KGI Asia Commentary
Hang Seng Index rose 224 points on Friday
The Hang Seng Index opened 91 points higher last Friday to 21,605 points. The trend fluctuated and closed at 21,738 points, up 224 points. The China Enterprises Index rose 79 points to 7,391 points; the Hang Seng Technology Index rose 68 points to 4,554 points. The market turnover of the whole day was HK$133 billion. Meituan (3690) fell 1%, Tencent (700) rose 2%, and Alibaba (9988) rose 1.7%. In addition, WuXi Biologics (2269) surged over 6%, and Koolearn (1797) rose 15% to break the peak.
Consumer sentiment rise, U.S. Banks released earnings, Concerned about future economic outlook
The United States announced that the latest initial value of the University of Michigan's consumer sentiment index in January rose to 64.6, higher than market expectations and a new high since April 2022. The initial value of the current situation index rose to 68.6, and the initial value of the outlook index rose to 62, both of which were higher than market expectations. On the other hand, consumer inflation expectations also fell further by 0.4 percentage points to 4% from 4.4% in the previous month.
In addition to economic data, several US banks also announced their results accordingly. JPMorgan Chase (JPM) revenue and net profit rose 17% and 6%, respectively, better than expected. But JPMorgan Chairman Jamie Dimon pointed out, "Although the US economy is still strong. But it is uncertain the ultimate impact of negative factors such as geopolitical tensions and unprecedented quantitative tightening.".
Although some still exceed expectations, there are still concerns about the future economic outlook. The 10-year U.S. bond yield closed at 3.505%. In terms of indexes, the index rose 112 points or 0.3% to 34,302 points; the Nasdaq rose 78 points or 0.7% to 11,079 points; the index rose 15 points or 0.4% to 3,999 points.
The Financial Market Department of the People Bank of China stated rectification of large platforms are soon to come to an end
Ant Group has new news. Recently, the person in charge of the Financial Market Department of the People's Bank of China said that since the consolidation, it has guided 14 large platform companies to make rectifications for a series of issues, indicating that the target has are finalizing. Also reflects that the arrangement of regulatory measures is coming to an end. We expected that the next step will be to promote the development of the platform economy under the regulatory framework and promote enterprises to improve their technological innovation capabilities and service quality and efficiency.
Hong Kong Stock Connect had a net inflow of HK$2.042 bn on Friday, of which Tencent (0700) had the largest net inflow of HK$840 mn; followed by China Mobile (941). China Construction Bank (939) recorded the largest net outflow of HK$240 mn, followed by Innovent Biologics (1801).
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.
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.