Zhitong Hong Kong Stock Exchange Unravels | New capital is on the way to support the stock market and see if the US side will increase

[Anatomy Dashboard]

Since the US is the originator of tariffs, it is quite reliable for Hong Kong stocks to look at the performance of US stocks. Earlier on Monday, due to news that Trump was considering postponing tariffs for 90 days, the three major US stock indexes collectively rose and turned upward in early trading, but then White House Press Secretary Caroline Levitt called this “fake news,” and then US stocks changed from rise to fall again. US Treasury Secretary Bessent came back to the rescue. On the X platform, he announced that Trump had instructed him and trade representative Jamieson Greer to begin negotiations with Japan on tariffs. This is the first country to officially begin negotiations with the US. Bessent added that more than 50 countries have responded “openly and positively” to Trump's tariffs, and the US looks forward to “meaningful negotiations” with them in the next few weeks. The market still believes that the tariff war is evolving where it used to be. As a result, Hong Kong stocks also rebounded by 1.51% today. The Hang Seng Index once again reached the 20,000 mark.

At today's regular press conference of the Ministry of Foreign Affairs, a reporter asked: “Will the US and China hold talks or negotiations on trade issues?” In response, spokesman Lin Jian said that the actions of the US side did not reflect a desire for serious dialogue. If the US side really wants to talk, it should show an attitude of equality, respect, and mutual benefit. If the US side disregards the interests of the two countries and the international community and insists on fighting a tariff war and trade war, China will definitely stay with us to the end. This shows the attitude of the Chinese side; it is impossible to compromise, nor is it possible to actively seek talks with each other. Maintain your strategic strength and see who can handle it. Actually, the whole world is watching. China has 5,000 years of cultural heritage, and the other party only has a few hundred years of history. It's really paediatric to play tricks like this.

To say that we have no influence is false; foreign trade will definitely be damaged. As a result, the stock market will also be affected, and it is inevitable that the market will be calmed and confidence boosted. Yesterday, Huijin issued an intraday announcement stating that Huijin is firmly optimistic about the development prospects of China's capital market, fully recognizes the current A-share allocation value, and has once again increased its holdings in tradable open index funds (ETFs), and will continue to increase its holdings in the future to resolutely maintain the smooth operation of the capital market. Today, the overall turnover of broad-based ETFs has risen to 160.55 billion yuan. Obviously, the “national team” is still gaining strength, and the China Securities 500 ETF and the China Securities 1000 ETF for small and medium capitalization stocks are also increasing significantly. Immediately after 22:00 yesterday evening, China Chengtong also issued an announcement stating that its subsidiaries Chengtong Financial Holdings and Chengyang Investment are increasing their holdings in tradable open index funds (ETFs) and central enterprise stocks to resolutely maintain the smooth operation of the capital market. Third, at 23:00 in the middle of the night, China Guoxin published an article stating that the company is firmly optimistic about the development prospects of China's capital market and resolutely takes good long-term capital, patient capital, and strategic capital. Its subsidiary Guoxin Investment Co., Ltd. increased its holdings in central enterprise stocks, science and technology innovation stocks and ETFs to contribute to maintaining the stable operation of the market. Today, the National Social Security Fund Council called out: always adhere to the concept of long-term investment, value investment, and responsible investment, be firmly optimistic about the development prospects of China's capital market, and actively integrate into the national development strategy. Recently, it has taken the initiative to increase its holdings in domestic stocks, and will continue to increase its holdings in the near future. Achieve fund safety and value preservation while actively investing in stocks. Also, the State Financial Supervision and Administration issued the “Notice on Matters Relating to Adjusting the Supervision Ratio of Insurance Funds and Equity Assets”. Among them, the most important point is the supervisory policy to optimize the ratio of insurance funds. The insurance capital market entry policy has been further optimized, and the maximum investment ratio for equity investment can reach 50%; guide the accurate investment of insurance funds into new productivity areas; and relax tax-deferred pension insurance accounts to cultivate the medium- to long-term financial strength of new students. Large incremental capital is on the way, and this has played a role in underpinning it.

