Jinwu Financial News | On April 17, Hong Kong stocks experienced narrow tremors and stabilized after four consecutive days of decline, but elasticity still needed to be strengthened, and the market's cautious wait-and-see atmosphere did not dissipate. The Hang Seng Index rose slightly by nearly 3 points and continued to close at the level of 16,200 points, while market turnover recorded close to 100 billion yuan. China Securities Regulatory Officials explained the contents of the new “National Nine Rules” regarding the delisting of listed companies. The news allayed market concerns. Mainland A-shares showed a big rebound. The Shanghai Composite Index rose by more than 2%, the biggest one-day increase in two and a half months. The situation has brought support to Hong Kong stocks, especially the Chinese speciality stocks. Among them, Chinese telecom operators and mainland power stocks have performed relatively well. However, the news that the Federal Reserve postponed interest rate cuts is still fermenting. Fluctuations in peripheral stock markets are still a concern. The Japanese stock 225 index fell 1.3%, falling below the 38,000 point mark and hit a two-month low, while the Seoul KOSPI index fell by nearly 1% for the fourth day in a row. It has already been seen that the increase during this year has evaporated. In terms of trend, Hong Kong stocks are still weak in the short term. The Hang Seng Index will have to return to above 16,500 points before it can send a signal of technical stabilization. The March low of 1,6095 points is at the bottom of the previous level segment, and there is no room for loss. Otherwise, the weak market adjustment will have a chance of intensifying, so we should keep an eye on it.

Hong Kong stocks fluctuated in a narrow range, with an intraday fluctuation of less than 200 points. Although speciality stocks continued to have a stabilizing effect on the market, Internet stocks failed to escape their weakness, which is the reason for the overall lack of elasticity in the market. The performance of index stocks was divided. Among them, the National Bureau of Statistics announced a 6.7% year-on-year increase in power generation in the first quarter. The news provided support for mainland power stocks. China Resources Electric Power (00836) took the lead in breaking through upward, rising 2.71% to a new high closing price. On the other hand, the Macau Gaming Credit Act will come into effect in August, stipulating that in the future, only gambling companies can lend chips to gamblers. The market is worried that Macau's gaming revenue will be affected. Galaxy Entertainment (00027) fell 7.06%, the biggest drop in the Hang Seng Index component, while Sands China (01928) also fell by 3.35%.

The Hang Seng Index closed at 16,252 points, up 3 points or 0.01%. The national index closed at 5,750 points, up 6 points, or 0.1%. The Hang Seng Index closed at 3,340 points, up 2 points or 0.07%. In addition, the main board volume of Hong Kong stocks was over $99.1 billion, while the short selling amount was $18.79 billion. The short selling ratio fell back to 18.95% but was still high. As for the ratio of rising and falling shares, 914:607, there were 48 stocks that rose more than 10% during the day, while 49 stocks fell by more than 10% during the day. Hong Kong Stock Connect recorded a net inflow on the 39th. On Wednesday, it recorded a net inflow of over $1.1 billion.

Author: Ye Shangzhi, First Shanghai Chief Strategist