Chengdu Expressway (01785.HK) Plans A-Share Listing on SSE

Overnight Foreign Market Review

U.S. Stocks Closed Higher on Monday, Extending Last Week's Gains. Hawkish Signals from ECB Officials Sent the Dollar Sharply Lower. Markets Focus on August CPI Inflation Data This Week; Many Analysts Expect the Data May Show U.S. Inflation Has Peaked, with Wells Fargo Predicting the Largest Monthly Drop in August CPI in Two Years. At Close, Nasdaq Rose 1.27%, S&P 500 Increased by 1.07%, and Dow Jones Gained 0.72%.

Chinese Stocks Surge on Monday, Nasdaq China Golden Dragon Index Up 2.80%; NIO Soars 13.52% as Deutsche Bank Reiterates It as "Top China Pick"; Alibaba, Pinduoduo, JD.com All Rise Over 2%.

New York gold futures prices closed 0.7% higher on Monday, silver futures surged 5.82%; U.S. WTI crude oil closed 1.1% higher on Monday, reaching the highest closing price in two weeks.

HSI Futures Night Session Closed at 19,264 Points, Down 0.51%.

The Nikkei 225 Index opened up 14.10 points, or 0.05%, at 28,556.21.

The detailed market data is as follows:

Overview of Important Pre-Market News in Hong Kong Stocks

1. Ministry of Culture and Tourism: 734.09 million domestic trips during the Mid-Autumn Festival holiday, a year-on-year decrease of 16.7%.

Ministry of Culture and Tourism: During the 2022 Mid-Autumn Festival holiday, domestic tourism trips in China reached 734.09 million, a year-on-year decrease of 16.7%, recovering to 72.6% of the comparable period in 2019; domestic tourism revenue amounted to 28.68 billion yuan, a year-on-year decrease of 22.8%, recovering to 60.6% of the same period in 2019.

2. Chengdu Expressway (01785) Plans to Apply for A-Share Issuance and Listing on the Shanghai Stock Exchange

Chengdu Expressway (01785) announced that, after comprehensive consideration of the company's actual operating conditions and future development strategy, it plans to apply for an A-share issuance and list on the Shanghai Stock Exchange.

3. Xu Jiayin: Currently, Evergrande Has 38 Unrestarted Projects; All Must Resume Work by September 30

Hengda Group held a weekly meeting on September 12 to discuss the resumption of production and ensure the delivery of properties. Xu Jiayin reported on the resumption of Hengda's production and made requests: "Currently, there are 706 projects in China aimed at ensuring property delivery, with 668 projects having resumed work and 38 projects yet to resume. Relevant regional companies are required to fully resume work by September 30. Among the 668 projects that have resumed work, 606 have reached normal construction levels, while 62 are in the process of returning to normal construction. Relevant regional companies are required to ensure all projects reach normal construction levels by September 30."

Xu Jiayin emphasized, "We must earnestly fulfill the main responsibilities of the enterprise, work hard, and do our best to resume production and ensure the delivery of buildings. Only in this way can we satisfy the homeowners, restore sales and operations, repay various debts, and get out of the predicament."

4. WEGO Co., Ltd. Plans to Acquire 100% Equity of Weihai Wego Medical Materials Co., Ltd. for 288 Million Yuan

Weigao Co., Ltd. (01066) announced that on September 9, 2022, the company entered into the agreement with WEGO Group regarding the acquisition. Accordingly, the company agreed to acquire, and WEGO Group agreed to sell the target shares (i.e., 100% equity interest in the target company), for a consideration of RMB 288 million. The target company (i.e., Weihai Wego Medical Materials Co., Ltd.) is a wholly-owned subsidiary of WEGO Group, registered and established in March 2002. It mainly engages in the research and development, manufacturing, and sales of infection prevention products, including: disposable delivery kits, disposable interventional surgery auxiliary kits, disposable sterile surgical kits, and disease control protective products, including: medical disposable protective clothing, medical isolation face shields, surgical masks, and rubber gloves. The target company's main long-term equity investment is a 100% interest in Weihai Hande Medical.

