Hong Kong Stocks Surge Above 20,000 Points with Record Turnover
Hong Kong stocks made a strong comeback on July 31, pushing the benchmark Hang Seng Index above the 20,000 mark. The total daily turnover of the market also reached a remarkable 182.561 billion Hong Kong dollars, signaling renewed investor confidence.
The Hang Seng Index opened 320.97 points higher and closed at 20,078.94 points, representing a gain of 162.38 points or 0.82%. The State Enterprise Index closed at 6,899.31 points, up 90.84 points or 1.33%, while the Hang Seng Technology Index closed at 4,549.95 points, up 83.38 points or 1.87%.
Financial expert Tian Yong, from the Wealth Management Department of Industrial Securities International, noted that Hong Kong stocks have consistently opened higher this week following their significant rise in the previous week. The daily turnover in July doubled the monthly average, indicating increased market activity.
Looking at the current trend, Tian Yong predicts that the Hang Seng Index will consolidate around the neckline of the double bottom pattern at 20,200 points. He further forecasts that the index will fluctuate and consolidate around the 20,000 mark before potentially moving towards 21,000 and 22,000 points. However, he also cautions that some repetitions may occur during this process.
Analyzing the overall performance for the month, the Hang Seng Index rose by over 6%, the Hang Seng Technology Index surged by more than 16%, and the State Enterprise Index increased by over 7%. Tian Yong highlighted that the Hong Kong stock market has shown resilience throughout July, with repeated tests of support below 18,000 points, which were all met with bargain hunting. The issuance of economic policies by the government towards the end of the month greatly bolstered market confidence, leading to a sharp recovery in Hong Kong stocks.
In terms of sectors, technology stocks continued to climb, with JD.com rising by more than 4%, Baidu and Meituan rising by nearly 3%, Alibaba increasing by nearly 2%, and Tencent experiencing a growth of more than 1%. Tian Yong emphasized that the Hong Kong stock market has diverged from the general upward trend seen in recent weeks, with the technology sector remaining strong, albeit with slightly reduced activity.
The resurgence in Hong Kong stocks and the surge in turnover reflect renewed optimism among investors, driven by positive economic policies and increased market activity. As the Hang Seng Index breaks the 20,000 mark, market participants eagerly await further upward movements in the coming weeks.