What risks are worth paying attention to when the data-oriented downside pulls the Hang Seng Index upward? How sustainable is the growth of high-speed rail infrastructure stocks driven by policy expectations?
On August 1, Caixin reported (Editor: Feng Yi) that the Hong Kong stock market did not continue the previous day's strength, and the three major indexes fell on the first trading day of August. As of the close, Hang Seng Tech Index fell by 1.15%, Hang Seng Index and Hang Seng China Enterprises Index fell by 0.23% and 0.34%, respectively.
Let's take a look at today's market hotspots: core technology stocks are sluggish, and the Hang Seng Index rebounds and returns to fluctuations; short-term sentiment cools down under the onslaught of negative data-oriented trends; high-speed rail infrastructure stocks emerge as a new force, and the expectation of steady growth is heating up.
Core technology stocks are sluggish, and the Hang Seng Index rebounds and returns to fluctuations.
On the market, core technology stocks are lackluster. JD.com fell by nearly 4%, Baidu fell by more than 2%, Kuaishou, Xiaomi, and Meituan all show decline, while Tencent and Meituan rose.
In other sectors, most brokerage stocks that surged the previous day retreated. Real estate stocks fell collectively, with mainland real estate stocks leading the decline, and related industries such as building materials, cement, and home appliances followed. In addition, consumer sectors such as sporting goods, beer, dining, and pork all showed significant weakness.
Among the rising sectors, high-speed rail infrastructure stocks are significantly stronger. Due to geopolitical risks, safe-haven assets such as gold and oil have generally risen.
Overall, after a sharp rebound the previous day, the Hang Seng Index once again fluctuated, and the resistance around 17500 points was more obvious. The total trading volume was HKD 94.051 billion for the day, and the total short-selling amount was HKD 11.909 billion, with the short-selling capital ratio of 12.66%, slightly higher than the five-day average.
Tencent Holdings, CNOOC, and Alibaba-SW had the top three short-selling amounts, which were HKD 0.757 billion, HKD 0.571 billion, and HKD 0.479 billion, respectively.
With the negative data-oriented trends striking, short-term sentiment cools down.
On the market, the merger rumors of the top brokerages did not continue to ferment, which caused the brokerage stocks to retract, and market sentiment cooled down.
On the other hand, a wave of negative data on the macro side has also affected the rebound of the Hong Kong stock market.
The National Bureau of Statistics announced that the July Purchasing Managers' Index (PMI) for manufacturing was 49.4%, down by 0.1 percentage points from the previous month; the Caixin China General Manufacturing PMI for July 2024 was 49.8, a decrease of 2 percentage points from June, and the first time it has been below the boom or bust line since November 2023, indicating a significant decline in the level of prosperity.
Affected by the negative, many high-yield stocks and safe-haven assets such as gold that were adjusted in advance were once again focused on today.
High-speed rail infrastructure stocks have emerged as a new force, and the expectation of steady growth is heating up.
However, in combination with the content of the Political Bureau meeting on July 30, the market began to expect subsequent policy efforts. Today, high-speed rail infrastructure stocks led the gains, reflecting the market's expectation of steady growth.
The Ministry of Finance has also indicated recently that the 1 trillion yuan increased issuance of national bonds last year has all been distributed to localities and has mostly been put into projects.
It is worth noting that as of July 26, the issuance of new local government bonds this year has reached 1.9 trillion yuan. The Ministry of Finance also stated that it will include more fields such as new infrastructure and new industries in the scope of special bond investment, and allocate special bond quotas to fully prepare for the projects.
In addition, data shows that the decline in real estate sales narrowed in June, and the growth rate of infrastructure investment rebounded significantly. Industry experts believe that considering that the issuance of government bonds in the third quarter will accelerate significantly, it is expected to drive the marginal rebound of infrastructure investment, and the pivotal role of investment in macroeconomic operation will be further played.