Initial technical breakthroughs in Hong Kong stocks Funds forced to chase goods Tencent high turnover in February exceeded 10 billion HSBC Silver Entertainment Qi Yuguan
Xi special meeting will hold a dinner party this weekend. The market will reach a certain consensus in the future, and the funds will sneak up on optimistic expectations. The Hang Seng Index broke through the downtrend yesterday under the leadership of Tencent (00700) and challenged the 27,000-point mark in the short-term (100 antennas were about 27,056 points yesterday).
The investment market sentiment turned better. The blue-chips such as Tencent, Galaxy (00027) and HSBC (00005) all had technical breakthroughs. I believe the Hang Seng Index is expected to stabilize at 50DMA in the short-term (about 26166 points yesterday), but can the uptrend Continuation, also see the results of the seminar. If the two parties implement part of the trade agreement as scheduled, the market is expected to show a new round of rising waves at the end of the year. (See the separate article – the two special situations of the Supreme Council.
Before the special meeting, institutional investors rushed to increase positions
US stocks rose more than 200 points in the early session, and the market waited for the speech of Federal Reserve Chairman Jerome Powell this morning to further confirm the possibility of a slowdown in interest rates next year. As at 0:00 this morning, Hong Kong fell 74 points to 26,538 points in the night; HSBC’s ADR in the United States was converted to HK$66.7, which was 0.95 yuan lower than the closing price of HK$67.65. Taking into account the overall blue-chip ADR performance, the Hang Seng Index fell 203 points.
Shao Zhiming, senior investment strategist of Credit Suisse Asia Pacific, said that Hong Kong stocks have risen above the downtrend. Many institutional investors are rushing to catch up with the performance before the special meeting, so as not to fall behind the market too much, but based on the market spreads different news, I believe The city fluctuated before the meeting.
He continued, from various indications, both China and the United States have taken a serious attitude toward reaching an agreement and increased the possibility of reaching a substantive agreement. If the two sides meet temporarily after the meeting, it is believed that there will still be room for growth before the end of the year. He suggested that in the rebound wave, first absorb the value stocks, that is, Chinese financial stocks with low valuation but high defensiveness.
The bad news of the technology stocks is out of short-term
Tencent yesterday rose more than 10 billion to break the 310 mark, up 3.6%, to close at 314.8 yuan, a two-month high, is the main hero to lead the rise of Hong Kong stocks.
Liang Zhenhui, head of Standard Chartered’s Hong Kong Wealth Management Investment Strategy, said that Chinese-funded technology stocks had short-term bad news. Although earnings forecasts were lowered earlier, they are still higher than the historical average, and the peripheral technology stocks are set to make high beer (Beta, Technology stocks with higher beer volatility than the market are performing better.
Liang Zhenhui pointed out that the market has begun to reflect the optimistic expectations of the HKCC. I believe that there will be a turnaround after the meeting between China and the United States. In addition, the Reserve Bureau’s interest rate hike is expected to cool next year, which will make the market atmosphere better, but the market uncertainty is more than The events such as Brexit remain unresolved, so they are cautiously optimistic about the market outlook.
Lin Yinji, managing director and head of research department of Guangyin International, said that although the investment sentiment of Asian stock markets led by Hong Kong stocks has improved, but the market turnover is still low, only about 80 billion yuan, it is not fully confirmed that the market has broken through. The market outlook should closely follow the results of the HKCSS.
The Hang Seng Index rose 350 points yesterday to close at 26,682 points, which was a two-month high. The H-Share Index rose 119 points to close at 10,634 points. The market turnover was 84.9 billion yuan.