Damo to step on Hong Kong stocks again next year, see 27,200 HSI, 228 points Credit Suisse short-term optimistic
Hong Kong stocks experienced a technical rebound yesterday after falling sharply on Tuesday. At most, they had 476 points. The market still rose 228 points (0.77%) to 29696 points, and the main board turnover was close to 110 billion yuan. Morgan Stanley once again cut the Hang Seng Index’s target by more than 10%. It expects to see 27,200 points in June next year. Another major bank, Credit Suisse, is still bullish on Hong Kong stocks, maintaining a 3-month target of 33,000 points and a 12-month target of 34,000 points.
In addition, the Hang Seng Index closed at 29687 points overnight, rose 22 points, 9 points lower. As of 1:30 this morning, the ADR Hong Kong stock index has registered 29,705 points, which is 9 points higher than the city’s closing price.
1.1 billion Beishui south fishing products
After a slight opening yesterday, the Hang Seng Index lacked direction in the early stages and started rising in the afternoon with a maximum of 476 points. However, after approaching 30,000 points, the HSI gradually narrowed and eventually closed below the 200-days (29932 points). Beishui soared yesterday. “Hong Kong Stock Connect” recorded a net purchase of 1.084 billion yuan. The Japanese House of Representatives passed a gambling bill. The gambling stocks rose between 1.4% and 8.7% yesterday, and the Japanese marble shares rose about 1-20%.
In more than two months, Morgan Stanley lowered the forecast of Hong Kong stocks twice. In the latest report, it lowered a number of major stock index targets in the Asia-Pacific region, among which the HSI target from 30350 points, more than 10% to 27200 points, compared with yesterday. There was a 8.4% fall in the market; the H-Share Index also lowered its target by 12% to 10,700 points, down 7% from 11505 points yesterday.
For misconceived Hong Kong stocks, Dammam explained that the HSI has always followed the trend of the macro market and is highly sensitive to the shift in the global currency and macro environment and the US short-term rise. Plus, HSI’s earnings of 60% of the company’s earnings are derived from RMB income. It is vulnerable to the devaluation of the renminbi. The continued decline in the capital inflow of “Hong Kong Stock Connect” and the technical factors of the Hang Seng Index falling below its 200-day limit for the first time since mid-2015 are unfavorable. The Bank earlier released another report that the escalation of the trade crisis between China and the United States has increased the downside risks of Hong Kong stocks. The uncertainty is expected to further depress the valuation of Hong Kong stocks.
Bank of Communications: Bottom up after the rebound
Shao Zhiming, senior investment strategist at Credit Suisse, said that he believes that China and the United States will reach a consensus on trade disputes before the US mid-term election. Although the HSI has risen a lot since last year, corporate earnings growth is still strong, and the current valuation is still reasonable. Therefore, we maintain the HSI target. The bank continued to favor stocks, especially energy, technology and financial stocks.
Wu Zeen, chief investment officer of Credit Suisse Asia Pacific Private Bank, also believes that the recent market pressure is mostly emotionally dominant and not lasting. Compared with the trade war, he believes that the Mainland leverage effect is more worthy of attention. With the liquidity of the People’s Bank, the market Worries were slightly reduced, and the bank expects the PBOC to lower its benchmark by 50 basis points before the end of August.
Huang Siyuan, a senior investment manager of Baida Asset Management, anticipates that there may be other big banks following Morgan Stanley and lowering the benchmarks of the HSI and other Asian stock indexes because risk worries haunt investor sentiment and allow the funds to return to stable U.S. assets. To avoid emerging markets by the strong dollar.