Source: Wall Street See
On Wednesday, the China Securities Regulatory Commission released the 'Eight Measures for the Star Market.' Some analysts pointed out that the market expects more supportive policies to be introduced and expects bank reforms to increase shareholder returns. In addition, after the previous adjustment, Hong Kong stocks may have bottomed out, coupled with the expectation that the Federal Reserve will still cut interest rates this year, all of which provide soil for the rebound of Hong Kong stocks.
After three consecutive days of decline, the Hong Kong stock market rebounded strongly on Wednesday, leading the Asian market.
As of press time, Hang Seng Index rose 2.83%, Hang Seng Tech Index rose 3.54%, and Hang Seng China Enterprises Index rose 3.41%. The technology sector has experienced a major outbreak, with a surge of over 19%, over 9%, and an average increase of about 6%.$BILIBILI-W (09626.HK)$Surging more than 19%.$LENOVO GROUP (00992.HK)$Surging more than 9%.$XIAOMI-W (01810.HK)$, $MEITUAN-W (03690.HK)$, $SENSETIME-W (00020.HK)$All surged about 6%.
On the same day, the 14th Lujiazui Forum opened in Shanghai, and the market's expectations for China's capital market reform warmed up, injecting a shot of adrenaline into Hong Kong stocks. Analysts expect that the regulatory authorities will launch more market-friendly policies at this forum, especially reforms targeted at the STAR Market.
Billy Leung, strategy analyst at Global X ETFs, said:
Influenced by the Lujiazui Forum in Shanghai, the Hong Kong stock market is growing. The market expects more supportive policies and hopes for bank reforms to increase shareholder returns. I suspect these policies may be more important for Hong Kong-listed stocks.
On the same day, the China Securities Regulatory Commission issued the "Eight Measures for the STAR Market", clarifying its support for high-quality technology-oriented companies that have key core technologies, great market potential, and outstanding technological innovation attributes but are not yet profitable to list on the STAR Market. It will also study and optimize market-making mechanisms and after-hours trading mechanisms, enrich the category of STAR Market ETFs and ETF options, and study the timing of launching the SCI Science and Technology Innovation Board 50 Index futures and options.
Some analysts also believe that after the previous adjustment, the Hong Kong stock market may have found its bottom, and coupled with the fact that the US Federal Reserve has not explicitly ruled out an interest rate cut this year, this expectation has not yet been completely dispelled, all of which provide fertile ground for the rebound of the Hong Kong stock market.
As of Tuesday's close, the China Enterprises Index has fallen by about 4% this month, while the MSCI Asia-Pacific Index has surged 7% over the same period.
Tianfeng Securities believes that looking ahead, the Hong Kong stock market has already witnessed a significant rebound against the backdrop of a significant improvement in sentiment among domestic and foreign investors, but its sustainability and upside potential still await more solid fundamental data to support it, and it remains cautiously optimistic during the verification period of economic recovery.
Zhou Nan, founder and chief investment officer of Shenzhen Longhui Fund Management Co., Ltd., said:
Today's rise seems more like a technical rebound, but it was within expectations after the adjustment, and it is highly likely that the Hong Kong stock market will set a new high this year.
In addition, the Hong Kong Stock Exchange announced on Tuesday that it would cancel the practice of suspending trading during typhoons for the first time in decades, effective September 23. Analysts say this move may help eliminate uncertainty in market access and liquidity.
CICC believes that stabilizing above 18,000 points is an important sign of the Hong Kong stock market's true transition from bear to bull. The current rebound of the Hong Kong stock market has surpassed the rebound in the bear market oversold phase and should be given high attention. Historically, in bear market cycles, after a technical bull market and short-term pullback, there is a greater likelihood of continued upward movement in the medium term.
Editor/tolk