China Duty Free Group (01880.HK) Launches H-Share IPO with Price Range of HK$143.5–HK$165.5

Review of Last Friday's Overseas Market Performance

U.S. stocks closed higher last Friday, with all three major indexes posting gains last week. Both the S&P 500 and Nasdaq indices recorded their fourth consecutive weekly rise. Last week’s CPI and PPI inflation data both indicated that U.S. inflation may have peaked, prompting investors to focus on whether the Federal Reserve might shift away from its aggressive interest rate hike stance. At the close, the Dow Jones Industrial Average was up 1.27%, the Nasdaq Composite Index rose 2.09%, and the S&P 500 Index gained 1.73%.

Popular Chinese stocks closed mixed last Friday. China Petroleum, Sinopec, China Life, Chalco, and Sinopec Shanghai, which announced plans to delist from the NYSE, all closed lower. The first three fell more than 1%, while the latter two dropped 0.8% and 0.7%, respectively.

Last Friday, New York gold futures closed up 0.5%, with gold prices recording their fourth consecutive weekly gain; last Friday, U.S. WTI crude oil futures fell 2.4%.

HSI Futures Night Session Closed at 20,123 Points, Down 0.03%.

Nikkei 225 Index Opens Up 76.80 Points, Rising 0.27% to 28,623.78

The detailed market data is as follows:

Overview of Important Pre-Market News in Hong Kong Stocks

1. China Duty Free Group begins its IPO today: Offering price range set at HK$143.5 to HK$165.5 per share

China Duty Free Group announced on the Hong Kong Stock Exchange its plan to offer 103 million shares globally, including an initial offering of 5,138,200 H shares in Hong Kong, accounting for approximately 5% of the total number of shares available under the global offering. The international offering initially comprises 97,623,700 H shares, representing approximately 95% of the total number of shares available under the global offering.

The stock code for the Company's H shares will be 1880. The shares will be offered from August 15 to 18, with an expected issue price not exceeding HK$165.50 per share and not less than HK$143.50 per share. The H shares are expected to begin trading on the Hong Kong Stock Exchange on August 25 (Thursday).

2. Optimization of Trading Calendar for Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect Officially Launched: Trading Available on All Common Trading Days

Recently, with the approval of the State Council, the China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) have authorized the Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), Hong Kong Exchanges and Clearing Limited (HKEX), China Securities Depository and Clearing Corporation (ChinaClear), and Hong Kong Securities Clearing Company Limited (HKSCC) to optimize the trading calendar for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The two regulatory bodies have issued a "Joint Announcement" detailing the relevant mechanism arrangements. After the optimization, trading under the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes will be available on all common trading days of the three exchanges. It is estimated that the trading calendar optimization will reduce the current number of non-trading days by about half.

3. Five Chinese Companies Announce Start of Delisting from the US

On the evening of August 12, five Chinese enterprises, including Sinopec Shanghai Petrochemical Co., Ltd., Aluminum Corporation of China Limited, PetroChina Company Limited, China Petroleum & Chemical Corporation, and China Life Insurance Company Limited, collectively announced the initiation of their delisting from the New York Stock Exchange in the United States.

The companies announced to delist from the U.S. this time are all large state-owned enterprises. These companies explained in their latest disclosed announcements that it was due to considerations for their own business development. The person in charge of the relevant department of the CSRC further stated that they would respect the decisions made by companies based on their actual situations and according to the rules of the overseas listing place. The CSRC will maintain communication with relevant overseas regulatory agencies to jointly safeguard the legitimate rights and interests of companies and investors.

Today's Trading Focus

New Share Activity:

Shuangcai Holdings (02321) to be listed this Friday; Suxin Meilife Service (02152) in subscription period.

China Duty Free Group's HKEX Announcement: Global Offering of 102.7 Million Shares for Hong Kong Listing, Expected Maximum Offer Price at HKD 165.5, Trading on HKEX Expected to Commence on August 25.

Economic Calendar：

1. At 9:30, the National Bureau of Statistics released the monthly report on residential sales prices in 70 large and medium-sized cities.