The State Council's State-owned Assets Administration Commission said on the 8th that it will fully support central enterprises and their controlled listed companies to take the initiative, continuously increase their holdings and repurchase efforts, and fully demonstrate the responsibility of central enterprises. At the same time, guidance on market value management of central enterprises will be strengthened to guide central enterprises to continue to create responsible, proven, sustainable, and rule-abiding high-quality value investment targets for investors, contributing to the healthy and stable development of the capital market. This morning, a number of A-share listed companies acted simultaneously and intensively announced repurchase plans. Repurchase plans were announced intensively. Companies such as Guodian Nanrui (600406.SH), Zijin Mining (601899.SH), Sinopec (600028.SH), and Kweichow Moutai () have announced plans to buy back and increase their holdings. 600519.SH The rise in these varieties has stabilized the situation. The strengthening of central enterprises on the Hong Kong stock side was mainly due to strong quarterly results, such as China Shipbuilding Defense (00317): net profit for the first quarter of 2025 is expected to increase by 1005.77% to 1200.91% year on year; CRRC (01766): net profit for the first quarter is predicted to increase 180%-220% year-on-year. Mainly due to increased high-speed train unit (MU) deliveries and a strong increase in maintenance revenue. Today's gains are over 8%.

The agricultural sector mentioned in yesterday's sector gathering was impressive. Apart from the October rice field (09676), the varieties mentioned also saw a rise and fall; others such as Dekang Agriculture and Animal Husbandry (02419) and COFCO Jiajiakang (01610); the agricultural machinery category No. 1 tractor (00038) all increased by more than 8%. Jinli permanent magnets (06680), which counteract the concept, have once again risen by more than 20%. If the situation is tense, rare earth permanent magnets can be easily hyped up.

The blockage of foreign trade and the shift to internal circulation is an inevitable measure, including stimulating fertility to increase population and demand. Jinxin Reproduction (01951), the leader in assisted reproduction, China's Feihe (06186), and the upstream leisure animal husbandry (09858) all rose strongly by more than 9%, and the leading food industry, Weilong Mei (09985), rose nearly 16%. Automobiles are also the majority of consumers. The BMW 5 Series fell below 290,000, multiple brands followed the “one price”, and the “price war” for new cars made a comeback in April. However, leading products are still strong. On the afternoon of April 8, BYD (01211) revealed its earnings forecast for the first quarter of 2025. The profit for the first quarter is expected to be RMB 8.5 billion to RMB 10 billion, an increase of 86.04%-118.88% over the previous year. BYD's recent overseas recruitment involves many countries such as Indonesia, Hungary, Chile, Thailand, Brazil, etc., and covers many recruitment positions. It shows that BYD's overseas layout has taken shape.

Zero Sports Auto (09863) also had strong sales in March. The B10 will be officially launched on April 10, and it is planned to launch 2 more B-series models in 2025, at a price of 100,000 to 150,000 yuan. The market expects the company's sales volume and revenue to continue to grow rapidly, and drive a continuous increase in profits. Looking ahead to 2025, Zero Sports has set a sales target of 500,000 units, and plans to continue to grow rapidly over the same period last year. Today's increase is over 12%.

Some mainland media revealed that Porsche and Horizon-W (09660) have reached cooperation in the field of intelligent driving technology research and development. Volkswagen's software technology company CARIAD China and Core Cheng CARIZON, a joint venture established by Horizon, will be responsible for developing a new generation of advanced intelligent driving solutions. The scheme will gradually be applied to new Volkswagen Group models starting in 2026. It is expected that Porsche will announce the progress of the cooperation to the public during or after the Shanghai Auto Show. Horizon-W (09660) is up more than 11% today.

