6/11/2017-7

HSI stabilized twenty-nine nights that fall

Hong Kong stocks reversed its trend yesterday. It climbed to a high of 29,192 points (up 284 points) but encountered resistance at 29200 points and plunged 232 points to 28,960 points. In the afternoon, Hong Kong stocks showed strong strength and rebounded to 29136 points and ended the day lower. 228 points (0.79%). After several days of check-in, it finally managed to stabilize above 20,900 points and hit another 10-year high. Its turnover amounted to 114.46 billion yuan, breaking its fourth consecutive 100 billion yuan. The H-Share Index outperformed the HSI and closed at 11,744 points, up 168 points (1.45%). Retail investors in the high heat in the short-term speculation, during the warrants turnover accounted for more than 30% of the market turnover.

Warrants turnover accounted for up to three percent of the market

Unfortunately, the US stocks weakened last night. The HSI fell 29,000 points lately to close at 28,949 points, down 177 points and traded at a record low of 188 points. As of 1:45 this morning, the Hong Kong equities ADR index stood at 28,905 points, down 231 points.

Derivatives market continued to be active yesterday. Warrants accounted for 23.37% of the total turnover, while the first half accounted for a further 34.37%. Huang Jien-en, an executive director of BNP Paribas Derivatives, pointed out that the turnover of warrants accounts for over 30% of the market. The proportion of these transactions is indeed very high, mainly due to the capital speculation of Tencent (00700). He added that since the Hang Seng Index repeated upward momentum from 28500 points, more and more capital inflows into the HSI bear warrants. At present, many individual investors have bought HSI bear bears and sold HSI bull CBBCs. Information shows that the single-account recovery of the Hang Seng Index CBBC at a level of 1000 points or more has exceeded the bull CBBC’s ratio.

Standard Chartered Hong Kong Investment Strategy Director Leung Chun-fai believes that although the Hang Seng Index stabilized at 29,000 yesterday, the market turnover for more than 100 billion yuan on the 4th, but 29200 points resistance, the afternoon has dropped more than 29,000, then Bends rebound mainly to follow the rebound in the mainland A shares, the trend is not reassuring, probably I am not stable high.

Leung Chun-fai added that the market outlook can continue to rise, depending on whether there are other catalytic factors, such as the mainland economic data, Tencent and other individual company performance, as well as the strong upward trend in the Japanese stock market since October can lead the market sentiment. He said Tencent’s upward trend in the past two weeks has reflected the business spin-off factor. For the new investment move recently, the market needs to be digested and the management is expected to draw next week.

Domestic insurance stocks led the Ping Bao breaking top

Despite the recent macroeconomic change, despite the recent slowdown in Tencent, there are still other stocks that are subject to rotational speculation. For instance, ZTE (00763) lags behind and ZTE (00763), the managing director of Avant Investment Management, BYD shares (01211) and so reproduce the strong.

The rise was mainly driven by the mainland insurance stocks. Ping An Insurance (02318) surged 3.88%, surged to 73.6 yuan at the previous high and ended the day up 3.67% at a record high of 73.45 yuan. China Life Insurance (02628) gained 2.23% while the other more than just Insurance stocks rose between 3% and 4%. China Insurance Regulatory Commission released the first three quarters of this year the entire industry to achieve the original insurance premium income 3.05 trillion yuan, up 21%. Yesterday, a net inflow of funds from Beisui South into Hong Kong stocks increased 7% to 4.553 billion yuan. Credit Suisse said in a report that it is expected that insurance premiums will slow down in the coming one or two months because it has achieved its target of this year’s return and believes it will tend to lock in profits before the end of the year.

Linkfac (00823) recorded a good target price increase for Tai Hang Seng Bank. The counter hit 69.25 (up 4.29%) yesterday, closing at 69.1 yuan, up 4.07%. Tencent has risen 1.76%, closing narrowed to 0.57% increase, reported 387.8 yuan.