Jinwu Financial News | On June 25, Hong Kong stocks continued to experience a trend of contraction and vibration at the 18,000 point level. There is an opportunity for steady performance before the end of half a year. However, market liquidity has declined markedly recently, so it is important to note that the supporting support of the market bottom is weakening. The Hang Seng Index rose by more than 40 points, closing close to 18,100 points, while the market volume further declined to more than 90 billion yuan, which continued to fall below the average of 110.6 billion yuan during the year, indicating that the enthusiasm for capital participation is still not picking up. It can be seen that the current climate of cautious wait-and-see in the market has gradually deepened. It is not easy to reinvigorate the atmosphere. The market is looking forward to new news to be realized and promoted. In terms of trend, the Hang Seng Index is still constrained by the micro-peak of 18,724 points in the previous level. There has been no improvement in the pattern of a wave falling below the first wave that has been extended from 1970. It is estimated that the market will continue to operate and develop as a whole in the future. Looking back at the performance of Hong Kong stocks in June, it mainly operated by repeatedly hovering in the range. The main range was between 17,800 and 18,500 points. The 10th, 20th, and 50-day lines of the Hang Seng Index have now gradually formed a state of entanglement. It is a pattern that needs to be changed. I believe there will be an opportunity to expand the volatility after entering July. It is worth noting that Hang Seng Science and Technology has now fallen below the average combination, and weaknesses have been revealed first. Therefore, overall, whether China Special Assessment can continue to be the main force supporting the market will be the focus of our follow-up observations.

Hong Kong stocks experienced a slight recovery in contraction. They once rose 203 points to a high of 18231 points in the intraday period, but they are still under pressure from the 20-day line (latest report of 18231 points). The average combination is aggregating to form a focus point. If the pattern changes, there is a chance that a breakthrough will soon occur, and short-term volatility will expand. Index stocks continued to diverge. Among them, domestic consumer stocks continued to overfall and rebound, while chip semiconductors and AI-related stocks continued to rebound. The pattern did not change much. Instead, the Hong Kong Stock Exchange (00388), which can reflect the state of the market atmosphere to a certain extent, continued its weak downward trend. The stock price fell 0.93% to close at 255.4 yuan, setting a new closing low since May.

The Hang Seng Index closed at 18073 points, up 45 points, or 0.25%. The national index closed at 6464 points, up 23 points, or 0.36%. The Hang Seng Index closed at 3,655 points, down 22 points, or 0.6%. Furthermore, the main board volume of Hong Kong stocks declined further to more than $93.7 billion, while the short selling amount was $15.82 billion, or 16.89%. As for the ratio of rising and falling stocks, there were 43 stocks that rose more than 11% during the day, while 45 stocks fell by more than 10% during the day. Net inflows from Hong Kong Stock Connect resumed one day after the net outflow, but inflows were low. A net inflow of over 300 million yuan was recorded on Tuesday.

Author: Ye Shangzhi, First Shanghai Chief Strategist