Jinwu Financial News | On April 26, driven by continued capital inflows, Hong Kong stocks rose for the fifth day and tested to the first target of the 250-day line (latest report of 17,717 points). The Hang Seng Index rose by nearly 370 points and closed at the level of 17,600 points, while market turnover further increased to close to 160 billion yuan, the largest daily turnover since this year, and the highest in nine months. It is worth noting that not only Hong Kong stocks, but A-shares are also showing signs of becoming the current target for foreign capital inflows. The Shanghai and Shenzhen Stock Connect recorded a net inflow of over 22 billion yuan on Friday, a new high since its opening. It is estimated that Hong Kong stocks and A-shares have a chance to enter the phase of linked resonance. In terms of trend, as we pointed out, after confirming that the Hang Seng Index had risen above the peak of 17,135 points in the previous level, reversed its lower wave development model and opened up upward space. Although the Hang Seng Index has been rising by more than 1,400 points for five consecutive days, and requirements for consolidation are not ruled out, it is estimated that the overall momentum is still on the rise. The high level of 18,290 points in the fourth quarter of last year can be seen as the next upward challenge target. Short-term technical support levels are seen at 17200/16600 points, respectively. On the peripheral side, the US GDP rose 1.6% quarterly in the first quarter, which was lower than expected, but the core PCE price index rose 3.7% quarterly higher than expected. The situation shows that the US economy has an opportunity to stagnate, and the Federal Reserve is about to hold an interest rate meeting on Thursday, so we can pay more attention.

Hong Kong stocks have been rising for five consecutive waves. In the intraday period, they once rose 473 points to 17,758 points to a five-month high. The market atmosphere has begun to heat up. I believe that enthusiasm for capital participation will gradually increase, and investors' reactions to the news will also be biased positively. Index stocks once again rose and continued to spread. Among them, after Tencent (00700) and Meituan-W (03690), another internet leader, JD Group-SW (09618), also reached the 250-day level, rising 5.75% to close at 117.7 yuan. On the other hand, market views on mainland real estate have improved, and domestic housing stocks continue to be sought after. In particular, those that still recorded profits and paid dividends last year, such as China Overseas (00688), rose 8.21%, while Longhu Group (00960) and China Resources Land (01109) also rose 12.24% and 6.71%, respectively.

The Hang Seng Index closed at 17,651 points, up 367 points, or 2.12%. The national index closed at 6270 points, up 149 points, or 2.44%. The Hang Seng Index closed at 3,718 points, up 164 points, or 4.61%. In addition, the main board trading volume of Hong Kong stocks further increased to over $157.2 billion, while the short selling amount was $26.27 billion, or 16.71%. As for the ratio of rising and falling shares, there were 41 stocks that rose more than 13% during the day, while 42 stocks fell by more than 10% during the day. Hong Kong Stock Connect recorded a net inflow on the 46th day. On Friday, it recorded a net inflow of close to 1.2 billion yuan.

Author: Ye Shangzhi, First Shanghai Chief Strategist