As US President Trump said that the Sino-U.S. Trade war will not have a clear ending period
the three major US stock indexes fell sharply overnight, dragging Hong Kong stocks to fall below the 26,000 mark after opening lower yesterday, and many trade-related stocks plummeted, even if the focus New shares of Alibaba (9988) all suffered losses for 4 consecutive days. Eventually, the HSI maintained at 26,000, but the market outlook may continue to be weak.
The U.S. stocks returned sharply. The news triggered a sharp decline in Asian stock markets. Hong Kong stocks were not spared. The HSI opened 319 points lower this morning and saw a low of 25995 points. It then continued to hover at the 26000 level. Trade war-related shares fell significantly. Wanzhou (2018) and I & T (0669) plunged the market sentiment. The HSI ended at 26062 points, down 328 points or 1.25%, and main board turnover was 71.857 billion yuan, up 0.85%.
Hong Kong dollar rebounds against RMB after 9 calculations
Focus new stock Alibaba (9988) fell for the fourth day in a row. It lost 190 yuan yesterday, fell another 1.9% to close at 189 yuan, and fell more than 7% on the 4th. Based on yesterday’s closing price, this is the first time since the listing last Tuesday that it is a discount to the closing price of American Depositary Shares (ADS). Ali’s closing price in Hong Kong yesterday was a 0.9% discount from the previous closing of US stocks. Although the stock was weak, there were 1,300 buying orders at the price of 190 yuan, a total of 775,000 buying orders, involving about 150 million yuan, reflecting the support of retail investors every time the price drops.
In addition, the offshore RMB (CNH) dropped from 7.0659 to USD once to 7.0816, a new low of more than a month; the onshore RMB (CNY) also saw a low of 7.0737. For every 100 Hong Kong dollars against the RMB, it once hit a low of 90.42 yuan and returned to the level of 9; however, foreign media pointed out that China and the United States still worked hard to reach an agreement to stimulate the rebound of FOB prices by more than 150 points.
US Secretary of Commerce Rose said that if China and the United States do not make a breakthrough in the next two weeks, the United States will levy more tariffs on China as scheduled on the 15th of this month. The current time limit is less than two weeks, and the United States has not conceded. The chance of levying tariffs is greatly enhanced.
Due to the more negative factors in the short-term market, it is estimated that Hong Kong stocks have limited rebound space. In terms of technical trends, the Hang Seng Index has now formed two “death crosses”, which are positive signals. If the Hong Kong stocks continue to find a short-term bottom, it may try October 25,800 points of support.
UBS expects China-U.S. Agreement to be reached by the end of the year
Evan Brown, head of UBS’s macro asset allocation strategy, expects that China and the United States will sign the first phase of the trade agreement before the end of this year because if the first phase of the Sino-US trade negotiations is not reached, it will affect Trump; The global economy is expected to rebound in the first half of next year.