2, 10:00 China's Industrial Value-Added for Enterprises Above Designated Size in July / Fixed Asset Investment in Urban Areas in July / Total Retail Sales of Consumer Goods in July

3. 10:00 AM Press Conference on the Operation of the National Economy by the State Council Information Office

4. Seoul Stock Exchange and National Stock Exchange of India are closed for one day due to holidays.

Performance Announcement:

Sunny Optical Technology, Li Auto-W, BOE Varitronix, Shanghai Fudan, China Literature, etc.

Company Announcement

Positive Announcement

Fosun Pharma (02196) Increases Stake in Fuyun Health by 56.6666% to Expand Smart Wearable Device Business Layout

CRRC Times Electric (03898) Plans to Jointly Establish a Joint Venture with FAW Equity to Provide Supporting Electric Drive Products for FAW New Energy Vehicles

Zijin Mining (02899) Releases Mid-term Results, Net Profit Attributable to Shareholders Rises by 89.95% Year-on-Year to RMB 12.63 Billion

Ocean Services (03377) Subsidiary to Invest 250 Million Yuan in Acquiring 50% Equity of Tianjin Xihé Supply Chain Services

ITP HOLDINGS (08446) Subsidiary Plans to Acquire Equity in Shenzhen Qiangwo Entertainment via Capital Injection or Equity Transfer

China National Building Material (03323) Subsidiary Plans to Acquire 100% Equity of Hefei Cement Research and Design Institute

BOE Varitronix (00710) Subsidiary to Spend 230 Million Yuan to Acquire 40% Equity of BOE Chengdu Automotive Electronics

Harbour BioMed-B(02142): HBM4003 Ib Phase Trial Completes First Dose Administration to Final Patient

Southern Manganese (01091) Announces Profit Alert, Expects Mid-Term Shareholder Profit of No Less Than HKD 450 Million, Increasing by No Less Than 1900% Year-on-Year

CMS (00867) Subsidiary Signs Exclusive Licensing Agreement with ETC for EyeOP1 Glaucoma Treatment Device

Zhenrong Service (06958) Expects Mid-term Profit Attributable to Shareholders Not to Exceed 30 Million Yuan

Taste High Beauty Group (08371) Releases Q1 Performance, Shareholder Profit Attributable to 16.381 Million HKD, a Year-on-Year Increase of 42.7%

HANGKONG HOLDINGS (01663) Subsidiary Recognized as Hangzhou Enterprise High-Tech Research and Development Center

Daybreak Bio-B (01875) Releases Mid-Term Results, Revenue Approximately 181 Million Yuan, Up 686.87% Year-on-Year

CR Cement Holdings (01313) Announces Interim Results: Profit Attributable to Owners of HK$1.8045 Billion, Down 50.3% Year-on-Year, with a Dividend of 12 HK Cents per Share

China Hongguang (08646) Releases Mid-Term Results, Profit of 6.988 Million Yuan, Down 13% Year-on-Year

Jilin Changlong Pharmaceutical (08049) Releases Mid-term Results, Shareholder Profit Attributable Increases to 77.255 Million Yuan, Up 58% Year-on-Year

China Commerce Group (01719) Announces Profit Growth, Expects Mid-term Profit Increase of Approximately 85%-105%

Hui Li Resources (01303) Announces Profit Alert, Expects Net Profit of No More Than Approximately RMB 21 Million for the First Half, Turning Loss into Profit Year-on-Year

Orient Wealth Securities (08001) Announces Interim Results: Profit Attributable to Shareholders of HK$8.03 Million, Decreased by 20.65% Year-on-Year

Indigo Star (08373) Releases Mid-Term Results, Net Profit of SGD 962,000 Turns Loss into Profit Year-on-Year

Neptunus Interlong (08329) Releases Mid-Term Results, Shareholder Profit Attributable to 20.344 Million Yuan, a Year-on-Year Increase of 3.5%

China Zhuoyin (08039) Announces Profit Alert, Expects Annual Profit of Approximately HKD 600,000, Turning Loss into Profit Year-on-Year

