Jin Wu Financial News | On May 14, after three days of continuous rise in Hong Kong stocks, the Hang Seng Index dropped slightly by more than 40 points and continued to close at the level of 19,100 points, while market trading volume remained strong, recording over 140 billion yuan. With sufficient liquidity, and Hong Kong stocks were still in a tight valuation position, I believe the situation is still favorable for the market to continue to rotate. It is beneficial for market conditions to maintain overall stability. As capital continues to flow back, Hong Kong stocks are expected to maintain a pattern of sharp gains and slight rebounds, and 18,600 points can be seen as the current support level for the Hang Seng Index, remaining stable. It is estimated that there is still room for upward testing, but it is believed that it will still be difficult to break through the 20,000 point mark in one fell swoop. In fact, the Hang Seng Index has been limited to operating below 20,000 points since the second half of last year, and fell to its lowest level of 14,794 points on January 22 this year. This period was mainly affected by high US interest rates and news that the market focused on the mainland's economic restructuring process. Looking at these two news factors, the current uncertainty has been reduced, but until the situation becomes more clear, we estimate that it will be difficult for the Hang Seng Index to rise above the 20,000 mark.

Hong Kong stocks surged first and then came back up. In the early opening period, they once rose 186 points to a high of 19301 points, and hit a new high in nine months. Internet stocks continued to secretly speculate on performance, while speculative performance was generally reversed. Index stocks continued to diverge their performance. Among them, Tencent (00700) rose 0.95% to 381.8 yuan, closing at 380 yuan again in more than a year. After closing, Tencent announced its results for the first quarter of this year. After closing, Tencent announced its results for the first quarter of this year. The adjusted profit increased 54% to 50.2 billion yuan year-on-year, which was superior to market expectations. It is estimated that the news is expected to stimulate further increases in stock prices. Furthermore, the Xiaomi-W (01810) plans to launch an SUV model as soon as next year. The news spurred its stock price to rise 3.2% to another two-and-a-half-year high. It is also the second largest increase in the Hang Seng Index component stock list.

The Hang Seng Index closed at 19074 points, down 41 points, or 0.21%. The national index closed at 6,741 points, down 20 points, or 0.29%. The Hang Seng Index closed at 4041 points, up 23 points, or 0.56%. In addition, the main board volume of Hong Kong stocks was over $143 billion, while the short selling amount was $19.46 billion, or 13.6% of the short selling ratio. As for the ratio of rising and falling shares, 777:929, there were 42 stocks that rose more than 14% during the day, while 44 stocks fell by more than 10% during the day. Hong Kong Stock Connect's net inflow turned into a slight net outflow after two days. A net outflow of more than 100 million yuan was recorded on Tuesday.

Author: Ye Shangzhi, First Shanghai Chief Strategist