5. "The Busiest Mid-Autumn Festival Box Office Breaks 350 Million Yuan"

Since September 9, 12 new films have been released during this year's Mid-Autumn Festival season. According to data from the Beacon Professional Edition, as of 5:00 PM on September 12, the total box office revenue (including pre-sales) for the 2022 Mid-Autumn Festival season has exceeded 350 million yuan.

Today's Trading Focus

New Share Activity:

Dingdang Health (09886) to Begin Trading Tomorrow; Hong Kong Public Offering Oversubscribed 7.2 Times, Issue Price at HK$12 per Share.

Shuke Group (02350) offered shares for subscription from September 13 to 16, planning to globally issue approximately 156 million shares.

Zhongshen Jianye Holdings Limited submits an application to the Hong Kong Stock Exchange for its IPO.

Economic Calendar:

1. Pending OPEC releases monthly crude oil market report

2, 20:30 US August Seasonally Adjusted CPI Month-over-Month Rate

Earnings Announcement:

Hao Liang Global, Huan Kang Group

Company Announcement

Positive Announcement

Dongfeng Group Corporation (00489) August NEV Sales Volume Approximately 36,800 Units, Increasing by 165.18% Year-on-Year

CStone Pharmaceuticals-B (02616): The new indication application for Sugemalimab in treating relapsed or refractory extranodal NK/T-cell lymphoma accepted by the National Medical Products Administration and granted priority review

Transcenta Holding-B (06628) Announces Updated Business Progress on Interim Safety and Efficacy Data from the Expanded Cohort of TST001 (OSEMITAMAB) Combined with Chemotherapy as First-Line Treatment for CLAUDIN18.2-Positive Gastric Cancer

Standard Chartered Group (02888) Repurchased 1,487,900 Shares for Approximately £9,115,400 on September 9

Luye Pharma (02186) Subsidiary’s Broad-Spectrum COVID-19 Neutralizing Antibody BA-CovMab Injection Approved for Clinical Trials in China

China Nuclear International (02302) Releases 2021 Results: Net Profit of HKD 2.389 Million, Turning Loss into Profit Year-on-Year

Fusheng International (00627) Plans to Issue Approximately 1.307 Billion New Shares to Shun An Opportunity No. 1 Fund, Raising HKD 148 Million Net Proceeds and Implementing Capital Restructuring; Resuming Trading on the 13th

Fosun Pharma (02196) Holding Subsidiary's New Drug for Schizophrenia Treatment Accepted for Drug Registration Review

BeiGene (06160) Shares Progress of Tislelizumab Solid Tumor Development Program at the 2022 European Society for Medical Oncology Congress

Zhengmei Machine (00564) Subsidiary Electric Control Company Receives Approximately 8.72 Billion Yuan in Capital Increase Subscription

Blue River Holdings (00498) Proposes to Sell Zhejiang Meilian Real Estate Co., Ltd. for RMB 65 Million

Anshan Jinkong (00033) Announces Profit Alert, Expects Annual Shareholder Net Profit of No Less Than HKD 30 Million

Weichai Power (02338): Redeemed Matured Cash Management Products with Actual Earnings of Approximately 78.0847 Million Yuan

Junzhigu Group (01300) Proposes to Acquire Property in Yixing for 43.68 Million Yuan

Grand Holdings (00053) Announces Annual Results: Shareholders' Profit of HKD 1.96 Billion, Down 22% Year-on-Year; Final Dividend of HKD 1.5 Per Share

Johnson Electric Holdings (00179) Proposes to Acquire Remaining 20% Stake in Hana Systems for Approximately 70.271 Billion Korean Won

TBKS HLDGS (01960) Announces Profit Alert, Expects Annual Net Profit of Approximately MYR 11 Million

Future World Holdings (00572) Spent HKD 9.174 Million to Acquire 10.124 Million Shares of Jetion Trading Treasure

Sanxing Holdings (02183) Subscribes to 1 Billion Yuan of Ping An Bank Structured Deposit Products, Earning Approximately 17.8 Million Yuan in Interest

