Hong Kong stocks rose sharply today, with the Hang Seng Technology Index posting its biggest gain since January 27. As of 13:40, the Hang Seng Technology Index was up 5% and the Hang Seng Index was up 3.26%.
In February, Hang Seng Internet ETF and Hong Kong Stock Connect Internet ETF fell by more than 10%.
Today, Hong Kong Technology ETF, China General Interconnection ETF and Hong Kong Technology ETF are up more than 3%.
With regard to the rebound in Hong Kong stocks today, some institutions pointed out that they mainly benefited from the higher-than-expected official and Caixin PMI data released this morning, followed by the Fed's concern about raising interest rates.
Caixin China's manufacturing purchasing managers' index (PMI) was 51.6 in February, up 2.4 percentage points from January, above the threshold for the first time since August 2022 and the highest since July 2022.
Analysts pointed out that the higher-than-expected official and Caixin PMI data in February showed that China's economy was in a gradual recovery, with small company PMI returning to the expansion line for the first time since April 2021, boosting investor confidence that had recently been weak. From this point of view, the effect of stabilizing economic policies and measures is further apparent. At the same time, favorable factors such as the fading of the epidemic are also one of the main reasons for the rebound in the market. The obvious promotion of real estate sales, industrial production, and the resumption of real estate infrastructure construction after the Spring Festival reflects a marked rebound in China's economic prosperity.
Zheng Houcheng, director of the Securities Research Institute of British University, analyzed that the main reasons why the manufacturing PMI continued to rise in February were as follows: first, the five major components of the manufacturing PMI in February were all higher than those in January, of which the production index rose the most, indicating that the resumption of work and production after the Spring Festival was the main pull item of the manufacturing PMI in February; second, various localities increased the intensity of macro-policy regulation to support the manufacturing PMI. In addition, in terms of seasonal factors, the manufacturing PMI in one month after the Spring Festival is higher than that in the Spring Festival month.
Many institutions are optimistic about the future market. China Merchants believes that after March, due to the interweaving of risk factors and expectations of economic recovery, policy-driven and performance improvement in parallel, the style will return to equilibrium in stages. However, the main idea of excavating the growth targets of small and medium-sized enterprises with clear growth prospects in the new industrial trend this year will not change. Judging from the recent economic data, China's economy is still accelerating recovery, so the market is expected to come out of the trend of first suppression and then rise, and continue to maintain the upward trend.
CITIC said that the fundamentals of the science and technology sector are expected to gradually improve, and it is suggested that we should focus on digital infrastructure, basic software and hardware and other sectors. Looking forward to the follow-up, with the sustained recovery of the domestic economy and the continuous support of policies, the fundamentals of the domestic science and technology sector are expected to gradually improve, while the overall valuation performance-to-price ratio of the plate is also more prominent.
BoCom International said that the whole year of 2023 is still optimistic about Hong Kong stocks, from the perspective of the capital flow cycle, the current upward market of both Hong Kong stocks and A shares is still not finished. In the process of repairing the slow and gentle macro fundamentals, the middle and micro enterprises' profits will be repaired accordingly, and the targets with fast profit repair and high upward profit flexibility will benefit the most in this process.