Hongwei Asia (08191) Releases Mid-Term Results, Shareholder Profit of HKD 7.2 Million Turns Loss into Profit Year-on-Year

Kai Sheng Holdings (00102) Announces Profit Alert, Expects Interim Profit of Not Less Than Approximately HKD 123 Million, Turning Loss into Profit Year-on-Year

China Biotech Services (08037) Announces Results: Mid-term Profit Attributable to Shareholders of HKD 68.22 Million, Up 181% Year-on-Year

Jinmao Source Environmental Protection (06805) Announces Profit Growth, Expecting an Increase of No Less Than 35% in Mid-term Shareholder Profits

Huishang Bank (03698) Announces Profit Growth, Forecasting Net Profit of Approximately 7.335 Billion Yuan for the First Half, Increasing by Approximately 20% Year-on-Year

Kaifa Property (02168) Expects Mid-term Shareholder Profit Not to Exceed 50 Million Yuan

New Era Energy (00166) Announces Profit Alert, Expects Mid-Term After-Tax Profit of Approximately HKD 200 Million to 220 Million, Turning Loss into Profit Year-on-Year

Boya Interactive (00434) Announces Profit Alert, Expects Mid-Term Results to Turn from Loss to Profit

Negative Announcement

Sands China Ltd. (01928) Releases Mid-term Results, Shareholder Loss of US$760 Million, Up 99.48% Year-on-Year

Kuaigou Dache (02246) Issues Profit Warning, Expects Mid-Term Loss Attributable to Equity Holders of Approximately RMB 1.015 Billion to RMB 1.151 Billion

Xiabuxiabu (00520) Issues Profit Warning, Expects Mid-Term Net Loss of Approximately RMB 270 Million to RMB 290 Million

Haidilao (06862) Issues Profit Warning: Anticipates Loss of RMB 225 Million to RMB 297 Million in First Half

CMB Securities (06099) Receives Notice of Investigation from the China Securities Regulatory Commission

Centaline Property (00832) Issues Profit Warning, Expects Mid-Term Shareholder Loss of Approximately RMB 5 Billion to RMB 6 Billion, Turning from Profit to Loss Year-on-Year

SDM Education (08363) Announces Interim Results: Shareholder Loss of Approximately HKD 15.541 Million, Turning from Profit to Loss Year-on-Year

Full-Year Audited Results Released by Everfull Holdings (08523): Net Loss of HKD 6.521 Million

Fano Group (08153) Releases First Quarter Results, Shareholders' Loss of HKD 3.53 Million, Turning from Profit to Loss Year-over-Year

Clinique Holdings (08367) Releases First Quarter Results, Shareholder Loss of HKD 9.501 Million, Turning from Profit to Loss Year-on-Year

China Shu Tower (08623) Releases Mid-Term Results, Shareholder Loss of 12.013 Million Yuan, Up 129.26% Year-on-Year

Seamless Green (08150) Releases Mid-term Results, Shareholder Loss Attributable to HKD 8.127 Million, Up 40.58% Year-on-Year

Lotto Interactive Entertainment (08198) Releases Mid-term Results, Shareholder Loss Attributable to Owners of HKD 25.412 Million, Narrowing by 19.51% Year-on-Year

Yunfeng Financial (00376) Issues Profit Warning, Expects Mid-Term Net Loss Attributable to Shareholders of Approximately HKD 200 Million, Turning from Profit to Loss Year-on-Year

Dadi Education (08417) Releases Q1 Results: Shareholder Loss of HKD 6.914 Million, Up 143.02% Year-on-Year

China Ocean Development (08047) Releases First Quarter Results, Shareholder Loss of HKD 8.161 Million, Up 103.77% Year-on-Year

China 33 Media (08087) Releases Mid-term Results, Shareholder Loss of 8.485 Million Yuan, Up 155.57% Year-on-Year

Dadi International Group (08130) Releases First Quarter Results, Shareholder Loss Attributable to Owners of HK$7.663 Million, Decreased by 49.74% Year-over-Year

Brilliant Tomorrow (01351) Issues Profit Warning, Expects Mid-term Shareholder Profit to Decrease to Approximately RMB 4 Million - 6 Million

