KGI Asia Commentary
HSI rose 733 points on Friday
The Hang Seng Index opened 360 points higher, at 18,567 points, and rose 733 points, or 4%, to 18,950 points; the H-Share Index rose 279 points, or 4.5%, to 6,428 points; the Hang Seng Technology Index rose 193 points, or 5.3%, to 3,824 points . The market turnover was HK$ 149.1 bn. Technology stocks rebounded, with Meituan (3690) up 7.8% and Alibaba (9988) up 6.7%. Longfor (960) soared 17% to HK$17, Country Garden Services (6098) rose 13% to HK$9.49.
U.S. non-farm payrolls beat expectations in May
U.S. stocks closed higher on Friday. The Dow Jones index closed up 701 points, or 2.1%, to 33,763 points; the Nasdaq index rose 140 points, or 1.1%, to 13,242 points; the S&P 500 index rose 61 points, an increase of 1.5 percent to 4,282 points. All three major indexes recorded gains for the week. The debt ceiling agreement was signed by Biden on Saturday and became effective. Although the debt ceiling issue has been resolved, the market is concerned that if the US government issues a large number of high-yield Treasury in a short period of time, the bank's cash flow problem may be further aggravated.
In addition, in terms of economic data, the US non-farm payroll in May was once again far better than market expectations. The announced value added 339,000 people, while the market expected only 190,000. Data showed the U.S. job market remained strong, but wage gains were slightly weaker than expected.
New energy vehicle purchase tax relief may be extended
Li Qiang, Premier of the State Council of China, held an executive meeting on Friday, pointing out that will introduce highly integrated policy measures with high value-added content to ensure that the policies are implemented and effective. During the meeting, it was pointed out that new energy vehicles are still the main development direction, and that new energy vehicle purchase tax reductions will be continued in the future to promote the development of the industrial chain. In addition, following Beijing, Shanghai, and Shenzhen, Chengdu, Sichuan Province plans to launch measures to promote the development of the AI industry. The support measures include financial subsidies and incentives, which is one of the main development industries other than new energy vehicles.
Hong Kong Stock Connect had a net outflow of HK$2.425 bn on Friday, of which Meituan (3690) had the largest net inflow of HK$660 mn; followed by Tencent (700). Tracker Fund (2800) recorded the largest net outflow of HK$2.08 bn; followed by Hang Seng China Enterprises (2828).
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