Jinwu Financial News | On June 18, Hong Kong stocks continued to fluctuate and weaken. Under the trend of continuous decline in market liquidity, there are signs that short-term momentum is gradually slowing down. We estimate that the market is still in a state of consolidation, and there is still an opportunity for the market to continue to explore in the short term. The Hang Seng Index fell for three days and then dropped slightly by more than 20 points, and continued to close below 18,000 points, while market turnover was further reduced to just over 92 billion yuan, the lowest daily turnover since April 9, and also lower than the average daily average of 110.7 billion yuan during the year. The situation shows that the enthusiasm for capital participation is weakening. Note that the support and support of Hong Kong stocks is weakening. In terms of trend, the Hang Seng Index's short-term weak watershed is still at 18,200 points, and it is advisable to return to it as soon as possible. Otherwise, the Hang Seng Index will still develop in a downward pattern. It is estimated that the short- to medium-term support zone of 17,200 to 17,600 points will have a chance to be tested. In terms of news, in order to be in line with other international financial centers, Chief Executive Li Jiachao said that the Hong Kong Stock Exchange (00388) will implement a continuous market arrangement for bad weather starting September 23. Under the new arrangement, investors can trade stocks during the launch of Typhoon No. 8 and the black torrential rain. However, in a situation where the current market atmosphere tends to be cautious and wait-and-see, the news has failed to provide a real time boost to Hong Kong stocks.

Hong Kong stocks continued to develop in a narrow and weak range, and the intraday volatility narrowed again to less than 200 points. It is a characteristic of the market. It is important to note that the volatility of Hong Kong stocks can expand again at any time. The performance of index stocks continues to diverge. Among them, China Hongqiao (01378), which has been adjusted from a high level for two weeks. The 4.4% stock price rebound is the component stock of the Hang Seng Index with the biggest increase. However, the US dollar is still rebounding, so London aluminum prices have not escaped downward development. It is estimated that it will still have an impact on the performance of China's Hongqiao. On the other hand, domestic housing stocks continued to weaken. China Resources Land (01109) and Vanke (02202) fell by 0.92% and 0.78% respectively, while China Overseas (00688) and Longhu Group (00960) fell 2.52% and 3.18% respectively, both of which hit recent lows.

The Hang Seng Index closed at 17,916 points, down 21 points, or 0.11%. The national index closed at 6,368 points, down 5 points, or 0.08%. The Hang Seng Index closed at 3,697 points, down 12 points, or 0.32%. Furthermore, the main board trading volume of Hong Kong stocks declined further to more than $92.3 billion, while the short selling amount was $14.97 billion, or 16.22%. As for the ratio of rising and falling shares, 751:833, there were 45 stocks that rose more than 10% during the day, while 38 stocks fell by more than 10% during the day. Hong Kong Stock Connect reported a net inflow on the 23rd. On Tuesday, it recorded a net inflow of over $5.8 billion.

Author: Ye Shangzhi, First Shanghai Chief Strategist