Yuejiang (02432) recently upgraded and launched an industry-leading next-generation CRAF intelligent power-controlled collaborative robot. Using an integrated force control architecture, the CRAF series successfully upgraded the human control sensing capabilities of collaborative robots, and achieved unprecedented breakthroughs in force control and flexibility. In particular, it showed strong market potential in high-end manufacturing and medical applications. The new robot is expected to bring new sales expectations, surging more than 22% today.

On April 8, according to a Xinhua News Agency report, a spokesman for the Ministry of Commerce said that the US side threatened to further impose 50% tariffs on China, and China firmly opposes this; if US measures to upgrade tariffs are implemented, China will resolutely take countermeasures to protect its rights and interests. Let's see if the US side will step up in the future.

[Section Focus]

According to a report by Hong Kong's “South China Morning Post” on April 8, the Mongolian Parliament (Mongolian National Great Hural) recently approved an agreement between Mongolia and China to build a new cross-border railway. The report pointed out that at a time when Trump is launching a tariff war against the world, Mongolia hopes to establish a closer relationship with its southern neighbor China. The report said that the 19.5-kilometer Gashusu Haitu-Ganqimaodu Port cross-border railway has been suspended for more than 10 years, but new progress has been made in recent months. Once completed, the railway will allow Mongolia to increase coal exports to China. The cross-border railway construction project will begin this year and is expected to be completed in 2027. At that time, coal transportation centers on both sides of the border will also be built.

According to official data, Mongolia exported 83.7 million tons of coal last year. It is expected that after the cross-border railway is put into operation, the country's coal transportation capacity will increase by 30 million tons, and the economic growth rate is expected to reach more than 6%.

Major varieties of Hong Kong stocks: Mongolian coking coal (00975), South Gobi (01878), China Coal Energy (01898).

[Individual Stock Mining]

Huaxin Cement (06655): Profitability is expected to improve rapid overseas business growth

In 2024, the company's revenue/net profit to mother was $342.42 billion, +1.4%/-12.5%. Among them, Q4 revenue/net profit to mother was $950/ 1.28 billion yuan, -1.0%/+43.9% year-on-year. The significant year-on-year increase in Q4 net profit was mainly due to improved gross margin and the company achieved asset disposal revenue of $730 million.

Comment: In the context of tariff shocks, the cement industry is expected to benefit from domestic demand expansion policies, and profit improvements in the first quarter are worth looking forward to. In 24, the company's cement/aggregate/concrete sales volume was 57 million tons/143 million tons/32 million square meters, -2.0%/+9.0%/+16.7%, achieving revenue of 180.3/56.4/8.42 billion yuan respectively, -1.6%/+5.2%/+10.0%. The aggregate business continued to grow rapidly. Overall cement sales declined, but overseas sales volume was +37% year-on-year. The company's overall gross profit margin in '24 was 24.7%, -2.0pct year-on-year, of which Q4 was 26.4%, or -1.3/+1.7pct. According to Digital Cement Network, as of March 21, '25, the average price of cement nationwide was 401 yuan/ton. The price at the time was +9.5%. Cement prices resumed rising in March, which is expected to drive 25Q1's profitability recovery. In addition, the international layout continued to deepen. Energy saving and carbon reduction promoted the company's overseas revenue of 8.04 billion yuan, +46.5% over the same period of 24 years. The revenue share increased by 7.3 pct to 23.5%. Overseas business continued to grow rapidly. By the end of 24, the company's cumulative overseas operations and cement production capacity under construction exceeded 25 million tons. At the same time, the company continues to cultivate green and low-carbon development. The comprehensive energy consumption of domestic clinker decreased by 0.67 kgce/t year on year in 24. The international layout and energy saving and carbon reduction advantages are expected to drive the company's medium- to long-term growth. Overall, the rebound in cement prices is expected to catalyze the continued restoration of 25Q1 profitability, and internationalization and energy saving and carbon reduction are expected to drive the company's medium- to long-term growth.

[Disclaimer] This VIP information product is for communication and discussion purposes only, and does not constitute any investment advice. Unauthorized reproduction is strictly prohibited. For more high-quality information and data products, please log in to the “Zhitong Finance” app.