Baijia Taok (08287) Releases Mid-Term Results, Loss of HKD 4.1 Million, Up 1.13 Times Year-on-Year

Xinhua United Investment (08159) Announces Interim Results: Shareholders' Loss of HKD 19.832 Million, Turning from Profit to Loss Year-on-Year

Empire Financial Group (08029) Releases Earnings, First Fiscal Quarter Loss Attributable to the East of HKD 24.048 Million, Up 2.64 Times Year-on-Year

Shen You Holdings (08377) Releases Mid-Term Results, Net Loss of HKD 7.988 Million, Narrowing 63% Year-on-Year

China Qinfa (00866) Issues Profit Warning, Expects Mid-Term After-Tax Profit Not More Than 372 Million Yuan

Giant Medical Holdings (02393) Issues Profit Warning, Expects Mid-Year Loss Attributable to Shareholders of 162 Million Yuan

China Everbright Holdings (00165) Announces Subsidiary Yingli's Mid-Year Results, Reporting Net Loss of 83.232 Million Yuan, Narrowing 14.90% Year-on-Year

China Agri-Industries Financial Investment (08120) Releases Mid-Term Results, Shareholder Loss of HKD 16.571 Million, Up 1563.8% Year-on-Year

Hengjia Financial Leasing (00379) Issues Profit Warning, Expects Net Loss of Approximately HKD 500 Million to HKD 600 Million for the First Half of the Year

Global Strategy Group (08007) Releases Q3 Results: Shareholder Loss of HKD 16.122 Million, Up 29.09% Year-on-Year

Jieguan Holdings (08606) Releases Mid-Term Results, Shareholder Loss Attributable to 13.644 Million HKD, Increased by 45.75% Year-on-Year

Life Concept (08056) Releases Annual Results, Shareholders' Loss Attributable Decreased by 36.60% to HKD 40.848 Million

China-Hong Kong Petroleum (00632) Issues Profit Warning, Expects Interim Shareholder Profit of Approximately HKD 10 Million

Shenghua Land (08106) Releases Mid-term Results, Shareholder Loss of 15.362 Million Yuan, Up 56.1% Year-on-Year

China CBM (08270) Releases Mid-Term Results, Loss Attributable to Equity Shareholders at RMB 10.527 Million, Increased by 32.13% Year-on-Year

Nanda Softeck (08045) Releases Mid-term Results, Shareholder Loss of 13.746 Million Yuan, Up 86.23% Year-on-Year

Kojin International (06822) Issues Profit Warning, Expects Approximately 70% to 75% Year-on-Year Drop in Shareholders' Profit for the First Half of the Year

Huaxing Holdings (08237) Releases Mid-term Results, Shareholder Loss of HKD 24.8546 Million, Up 21.2% Year-on-Year

NewRise Pharma (06108) Issues Profit Warning, Expects Mid-Term Loss to Exceed HKD 21 Million

Ying Kee Tea House Group (08241) Announces First Quarter Results: Shareholders' Loss HKD 1.658 Million, Narrowed by 8.35% Year-on-Year

Famous Financial Group (08317) Releases Q1 Results: Shareholder Loss Narrows by 87.5% to HKD 718,000

Minfu International (08511) Releases First Quarter Results, Shareholder Loss of HKD 4.943 Million, Up 135.94% Year-on-Year

China Payment Pass (08325) Releases Earnings, First Fiscal Quarter Shareholder Loss Approximately HKD 2.16 Million, Down 86% Year-on-Year

Vanke Overseas (01036) Issues Profit Warning, Expects Shareholders' Profit for the First Half to Decrease by Approximately 60% to HKD 1 Billion

China Life Group (08296) Releases Mid-Term Results, Shareholder Loss of 6.362 Million Yuan, Turning from Profit to Loss

South Gobi-S (01878) Releases Mid-Term Results, Net Loss Attributable to Equity Holders of $17.825 Million, Turning from Profit to Loss Year-over-Year

Far East Holdings International (00036) Issues Profit Warning, Expects Loss of No Less Than Approximately HKD 13 Million in the First Half of the Year

