Hong Kong stocks showed strong performance this morning (April 5), with the Hang Seng Index rising nearly 500 points even without southbound capital. However, looking at a longer timeframe, the Hang Seng Index has been hovering between 25,500 and 26,500 points, showing almost no significant increase year-to-date. On the other hand, the share placement and fundraising market has been exceptionally active. Following $CATL (03750.HK)$ a share placement raising approximately HKD 39.1 billion, $361 DEGREES (01361.HK)$and $SENSETIME-W (00020.HK)$ successive fundraisings have drawn market attention to the following questions: which types of shares could be next in line for potential placements? What are the early warning signs before a share placement? Can retail investors take advantage of the opportunity to 'buy the dip' after the placement?
Three types of share placements: AI technology, new energy, and consumer stocks
Recent cases indicate that the following three types of shares carry the highest short-term placement risks:
AI and tech stocks:SenseTime's five share placements within two years (from June 2024 to April 2026)(See the image below), cumulatively raising over HKD 10 billion. The companyContinuous losses (see chart below), but in order to sustain the development of artificial intelligence (AI), the capital expansion strategy requires ongoing 'infusions' for R&D and computing power expansion.Equity financing may be the only way out.
Manufacturing/New Energy Stocks:As of the end of the first quarter, CATL had more than 300 billion yuan in cash on its books. When its H-share reached a historic high of nearly HK$745,(See the image below)a share placement was announced. The reason isits overseas production capacity continues to expand, with massive capital expenditures, and the company may want to lock in funds while its valuation is still at a high point.
Consumer Stocks:36...