hang Seng Technology Index Down Nearly 4% Bilibili Down More Than 9%

Tencent Securities on January 5, the Hong Kong stock Hang Seng Index slightly higher after the lower, as of press time, the Hang Seng Index fell 1.05% to 23043 points; The Hang Seng Technology Index fell 3.86% to 5367 points.

Technology stocks fell, with Bilibili down more than 9 percent, Meituan down nearly 8 percent, JD.com down nearly 7 percent, and Kuaishou down more than 6 percent.

China Huarong plunged 40% to HK$0.61, and its share price was fixed at HK$1.02 after the suspension of trading on 1 April 2021, after Huarong announced that it had signed share subscription agreements with investors CITIC Group, China Insurance Investment, China Cinda, Chinese Life and ICBC Investment respectively. After the introduction, the Ministry of Finance remained huarong's largest shareholder, and CITIC Group became the second largest shareholder.

Auto stocks continued to decline, with Xiaopeng Automobile falling more than 7%, Ideal Automobile falling more than 6%, Great Wall Motor and Geely Automobile falling more than 4%, and BYD shares falling more than 3%.

SenseTime fell more than 6 percent after four consecutive days of sharp gains.

China Mobile H shares opened 5% higher. China Mobile announced on the Hong Kong Stock Exchange on January 4 that it plans to exercise its powers under the repurchase authorization to buy back Hong Kong shares on the Hong Kong Stock Exchange. The number of Repurchased Hong Kong Shares shall not exceed 2,047,548,289 Hong Kong Shares, which shall not exceed 10% of the number of Hong Kong Shares issued on the date of the 2021 Annual General Meeting.

With the Company proposing to issue 295.7 million shares at a subscription price of HK$530 per share, the Company proposes to issue approximately HK$1,567 million and up to approximately HK$1.57 billion at a subscription price of HK$5.57 billion

CICC Wang Hanfeng's team believes that the various twists and turns and weak performances of the past year have become the past, and in 2022, the value of Hong Kong stocks may gradually appear again. Given the favorable policy environment and lower valuation levels, 2022 could be a year of mean reversion. Of course, a stronger market rally may also need to be supported by positive factors such as an upward revision of earnings expectations and clearer regulatory policies.

In the short term, it is expected that the market transactions will continue to be light, and the current fragile emotional repair may take some time, but with the gradual subsidence of short-term uncertainty and the further landing of the stable growth policy in the year, the overseas Chinese stock market is expected to gradually rebound, thereby attracting more capital inflows.