Hong Kong Stocks Midday Review: Hang Seng Index down 0.51%, China Enterprises Index down 0.94%. Tech and oil stocks mostly decline. New consumer concept stocks weaken. Pop Mart drops nearly 5%.

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March 31 news: The three major indexes in Hong Kong stocks fell collectively. By midday close, the Hang Seng Index was down 0.51% to 24,623.95, the Hang Seng Tech Index was down 0.94%, and the Hang Seng China Enterprises Index was down 0.83%. On the trading front, internet and communications stocks fell across the board. Xiaomi and Bilibili were down more than 2%, while Alibaba and Lenovo were down more than 1%. Coal stocks led the declines, with China Coal Energy down more than 7%. Oil stocks fell broadly; PetroChina was down more than 4%. Stocks tied to the new consumption theme weakened, with Pop Mart down more than 4%. Two new stocks listed today: Fourier rose more than 101%, and Copper Master fell more than 37%.

Coal stocks led the declines, with China Coal Energy down more than 7%. Haitong Securities said that in an environment of high oil and gas prices, demand for imported coal from other Asian economies is more rigid than that of China, creating greater pressure to ensure supply and stronger ability to absorb high-priced coal, which may crowd out China’s imports of coal supply. We believe Xinjiang coal has the potential to increase volumes to fill the gap. Under the bottleneck of railway transportation out of Xinjiang, the cost of intermodal land-and-rail transport for outbound shipments supports domestic coal prices: our calculations show that when the price of 5500 kcal coal reaches 794 yuan per ton, Xinjiang coal’s intermodal land-and-rail outbound transport is economically viable. If large-scale volume growth is to be achieved, coal prices may need to rise further to 944 yuan per ton to ensure profit space on the supply side. In addition, we believe that the leftmost end of the cost curve for domestic coal and imported coal—Indonesian coal with a price inversion—will also provide some upward pricing momentum.

Oil stocks fell broadly; PetroChina was down more than 4%. Trump told an aide that even if the Strait of Hormuz remains largely closed, he is willing to end the military action against Iran, because forcibly reopening the strait would exceed the original 4-to-6 week operational time frame. After the news, US stock index futures turned higher, and WTI crude oil gains narrowed to less than 1%. Although Trump prefers to end the war as quickly as possible, the United States’ military deployments are still moving forward. Trump is also considering sending a large number of ground troops to the Middle East.

Stocks tied to the new consumption theme weakened, with Pop Mart down more than 4%. After Pop Mart’s share price was cut in half from its high point, the market has priced the worst-case scenario. Morgan Stanley said that the severity of three issues may have been overestimated: rising inventories, overseas profit margin pressure, and controversies over new businesses. Among overseas SG&A, 40–45% are variable costs that move with sales, so losses will not be enlarged indefinitely. There is no risk of products expiring or seasonal clearance pressure. In the new business, the truly worth tracking items are theme parks and animation short films that will premiere this year.

Two new stocks listed today: Fourier rose more than 101%, and Copper Master fell more than 37%.

During the public offering phase, Fourier was subscribed 3118.43 times. The final number of shares for the public offering was 2.4 million shares, representing approximately 20% of the total offering shares. In total, about 118,537 valid applications were received, with about 18,405 applications admitted. The approximate percentage of shares allocated per one subscription lot relative to the total number of shares applied for was about 5%.

During the public offering phase, Copper Master was subscribed 59.55 times. The final number of shares for the public offering was 1.11M shares, representing approximately 15% of the total offering shares. In total, about 26,280 valid applications were received, with about 3,004 applications admitted. The approximate percentage of shares allocated per one subscription lot relative to the total number of shares applied for was about 2.78%.

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责任编辑：郝欣煜