Why did the technology index drop nearly 3%? Why is the golden industrial concept performing poorly recently? What news stimulated the nearly 18% increase in stock price of Techart International in the past four days?
On June 27th, Caixin reported that the Hong Kong stock market opened low and fell today, with the technology index falling nearly 3%, the largest single-day decline since May 22. As of the close, the Hang Seng Index fell 2.06% to close at 17716.47 points; the technology index fell 2.73% to close at 3588.86 points; and the State-owned Enterprise Index fell 2.37% to close at 6324.05 points.
Note: The performance of Hang Seng Tech Index.
Today's Market
In terms of market performance, most stocks, such as technology, gold, coal, shipping, etc., are weak. However, the three major telecommunications stocks received a slight increase.
Most constituent stocks in the technology index adjusted, and Xiaomi Group fell by more than 7%
In the technology sector, Xiaomi Corporation-W (01810.HK), Bilibili-W (09626.HK), and Hua Hong Semiconductor (01347.HK) fell by 7.18%, 4.81%, and 3.73%, respectively.
Note: Performance of constituent stocks in the technology index
In terms of news, several officials from the Federal Reserve recently made hawkish statements, generally supporting the view of interest rate cuts in 2024, but the specific timing of interest rate cuts still needs to be based on economic data. At the same time, the European economy has not stabilized, and the Bank of Japan has maintained a cautious attitude towards monetary policy. In the short term, the strong US dollar has a negative impact on the flow of funds into Hong Kong stocks, and Hong Kong stocks are expected to continue to experience small fluctuations.
In addition to macroeconomic factors, the stock price of Xiaomi Group fell significantly today. According to information disclosed by the Hong Kong Stock Exchange, Lin Bin, the co-founder and vice chairman of Xiaomi, reduced his holdings of 10 million Xiaomi shares for three consecutive days from **** to June 6th, cashing out approximately HK $179 million. It is worth noting that he violated his promise not to reduce his holdings for five years, causing continuous controversy in the market.
Gold stocks continue to fall, Zhaojin Mining Industry falls nearly 4%
Among gold stocks, Zhaojin Mining Industry (01818.HK), China Gold International (02099.HK), and Shandong Gold (03330.HK) fell by 3.94%, 3.66%, and 3.03%, respectively.
Note: Performance of gold stocks
In terms of news, officials from the Federal Reserve recently issued hawkish signals for tightening policies again. Federal Reserve Board member Bowman explicitly stated that she expects the Fed will not take interest rate cuts in 2024, but will postpone any interest rate cuts until 2025. This move put pressure on the trend of gold prices.
Most coal stocks decline as continued rainfall affects expectations for peak season coal prices.
Among coal stocks, China Shenhua Energy (01088.HK), Yanzhou Coal Energy (01171.HK), and Nan Nan Resources (01229.HK) fell by 5.53%, 3.16%, and 3.07%, respectively.
Note: Performance of coal mining stocks.
In terms of news, Everbright Securities pointed out that persistent rainfall in the near future has affected expectations for peak-season coal prices. If subsequent rainfall decreases, coal prices are still expected to rise seasonally. Zhongtai Securities stated that in the future, thermal coal prices will still show a high-level shock trend and there is no basis for a sharp decline.
Cosco Shipping Holdings leads the decline in shipping stocks, and institutions say there is a difference in opinions on whether freight rates have peaked.
Among shipping stocks, COSCO SHIPPING Holdings (01919.HK), China COSCO SHIPPING Ports (01199.HK), and OOIL (00316.HK) fell by 3.61%, 3.30%, and 2.81%, respectively.
Note: performance of shipping stocks.
In terms of news, Guotong Anxin Futures pointed out that under the influence of the money game, the deferred contract led the decline, coupled with news such as Maersk cutting cabin prices for two consecutive weeks, MSC canceling DT cabins, and opening up FAK cabins, the market has begun to differ on whether freight rates have peaked, dragging the near-month contract down.
The three major operators increase in anti-trend with a 3% rise in China Telecom.
Among telecommunications stocks, Guangdong Golden Dragon (00728.HK), China Unicom (00762.HK), and China Mobile (00941.HK) rose by 2.88%, 1.32%, and 0.60%, respectively.
Note: Performance of telecommunications stocks
In terms of news, Guosen Securities stated that this year, the trial of 'vehicle-road-cloud integration' is entering an intensive landing period, and the market space exceeds one trillion yuan. The three major operators are actively laying out new formats of low-altitude economy.
Taking China Telecom as an example, the company held the Low-altitude Economic Cooperation and Development Conference with the theme of "Leading the Cloud and Pursuing Dreams in Low-altitude" in Nanjing on June 17. The China Telecom Low-altitude Economy Industry Alliance was officially established, and the "Low-altitude Navigator" action plan was released. The alliance will coordinate the forces of various industry chains, jointly cultivate the industry ecosystem, and promote the acceleration of low-altitude economic industrialization.
Southbound funds.
Today, the net southbound capital inflow is HKD 3.659 billion, and the cumulative net inflow since the beginning of this year is nearly HKD 335.568 billion.
Note: Performance of Southbound funds
News and fluctuations in individual stocks.
Microport robot fell more than 18% and plans to issue 12.9 million new H shares at a discount of 14.63%. Siasun Robot and Automation will provide low-cost funding support to Microport Robot through financing lease, which is essentially provided by the parent company MicroPort Medical.
Microport Robot (02252.HK) fell 18.58% to close at HKD 9.2. According to the announcement, the company plans to issue 12.9 million new H shares at a price of HKD 9.1 per share, a discount of 14.63% from the previous day's closing price of HKD 10.66 per share. The net proceeds from the share placement will be HKD 114 million. In addition, the company and its parent company MicroPort Medical will carry out financing leases to provide low-cost funding support to Microport Robot.
Tage International rose nearly 18% on the 4th, and Yang Lijuan was appointed CEO of Tage International. Tage International (09658.HK) fell 0.84%, and it is worth noting that the company rose nearly 18% on the 4th. As for news, the company announced last Friday that Yang Lijuan resigned as the executive director and CEO of the company as of July 1 and will transfer to Tage International (09658.HK) of the same series to serve as executive director and CEO, and the deputy general manager Gou Yiqun will take over as the executive director and CEO of Haidilao.
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