Hong Kong Stocks Recover Intraday Losses: Hang Seng Index Finally Closes Up 0.32%, Pharmaceutical Stocks Rebound, and Mainland Property Stocks Stabilize
Investing.com – On Wednesday (9th), the Hong Kong stock market opened lower but later rallied to close in positive territory. The Hang Seng Index finally closed up 0.32%, while the Hang Seng Technology Index closed slightly lower.
Despite the initial dip, the turnover for the day decreased compared to the previous trading day. The turnover for the Hang Seng Index was 85.039 billion, slightly lower than the previous day’s 104.620 billion.
As of market close, the indices performed as follows: Hang Seng Index up 0.32% to 19246.03 points; Hang Seng Technology Index up 0.47% to 19,230.5 points; Hang Seng China Enterprises Index down 0.01% to 4373.71 points; Hang Seng China-Affiliated Corporations Index up 0.39% to 6613.23 points.
In terms of individual stocks, pharmaceutical stocks rebounded. Analysts believe that despite short-term disturbances in law enforcement actions, the fundamentals of the industry are still improving. WuXi Biologics (HK:) rose 5.8%, GenScript Biotech (HK:) rose 2.8%, Pharmaron Chemicals (HK:) rose 7.3%, Tigermed (HK:) rose 9.9%, and CanSino Bio-B (HK:) jumped 15.5%.
Catering stocks also experienced a rebound, with Haidilao (HK:) up 2%, Jiumaojiu (HK:) up 5%, and Xiabuxiabu (HK:) up 6.3%.
In the mainland real estate sector, stocks stabilized. Country Garden (HK:) fell 1.8%, Longfor Group (HK:) rose 0.8%, Logan Group (HK:) rose 1.3%, Vanke (HK:) rose 1.4%, and China Resources Land (HK:) rose 1%.
Internet stocks saw moderate gains, with Tencent Holdings (HK:)(OTC:) up 0.72%, Alibaba (HK:)(NYSE:) up 1.13%, Meituan (HK:) up 0.57%, and Kuaishou (HK:) up 3%.
However, new car-making forces experienced losses, with Weilai (HK:)(NYSE:) falling 2.56%, Xiaopeng Motors (HK:)(NYSE:) falling 3.63%, and Ideal Auto (HK:)(NASDAQ:) falling 5.52%.
CITIC Securities remains optimistic about the second half of the year for Hong Kong stocks. Analysts stated, “Looking forward to August-September, we judge that the expectation of various policies to stabilize growth after the Politburo meeting will promote the gradual recovery of investor sentiment in Hong Kong stocks, and the expectation that the fundamentals of Hong Kong stocks are expected to be further repaired in the second half of the year is in the middle of The reporting season is also expected to be confirmed.”
In addition, CITIC Securities mentioned that Hong Kong stocks are expected to rise by more than 10% after the end of the Federal Reserve’s interest rate hike cycle. The report reads, “Investors expect the Federal Reserve to have officially ended this round of interest rate hike cycles. Historically, after the end of the Fed’s six rounds of interest rate hike cycles since 1980, the average increase of the Hang Seng Index in the subsequent 50 trading days reached 12.2%.”
This article is from Yingwei Caiqing Investing.com. To read more, please log in to cn.investing.com or download the Yingwei Caiqing App.
Recommended Reading: Read