Jinwu Financial News | On May 8, the second day of the Hong Kong stock market pullback, the Hang Seng Index fell by more than 160 points, but compared to the previous wave of ten consecutive gains and a cumulative rise of close to 2,400 points, the current recovery is not significant. It can be viewed as a healthy market situation. We believe that Hong Kong stocks are still in the market phase of capital inflows, and there is still room for upward testing in the short term. The Hang Seng Index finally closed at the level of 18,300 points. The initial acceptance area of 18,200 to 18,400 points is being tested, but if it remains stable, I believe the recent pattern of large gains and small rebound in Hong Kong stocks will remain intact, and a positive attitude towards the short-term future market can be maintained. On the other hand, market turnover also continued to be strong. The record was close to 130 billion yuan, which is still higher than the average daily average of 112.2 billion yuan in April, indicating that intraday capital still maintains a high level of activity, and the situation is also conducive to the market atmosphere being stimulated once again. It is worth noting that several leading Internet stocks that have been leading the way recently will be intensively announcing their results next week, including Tencent (00700), Alibaba-SW (09988), and Meituan-W (03690), etc., which are estimated to be catalysts for them to restart, and can be watched more closely.
The trend performance of Hong Kong stocks continued to recover, and closed at close to the daily low of 18,298 points. After two days of recovery, the Hang Seng Index's 9-day RSI index has declined from the previous high of 84.32, and the technical overbought situation has eased somewhat. Index stocks have generally rebounded, but there are still key stocks. Among them, Xiaomi-W (01810) rose 6.46% to close at 19.1 yuan, a new high since 2022. It is also the number one biggest gainer in the Hang Seng Index component stock list. The market reported that Xiaomi will launch two folding screen phones in the third quarter. Coupled with the accelerated increase in production capacity of Xiaomi cars, I believe these are all news factors stimulating the stock price. On the other hand, the market is still awaiting the announcement of the Mainland's real estate inventory policy rules. Domestic housing stocks, which have recently surged, have seen major decline adjustments. Longhu Group (00960) fell 7.55%, and China Resources Land (01109) and Country Garden Services (06098) all fell by more than 5%, respectively.
The Hang Seng Index closed at 18,314 points, down 166 points, or 0.89%. The national index closed at 6,457 points, down 70 points, or 1.07%. The Hang Seng Index closed at 3,872 points, down 51 points, or 1.28%. In addition, the main board volume of Hong Kong stocks was over $128.6 billion, while the short selling amount was $20.54 billion, or 15.97%. As for the ratio of rising and falling shares, 578:1063, there were 45 stocks that rose more than 11% during the day, while 46 stocks fell by more than 10% during the day. Hong Kong Stock Connect reported a net inflow on the 51st. On Wednesday, it recorded a net inflow of nearly 1.8 billion yuan.
Author: Ye Shangzhi, First Shanghai Chief Strategist