不过截至发稿，三大指数震荡下行，Source: Gelonghui
Has the market reached its historic bottom?
Following yesterday's big counterattack, Hong Kong stocks continued to open higher on Wednesday.
However, as of press release, the three major indices have fluctuated downward.$Hang Seng TECH Index (800700.HK)$increased by 1.51%,$Hang Seng Index (800000.HK)$Increased by 1.22%,$Hang Seng China Enterprises Index (800100.HK)$Up 1.49%. Big tech stocks are getting stronger one after another.$NTES-S (09999.HK)$,$BABA-SW (09988.HK)$At one point, it rose more than 5%.
On the market, game stocks continued to attack. Financial stocks such as banking and insurance rose, while sectors such as gold and precious metals, shipping, gaming, and coal registered the highest gains, and concepts such as automobiles and pharmaceuticals declined.
Four strategic priorities for the next three years
Today (January 24), the Hong Kong Securities Regulatory Commission announced its strategic priorities for 2024 to 2026, explaining its policy for developing the Hong Kong securities market, dealing with risk and protecting investors.
In the face of changes in the capital market, as well as the challenges brought about by the evolution of the global landscape and technological progress, the Securities Regulatory Commission is committed to continuing to promote market development while maintaining the integrity, stability and quality of the Hong Kong market.
Over the next three years, the four major strategies of the Hong Kong Securities Regulatory Commission are: maintaining market resilience and mitigating serious damage to the market; enhancing the global competitiveness and attractiveness of Hong Kong's capital market; leading financial market transformation with technology and ESG (i.e. environmental, social and governance); and improving institutional resilience and operational efficiency.
The Hong Kong Securities Regulatory Commission said that these four key tasks will strengthen the core strengths of Hong Kong's capital market, help the market develop sustainably, and enhance competitiveness.
In terms of maintaining market resilience, the Hong Kong Securities Regulatory Commission has put forward specific requirements on four areas: market resilience, effective investigation and enforcement, increased cooperation, vigilance, and public education. It states that it will monitor market misconduct by listed companies and intermediaries, crack down on misconduct in cross-border markets, etc.
In terms of enhancing the global competitiveness and attractiveness of Hong Kong's capital market, the Hong Kong Securities Regulatory Commission suggests that Hong Kong needs to maintain its competitiveness in many aspects. In particular, it should adhere to its position as an international asset and wealth management hub and a global capital raising center, give full play to its advantages, and support the development of the Hong Kong and Mainland markets.
Next, the Hong Kong Securities Regulatory Commission will focus on leading financial market transformation with technology and ESG as one of its strategic priorities.
In terms of technology, the Hong Kong Securities Regulatory Commission will embrace financial innovation while maintaining a clean and stable market. In terms of ESG, it will continue to consolidate Hong Kong's position as a leading sustainable finance hub; this includes curbing greening behavior and nurturing talent for sustainable finance.
Furthermore, the Hong Kong Securities Regulatory Commission will make every effort to improve institutional resilience and operational efficiency, and ensure that financial resources are sufficient to support daily operations through strict budgeting and internal control measures.
In response, Securities Regulatory Commission Chairman Lei Tianliang said, “This road map gives us an advantage over the past, addresses new regulatory challenges in Hong Kong and elsewhere in a firm and innovative manner, and outlines the path for market development. We are particularly committed to playing a more active role to further strengthen Hong Kong's unique role as a bridge connecting the mainland, position Hong Kong as an offshore hub for RMB business and risk management, and support the country's development and maintenance of financial security.”
Chief Executive Leung Fung-yee said, “Even though current financial crime techniques are constantly emerging, the Securities Regulatory Commission will protect investors from harm on a firmer basis, bring violators to justice, and use a range of resources and tools flexibly to achieve positive regulatory results.”
“At the same time, in a rapidly changing global environment, clear and clear messages are particularly important. The strategic focus will enable the public and stakeholders to better understand the SFC's regulatory goals and policies.”
Has the market reached its historical bottom?
Over the past two days, the Hong Kong stock market has continued to be favorable.
Today, the State Assets Administration Commission recently stated that it will focus on the “five efforts” to carry out good work and focus on improving the quality of listed companies controlled by central enterprises and strengthening investor returns. Efforts will be made to deepen the reform of state-owned state-owned enterprises, accelerate the construction of new modern state-owned enterprises; encourage enterprises to further strengthen their dominant position in scientific and technological innovation and speed up research on key core technologies.
Li Yunze, director of the China Financial Supervisory Authority, also stated at the 17th Asian Financial Forum that the China Financial Supervisory Authority will strengthen bilateral regulatory cooperation with Hong Kong to continuously consolidate and enhance Hong Kong's status as an international financial center.
The Chief Executive of the Hong Kong Special Administrative Region, Li Jiachao, recently said that currently, Hong Kong, China is planning to issue the second batch of tokenized green bonds, and Hong Kong, China has the ability to combine the bond market with green sustainable finance and fintech. At the same time, financial supervisory authorities will also appropriately adopt supervisory measures to prevent related risks.
Earlier, the National Standing Committee stated that “strong” measures should be taken to stabilize the capital market.
Regarding the Hong Kong stock market, Liu Jinjin, chief Chinese stock strategy analyst at Goldman Sachs, said that the valuation of the mainland China and Hong Kong stock market has almost fallen to a new low after the financial tsunami. His opinion fully reflects investors' concerns about the macro environment, geopolitical situation, etc. According to the bank's estimates, the profits of mainland Chinese companies may increase by 8% to 10% this year, and there is room for a rebound in stock market valuations.
Liu Jinjin anticipates that there may be a net inflow of about 15 billion US dollars into A shares this year through interconnection, and a net inflow of about 45 billion yuan into H shares via Southbound Connect. There may be more capital from the Middle East to buy Chinese stocks in the future. Although the relevant inflow volume in the last two years is only about 10 billion yuan, I believe the investor structure of the Chinese stock market may gradually change in the future.
Earlier, CICC also mentioned that the current market position has reached the lowest point in history, and there may be a brief rebound after a sharp decline.
Looking at the external environment, from now until the Fed cuts interest rates, it is not ruled out that interest rates on US bonds will “turn back and forth”, but there is still room for decline (3.5-3.8% at the center), which means that the external environment still has room and window for us to relax our policies. If policies are strengthened again at that time, then we can still expect a certain degree of recovery and rebound. However, in order to reach the “inflection point” of a real backlash, we need to rely on active policies to gain strength.
Editor/jayden
