Jin Wu Financial News | On April 30, on the eve of the May 1st holiday, Hong Kong stocks showed a narrow range of fluctuating market performance. After all, the Hang Seng Index has accumulated over 1,500 points in the short term, an increase of quite a bit. In addition, the results of the Federal Reserve's interest rate discussions will be announced in the early hours of Thursday morning. I believe these are all news factors that have increased the demand for consolidation of Hong Kong stocks. The Hang Seng Index fluctuated and rose by less than 20 points and continued to close at the level of 17,700 points, while the market volume recorded more than 130 billion yuan. Although it was down from Monday's more than 160 billion yuan, it was still close to 27% higher than the average of 102.5 billion yuan per day during the year, indicating that the recent capital inflow phase of Hong Kong stocks has not reversed. In fact, capital inflows are the biggest driving force driving the market. As we pointed out, although Hong Kong stocks showed ups and downs at the bottom of the market in the first quarter, judging from the fact that the average daily turnover in the first quarter rebounded by more than 9% to 99.3 billion yuan from quarter to 99.3 billion yuan, there are signs that Hong Kong stocks are gradually being revitalized. As of April, capital inflows into Hong Kong stocks were even more prominent. The average daily turnover of Hong Kong stocks in April was 112.2 billion yuan, which is more than 105 billion yuan per day for the whole of last year. On the one hand, due to the obvious cooling of expectations of the Federal Reserve's interest rate cuts, peripheral stock markets all began to adjust after entering April. Global capital is finding a way, and undervaluation of Hong Kong stocks has become attractive. On the other hand, the State Council issued a new “National Nine Rules” in mid-April to optimize the capital market, and since then, the China Securities Regulatory Commission has also introduced five measures to expand and improve the interconnection mechanism, all of which have further strengthened market confidence.

The performance of Hong Kong stocks fluctuated in a narrow range. The intraday fluctuation was only 215 points. The overall market stability was still good. Short-term support continued to play a role in stabilizing the market. Short-term support was still seen at 17,200 points, while the high of 18,290 points in the fourth quarter of last year could still be an upward challenge target. Index stocks continued to diverge. Among them, it was previously announced that net profit for the first quarter increased by 24% year-on-year for CNOOC (00883), rising 2.73% to a new high. In addition, Haier Smart Home (06690), which is expected to benefit from the home appliance trade-in policy, surged 7.93% to close at 29.25 yuan. Summarizing April's performance, Haier Smart Home rose 20%, making it the top five best performing Hang Seng Index constituent stocks in the month.

The Hang Seng Index closed at 17763 points, up 16 points, or 0.09%. The national index closed at 6274 points, down 9 points, or 0.14%. The Hang Seng Index closed at 3,701 points, down 13 points, or 0.34%. In addition, the main board trading volume of Hong Kong stocks was over $13.8 billion, while the short selling amount was $16.39 billion, or 12.53%. As for the ratio of rising and falling stocks is 805:818. There are 45 stocks that rose more than 13% during the day, while 44 stocks fell by more than 10% during the day. Hong Kong Stock Connect recorded a net inflow on the 48th. On Tuesday, it recorded a net inflow of over $3.2 billion.

Author: Ye Shangzhi, First Shanghai Chief Strategist