China Zhongjun Group Holdings (01966) Proposes to Sell 70% Stake in OUE Holdings for 56 Million Yuan

Fosun International (00656) Repurchased 500,000 Shares on September 9

Xiaomi Group-W (01810) Repurchased 2.3 Million Shares for HKD 24.8709 Million on September 9

Fosun Pharma (02196): Suzhou Erye's New Dry Suspension Production Line Passes GMP Compliance Inspection

Jinhui Group (00137) Subsidiary Plans to Acquire Two Vessels

Concord International Healthcare (03886) Repurchased 7.3 Million Shares for Approximately HKD 3.7229 Million on September 9

Weigao Group (01066) Plans to Spend 288 Million Yuan to Acquire Weihai Wego Medical Materials Co., Ltd.

Parkson Group (03368) Subsidiary Plans to Sell Qingdao Property for 280 Million Yuan

CSPC (01093): "TG103 Injection" Receives Clinical Trial Approval for the Treatment of Non-Alcoholic Steatohepatitis

CSPC (01093): "TG103 Injection" Receives Clinical Trial Approval for the Treatment of Alzheimer's Disease

COFCO Joycome (01610) August Live Pig Slaughter Volume 262,000 Heads, Up 6.07% MoM

Negative Announcement

Macau Legend (01680) Announces Interim Results: Net Loss of HKD 4.855 Billion, Narrows by 29.5% Year-on-Year; Resumes Trading on September 13

Jiyi Holdings (01495) Plans to Issue Shares at a Discount of Approximately 17.39%, Raising up to HKD 35.9 Million

Ocumension Therapeutics-B (01477) Grants 13.06 Million Share Options

i-D Palace (00286) Grants 30 Million Reward Shares

Zhicheng Development Holdings (08268) Proposes to Place Up to 40 Million Shares at a Discount of Approximately 16.67%, Expected to Raise up to HKD 30.775 Million

New Glory (00970) Plans to Place up to 538 Million Shares at a Discount of Approximately 7%, Expected to Raise About HKD 49.1 Million Net

China Agri-Industries Financial Investment (08120) Plans to Issue Shares at a Discount of Approximately 15.97%, Raising up to HKD 12.2 Million in Net Proceeds

Nuova Group (01360) Issues Profit Warning, Expects Annual Net Loss of No More Than Approximately HKD 146 Million, Turning from Profit to Loss Year-on-Year

Kuaidog (02246): Shuai Yong resigns as non-executive director

Cyber Wisdom International Holdings (01020) Grants 120 Million Share Options

Sunny Optical Technology (02382) August mobile phone lens shipments decreased by 26.2% year-on-year to 92.574 million units

Alibaba Pictures (01060) Grants a Total of 17.62 Million Reward Shares

Other Announcements

CIFI Holdings Group (00884) Subsidiary to Sell 100% Equity of Nanjing Lingxu Housing Rental Management for 117 Million Yuan

Yincheng International Holding (01902) Advances Approximately 1.938 Billion Yuan of Surplus Funds to Non-Wholly Owned Subsidiaries' Non-Controlling Shareholders

Huobi Technology (01611) Subsidiary Plans to Sell All Equity of Huobi Nevada Inc for $6.8 Million

China Eastern Airlines Corporation (00670) Receives Commitment Letter from Shareholder China Eastern Air Holding for No Reduction in Shares During a Specific Period

Ping An Securities Group Holdings (00231) Plans to Sell Entire Stake in Ping An Securities and Harvest Insurance Brokerage

Ping An Securities Group Holdings (00231) Proposes to Sell Trademarks and Goodwill for HKD 7.41 Million

Zhongguancun Technology Leasing (01601) Enters into Exclusive Patent Sub-License Agreement with Tianjin Zhengtian Medical Devices

Datang Renewable Energy (01798) Cumulative Power Generation in the First 8 Months Reached 17.9707 Million Megawatt-Hours, a Year-on-Year Increase of 3.89%

Xin Tian Green Energy (00956): Hebei Xin Tian Green Water Carbon Neutral Equity Investment Fund (Limited Partnership) Completes Filing Procedures

