Daily Investment Strategy
Hang Seng Index fell 127 points on Monday
HKD-RMB Dual Counter Model launched yesterday, while Hong Kong stock market fell generally. The HSI fell 314 points in mid-day and then gradually recovered the lost. It closed at 19,912, down 127 points or 0.6%. The HSTECH closed at 4,178, down 55 points or 1.3%. The HSCEI fell 56 points, or 0.8%, to 6,776. Market turnover was HK$103.0bn. China-tech stocks fell in general. Tencent (0700), Alibaba (9988), Meituan (3690) and JD.com (9618) fell between 0.7% and 2.1%. Domestic demand stocks fell as well, Anta (2020) and Li Ning (2331) both fell around 4.0%.
BoE stress-tests entire financial system
In the United Kingdom, absorbing the liquidity squeezed due to the sudden interest rate hike last year, the Bank of England said yesterday that it has launched the liquidity stress test for the entire financial system. Unlike previous stress tests on a single one institution, this one assesses the entire financial system, including references to hedge funds and pension funds, to gauge under what circumstances the UK's financial stability will be collapsed.
U.S. financial markets closed Monday for a holiday.
Positive signal from China-U.S. meeting
The tense relationship between China and the U.S. may be slightly relaxed. Yesterday, President Xi Jinping met with US Secretary Blinken and said that the previous agreements with the U.S. are going to be reached. Both sides have sent signals of willingness to reconcile, while Blinken said that the “spy balloon” incident has come to an end, and that both the United States and China believe that it is necessary to stabilize their relationship. On the other hand, Chinese Foreign Ministry officials also believe that the meeting between Blinken and President Xi Jinping is a starting point to avoid their relationship will be further deteriorated.
Hong Kong Stock Connect had a net inflow of HK$7.11bn on Monday, among which Tracker Fund (2800) had the largest net inflow of HK$5.89bn; followed by Hang Seng China Enterprises (2828). Tencent (0700) recorded the largest net outflow of HK$1.07bn, followed by Meituan (3690).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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