At the Hong Kong market opening on the 7th of the week, the Hang Seng Index, which consists of 82 major constituent stocks, rose by 362.91 points (1.60%) to 23,099.78 points compared to the previous trading day. The China Mainland Stock Index (former H-share Index) composed of Mainland Chinese stocks also increased by 174.35 points (2.14%) to 8,330.85 points. The Hang Seng Index recovered the milestone of 23,000 points. It hit a high level not seen in about 2 years and 7 months since late February 2022. Trading volume remains high at 296.8 billion35.1 million Hong Kong dollars (on the 4th it was 261.5 billion26.4 million Hong Kong dollars).
Improvements in domestic and international environments supported the market. In the USA, the strong September employment statistics have raised expectations that the US economy can achieve a soft landing. In the US market last weekend, the major indicator, the NY Dow, rose by 0.8% from the previous day, hitting an all-time high for the first time in 4 days. In China, expectations are growing for additional economic stimulus measures. The Information Office of the State Council of China announced on the 6th that they will hold a press conference on economic policies on the 8th at 10 a.m. local time after the National Day holiday (1-7 days) (11 a.m. Japan time). It is expected that more specific measures will be announced in the market. Expectations are also positive for the Mainland stock rally after the holiday. Despite the Mainland market being closed from the 1st to the 7th of this month, the Hong Kong stock market soared during this period. Multiple investment funds, brokers, financial institutions, etc., have successively revised their investment recommendations for Chinese stocks upward. (Edited by Asia Research)
Among the constituent stocks of the Hang Seng Index, SMIC, China's largest IC foundry, surged significantly by 21.8% (29.3% on the 4th). Expectations are high for the growth of semiconductor revenue due to the increasing demand for AI (Artificial Intelligence). Stock prices of other industry competitors also rose in unison.
The securities and insurance sectors in China also surged. At the close of trading, Swhy Group (6806/HK) rose by 40.9%, CC Securities (1375/HK) by 28.0%, China International Finance (3908/HK) by 23.1%, NCI (1336/HK) by 20.5%, China Life Insurance (2628/HK) by 12.4%, and PICC Group (1339/HK) by 12.0%.
The real estate sector in China also experienced high gains. China Overseas Grand Ocean Group (81/HK) rose by 15.0%, Shimao Group HD (813/HK) by 14.5%, China Jinmao HD (817/HK) by 13.8%, and China Aoyuan Group (3883/HK) increased by 6.3% each.
The rare earth and non-ferrous metals sector also attracted attention. Zhongxin Resources HD (1205/HK) of the resources company rose by 19.5%, Jiangxi Ganfeng Lithium (6680/HK), a major rare earth magnet manufacturer, rose by 14.8%, Jiangxi Ganfeng Li Industry (1772/HK) of lithium products increased by 13.3%, and China Rareearth HD (769/HK) of rare earth products and refractory materials rose by 10.2% at closing.
Macau casino stocks also showed strength. Sands China Ltd (1928/HK) rose by 9.8%, Galaxy Entertainment Group (27/HK) by 9.3%, Melco Int'l Dev (200/HK) by 7.0%, and Wynn Macau (1128/HK) increased by 5.9% each. The increase in sales during the National Day holiday is being noted.
Asia Research Co., Ltd.