keep 28000 and large turnover
The Hang Seng Index yesterday challenged the 28,000-point mark and rose to a maximum of 27970. The Hang Seng Index closed at 27884 points, up 40 points; the H-Share Index closed at 1,1024 points, up 59 points. The market turnover was 94.4 billion yuan.
International crude oil prices hit a three-month high, driving China National Offshore Oil (00883) to surge 3.4% to close at 12.48 yuan
Sinopec (00386) and PetroChina (00857) performed moderately, up 0.6% and 0.2%, respectively. Affected by the sharp drop in refining profits, Sinopec and PetroChina have lagged behind the big market in the past year. If China ’s inflation growth declines next year and Sino-US trade negotiations make substantial progress, next year PetroChina and Sinopec are expected to outperform the market.
The HSI and HSCEI have recorded good gains recently, but local real estate and banking stocks have lagged behind the market
Visitors to Hong Kong plunged 50% in November, and investors worry that Hong Kong’s tourism industry will not know when it will recover. Finance, tourism and shipping are the three pillars of Hong Kong’s economy. Hong Kong’s shipping industry has gone downhill. If there is another problem in Hong Kong’s tourism industry, the outlook for Hong Kong’s economy is really worrying.
On December 18th, the People’s Bank of China launched a reverse repurchase operation. The scale of this reverse repurchase operation was 200 billion yuan, of which the 7-day reverse repurchase bid amount was 50 billion yuan, and the winning bid rate was 2.50%, the same as the previous one; The amount of the reverse repurchase bid was 150 billion yuan, and the bid interest rate was 2.65%, which was 5 basis points lower than the previous 2.7%. This is the first time in four years that the central bank has reduced the 14-day reverse repurchase rate. This move by the People’s Bank of China has caused some investors to speculate on a rate cut. This restart of the reverse repurchase netted 200 billion yuan of liquidity into the market, which largely alleviated the problem of funding shortages at the end of the year and was beneficial to the stock market.
In the past few days, when the market rose, there was a large transaction amount to cooperate with it. The upward momentum was sufficient, but the upward trend was not comprehensive. A large amount of capital inflow from the Mainland has laid a solid bottom for the Hong Kong stock market. Large households have taken advantage of the good news that China and the United States reached the first phase of the trade agreement to take advantage of short positions. My strategy yesterday was to sell a small amount of stock, do some hedging, and continue to hold most of the stock. The Hang Seng Index will need to close above 28000 points for two consecutive days, and it is best to cooperate with large transactions before the market is expected to rise sharply.