China and Hong Kong rare earth stocks arrogant speculation to help trade wars Hang Seng Index fell more than 600 on the 3rd, the most oversold in seven months

China and Hong Kong rare earth stocks arrogant speculation to help trade wars Hang Seng Index fell more than 600 on the 3rd, the most oversold in seven months

Although the Hang Seng Index has fallen more than 600 points in three consecutive days, President Xi Jinping visited Jiangxi’s rare earth industry on Monday, speculation or trade war, and Yunnan Customs banned imports of rare earth mines from Myanmar to China, stimulating rare earths in A shares and Hong Kong stocks. Shares and resource stocks rose sharply against the market. China’s listed rare earth (00769) had soared 1.35 times, and A-shares also had many daily rises in rare earth stocks.

The United States gave Huawei a 90-day grace period. Together with the PBOC yesterday, it restarted the reverse repurchase and released water. It stimulated the HSI to rise above 100 points in the early morning. It fell in the afternoon and fell 130 points (0.5%), closing at 27,657 points. At 1 o’clock, it closed at 10,634 points, and the market turnover was 95 billion yuan. The Hang Seng Index continued to break for more than three and a half months, and the 9-day Relative Strength Index (RSI) fell to 24, the most oversold after October last year.

The Hang Seng Index stabilized at night and closed at 27,573 points, up 20 points and 84 points below the water level. At 1:30 am, the ADR Hong Kong stock index was at 27,628 points, 29 points lower than Hong Kong.

China’s rare earth doubled in 8 and a half years

The Shanghai Composite Index recovered 2900 points. It rebounded 35 points (1.2%) yesterday and closed at 2905 points. The Shenzhen Composite Index rose 171 points (1.9%) and regained 9000 points to close at 9087 points. The total turnover of the two cities totaled 479.3 billion yuan. Beishui absorbed Hong Kong stocks for 7 consecutive trading days, and recorded a net purchase of 2.97 billion yuan yesterday. Foreign capital sold net A shares for 4 consecutive trading days, and net sales of 3.68 billion yuan yesterday.

The market focused on rare earth stocks. China’s rare earths doubled yesterday, and the largest Hong Kong stocks rose, closing at 0.77 yuan. The turnover surged to nearly 600 million yuan, the most prosperous in more than eight and a half years. The same rare earth concept, the production and sale of sintered NdFeB magnetic materials, the new shares of Xingyu Holdings (02346), also accounted for 18%, closing at 1.56 yuan. However, another rare earth concept stock Lo Mo (03993) only rose 4%.

In addition, non-ferrous metals stocks also saw speculation, Jinchuan (02362) and Xinjiang Xinxin (03833) rose 11.5% and 9.7% respectively. In terms of A shares, Jiangxi Jinli Permanent Magnet Technology (300748.SZ), which Xi Jinping went to inspect, was once again the daily limit, while Minmetals Rare Earth (000831.SZ), Northern Rare Earth (600111.SH) and North Mining Technology (600980.SH) also went up.

Mobile phone equipment stocks rebounded 5G stocks made good

Huawei’s ban was granted a ban, mobile device stocks rebounded, and Qiu Ti (01478) and Fu Zhikang (02038) rose more than 3%. 5G concept stocks also made good, with Jingxin Communications (02342), Mobi Development (00947) and ZTE (00763) increasing by about 3% to 4%.

Li Shengyang, director of Kangzheng Investment Research Department, pointed out that the speculation of rare earth stocks yesterday was weak, and it is expected that the sector will soon retreat.

In the market, Huang Zhiyang, director of Anshan Capital Asset Management, said that if the trade war did not further involve more Chinese companies, the Hang Seng Index is expected to support around 27,000 points, but the market atmosphere is average, and there is pressure on 28,500 points.

In addition, Goldman Sachs maintains an “overweight” rating on A-shares and offshore Chinese stocks. It is expected that the Shanghai and Shenzhen 300 Index and the MSCI China Index will have a 20% upside potential compared to the current level. The target price at the end of the year will be 4,300 points and 94 points respectively. The bank explained that the mainland policy is flexible, the profitability of Chinese companies is stable, and the stock market valuation is not expensive.

Goldman Sachs also believes that the trade relationship between China and the United States has led to the depreciation of the Renminbi. Some of its shares, including CLP (00002), HEC (02638), Hang Seng (00011), HSBC (00005) and China Mobile (00941), are expected to benefit.