Lotto Interactive Entertainment (08198): Offer Has Closed, Concert Party of Offeror Holds 53.79% Stake

Yuexiu Property (00123) Accumulated Contract Sales in the First 8 Months Approximately RMB 62.993 Billion

Aobang Construction (01615) Plans to Invest 10.2 Million Yuan in Establishing Investment Fund

Country Garden Holdings (03990) Reports Contract Sales of Approximately RMB 53.51 Billion in the First Eight Months, Down 47.14% Year-on-Year

R&F Properties (02777) August Total Sales Revenue Approximately RMB 2.47 Billion, Up 30% MoM

Sunac Holdings (02103) Reports Contract Sales of Approximately RMB 2.47 Billion in the First Eight Months

Shangkun Real Estate (06900) Contract Sales Amount Approx. 6.75 Billion Yuan in the First 8 Months

1957&CO.(08495) Signs Lease and License Agreement for Lee Garden Two to Relocate The Eight Restaurant and Annan Restaurant

CAIXUN Media (00205) Subsidiary Enters into Exclusive Cooperation Agreement with Galaxy Zhongxing

Chengdu Expressway (01785) Signs New Non-Competition Agreement with Chengdu Communications Investment and Chenggao Construction

Aidigong (00286) Proposes to Issue Convertible Preferred Shares Worth HKD 2.25 Billion to Zhuhai De You Bohui Enterprise Management Consulting Center (Limited Partnership)

JL Mag (06680): The Share Reduction Plan by Director and Deputy General Manager Lü Feng Has Passed the Halfway Mark

Evergrande (03333): 668 projects have resumed work, 38 have not

Gusheng Hall (02273) Proposes to Adopt Restricted Share Incentive Plan and Stock Option Plan

Yue Yuen Industrial (Holdings) Ltd (00551) Accumulated Operating Revenue for the First 8 Months Approximately USD 6.243 Billion, Increased by 5.8% Year-on-Year

Auspac Global (01540) Enters into Settlement Covenant with Ovato for Unpaid Loan Principal and Interest of Approximately AUD 9.45 Million

Sihai International (00120) Receives Allocation of 12.21 Million Interra Acquisition Class A Shares for HKD 122.1 Million

Longfor Group (00960) August Contract Sales Attributable to Company Shareholders Reach 14.5 Billion Yuan

Baosheng International (03813) Accumulative Operating Revenue for the First 8 Months Approximately RMB 12.873 Billion, Down 20.6% Year-on-Year

BeiGene (06160) Issued 855,800 Shares on September 12 Under the Share Incentive Plan

Kuaigou Dache (02246) Subsidiary Operating Entity Enters into Zhejiang Xinyi Logistics Service Cooperation Agreement

Weichai Power (02338) Subscribes to 3 Billion Yuan of Industrial and Commercial Bank of China Structured Deposit Products

SF Express同城(09699): HKEX Grants Listing Approval for 78,947,700 H Shares

Analysis of Hong Kong Stock Market Trends

Zhongtai International: Heng Seng Index May Rebound in the Short Term, but the Market Will Still Face Resistance to Upward Movement

Despite the lack of positive upward catalysts for Hong Kong stocks in early September, we noted last week that the recent high short-selling ratio in the broader Hong Kong market, such as the record-high short-selling ratio on August 30, could easily lead to a pendulum effect amid extreme bearish sentiment. Attention should be paid to the risk of a potential short squeeze rebound at any time. Additionally, with the Hang Seng Index nearing the low point caused by the liquidity shock on March 15, it is reasonable to expect that technical analysis-driven investors, such as chartists, may bet on a rebound in the short term.

Looking ahead, amid the disruptions caused by recurring internal outbreaks and external overseas tightening pressures, it is expected that the Hang Seng Index will continue to face upward resistance in September, with sector-specific movements dominating. Greater opportunities may arise in the fourth quarter after the Fed's tightening policies gradually ease. The depreciation of the RMB and the impact of the pandemic could increase the pressure on further downward revisions of Hong Kong stocks' earnings forecasts. However, 1) policy support; 2) better-than-expected performance of tech stocks; 3) large-cap blue-chip companies resuming share buybacks; and 4) relatively low valuations all provide downside protection for Hong Kong stocks. Additionally, Hong Kong stocks have adjusted earlier than peripheral markets, cushioning the impact of tightened global liquidity.

