Themonero news reddit Hang Seng Index opened higher and continued to rise on Thursday. It reached a peak of 19,685.79 points at 10:40 before turning bullish. The index briefly softened to the level of 19,550 in the afternoon, but rebounded again after 14:50. It had a daily fluctuation of 203.32 points with a trading volume of 113.564 billion yuan. The Hang Seng Index, H-Share Index, and Hang Seng Tech Index rose by 1.41%, 1.86%, and 2.9% respectively.

The Ministry of Industry and Information Technology (MIIT) and the National Standardization Management Committee issued a notice on the "Guidelines for the Construction of the National Connected Vehicle Industry Standard System (Intelligent Connected Vehicles) (2023 Edition)." The notice mentions that in the first phase until 2025, a standard system for intelligent connected vehicles will be established to support advanced driver assistance systems and general autonomous driving functions. In the second phase until 2030, a comprehensive standard system for intelligent connected vehicles will be formed to support the coordinated development of individual vehicle intelligence and network connectivity. This news drove the New Energy Vehicle sector higher, with Xiaopeng Motors (9868), which received approximately a 5% stake investment from Volkswagen, rising by 33.88% to close at 81 yuan, with a transaction amount of 5.14 billion yuan, making it the most traded stock of the day. Peer companies NIO (9866) and Geely (0175) also rose by 13.36% and 8.57% respectively.

The Hang Seng Index reached its highest level since June 21, with the closing level above the 100-day Simple Moving Average (SMA) for the first time since April 21. The MACD bullish divergence expanded, with 10,697 stocks rising and 620 falling throughout the day, indicating a generally favorable market condition.

Investors are concerned that the Federal Reserve needs to maintain high interest rates to suppress inflation, and the Bank of Japan will allow long-term interest rates to rise. The US 10-year Treasury yield has exceeded 4%, leading to a mixed performance in the three major US stock indexes, with the Dow Jones Industrial Average ending its 13-day upward trend.

The night session and ADR are declining, and it is expected that the Hang Seng Index will experience a pullback after yesterday's rebound. Support can be considered around the 200-day Simple Moving Average (approximately 19,296). Also, be cautious about the volatility of the market as it is the expiry date for futures contracts.

In addition, the resumption of trading for Evergrande Auto (0708) after a suspension of nearly 16 months is expected to be one of the focal points.

English Technology (1760) is primarily engaged in providing key automotive electronic component solutions for new energy, body control, safety, and power transmission systems.

In the fiscal year 2022, the group's total revenue amounted to RMB 482.99 million, representing a year-on-year increase of 52%. The core solutions for new energy vehicles continued to be the main driver of the group's profitability, with a significant annual revenue growth of 91%, accounting for 43% of the total revenue. The business of intelligent driving and connected solutions also performed impressively, with a year-on-year revenue surge of 151%. The gross profit during the period reached RMB 104.06 million, marking a 66% annual increase, and the gross profit margin rose from 19.7% to 21.5%. The net profit for the period amounted to RMB 41.11 million, reflecting a year-on-year increase of 105%.

Recently, a major bank pointed out that as the number of exports of new energy vehicles by its key clients rapidly increases, the group will also consider expanding into overseas markets as a primary driver of future growth. In the second half of this year, the company will also establish a research and development center in Hong Kong to better serve and respond to the needs of customers venturing into overseas markets, which will contribute to overall business performance.

The group's stock price has been performing well recently, and there are indications in the financial technology system. The group's valuation is at the industry average level, which should be noted. If the valuation is based on a price-to-earnings ratio of 13 times, the target price would be 5.5 yuan.

The author is a licensed individual of the Hong Kong Securities and Futures Commission and does not hold the aforementioned shares. The above article represents personal opinions.