KGI Asia Commentary
HSI rose 6 points on Monday
The Hang Seng Index fell 115 points after opening 40 points higher. It later recovered its losses and closed at 16,595 yesterday, up 6 points or 0.0%. The HSTECH reported at 3,474, down 13 points or 0.4%. The HSCEI fell 16 points, or 0.3%, to 5,712 points. The market turnover was HK$106.87bn. Tesla (TSLA.US) and XPEV (9868) announced price reductions for their EVs, with the latter's stock price falling 4.6%. Li Auto (2015) February delivery volume fell 35% MoM, and its stock price fell 10.7%. There is news today that the "Biotech-secure Act" is scheduled for the committee meetings on 6 Mar. However, the stock prices of WuXi AppTec (02359) and WuXi Biologics (2269) surged 12.5% and 11.7% today.
Atlanta Governor Bostic saw no pressure to cut interest rates this year
In his speech yesterday, Atlanta Federal Reserve Bank President Bostic believed that considering that the current labor market is still heated, and the Fed is not under pressure to cut interest rates urgently, it is believed that rate cut for twice is appropriate. His comments are influential on the market because he has voting rights in FOMC this year. In addition, he believed that there is no concrete evidence at this stage to reflect that inflation can fall back to the 2% level. Now he concerned more about the impact of price stickiness and credit tightening on the financial market.
All three major U.S. stock indexes recorded declines, with the Nasdaq composite falling 67 points or 0.41% to 16,207; the DJIA falling 97 points or 0.25% to 38,989; and the S&P 500 falling 6 points or 0.12% to 5,130.
China’s economic growth target this year is 5%
The National People's Congress session opened today. According to foreign media reports, the China’s expected economic growth target for 2024 this year is 5%, lower than the 5.2% year-on-year growth last year, while the CPI target is between 3%. This year’s new local government special bond issuance amounted to RMb3.9tn, RMb100bn more than 2023. The deficit rate target in 2024 remains at 3%, with a scale of RMb4.06tn.
The net inflow of Hong Kong Stock Connect on Monday was HK$3.66bn. Among them, Meituan (3690) had the largest inflow, reaching HK$839mn; followed by China Mobile (0941). Li Auto (2015) recorded the largest net outflow of HK$562mn; followed by Tencent (0700).
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