【 Hong Kong Stock Overview 】 The three major indexes collectively closed up more than 2%, and the trends of the technology and insurance sectors diverged | Hong Kong Stock Early Review 5.16

Performance of Hong Kong Stock Market
On Wednesday, May 15th, the Hong Kong stock market continued to strengthen, with all three major indices rising by over 2%, indicating a recovery in financial confidence. On Thursday (May 16th), the opening was slightly divided, with the Hang Seng Index rising slightly by 0.02% to 23644.4 points; The Hang Seng Technology Index saw a slight correction of 0.14%, closing at 5374.16 points; The state-owned enterprise index and red chip index fell by 0.16% and 0.1% respectively, to 8579.2 points and 3865.17 points.

Overview of Sector Performance
Technology stocks are experiencing mixed ups and downs:

• Tencent Holdings rose 2.02%, NetEase rose 2.23%, and Alibaba rose 0.77%;

• JD Group fell 2.4%, Meituan fell 1%, Kwai fell 0.57%, and Bilibili fell 0.35%.

The overall strength of the insurance sector:

• AIA Insurance increased by nearly 4%.

Brokerage stocks are showing active performance:

• Hongye Futures rose by over 1%.

Logistics sector leads gains:

• YTO Express International surged 8.2%, SF Express in the same city rose more than 3%, and China International Shipping rose slightly by 0.27%.

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Company News

• Hengrui MedicineWe plan to issue no more than 224.5 million shares on the Hong Kong Stock Exchange, with a maximum issuance price of HKD 44.05.

• Tencent Holdings (00700. HK)In the first quarter of 2024, the revenue reached 180 billion yuan, a year-on-year increase of 13%.

• Ocean Shipping Group (03377. HK)The cumulative agreement sales in the first four months reached 8.09 billion yuan, a year-on-year increase of 13.62%.

• Xinhua Insurance (01336. HK)The original insurance premium income for the first four months was 85.3791 billion yuan, a year-on-year increase of 27%.

• China Pacific Insurance (02601. HK)During the same period, Pacific Life Insurance's premium income reached 115.359 billion yuan, a year-on-year increase of 10.4%.

• Vanke Enterprise (02202. HK)The largest shareholder, Shenzhen Metro Group, plans to provide a loan support of no more than 1.552 billion yuan to the company.

• Hong Kong Dragon China Real Estate (06968. HK)The contract sales amount for the first four months was 1.804 billion yuan, a slight decrease of 0.3% year-on-year.

• Greenview China Real Estate (00095. HK)The hearing of the liquidation petition has been postponed to July 9th.

• China Petroleum&Chemical Corporation (00386. HK)The parent company, Sinopec Group, increased its holdings of approximately 302 million H-shares.

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[Institutional Perspective]

• Bank of Communications InternationalThe results of the first round of annual negotiations between China and the United States exceeded expectations, and it is expected that the subsequent tariff issues will maintain a constructive direction, which will help alleviate market concerns about global trade and recession in the short term and provide positive support for Hong Kong stocks.

• Shen WanhongyuanIt is pointed out that the net profit attributable to shareholders in the securities sector increased by 83% year-on-year and 19% month on month in the first quarter, with outstanding performance in brokerage and proprietary business. Refinancing drives high growth in investment banking business, while improved interest rate spreads drive net interest income growth. It is expected that under the background of policy support and long-term industry benefits, the securities sector has upward potential for valuation and profitability.