freevideopokerslotmachines| It was bullish, soaring by 1427 points in 5 days! Funds from the south bought heavily and won 12 shares with more than 50% of the outstanding shares, exposing "super undervalued stocks"

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There is a flood of money going south.

Recently, the Hong Kong stock market is booming, with the Hang Seng Index soaring 1427 points, or 8%, in just five trading days.Freevideopokerslotmachines.8%, ranking first in the list of major stock indexes in the world. From a technical point of view, compared with the low at the beginning of this year, the Hang Seng index rose more than 20% on Friday, announcing that it had entered a technical bull market. In addition, the Hang Seng Index has reached the annual mark, and once it is effectively above that level, the bull market is expected to officially begin.

From the capital point of view, southward capital has become an important initiator and participant in this round of market, and has been net buying for 20 consecutive trading days, setting a continuous net buying record. Since its opening, southward funds have bought nearly 2% of Hong Kong stocksFreevideopokerslotmachines.7 trillion yuan. At present, the valuation of the Hong Kong stock market is still historically low, and it is one of the most undervalued markets in the world, and valuation repair is still worth looking forward to.

Hong Kong stocks have a strong "cow smell".

Not only is the index soaring, the Hong Kong stock market is also a carnival of individual stocks this week. Data show that 112 stocks are up more than 20% this week, led by Shangtang-W and Ruiqiang Group by more than 105%. In addition, more than 270 stocks are up 10% to 20%, and nearly 400 stocks are up 5% to 10%.

A number of blue-chip stocks have also soared. Share king Tencent Holdings soared nearly 15%, Alibaba-SW rose nearly 13%, Kuaishou-W, Meituan-W, China overseas Development, JD.com Group-SW and other stocks rose more than 20%, and more than 20 billion stocks with a market capitalization of Baiji Shenzhou, China Resources Land and the Hong Kong Stock Exchange rose more than 10%.

Looking ahead, the Hang Seng Index posted a weekly gain.FreevideopokerslotmachinesThe highest since 2012. On November 4, 2022, the weekly increase was closest to this week, reaching 8.73%. Since then, Hong Kong stocks began a big rebound, with the Hang Seng Index rising from below 15000 points to above 22000 points, the largest gain of more than 55%, and the rebound lasted nearly three months.

Four great benefits

Hong Kong stocks can not rise without the help of policy this week. On April 19, the SFC issued five measures to cooperate with Hong Kong's capital markets, aimed at further expanding the connectivity of the two markets, which is expected to enhance the liquidity of Hong Kong stocks. In addition, during the two sessions, the Chairman of the Hong Kong Securities Regulatory Commission proposed to optimize the dividend tax arrangements for interconnection, reduce the dividend tax level for individual investors in Hong Kong Stock Connect, and strengthen the market policy outlook.

Soochow Securities believes that the inflow of funds into Hong Kong stocks in the short term may be based on four points of logic.Freevideopokerslotmachines: 1. The valuation is "cheap" and the capital is high or low; 2. The mainland fundamentals / fundamentals are expected to be good; 3. Hong Kong stocks have a high willingness and level of dividends, blue-chip dividends are stable, and white horses are "catching up"; 4. the catalysis of capital market policies.

From the medium-and long-term perspective, two core variables that affect the long-term trend of Hong Kong stocks are quietly changing. The first is the change of the nominal growth gap between China and the United States. The convergence of the nominal growth gap between China and the United States in 2024 will be the core factor in the repair of China's asset prices, and Hong Kong stocks are more sensitive to changes in the overseas macro environment and tend to respond more strongly due to the impact of the linked exchange rate. The second is the change of US dollar and US dollar credit. in history, the performance of Hong Kong stocks has an obvious negative correlation with the US dollar index. at present, the US dollar is "easier to go down than above", and the intrinsic value is damaged or indicates that the depreciation of the US dollar after the opening of the interest rate reduction cycle is "imminent". The valuation of Hong Kong stocks is expected to usher in a systematic rise.

Hong Kong stock market valuations are still historically low, with the Hang Seng index trading at 9.05 times rolling earnings, below 15 per cent of the historical percentile. Among the world's major market valuations, the price-to-earnings ratio of the Hang Seng index is only slightly higher than that of the cyclical Brazilian stock index, ranking second under-valued in the global index.

Go south to buy money.

These stocks have won more than 50% of the chips.

Hong Kong stocks have become the main target for fund managers to increase their positions. The quarterly report shows that among the funds managed by a number of star fund managers, Hong Kong stocks account for more than 50% of the market capitalization, reflecting that professional investors attach great importance to the Hong Kong stock market. For example, Zhang Kun's masterpiece Yi Fangda blue chip selection mix, the top ten heavy stocks, there are China National Offshore Oil, Tencent Holdings, Hong Kong Stock Exchange, Meituan-W and other Hong Kong stocks.

Southward capital has become an important support for Hong Kong stocks. Mainland investors accounted for 1/3 of the average daily turnover of Hong Kong stocks in April, the highest level since data were recorded in 2016, according to Bloomberg. Other data show that southward funds have bought Hong Kong stocks for 20 consecutive trading days, setting a record for consecutive days of buying since the data were recorded.

On the whole, since its opening, southward funds have bought nearly 2.7 trillion yuan of Hong Kong stocks. Southward Capital has bought more than 100 billion yuan a year for six consecutive years, including nearly 600 billion yuan in 2020 and more than 300 billion yuan in 2021 and 2022.

Some stocks have been bought out by southward funds. Data show that 12 stocks southward funds hold more than 50%, Marco Digital Technology, Kaisheng Xinneng, COSCO Haineng, Poly property, China Telecom and other stocks all hold more than 60%. From the perspective of the market value of the latest holdings, Tencent Holdings has become a favorite, with a market value of more than HK $300 billion. CNOOC, China Mobile, HSBC Holdings, Construction Bank, Meituan-W and other stocks all have a market value of more than HK $100 billion.

Some stocks continued to receive southward funds to substantially increase their holdings during the year. According to the average transaction price during the year, Bank of China, China Mobile, China Offshore Oil and other stocks received southward capital of more than HK $10 billion to increase their holdings, while China Telecom, Zhongtong Express-W, PetroChina, and China Construction Bank increased their holdings by more than HK $5 billion.

From the perspective of the proportion of capital holdings, Jingji Financial International, Tiger Pharmaceuticals, San Nuo Pharmaceutical-B, Vanke, China Telecom, Pharmaceutical Kant and other stocks have all increased their shareholdings by more than 10 percentage points compared with the end of last year.

"Super undervalued stocks" exposed

Undervalued stocks with high attention are expected to become new prey for southward funds. According to Databao, there are a total of 26 Hong Kong Stock Connect stocks with a price-to-earnings ratio of less than 5 times earnings, a price-to-book ratio of less than 0.5 times and five or more rating agencies. From the perspective of price-to-book ratio, China overseas Hongyang Group, Vanke Enterprises, China Railway Construction, Swire AG A, China Transportation Construction and other stocks are less than 0.3 times. In terms of price-to-earnings ratio, Swire A, China overseas Hongyang Group, New Special Energy, China Railway Construction, China Transportation Construction and other stocks are less than 3 times.