In fact, the Hong Kong stocks with the best gains have already told you that it is time to adjust.
Hong Kong stocks have been in a bad situation for many days, but there was a sudden change this afternoon. Hong Kong stocks were short and Hang Seng had a shock position. at the same time, the 1987 stock market crash happened to be 30 years old. Investors were cautious, close to the opening of Europe at 3 p.m., and the selling pressure of Hong Kong stocks increased. After the opening of the European market, it fell by more than 28094.54 points, lost its 10-day and 20-day average, and closed at 28159.09 points, down 552.67 points, or 1.92%. Only narrowly maintained the 20-day average (28158 points). The index of state-owned enterprises also fell 264.5 points, or 1.55%, to 11357.45. The amount of gold has soared to 116.5 billion yuan. More than 1300 shares on the motherboard fell throughout the day.
According to the relevant market participants, the reason for the decline of the Hang Seng Index is due to the independence deadline of Catalonia in Spain. Every time I look at these reasons, they are often regarded as a joke by mainland professional investors. When you say that the economic data are not good, it is still a reason to ramble about for a while, North Korea and Spain. Believe the nonsense of these brainless people, if you don't lose money, who loses?
As a result, the Hang Seng Index has risen more than 7000 points since the beginning of the year, and the share prices of many stocks have risen several times. Oddly, however, the Hang Seng Index has not seen a decent adjustment so far. A few days ago, the author returned to the western provinces of the mainland, and even his childhood classmates were lamenting his brilliant achievements in the Hong Kong market this year.
After looking at the stock market in Hong Kong, how many mainlanders have made a lot of money? On the contrary, it is because of the habitual thinking of Hong Kong local investors, coupled with the influence of the "analysis" of relevant market participants, I am afraid that this year's earnings will have to play a question mark.
Mainland investors generally believe that leeks are in the Hong Kong market!
The main reason: the profit market is too much, too fierce, too much, where is there only a rising stock market?
For example, the stock ZTE Corporation (00763), its own trend is synchronized with the mainland A-shares, and the Hong Kong stock ZTE has also made three times its profits since the bottom of the year. As a result, yesterday's forecast of the third-quarter results was not satisfactory. Institutional investors must have their own analysis and judgment on the enterprise. Fu Rui pointed to ZTE Corporation's results in the first three quarters, reflecting the actual decline in net profit in the third quarter compared with the same period last year, mainly due to seasonal factors, suggesting to buy while low, while BoCom International thought that the market expectation for 5G was too high and downgraded it to sell. The market is obviously biased towards the mainland A-share thinking, and it is not surprising that Hong Kong stocks have fallen sharply in volume following the A-share market today.
In the automotive sector, for example, Geely Automobile also more than tripled in 2017, brilliance China doubled, and BYD only began to attack in the third quarter, but the profit stakes are also huge. It is obvious that many stocks are unable to attack at the high level, at this time the Hang Seng Index has been adjusted, and the crackdown on the strong plate leader must be the first to bear the brunt. Today, Geely Automobile (00175) fell as much as 10%, closing at 24.85 yuan, down 7.45%, making it the worst-performing blue chip. BYD (01211) fell 5.58%, while Great Wall Motor (02333) fell 3.47%. Dongfeng (00489) also fell 2.55%. It shows that market sentiment is beginning to be hit by the short side, and the follow-up investment needs to be cautious.
Fortunately, the southbound funds of Hong Kong stocks have recently continued to buy Hong Kong stocks, so the foundation of this bull market of Hong Kong stocks is still there. There are a large number of Hong Kong Stock Connect funds in the mainland that still need to allocate Hong Kong stocks, taking advantage of this round of decline is an opportunity for layout.
China Merchants believes that it is now the middle of the bull market in Hong Kong stocks, and fund managers will increase their positions every time they adjust. At present, the proportion of Hong Kong shares allocated by foreign investors is only about 7%. It's still historically low. And large-cap stocks are rising this year, and if small-cap stocks also rise next, the bull market will be coming to an end. And the foundation of this bull market is relatively stable, with many survivors of the last leveraged bull market.