[Caihua News] on June 17, China's economy turned from decline to rise in the second quarter, recording a positive growth of 3.2% better than expected, but Hong Kong stocks fell significantly, and the Hang Seng Index even fell below the 25000-point mark, closing at 24970.69 points, a plunge of 510.89 points or 2%. The transaction value rebounded to HK $199.79 billion. The Hang Seng China Enterprises Index also fell 256.62 points, or 2.475, to close at 10133.92.

Semiconductor Manufacturing International Corporation (00981-HK) (688981-SH) continues to be the focus of the market. A shares were listed on the first day of Science and Technology Innovation Board in Shanghai, but the stock prices in China and Hong Kong were poles apart, and investors in the two places took very different positions. Hong Kong H shares took profits at a high level for the second day in a row, plunging 25.2 per cent or HK $9.7 per cent to HK $28.75. the turnover was as high as HK $22.567 billion, down HK $13.05 or 31.2 per cent over the past two days. However, the inland A-shares were like a runaway horse, which got out of control. The market closed at 82.92 yuan, 55.46 yuan or nearly 202% higher than the recruitment share price of 27.46 yuan. The total market capitalization reached 591.752 billion yuan.

In terms of news, the National Bureau of Statistics announced that the gross domestic product (GDP) in the first half of 2020 was 45.6614 trillion yuan, down 1.6 percent from the same period last year. On a quarterly basis, it fell 6.8% in the first quarter from the same period last year and increased by 3.2% in the second quarter; from a month-on-month point of view, GDP grew by 11.5% in the second quarter. However, retail sales of consumer goods in mainland China totaled 3.35 trillion yuan in June, down 1.8 per cent from a year earlier and below market expectations of 0.5 per cent growth.

According to the Beige Book of the US Federal Reserve's economic report, as many states have lifted the blockade, US business activity rebounded in early July, but economic activity is still far below the level before the outbreak of the new type of pneumonia, and the economic outlook remains highly uncertain.

A shares fell generally, with the Prev down 1.41% at 3314.03 points, the Shenzhen Composite Index down 1.41% at 13540.96 points, and the gem Index down 1.73% at 2764.49 points. Turnover between the two cities has shrunk to more than RMB 790 billion, with a net outflow of RMB 1.727 billion from northbound funds in half a day.

Us stocks rose overnight. The Dow rose 227 points, or 0.85%, to close at 26870; the benchmark closed up 0.91% to close at 3226; and the Nasdaq rose 0.59% to close at 10550. Goldman Sachs Group's performance is better than market expectations, and the market is optimistic about the prospect of COVID-19 's vaccine research and development, which stimulates the stock market to improve.

Hong Kong stocks opened 67.82 points or 0.27% higher on the outside; saw an intraday high of 25576.49 points at 9:45, up 94.91 points from yesterday's close of 25481.58 points; but the rally was unsustainable. It began to change from rise to decline at 9:52, and the decline widened in the afternoon. It saw an intraday low of 24919.95 points at 15:49, down as much as 561.63 points, and closed close to the lowest level of the day. The upper and lower amplitude is 656.54 points.

The trading value of Hong Kong Stock Connect increased to HK $48.73 billion, while Beishui had a net inflow of HK $407 million. July Hang Seng Index futures fell 557 points at 25937 points at 16:11, with more than 195000 contracts traded and more than 106000 open contracts. In July, the Hang Seng China Enterprises Index fell 259 points to 10126 points, with 135000 contracts and about 190000 open positions.

In terms of individual stocks, new economic stocks fell significantly. Tencent (00700-HK) fell HK $5.5 or 30 to HK $513; BABA-SW (09988-HK) fell 4.2 or HK $10.2 to HK $233.2; Meituan comment-W (03690-HK) fell 7.7% or HK $15.50 to HK $185.1; XIAOMI-W (01810-HK) fell 7.8% or HK $1.28 to HK $15.08. Citigroup reported that Tencent is expected to earn more than HK $100 billion in the second quarter and raise its target price to HK $649.

A number of active shares fell by more than 10%. Car stock Geely Automobile fell nearly 12 per cent, or HK $2.12, to HK $15.58, while Byd Company Limited (01211-HK) fell 11.8 per cent, or HK $9.35, to HK $69.65. According to the China Automobile Association, according to data from 11 key enterprises, the production and sales of passenger cars completed 516000 and 402000 respectively in early July 2020, down 11.5 per cent and 6 per cent from the first ten days of June.

In addition, semi-new shares Smoore International Holdings Limited (06969-HK) fell 12.7 per cent, or HK $4.45, to HK $30.55. Hua Hong Semiconductor (01347-HK) also fell 19.5 per cent or HK $6.60 to HK $27.3 under the influence of Semiconductor Manufacturing International Corporation.

Minimally invasive medicine (00853-HK), which is at an all-time high, fell 13.2 per cent, or HK $5.55, to HK $36.45. 02013-HK, the high-ranking group, fell 12.8 per cent, or HK $1.48, to HK $10.12.

In terms of moving stocks, 01105-HK rose 12.3 per cent, or HK $0.20, to HK $1.83 on a turnover of HK $26.2 million. In early July, Sing Tao announced that he Zhuguo, chairman and controlling shareholder, was expected to be informed of the outcome of regulatory approval at the end of July in negotiations with potential buyers.

Yongsheng Medical (01612-HK) fell 25.7 per cent, or HK $0.84, to HK $2.43 on a turnover of HK $105 million. Yongsheng Medical made a profit correction for the second day in a row after reaching a new high of HK $3.57 in the revenue-generating market on July 14.

So high, are over-cold? Many shares at the peak are profitable by investors first.

(Zhou Yanfeng / tr. by Phil Newell)