At a time when macro risks are becoming clearer, overseas funds are buying Hong Kong stocks before the end of the year, and the Hong Kong dollar exchange rate rose to 7.8 yesterday
The HSI rushed up with large turnovers, recovered 50 antennas (26,686 points yesterday), and outperformed the global market.
US President Trump stated that he was very close to reaching a trade agreement with China, and Foreign Power pointed out that the existing tariffs could be reduced by up to 50%. Hong Kong’s overnight period rose by more than 540 points and exceeded the 27,500 mark.
The interest rate bitmap announced by the Federal Reserve Board overnight shows that there will be no U-turn rate hike next year, and only one rate hike in 2021. The market regards it as a dovish stance, and the global stock markets are now on the rise. Looking at the whole day, the Hong Kong stock market’s uptrend is very comprehensive, with nearly a thousand shares rushing higher. Tencent (00700), AIA (01299), HSBC (00005), ICBC (01398) and other heavy stocks are doing well, and a basket of funds is not ruled out. goods.
Motorola Helmsman optimistic about the first stage of China-Mida Trade Fair
In the short term, the British election and China-US trade talks remain the focus of the market. JPMorgan Chase Chief Executive Jamie Dimon overturned his views at the end of September, and recently stated that “personally,” China and the United States can reach a first-phase agreement, describing the products involved in the new tariff measures as important to domestic consumption in the United States. The launch as scheduled will have a “negative impact” on the investment market and a “small negative” on US and global economic growth.
As of 00:00 this morning, Hong Kong stocks rose 300 points at 27,301 points. The performance of comprehensive blue chips in American Depositary Receipts (ADR) was equivalent to the HSI’s rise of 116 points.
DBS: China and Hong Kong stocks have low valuations
Analysis by Li Zhenhao, senior investment strategist of DBS Hong Kong Investment Director’s Office (North Asia), risks such as trade negotiations and Brexit have gradually become clear, and funds have therefore become slightly more positive. Among them, the valuation of Hong Kong stocks is lower than other major Asian markets, which has become an international Investors reconfigure the choice of assets, which in turn drives the HSI.
However, he reminded that the Hong Kong economy has not improved, and the data released at the end of the year is still weak. There is limited room for the HSI to rise sharply. The market may rebound to the current level of 27300 points (equivalent to the market high in November). If the city wants to go further, it needs to release positive information to the market by relying on China-US trade talks and the Central Economic Work Conference.
Hong Kong stocks will enter the year-end with half a month left. Li Zhenhao expects that the Mainland will focus on stimulating the economy through fiscal policies next year. After the direction of the measures becomes clear, investors can absorb related infrastructure, raw materials, and even domestic shares. He went on to say that the concept hype of the 5G replacement wave has a chance to continue into next year, but its demand outlook has not been clear, and the sector has been speculative, so the ups and downs are relatively large.
As a matter of fact, the trend of the stock market has improved markedly in recent months as worries about the economic recession in the peripheral markets have weakened. According to Romain Boscher, chief investment officer of Fidelity Global Global Equities, although the industrial sector has entered a recession, the U.S. consumer performance is still showing strong performance, which means that the global economy is expected to “softly land” next year, and corporate profits will therefore see a bottom rebound. The expected growth rate is 8%.
The Hang Seng Index closed at 26994 points yesterday, up 348 points or 1.3%, and the total turnover of the Main Board was about 90.9 billion yuan.