cryptogamesdownload| "Monster stocks" hit Hong Kong stocks, Guangdong Harbor Holdings surged 1600% in two days

Attention, "demon stocks" haunt!

Today, Hong Kong stocks continued to be strong, with the Hang Seng Index up more than 1% as of press time.Cryptogamesdownload.7%, real estate, technology, and financial sectors rose sharply, while Tencent Holdings rose more than 4%.

With the improvement of the atmosphere in the Hong Kong stock market, some "demon stocks" also take advantage of the opportunity to wreak havoc. In midday trading today, Guangdong Harbour Holdings (1396CryptogamesdownloadAt one point, it soared by 310%. The stock jumped 315% in the previous session. In just two days, the share price rose from HK $0.088 to HK $1.50, an increase of 1600 per cent. As of press time, the increase is more than 150%. So, what is the origin of the Guangdong Harbour Holdings company?Cryptogamesdownload? Why is the stock price so fierce?Cryptogamesdownload?

In addition, Hong Kong stocks with high dividends continued to soar, while financial and real estate stocks soared collectively. What about the sustainability of the above-mentioned plates?

The attack of "demon stock"

Recently, the Hong Kong stock market has continued to rise, and some "demon stocks" have also appeared frequently, and the share prices of these stocks have suddenly skyrocketed with very little trading volume. In the last two trading days, the most ferocious stock belongs to Guangdong Harbour Holdings (1396.HK).

In early trading on May 14, Guangdong Harbour Holdings briefly suspended trading pending a supplementary announcement on the issuance and subscription of new shares under the General mandate. Then, at noon on the same day, Guangdong Harbour Holdings announced that it planned to issue a total of 89 million new shares to eight independent third parties. after further discussion between the company and the subscribers, the two sides agreed to adjust the subscription price from 0.085 yuan per share to HK $0.10 per share. that is, a premium of about 13.6% over the closing price of 0.088 yuan on May 13, and the net capital raised is expected to increase from HK $7.07 million to HK $8.4 million, which is intended to be used as general working capital.

After the disclosure of the above announcement, the company's shares resumed trading at 1pm on May 14 and the share price was highly speculated, reaching as high as HK $0.50 on that day, with a maximum increase of 468 per cent. It still closed up 315 per cent, with a total turnover of only HK $800000. In other words, HK $800000 in capital more than tripled the company's share price in one day, soaring its market capitalization from HK $39.93 million to HK $166 million.

On May 16, the frenzy of Guangdong Harbour Holdings continued after the Hong Kong stock market was closed for a day on May 15. On the same day, the company's share price continued to rise, reaching as high as HK $1.50 in early trading, up as much as 310 per cent at its peak and HK $680 million at its peak. As of noon, Guangdong Harbour Holdings was trading at HK $1.18, up 223.29%, with a market capitalization of HK $540 million and a turnover of HK $6.93 million.

According to public information, Guangdong Harbour Holdings, formerly known as "Yide International Holdings", is a listed company on the main board of the Hong Kong Stock Exchange, and the company is positioned as a "new ecological city service provider". Business models include urban renewal, industrial parks, characteristic towns, quality communities, business services, infrastructure, finance and so on. The company's main business is the development, sales and operation of trade and logistics centers and residential properties in China, as well as trading business. Among them, the main income comes from property sales and trading business.

According to the financial report, from 2021 to 2023, the company's revenue was 5.577 billion yuan, 3.168 billion yuan and 3.537 billion yuan respectively, and the net profit lost 498 million yuan, 1.572 billion yuan and 1.215 billion yuan respectively.

Some analysts pointed out that Guangdong Harbour Holdings in the fundamentals did not improve, and the net profit for many years of huge losses, the stock was suddenly fried, the risk is great.

Hong Kong stocks continue to be strong

On May 16, the Hong Kong stock market continued to rise. As of press time, Hong Kong's Hang Seng Index rose 1.75%, and the Hang Seng Technology Index rose 1.16%. Southward Capital bought a net half-day of HK $3.7 billion.

The high dividend sector continued to soar. Financial and real estate stocks soared, pattern holding rose more than 78%, Kaisa Group and South China City rose more than 20%, and Vanke and Sunac China rose more than 13%. China Taiping is up more than 5%, China Ping an is up 3%, China Merchants Bank, China Construction Bank, China Life Insurance and China Pacific Insurance are all up more than 5%, and ICBC is up 4.92%.

Technology stocks are still active, with Tencent Holdings up more than 4%, Huahong Semiconductor and Meituan up more than 3%, SMIC, JD.com and bilibili up more than 2%.

Wang Hua, an analyst at Warburg Securities, said that the dividend yield of Hong Kong stocks has an advantage on a global scale, and the recent discussion on the reduction of dividend tax on investment in Hong Kong Stock Exchange has promoted the rapid rise of the high dividend sector of Hong Kong stocks. positive changes will take place in the internal and external macro environment in the future, and the willingness of enterprises to pay dividends is expected to jointly point to Hong Kong stock dividend assets or will continue to show allocation value.

Apart from tax reduction, what other opportunities can Hong Kong stock dividends focus on? Wang Hua pointed out that looking for the spread of dividends in Hong Kong stocks can also use the perspective of an increase in expected returns, focusing on stocks whose dividend yields are likely to continue to rise (dividend yields have continued to rise in the past three years), or from the perspective of earnings per share growth, focus on stocks whose performance exceeds expectations by the top 30%. Dividend returns on pan-consumer assets that used to be highly valued have slowly begun to move closer to those of utilities. These pan-consumer assets whose valuations have shrunk in place are likely to take over the low-wave dividend assets of public utilities in the future and become a stabilizer for the stabilization of the Hong Kong stock market.

Huachuang Securities believes that if Hong Kong stock dividend profit and tax policy is optimized, the target of high dividends is expected to benefit, long-term boost market liquidity. From 2021 to 2023, although the total amount of dividends of Hong Kong stocks declined in 2023, due to the increase in the share of Hong Kong stocks, the overall dividend tax showed an upward trend year by year. Assuming that the dividend tax rate for mainland investors is reduced to about 10 per cent that of Hong Kong account investors in 2024, the dividend tax on Hong Kong stocks in 2024 is expected to be close to HK $30 billion, down about HK $25 billion from 2023; southward investors are expected to benefit from this. If the dividend tax is optimized, it may boost the trading sentiment of high dividend targets in the short term, which is expected to further open up the liquidity of the Hong Kong stock market in the long run.

Huachuang Securities pointed out that the Hong Kong media Internet sector is entering a "high-quality development" stage, and the relevant high-dividend companies also have differences in after-tax dividend yields between mainland investors and Hong Kong account investors. If the dividend tax is reduced, investors in the mainland-Hong Kong Stock Connect can enjoy an increase in the dividend yield.