Hong Kong Stocks Before Or Maintain Weak Shocks

The Hong Kong stock market has been down sharply in recent years, and the Hang Seng index is showing signs of weakening again, which has been rising for nearly two months or facing consolidation demand. As for last week, the Hang Seng index was on the one hand boosted by the rebound in US stocks, but on the other hand it was more influenced by the adjustment of the mainland stock market, and the 25000 point was lost. On Monday, the Hang Seng Index maintained its low level for the whole day, and ended up at 24521 points, down 158.39 points, or 0.64%, and traded at HK $67 billion 240 million. The state-owned enterprises index closed at 11647.42 points, or down 49.9 points, or 0.43%.

From the perspective of Hong Kong stock market on Monday, blue chip stocks rose more or less. Lenovo Group rose 3.13%, the best performance. The trend of Chinese financial stocks varied, ICBC fell 1.25%, the national life increased by 0.49%; Galaxy Entertainment rose 7.1% on Friday and 2.91% on Monday; real estate shares were divided, China and overseas increased 2.4% and Sun Hung Kai Properties fell 1.28%; in addition, heavyweights such as China Mobile, Tencent and HSBC were adjusted.

Judging from the market performance of the "Hong Kong Stock Exchange" underlying assets in the past five trading days, as the relatively large number of Hong Kong stock market is relatively weak, the 273 underlying stocks show a trend of falling more or less, rising 105 stocks and falling 160 stocks.

In terms of strong stocks, Chinese dairy stocks have recently performed better, and the rebound in raw milk prices is the main reason for the strength of these stocks. Industry leading Mengniu Dairy industry rose significantly, the stock since the end of August last year showed a downward trend unilaterally, the lowest after 27 Hong Kong dollar stabilized. In the middle of December, it recovered to the bottom of the big market, and has rebounded to the high concentration area last year. The largest increase in the period was more than 30%. In addition, the recent stock market of star power has increased significantly, rising nearly 14.71% in the past five days to HK $4.21. Chinese gas shares have changed in recent days on the expectation of natural gas price reform in the mainland, and China gas and Huarun gas have increased by more than 8% in the past five days.

In terms of vulnerable stocks, electricity shares have been sold in a concentrated way, and the expected reduction in mainland electricity prices has resulted in a total decline of more than 10% in Huaneng International, Datang Power, China power and Huadian Power in the past five days. In addition, China's aviation shares and shipping shares declined significantly, thanks to the recent rebound in international oil prices and BDI's low innovation.

Next week will usher in the Lunar New Year holiday. Short term Hong Kong stock market will be trading or slack. Outside the stock market, the US stock market rebounded last week, the three largest index rose to 2.4%-3.8%, of which Dow rose 3.8%, the largest weekly gain since January 2013. Looking back over the past week, with the decline in the number of drilling platforms, the international crude oil price has gone through a rebound, returning to the top of $50 a barrel, which has lifted market sentiment. The non-agricultural employment data, which are attracting much attention, are even more dazzling. In January, the number of non-agricultural employment increased by 257 thousand. Economic recovery The outlook is optimistic. The improvement of US economic data means that Federal Reserve The possibility or increase of interest rate increases in the middle of the year requires the slow spontaneous digestion of the market. As for the US stock market this week, the retail sales data in January will become the focus of the market. If the data can continue to show signs in January, it will boost the popularity of the US stock market. Overall, the US stock market has not yet been able to shake off the pattern of concussion in recent months, and it has tended to consolidate this week after last week's rally.

Inland equity market Last week, the whole line was down, and the expected drop in expectations was expected to fall. The central bank exceeded the expected reduction rate by 0.5 percentage points, but the market performance was the opposite. The main reason is that there are more bad factors that have plagued the market, the continued weakening of the renminbi, the purchase of new shares, and the deleveraging of the PMI data in January, and the deleveraging of the regulators. All these have led to a sharp decline in market sentiment and significant lack of kinetic energy. Fortunately, however, the stimulus measures at the policy level are still overweight, and the central bank's easing is expected to expand. The Shanghai Composite Index will have strong support at about 3023 points of the 60 antenna, and short-term A shares may expect to rebound after overfall.

To sum up, at present, the pattern of differentiation and shock in the peripheral market has not changed. Technology trend, the short Hang Seng index below 20 antennas near 24480 points should have good support, narrow range shocks, at the same time, the 25000 point or above also has the opportunity to touch again. (this product has no collateral, the price can rise or fall, investors or lose all investments. Before investing, you should understand product risks and consult professional advice if necessary. The author of this article is HSBC global capital market, Liu Jiahui, who is a licensed person of the HKMA and the SFC, and does not have any direct or indirect interest in structured products or related assets.