Home » Hang Seng Index Opens Lower as New Energy Vehicle Stocks Soar: Market Review

Hang Seng Index Opens Lower as New Energy Vehicle Stocks Soar: Market Review

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Title: Hang Seng Index Opens Lower; Xiaopeng Motors Rises, Tech and Internet Stocks Weaken

Introduction

The Hang Seng Index started the day 1.41% lower, with new energy vehicle company Xiaopeng Motors witnessing a 3.45% increase. However, technology and Internet stocks performed weakly, and some bank stocks also opened lower, including China Merchants Bank, which fell 1.17%. A review of the overnight market showed that U.S. stocks closed lower on Wednesday, with the Dow Jones index falling 0.38%. The Federal Reserve’s minutes from its June meeting indicated a slower pace of monetary policy tightening and maintained a forecast for a “moderate” recession in 2023.

U.S. Market Review

The Dow Jones index broke its three-day winning streak, as the Federal Reserve released the minutes of its June meeting. The minutes revealed that while the Fed may tighten monetary policy further, it will do so at a slower pace compared to the rapid rate hikes seen since early 2022. The Dow Jones index fell 0.38%, the S&P 500 index declined 0.2%, and the Nasdaq index dipped 0.18%. However, star technology stocks mostly rose, with “Metaverse” Meta and Netflix hitting a 17-month high. Tesla continued its upward trajectory, rising for six consecutive days to reach its highest point in over nine months.

Chinese Concept Stocks

Popular Chinese concept stocks had mixed performances. The Nasdaq China Golden Dragon Index fell 0.61%, while Alibaba and JD.com witnessed small gains. Xiaopeng Motors saw a strong increase of 5.87%, and the electric vehicle manufacturer Weilai Automobile rose 1.89%. However, Ideal Auto fell 1.52%, and iQiyi rose 2.04%.

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Market Outlook for Hong Kong Stocks

According to the Everbright Securities Research Report, Hong Kong stocks present allocation opportunities against the backdrop of a weak economic recovery. The report states that the force driving overall economic recovery has strengthened, and with the stabilization and recovery of the economy, positive factors are accumulating. Therefore, the market may return to an upward track if relevant policies are implemented or economic data verifies a continued recovery.

Insights from Experts

Yan Zhaojun, a strategic analyst at Zhongtai International, highlights the strengthening of the offshore renminbi, which may relieve earnings revision pressures caused by exchange rate depreciation.

Haitong Securities released a research report suggesting that as artificial intelligence (AI) technology in China boosts corporate profits, Hong Kong stocks will witness an AI industry market.

CITIC Securities expects short-term shocks for Hong Kong stocks and recommends focusing on stocks with high dividends, excellent free cash flow, and high ROE. They also suggest exploring the travel industry chain and cost-effective biotechnology and Internet leaders with AI layout.

Important News Updates

1. Zhuang Zheyi of ASTRI: Responding to Future 6G Challenges with Innovative Technology Research and Development
2. High-Salary “Poaching” Trend in Hong Kong’s Insurance Market
3. Yu Weiwen, President of the Hong Kong Monetary Authority, Discusses “Northbound Trading” Concentration and Risk Management
4. Various companies’ news, including Great Wall Motors, Orient Overseas International, Yuexiu Real Estate, Agile Group, Times China Holdings, Ronshine China, China Railway Construction, East Sunshine Changjiang Pharmaceutical, Concord New Energy, Truly International, Power Development.

Conclusion

The Hang Seng Index opened lower, with new energy vehicle company Xiaopeng Motors witnessing a rise. However, technology and Internet stocks performed weakly. The U.S. market closed lower, with the Dow Jones index ending a three-day winning streak. Market experts provide insights into the future outlook for Hong Kong stocks, emphasizing allocation opportunities and potential growth in the AI industry.

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