HK Stock Major Ratings

Morgan Stanley: Maintains "Overweight" Rating for Anhui Conch Cement (00914) with Target Price of HK$42

CICC: Maintains Kerry Logistics (00636) "Outperform Industry" Rating, Reduces Target Price by 23.5% to HK$21.8

Morgan Stanley: Downgrades Target Price for China National Building Material (0332) to HKD 10, Maintains Overweight Rating

Nomura: Downgrades Target Prices for Chinese Bank Stocks, Prefers China Merchants Bank and Postal Savings Bank of China

Morgan Stanley: Downgrades China Resources Cement (01313) Target Price to HK$6, Rating 'Overweight'

Deutsche Bank: Downgrades Innovent Biologics (01801) Target Price to HK$41, Maintains Buy Rating

Credit Suisse: Raises HUTCHMED (00013) Target Price to HK$32.55, Rating Outperforms the Market

Bank of America Securities: Reiterates Neutral Rating on Sun Hung Kai Properties (00016), Target Price at HKD 100

Morgan Stanley: Downgrades Sun Hung Kai Properties (00016) Target Price to HKD 100, Rating in Line with Market

Review of Hong Kong Stock Market Performance Last Friday

Last Friday, the Hong Kong stock market rebounded strongly. In the market, technology and internet stocks collectively surged, with Meituan up nearly 5%, Baidu Group up nearly 4%, Kuaishou up over 3%, JD.com up over 3%, Alibaba up nearly 3%, and Xiaomi Group up over 2%.

In terms of sectors, domestic real estate stocks, property management stocks, and non-ferrous metal stocks surged, medical beauty concept stocks showed strength, coal stocks remained active, most auto stocks rose, financial stocks such as banks and insurance were active, and catering stocks strengthened.

In terms of focus stocks, LePu Bio-B surged over 283%, with intraday gains reaching above 386%. The stock entered the market's cooling-off period several times today. In terms of news, on September 5, LePu Bio-B was included as a target in the Shanghai-Hong Kong Stock Connect; on the evening of September 8, the company announced its plan to conduct an IPO on the STAR Market, aiming to raise a net amount of no more than 2.5 billion yuan. In July this year, the company’s PD-1 antibody, Putilizumab, received conditional approval from the National Medical Products Administration for marketing.

Bilibili Plummets Over 16% as Q2 Loss Widens 79.2% Year-on-Year to RMB 2.01 Billion. Adjusted Net Loss Expands 48.6% to RMB 1.968 Billion. Q2 Revenue Increases 9% to RMB 4.9 Billion, Slightly Below Expectations. The Company Forecasts Q3 Revenue Between RMB 5.6 Billion and RMB 5.8 Billion.

China Health Group Soars Over 13%; Announces Plan to Acquire 20% Stake in Monkeypox Test Kit Producer for HKD 4 Million, Aiming to Expand Monkeypox Virus Prevention-Related Business.

Last Friday's Southbound Capital Flow Dynamics

Southbound funds net outflow was HKD 1.81 billion last Friday. Regarding Shanghai-Hong Kong Stock Connect, Tencent Holdings was net sold at HKD 1.16 billion, and Geely Automobile was net sold at HKD 1.00 billion. As for Shenzhen-Hong Kong Stock Connect, Li Auto-W was net sold at HKD 1.97 billion, and Xiaomi Group-W was net sold at HKD 1.93 billion.

Notes:

Southbound funds, also known as southward funds, refer to the geographical location, with "south" indicating Hong Kong's position south of Shenzhen and Shanghai. Southbound funds refer to the capital used by mainland Chinese investors to buy and sell stocks in the Hong Kong market through Stock Connect.

This article is selected from "Tencent Self-Selected Stocks," edited by Ye Zhiyuan of Zhitong Finance.