Jinwu Financial News | On May 16, Hong Kong stocks continued to develop a pattern of sharp gains and slight reversals. The Hang Seng Index rose more than 300 points, further testing to close at the level of 19,400 points, and hit a new high in nine months. Meanwhile, market turnover also continued to increase and cooperate, recording more than 200 billion yuan. This is the first time since January 30, 2023 that the daily turnover has broken through 200 billion yuan. In fact, capital inflows are the biggest driving force for the market. Therefore, with the continuous return of capital, the liquidity of Hong Kong stocks has improved and increased, which is also a catalyst for the recent recovery in Hong Kong stock valuations. Currently, since Hong Kong stocks have continued to rise for a short period of time, the market has also rotated and spread. As we have pointed out, it is important to note that Hong Kong stocks have an opportunity to enter the peak of phased excitement. If the market mood returns from a high level of excitement to rational calm down, then I believe it will be the time for Hong Kong stocks to begin to adjust after entering a sharp rise. On the other hand, two major factors have affected Hong Kong stocks since the second half of last year, including high US interest rates and the mainland's economic restructuring process. Although their current uncertainty has been reduced, it is estimated that it will still be difficult for the Hang Seng Index to rise above the 20,000 point mark and stand firm until the situation becomes more clear and clear.
Hong Kong stocks showed a volatile upward trend. In the intraday period, they once rose 369 points to a new high of 19,443 points. With the market atmosphere already showing excitement, and the reversal of the Hang Seng Index's 9-day RSI indicator has gradually formed, it is important to note that the Hang Seng Index may enter a short-term peak market. Index stocks generally continued to do well, especially those with news stories. Among them, Tencent (00700), which had better quarterly results than expected, jumped 3.98% to close at 397 yuan, but the RSI indicator also rose to 86.43 on the 9th, and the technical overbought situation was serious. In addition, it is reported in the market that the State Council is seeking opinions from various departments on eliminating the stock of real estate. The news spurred domestic housing stocks and related financial stocks to rise further. Longhu Group (00960), China Ping An (02318), and CCB (00939) rose 10.93%, 7.09%, and 6.11% respectively, all of which are in the top five of the biggest gainers of the Hang Seng Index component stocks.
The Hang Seng Index closed at 19,377 points, up 303 points, or 1.58%. The national index closed at 6871 points, up 130 points, or 1.92%. The Hang Seng Index closed at 4,072 points, up 31 points, or 0.76%. In addition, the main board volume of Hong Kong stocks was over $204.8 billion, while the short selling amount was $30.07 billion, or 14.68%. As for the ratio of rising and falling shares, 992:764, there were 46 stocks that rose more than 18% during the day, while 38 stocks fell by more than 10% during the day. Hong Kong Stock Connect turned into a net inflow. On Thursday, it recorded a net inflow of nearly 4 billion yuan.
Author: Ye Shangzhi, First Shanghai Chief Strategist