About UsSitemapCareersContact Us简体  繁體

Electronic trading system, provides HK Futures, Index Options & Global Futures trading service.

Online trading system, provides HK Stocks, US Stocks, Taiwan Stocks, China B-shares & Mutual Fund trading service.    Trading Demo

Mobile trading system, provides
HK Stock trading service.

Electronic trading system, provides HK Stock Option trading service.

Electronic trading system, provides HK Stock trading service and streaming quotes.

Mobile application of two-factor authentication for login and generate offline password.
KGI Commentary
Latest Research Reports
Market Insight
Warrant and CBBC Daily Commentary
Select Date:
09:00 AM, Tuesday, Aug 16, 2022
Hang Seng Index Fell 134 Points on Monday

HSI once rose 85 points to as high as 20,260 points on Monday. It ended the day at 20,040 points, down 134 points or 0.7%. HSTECH was at 4,308 points, down 41 points or 1.0%. HSCEI fell 43 points, or 0.6%, to 6,814 points. The market turnover was HK$73.8bn. The Shanghai Export Containerized Freight Index fell 4.7% last week for nine consecutive weeks. Shipping stocks fell sharply. Shares of OOCL (0316) and COSCO SHIPPING Holdings (1919) fell 14.7% and 4.1% today. The domestic chip board fell, with SMIC (0981) and Hua Hong Semiconductor (1347) down 6.1% and 3.6% respectively.

US Stock Reversed early loss on Monday

Manufacturing activity in New York area, unexpectedly fell to -31.3 in August, which is much worse than expectation. Besides, latest China economic showed that retail sales, fixed asset investment both slow down in July. Concerns about global growth risk, US stock market opened lower on Monday, the Dow once fell 180 points. However, thanks to the rise of tech stock, US stock market reversed early loss and closed higher in late session. The three major US stock index rose 0.4-0.6% respectively on Monday, of which, the Nasdaq index rose the most. Owing to recession concern, US treasury yield fell on Monday, with 2 year and 10 year yield both fell 5 basis points to 3.21% and 2.80% respectively. Oil price also fell 2.9% to US$89.4 per barrel. On the other hand, US dollar index rebounded, which rose 0.7% to 106.4.

China Economic Data weak in July; Short Term Pressure on Mainland banks

Latest economic data showed that China that retail sales, fixed asset investment both slow down in July, which is also below expectation. Although People Bank of China lowered interest rate for repo and Medium Term Lending Facility, but also lower the scale of MLF, reflecting the slow loan demand growth, as well as Central government avoid too excessive market liquidity. Hong Kong stock market short term lack of momentum, Hang Seng Index resistance still at 20 Day SMA(20,281). Hong Kong Stock Connect net inflow shrank to HK$200mn on Monday, of which, Hang Seng China Enterprise Index ETF (2828) recorded most net buy, while Meituan (03690) and China Mobile (0941) both recorded net outflow. Besides, Tencent (0700) also turned to net outflow, investors focus will eye on its interim result announcement on Wednesday, resistance at 20 Day SMA(HK$313). Besides, People Bank of China lower MLF interest rate, it is expected that LPR will also have downward pressure. Mainland Bank net interest margin might have downward pressure. Short term selling pressure might exist on Mainland banks, suggest to accumulate during weakness.

Recommended Stocks
Stock Recommendation
Interim net profit in 2022 is expected to be RMB 70.5 billion to RMB 72.5 billion, up 112%-118% year-on-year. Oil prices have recently retreated due to fears of a recession, but the alliance between OPEC and Russia, coupled with very limited spare capacity, should provide support to oil prices at low level. Although oil prices might continue fluctuate in the short term, CNOOC's prospective P/E ratio is less than 4x, coupled with a high dividend yield, suggest to accumulate during weakness. Target price: HK$11.00; Stop loss price: HK$9.00.

Source: KGI Research

Chua Tit Hong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.

The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.