Source: China Fund News
On March 12, Hong Kong stocks rose across the board.$Hang Seng Index (800000.HK)$It soared 505 points to 17,093 points, and the increase was corrected for the first time in the year;$Hang Seng TECH Index (800700.HK)$The increase reached 4.64%, rebounded more than 20% from a low point, and entered a technical bull market.
$XIAOMI-W (01810.HK)$It surged more than 11%, leading the way for a component in the Hang Seng Technology Index.
This round of rebound in Hong Kong stocks was driven by a number of factors, such as increased market confidence, the return of foreign capital, and continuous purchases of mainland capital supported by policies and measures. Meanwhile, due to increased confidence in policy support, Vanke Hong Kong stocks, which had previously declined, soared by more than 10%.
Hang Seng Tech Index enters technical bulls
On March 12, Hong Kong stocks rebounded across the board. The Hang Seng Technology Index surged 4.64%, with an intraday increase of 5%. Since its low on February 1 this year, it has risen 21.23%. According to the standard of generally rebounding more than 20% from a low point into a technical bull market, the Hang Seng Technology Index has entered a technical bull market. At the same time, the Hang Seng Index's earnings also changed from negative to positive for the first time during the year.
A number of factors contributed to this round of rebound in Hong Kong stocks. Since the central government introduced a number of measures to stabilize market confidence at the beginning of the year, along with improvements in China's economy and corporate profits and the return of foreign capital, investors have paid for the rebound in the Hong Kong stock market. Overseas investors have begun to adapt to the restructuring of the Chinese economy, and are gradually optimistic about the new round of policies to promote high-tech growth and economic development.
From a domestic perspective, continuous net purchases of Hong Kong stocks have continued for quite some time. Since February 7, Southbound Capital has continued to make net purchases of Hong Kong stocks for 19 trading days, with a continuous net purchase amount of HK$56.4 billion.
According to Morgan Stanley's analysis, long-term global investors have completely changed their previous attitude towards Chinese stocks, and some funds have begun to be more positive about the prospects of the Chinese market. Temple, chief market strategist at Lazard Asset Management, recently pointed out that based on analysis and forward-looking judgment on the Chinese market, increasing investment in the Chinese market may be a wise decision now. He predicted that within the next 12 to 18 months, the Chinese stock market could become one of the best performing markets in the world.
Vanke surged
March 12,$CHINA VANKE (02202.HK)$The stock price of has risen by more than 10%, and related bonds have also generally risen, showing that, stimulated by optimistic news, the market's confidence in Vanke continues to strengthen.
According to news circulating in the market, the government has asked large banks to increase financing support for real estate developer Vanke, which has national background support. This requirement not only involves increasing loan amounts, but also encouraging creditors to consider extending the maturity of Vanke's personal debt. In addition, related reports also pointed out that the management of several insurance funds visited Vanke's headquarters in Shenzhen at the beginning of this month to discuss a new round of support measures.
Recently, Moody's downgraded the Chinese real estate company Vanke's rating to Ba1. Despite this, analysts pointed out that Moody's rating adjustments did not have a substantial impact on Vanke's domestic and foreign financing. These rating adjustments, particularly for domestic financial institutions, are no longer a major factor in their decision to take loans. As for overseas financing, given that all Chinese housing companies' overseas financing has almost completely stagnated in recent years, the impact of this rating change is considered limited.
According to a recent research report released by CICC, financial institutions' support for the real estate industry has increased recently, which helps improve the liquidity status of real estate companies, reduce credit risk, and promote guaranteed housing delivery, thereby improving market expectations.
On March 12, the real estate sector of Hong Kong stocks surged, with many individual stocks rising by more than 10%.
Editor/jayden