Hong Kong stocks Internet fell sharply, in the general delisting concerns!Opportunity or trap?Fund manager comments on the wire

2022-06-01 0 By

Today, the Hong Kong stock market after a few days of sharp rebound a relatively large retreat, HKC Internet index fell 5.17%.Among them, Tencent fell 2.62%, Meituan fell 8.16%, Xiaomi 0.55% and Kuaishou 8.06%.Hong Kong Stock Internet ETF (513770) fell 5.62% today, the turnover of 185 million yuan, the whole day turnover rate as high as 52%!At 11:08 this morning, Caixin published a news release saying that the PCAOB reiterated their basic requirement for the ability to inspect or investigate any audit engagement within the scope of their authority, regardless of the issuer’s location or industry.According to Caixin, the PUBLIC Company Accounting Oversight Board (PCAOB) said in a statement to Caixin on The evening of March 24 (Beijing time) that it is premature to speculate that the PCAOB will reach a final agreement with China on accounting regulation.”While we continue to work to find practical solutions to address China’s concerns, ultimately we must fully review our audit documents in order to fulfill our responsibilities on behalf of our investors.”This is non-negotiable, even for issuers from sensitive sectors.”Previously, the CSRC was considering a clear interpretation of relevant provisions of the Securities Law, under which audit working papers and other documents could be handed over to the PCAOB to resolve the issue of the delisting of Chinese concept stocks after certain conditions are met.After the news was released, PCAOB’s tough attitude also made the market’s concerns about the delisting of Chinese concept stocks rise again, and the market’s aversion to risk increases. The Hong Kong stock market and the Internet sector both fell sharply.In addition, the recent Hong Kong Internet market, there was a significant rebound in super fell sharply and financial stability development council held a special meeting of the State Council stressed that “to keep smooth running capital market” under the catalysis of, along with stocks short unwinding, Hong Kong Internet company’s shares appeared relatively rapid rebound sharply, then announced the buyback ali and millet,Hong Kong stock Internet stocks and Internet in the concept of stock prices have seen a further rebound.As of yesterday (2021/3/24), THE HKC Internet index has rebounded 33.68% from the bottom.However, in the day before yesterday after Tencent announced results, the mood gradually cooled down yesterday, today’s market fell significantly.Tencent achieved revenue of 144.19 billion yuan in the fourth quarter of 2021 (+ 8% YOy);Non-ifrs’ net profit of 24.88 billion yuan was lower than bloomberg’s consensus expectation. Meanwhile, the company’s stock buyback announcement expected by the market was not released, which made the early rebound sentiment fall back to some extent. Some investors who bought stocks at a low price reduced their holdings to lock in profits, making the market as a whole fall back to some extent.Hong Kong Stock Internet ETF (513770) fund manager, The International business team of Warburg Fund believes that in the case of a sharp rebound in the short-term market, there is a certain inevitability of adjustment, but this does not affect the long-term allocation value of Hong Kong stock Internet index.The valuation of China’s top Internet companies still contains considerable repair space. Although there are still many risk factors in the short-term market, many companies with good long-term growth still have good cost performance, and the momentum of the late market decline is relatively small.Kevin O ‘Leary, a star investor who bought three stocks, including Tencent and Meituan, during Monday’s sell-off, said he thought the recent sell-off was overdone.”The rationale for owning Chinese stocks is exposure to the Chinese consumer and the Chinese economy, which is growing at an incredibly high rate,” Mr O ‘Leary said later in an interview.He acknowledged concerns about the potential delisting of Chinese concept stocks, but said they had fallen sharply because of the uncertainty.He says he wants to hold on to his entire position in Chinese stocks because he can’t find the same growth opportunities anywhere else.This article is from financial Information