Jinwu Financial News | On June 24, Hong Kong stocks showed a trend of falling first and then stabilizing, but it still seems that they have not been able to break away from the overall market development. When the Federal Reserve will implement the first interest rate cut and progress in the mainland's economic restructuring, I believe they will still be the focus of the market, and the reason why the atmosphere of cautious wait-and-see has not dissipated. It is worth noting that November 5 this year will be the day of the 60th US presidential election, and the first televised debate on presidential candidates will also be held this Thursday (US time). The emergence of relevant news may further increase the current noise in the market, so keep an eye out. The Hang Seng Index fell slightly by less than 1 point and continued to close at the level of 18,000 points, while market turnover fell back to less than 100 billion yuan, and fell below the average daily average of 110.7 billion yuan during the year. The situation shows that market liquidity is still declining. In the case of insufficient liquidity, it is important to note that the capital squeeze may gradually increase, and there will also be an opportunity to weaken the supporting capacity of the market. In terms of trend, the Hang Seng Index is still in a weak equilibrium, and the wave that gradually formed after peaking at 19706 points on May 20 is lower than the first wave development model. Currently, there is still no reversal or improvement. The previous level of micro-wave peak of 18,724 points (high intraday level on June 5) will be the first major rebound resistance at present.
Hong Kong stocks fell first and then recovered. At one point during the intraday period, they fell 239 points to a low of 17,790 points, but remained above last week's low of 17,752 points. Driven by leading Internet stocks before the close, the market was able to recover most of its losses. The performance of index stocks is divided. Among them, domestic consumer stocks, which have continued to be under pressure recently, showed an overrun rebound. Budweiser Asia Pacific (01876) rose 3.19%, Master Kong (00322) rose 3.09%, and Wanzhou International (00288) rose 2.95%, all of which are in the top three of the biggest gainers of the Hang Seng Index component stocks. On the other hand, chip semiconductors and AI-related stocks, which have recently been booming, have been rebounding from a high level. SMIC (00981) and Lenovo (00992) fell by 3.43% and 2.67% respectively. The market reported that the US Treasury Department announced proposed rules to restrict investment in Chinese AI and computer chips, which is presumably the reason for the impact.
The Hang Seng Index closed at 18028 points, down 1 point or 0.004%. The national index closed at 6,441 points, up 1 point or 0.02%. The Hang Seng Index closed at 3,678 points, down 24 points, or 0.64%. Furthermore, the main board volume of Hong Kong stocks fell back to more than $96.4 billion, while the short selling amount was $13.93 billion, or 14.44%. As for the ratio of rising and falling shares, 533:1099, there were 39 stocks that rose more than 10% during the day, while 41 stocks fell by more than 11% during the day. After 26 consecutive days of net inflows, Hong Kong Stock Connect turned to net outflows. On Monday, it recorded a net outflow of over $2.1 billion.
Author: Ye Shangzhi, First Shanghai Chief Strategist