The Mainland has cancelled the quotas for QFII and RQFII, and the risk of hard Brexit in the UK has dropped slightly
At the same time, Hong Kong is deeply mired in the siege of the city. The community advocates focusing on the people’s livelihood. The DAB suggests that the Government should take the initiative to reclaim land regulations and build public housing estates. The overall political situation is expected to be resolved, and uncertainties are gradually removed, which has caused funds to flow back to the market and pushed up Hong Kong stocks yesterday. Among them, local property stocks and banking stocks were sought after. Hong Kong stocks soared 475 points after 11 am and closed at the highest level of 27,159 points. Except for the weight of 27,000, it also rose above 50DMA (27033 points).
Chen Zhengshen, co-director of Aide Securities, said that in the past few months, Hong Kong faced political instability, social unrest and other factors. Good news was heard in the afternoon, and the stock market was well supported. This led to the return of funds to the market, and buying became more active and pushed up the stock market. After the close of the market, the Hong Kong Stock Exchange announced the merger with the Exchange, and he did not rule out the arrival of Chunjiang Duck funds into the market.
In addition, the DAB made a report yesterday recommending that the Government implement the Land Acquisition Ordinance and increase the supply of housing. Chen Zhengshen also pointed out that if the policy is implemented, it is expected to help stabilize the macro market, and the social atmosphere will be improved. Under the elimination of uncertainties, real estate stocks will rise.
Wharf Hysan rose 4.6%
Yesterday, many Hong Kong property stocks were sought after by the market. The stock prices of the four major developers were in full swing. Henderson Land (00012) rose 4.3%, Xindi (00016) rose 3.2%, Cheung Kong (01113) rose nearly 3%, and the New World ( 00017) also rose by 2.75%. The two rent-taking shares of Wharf Property (01997) and Hysan Development (00014) rose more than 4.6%. Chen Zhengshen said that the current housing market outlook is not pessimistic, asset prices continue to rise, and there is no clear and strong data at this stage, which will cause the economy to fall into a serious recession, or the unemployment rate will soar, so the midline will not be bearish on real estate stocks. However, he also stressed that although it does not feel that property stocks will fall sharply, there is no big boost. The current social atmosphere and slowdown in growth are the unfavorable factors facing real estate stocks.
Yesterday, many banking stocks also rose. Hang Seng Bank (00011) rose 4.5%, Standard Chartered (02888) rose more than 4%, BOC Hong Kong (02388) recorded 3.7% increase, and HSBC (00005) rose 3.1%, four Bank stocks were recorded in four consecutive years. However, Chen Zhengshen pointed out that although Chinese banks can increase lending under the RRR cut, the asset quality also has a chance to deteriorate, and international banking stocks are in a downward macroeconomic environment, which is a negative factor for the spread. The central bank has drastically released water, and there is an opportunity to make asset prices upward, and there may be inflation. It is also unfavorable for banks to reduce their expenditures. In the case that expenditures cannot be reduced and incomes cannot be increased, the future opportunity environment is not ideal. There are hidden concerns in the medium and long term.
27700 points have resistance
Looking ahead to the market, Chen Zhengshen estimates that the market has accumulated a lot of gains since the 26,000 edge climbed. In the future, it is believed that it is difficult to continue climbing, and 27700 points are expected to have resistance. Mainland China revoked QFII and RQFII quotas. Du Jingchuang, director of various asset allocations in Baring Asset Management Asia, pointed out that whether foreign investors will increase their investment in China will depend on the current and future fundamental outlook of the real economy and corporate earnings trends. , the attractiveness of yields and spreads, and the perception of the strength of the renminbi.
CITIC Jiantou believes that canceling the quota of qualified foreign investors to expand foreign capital into the upper limit will help improve the investor structure for the long-term positive stock market, but the impact on the market will be limited in the short term.
The market is further reformed and implemented in the mainland capital market. Hong Kong stocks are expected to continue to follow the A-shares, while the PBOC’s RRR cuts and new loan data are better than market expectations. This shows that China’s determination to release water is also positive for the investment market. He said, “From the perspective of maintaining stability in October, it is good for Hong Kong stocks.”