Hong Kong Stock Market Brief | Hong Kong stocks open slightly lower, new energy vehicle March "report card" released, auto stocks rise collectively

The Daily Economic News Reporter | Zeng Zijian The Daily Economic News Editor | Yuan Dong

On the morning of April 2nd, the Hong Kong stock market saw a slight decline.

As of the time of publication, the Hang Seng Index opened at 25,254.49 points, down 39.54 points, a decrease of 0.16%.

The Hang Seng Tech Index opened at 4,732.95 points, down 23.50 points, a decrease of 0.49%.

Market focus: new energy vehicle companies announced their March delivery volumes.

NIO-SW(HK09866)delivered 35.5k vehicles in the first three months, a year-on-year increase of 136.0%.

Li Auto-W(HK02015)delivered 41,053 new vehicles in March, up 11.94% year-over-year.

Xpeng Group-W (HK09868) delivered 27,415 new vehicles in March, an 80% increase from the previous month.

Seres(HK09927)total vehicle sales in the first three months reached 88.4k units, a 29.37% increase year-over-year. March sales were 27.5k units, up 11.68% year-over-year.

Chery Automobile (HK09973) reported total sales of 228k units across five major brands in March, a 15% increase.

Driven by news, related stocks collectively rose today. Among them, NIO gained over 2%, reaching a new high for the stage. Li Auto surged over 3% at one point, Xpeng Group rose over 2%, Seres slightly retreated, and Chery Automobile soared as much as 8%.

In other areas, tech stocks mostly declined, with Bilibili and Alibaba dropping over 1%, Xiaomi down 1%. Gold stocks generally rose, with Zhufeng Gold up over 2%. Chip stocks were active, with Jingmen Semiconductor up over 2%. The innovative drug sector continued its rally, with WuXi Biologics up over 1%.

Market outlook:

CMB International believes that the main disturbance in the Hong Kong market in March was not driven by fundamentals but by geopolitical uncertainties in the Middle East. If the conflict does not escalate further in April, the risk premium accumulated earlier may gradually be released, providing room for valuation recovery.

Industrial Securities suggests that it is difficult to grasp the rhythm of short-term geopolitical conflicts, and under external disturbances, Hong Kong stocks will fluctuate “follow-the-leader.” However, considering that Hong Kong stocks have fully priced in pessimistic expectations and profit downgrade pressures have eased, they are not pessimistic about the market. Currently, the risk-reward ratio for both long and short positions may not be high, and the best strategy is to “wait and see.”

Disclaimer: The content and data of this article are for reference only and do not constitute investment advice. Please verify before use. Operate at your own risk.

Cover image source: Huang Xinxu