Tianrui Auto Interior (06162) Issues Profit Warning, Expects Mid-Term Net Loss of Approximately RMB 10 Million to RMB 11 Million, Turning from Profit to Loss Year-on-Year

International Resources (01051) Issues Profit Warning, Expects Net Loss of Approximately USD 64 Million in First Half, Turning from Profit to Loss Year-on-Year

VPower Group (01608) Issues Profit Warning, Expects Mid-Term Consolidated Profit Attributable to Shareholders of HKD 50 Million to HKD 70 Million

Tai Xing Group (06811) Issues Profit Warning, Expects Mid-term Shareholder Loss of Approximately HKD 45 Million to HKD 55 Million

PCCW (00008) Releases Mid-term Results, Shareholders' Comprehensive Loss of HKD 88 Million, Narrowed by 72% Year-on-Year; Proposes Interim Dividend of HKD 9.56 Cents per Share

Yunnan International (01298) Issues Profit Warning, Expects Net Loss in H1 to Decrease by Approximately 96.0% Year-on-Year

Xingli (Hong Kong) Holdings (00396) Issues Profit Warning, Expects Mid-term Net Loss of Approximately HKD 12.5 Million

Zulong Entertainment (09990) Issues Profit Warning, Expects Mid-term Adjusted Net Loss of Approximately RMB 275 Million to RMB 285 Million

Other Announcements

Chalco (02600): Proposed Application for Delisting American Depositary Shares from NYSE

PetroChina (00857): Application for Voluntary Delisting of its American Depositary Shares from the NYSE

Shanghai Petrochemical Co., Ltd. (00338): Plans to Delist American Depositary Shares from NYSE

China Life (02628) Plans to Delist its ADRs from NYSE and Cancel the Registration of Corresponding H Shares

Sinopec: Plans to Delist American Depositary Shares from the New York Stock Exchange.

Tianqi Lithium (09696) and Subsidiaries Purchase Approximately 77.5 Million Shares of Sichuan Energy Investment (01713)

R&F Properties (02777) Total Sales Revenue in July Reached 1.9 Billion Yuan

PCCW (00008) Completes Sale of 80% Stake in PCCW Lenovo Technology Solutions and 20% Stake in PCCW Network Services

Ping An Insurance (02318) Premium Income from Original Insurance Contracts in the First 7 Months Increased by Approximately 1.81% Year-on-Year to About 486.199 Billion Yuan

CITIC Securities (06030): Recovers RMB 1 billion in principal from cash management products for fundraising, realizing a return of RMB 5.111 million

Dacheng Food (03999) Enters into Renewal Agreement with Better Me (BVI) for Supply of Processed Chicken Products

China National Building Material (03323) and its parent company plan to increase capital by RMB 1.3 billion in China National Building Material Group Finance Co., Ltd.

Zhengmeiji (00564) Proposes to Provide a Maximum Guarantee of 200 Million Yuan for its Subsidiary, Soeneg Electric

Livzon Pharmaceutical (01513) Second Phase Shareholding Plan Completed Purchase of Approximately 2,057,700 A-shares for RMB 64.9514 Million

ZGC Technology Leasing (01601) Enters into Financial Lease Agreement with Yichang Huahao New Material Technology

CAS Holdings (08275) Proposes to Increase Legal Capital to HKD 200 Million

Graphex Electric Vehicle New Materials (06128): Application for Public Offering of American Depositary Shares in the U.S. Approved

Longfor Group (03380) Contract Sales Approximately 33.07 Billion Yuan in the First 7 Months

Bioheart-B (02185): Trustee Purchases 62,500 H Shares Under H Share Incentive Plan

MOG HOLDINGS (01942) Received a Claim from a Client for Breach of Contract Compensation of No Less Than 20 Million Yuan

China Chengtong Development Group (00217) Subsidiary Enters into Master Sale and Leaseback Agreement with Haifa Baocheng and China Kangfu

Southern Manganese (01091) Subsidiary Huiyuan Manganese Enters into Financial Lease Agreement with Cinda Finance

Analysis of Hong Kong Stock Market Trends

CISI believes that the HSI has strong support from bargain hunters below 20,000 points, where the bulls are building a phase defense line. In the short term, there may still be a seesaw process here, but the downside space is limited. The strategy remains to buy on dips, not to chase gains, and gradually accumulate quality stocks at lower levels. Additionally, index ETFs are also a good choice, suitable for conservative investors, which can avoid the risk of stock selection and evade the uncertainty of individual stock performance during the interim report period.

