KGI Asia Commentary
HSI fell 167 points on Friday
The Hang Seng Index opened 98 points lower at 18,435 points on Friday, the full-day decline extended to 167 points or 0.9%, closing at 18,366 points. The Hang Seng Technology Index fell 48 points, or 1.2%, to 3,901 points. HSCEI fell 70 points or 1.1% to 6,198 points. Market turnover was HK$99.4 bn. ATMs developed individually. Alibaba (9988) bucked the trend and rose more than 3.4%. Xpeng Motors (9868) retreated 5.2% to HK$54.6.
Non-farm payrolls below expectations, but wage growth faster than expected
The three major U.S. stock indexes closed down last Friday. The Dow Jones index fell 187.38 points, or 0.55%, to 33,734.88 points; the Nasdaq index fell 18 points, or 0.13%, to 13,661 points; the S&P 500 index fell 13 points, down 0.29% to 4,399 points. The performance of U.S. stocks last week was mainly affected by the hawkish stance of officials reflected in the summary of the Fed minutes, and the fact that the private labor market was still hot.
As for last Friday, the United States also released labor market data. Although the number of non-agricultural employment in June increased by 210,000, which was lower than the market's expected 230,000, the wage growth was higher than the market's expected month-on-month growth of 0.4%. It was slightly higher than market expectations by 0.1 percentage points, and was unchanged from the previous month's data. The lack of a slowdown in wage growth reflects a possible slowdown in the pace of the trade slowdown.
The rectification of technology stocks has come to an end
After the regulatory agency rectified the technology stocks earlier, last Friday, Ant Group, which is held by Alibaba (9988), was fined RMB 7.123 bn by the People's Bank of China, and it was also required to stop its "XiangHuBao" business. It reflects that the central government's rectification of technology stocks has come to an end and has turned into normalized supervision. Ant Group announced that it will repurchase, and the repurchase ratio will not exceed 7.6% of the total share capital.
Hong Kong Stock Connect had a net outflow of HK$ 4.19 bn on Friday, of which Tencent (700) had the largest inflow, reaching HK$770 mn; followed by Meituan (3690). Tracker Fund (2800) recorded the largest net outflow of HK$2.81 bn; followed by Hang Seng China Enterprises (2828).
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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