7/9/2018-7

Hang Seng Index fell for 2 months and fell 2900 points. Technology stocks were the worst performers in August.

The Hang Seng Index rose first and then fell this week. There were still 216 points in the week, an increase of 0.78%. However, 10 days, 20 days and 50 antennas were lost. The analysis believes that uncertainties such as the Sino-US trade war in September and the US interest rate hike continue to plague the market. As the balance of the banking system in Hong Kong fell below 80 billion yuan, the pressure on Hong Kong banks to raise interest rates increased significantly.

Hong Kong stocks ended in the last trading day in August, the Hang Seng Index opened 365 points lower, and the market closed at 27888 points still fell 275 points or 0.98%. The China Enterprises Index closed at 10,875 points, down 92 points or 0.84%. The main board turnover was 108 billion yuan.

In August, the peak performance of the big blue chip stocks, the performance of different sector companies was mixed, and the market sentiment was not as good as expected. The Hang Seng Index fell at the level of 28,000 points and eventually closed down 694 points. At this point, the Hang Seng Index has fallen for 4 months and has fallen by about 2900 points.

Looking back at the beginning of this month, the renminbi has dropped significantly, and the Turkish credit problem has been plagued. In August, the news once caused the lira to fall into a selling crisis. A number of Hong Kong stocks fell with the market, with gambling stocks, auto stocks and China property stocks falling significantly. Sunny Optical (2382), AAC Technologies (2018) and GEG (027) ranked the worst performers this month. Big blue chips fell 23%, 13% and 7.8% respectively; China Mobile (941), CNOOC (883) and Sinopec (386) performed the best blue chips this month, with an increase of about half.

More risk in September, cautious view of market conditions

In addition, Tencent (700) housing leaks have been raining overnight, and the entire August has been continuously reduced by Beishui, MSCI weights have also been diluted. Yesterday, the Ministry of Education issued the “Implementation Plan for Comprehensive Prevention and Control of Children and Adolescents’ Myopia”, which will implement the total regulation of online games and limit the time for children and adolescents to fight. The news dragged Tencent down nearly half, and closed at 340 yuan.

Looking ahead to the trend of Hong Kong stocks, KPMG executive director and research department head Min Minbin is more cautious about the market conditions in September. He said that the uncertainties include that the United States will impose a 25% tariff on 200 billion US dollars of Chinese goods, and there will be news as early as the beginning of September. In addition, the Fed has a good chance of raising interest rates in September, and the strong dollar may drag down the yuan. Furthermore, the balance of the banking system in Hong Kong has fallen below 80 billion yuan. Once the Fed determines to raise interest rates, banks in Hong Kong will face pressure to raise interest rates.

HSBC raises deposit interest rate

Min Minbin pointed out that the interest rate hike is not necessarily beneficial to all bank stocks. After watching the Fed rate hike recently, Hong Kong banks have not adjusted the best interest rate (P) in order to maintain competitiveness and avoid affecting lending, but if bank capital cost pressure increases, Some banks may have to be forced to raise interest rates.

HSBC announced yesterday that it will raise the interest rate of the Hong Kong dollar and RMB new funds time deposits together next week. Among them, HSBC’s individual customers generally will raise the 3-month Hong Kong dollar deposit interest rate to 1.5%, the 6-month deposit rate to 1.7%, and the 12-month deposit rate to 1.95%. The one-month renminbi deposit interest rate will be raised to 1.7 per cent, the three-month deposit rate will be raised to 2.55 per cent, the six-month deposit rate will be increased to 2.85 per cent, and the 12-month deposit rate will rise to 3.05 per cent.