The Hang Seng Index ended its continuous rise on Tuesday and pulled back for two days. When people in the market thought that Hong Kong stocks would continue to adjust downward, the recovery began yesterday (0509). After closing yesterday, it was reported that the China Securities Regulatory Commission plans to consider exempting the “Hong Kong Stock Connect” dividend tax. Today, with this good news, the opening of the Hang Seng Index has broken through the peak of the band and is also a new high this year.
Currently, mainland individual investors buy Hong Kong stocks through the “Hong Kong Stock Connect” and are required to pay 20% income tax on dividends obtained. This news is true and will greatly attract the desire of mainland capital to buy high-yield shares in Hong Kong stocks.
Today, the Hong Kong Stock Exchange surged 8% to a maximum of 287.4 yuan. The four major domestic banks, China Mobile, and high-interest domestic insurance stocks all broke through this year's high. At noon, the Hang Seng Index rose 321 points to 18,859, to a high of 18873.
With no dividends or low interest rates, the rise and fall was not significant. Since the rise and wave that began on April 22, the sector has taken turns to rise many times. The next wave may be another upward trend for Keji shares.
The Hang Seng Index takes a break for 10 days, then rises again. This rhythm reminds me of January 2018. After a day's break for 14 days, the historical data is not the same every time. Of course, historical data is not the same every time. The so-called trend speculates, there is no trend speculation rhythm. Evaluated according to the current prevailing situation, this upward wave may not end until 20,100 points.
[Author Profile] Option Jack:
Senior full time trader in the international market, 32 years of practical experience in futures and options trading in the market.
Former institutional trader and former senior analytical advisor to investment institutions.
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