HKEX Major Rating

CICC: Reiterates "Outperform Industry" Rating for China Mobile (00941) with Target Price of HKD 75

Citi: Reiterates "Buy" Rating for Li Ning (02331) with Target Price of HKD 92.2

JPMorgan: Reiterates 'Overweight' Rating for China Mobile (00941), Target Price HKD65

CMB International: Reiterates "Strong Buy" Rating for China Property Insurance (02328) with a Target Price of HK$11

Open Source Securities: First-time "Buy" Rating for Alibaba-SW (09988), Short-term Revenue and Profit Under Pressure

Nomura: Downgrades Huahong Semiconductor (01347) Target Price to HK$30, Maintains Neutral Rating

HSBC: Downgrades Orient Overseas International (00316) to Underweight, Target Price HKD 225

Citi: Gives Li Ning (02331) a Buy Rating, Target Price HK$92.2

UBS: Raises China Mobile (00941) Target Price to HKD 84, Maintains Buy Rating

CICC: Reiterates Outperform Industry Rating for China Mobile (00941), Target Price HKD 75

HSBC Research: Upgrades China Mobile (00941) Target Price to HKD 73, Maintains Buy Rating

UBS: Upgrades Target Price for Huahong Semiconductor (01347) to HK$17.5, Maintain Sell Rating

Review of Hong Kong Stock Market Performance Last Friday

Last Friday, the Hong Kong stock market experienced fluctuations and consolidation. In terms of market performance, technology and internet stocks generally saw more gains than losses. Bilibili and Vantone Data rose over 2%, SenseTime increased nearly 2%, Meituan gained almost 2%, and Alibaba rose over 1%. Resource stocks such as coal, oil, and steel strengthened across the board, with power stocks remaining strong throughout the day, and new energy vehicle stocks showing active trading.

In terms of focus stocks, Air China's H shares rose by 4.33%. According to the official Weibo account of Air China on August 12, Air China will gradually resume flights on routes including Beijing to London, Shanghai round-trip London, Beijing round-trip Seoul, Beijing round-trip Frankfurt, and Beijing round-trip Tokyo.

China Mobile H Shares Rise 1.45%; China Mobile Announced After Market Yesterday: Operating Revenue of RMB 496.93 Billion in First Half, Up 12% Year-on-Year; Net Profit Attributable to Shareholders of RMB 70.3 Billion, Up 18.9% Year-on-Year. Earnings Per Share for the Interim Period at RMB 3.29, Interim Dividend of HKD 2.2, Up 34.9% Year-on-Year.

Lemon Film & TV Rises 8.21%. According to Frost & Sullivan's report data, from 2019 to 2021, among the eight copyrighted drama series broadcasted by Lemon, six were high-rating drama series, far exceeding the average high-rating drama rate of approximately 45.9% for the top five competitors during the same period. The hit drama series also brought considerable profits to Lemon Film & TV.

Last Friday's Southbound Capital Dynamics

Southbound funds net inflow reached HKD 9.90 billion last Friday. Regarding the Shanghai-Hong Kong Stock Connect, Li Ning and Sunny Optical Technology were the top net buy-ins, with net purchases of HKD 2.45 billion and HKD 1.20 billion respectively. For the Shenzhen-Hong Kong Stock Connect, Xiaomi Group-W and Tencent Holdings were the leading net buy-ins, with net purchases of HKD 0.69 billion and HKD 0.62 billion respectively.

Notes:

Southbound funds, also known as southward funds, refer to the geographical location, with Hong Kong situated to the 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 and edited from "Tencent Self-Selected Stocks"; Editor of Zhitong Finance: Liu Jiayin.