After the implementation of the China-U.S. Trade agreement, the Hang Seng Index retreated and kept its 250 antenna (at 27,472 points) known as the “Bear and Bear Boundary”
The Hang Seng Index opened 157 points lower yesterday, and soon fell to more than 200 points, reaching a low of 27473 points. The Mainland announced that in November the industrial added value above designated size and the growth rate of total retail sales of consumer goods both hit a five-month high, supporting the market’s slight rise once, but it soon fell. The Hang Seng Index’s downtrend in the afternoon was largely hesitant, but the decline in the tail city expanded again, closing down 179 points (0.7%) and closing at 27508 points. The H-Share Index closed 59 points (0.6%) lower at 10,778. The main board recorded 79.8 billion yuan in transactions yesterday.
As of 1:30 a.m., the Hang Seng Index closed at 27716 points at night, up 136 points and 208 points high. The ADR Hong Kong share index was 27,662 points, which was 154 points higher than Hong Kong.
On the first trading day after the signing of the first-phase trade agreement between China and the United States, the HSI ended three consecutive gains. However, the Hang Seng Index Volatility Index (VHSI), known as the “Hong Kong Stocks Panic Index”, fell to a 5-month low of 14.62 yesterday; the short-selling ratio of the main board to the market fell to 12.47% in about 3 weeks.
Changjian rose 2.5%, Sunyu 52-week high
Uncertainty about Brexit subsided, and Changjian (01038) rose 2.5%, which was the biggest blue chip gainer yesterday. Electricity (00006), which also belongs to Changhe, also recorded 1.9%. Mobile phone equipment stocks were up. Gao Wei (01415) surged 13.2%, while Truly (00732) and Tongda (00698) surged more than 7%. BYD Electronics (00285) and Sunny (02382) rose 6.3% and 2.4% respectively, hitting a new 52-week high.
A shares rose for two consecutive days. The Shanghai index rose 16 points (0.6%) and closed at 2,984 points, a high in more than a month. The Shenzhen index bounced 153 points (1.5%) to close at 10158 points, the highest in more than 7 months. The two cities recorded a total of 622.6 billion yuan in transactions yesterday.
Foreign capital increased its holding of RMB 700 million in A-shares via the Shanghai-Shenzhen Stock Connect yesterday and net purchases for 23 consecutive days; Beishui yesterday bought a net of RMB 4.8 billion in Hong Kong stocks through the Hong Kong-Hong Kong Stock Connect, the most since more than three and a half months.
HKCC Outperforms Hong Kong Stocks A
Hua Hong Securities Asset Management Investment Director Feng Hongyuan pointed out that the content of the trade agreement was not pleasantly surprised. Investors took advantage of the good news to ship. The short-term minimum of the HSI was expected to fall to 27300 points.
UBS has an annual target of 28700 points for Heng, which is about 4% higher than the current level; as for the target of the Shanghai and Shenzhen 300 Index next year, it is 4400 points.
CICC has a positive view on Hong Kong and A shares in the next 3 to 6 months. It also expects that Hong Kong shares may outperform A shares because the former has a lower overall valuation and is more benefited from factors such as improved international capital risk appetite.