Home » Hong Kong’s Hang Seng Index Rises as Blue Chips Perform Well and Popular Sectors Gain Momentum

Hong Kong’s Hang Seng Index Rises as Blue Chips Perform Well and Popular Sectors Gain Momentum

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Hong Kong’s Hang Seng Index opened up 0.74% today. The index experienced fluctuations in early trading but eventually narrowed in the afternoon. By the close of the trading day, the Hang Seng Index had risen by 1.08% or 201.12 points to reach 18,860.95 points. The full-day turnover was HK$83.848 billion. The Hang Seng China Enterprises Index also rose by 1.3% to 6,377.99 points, while the Hang Seng Technology Index increased by 1.96% to 4,081.37 points.

Zhongtai International, a financial firm, anticipates that Hong Kong stocks will continue to fluctuate around their current levels in the short term. However, the company remains optimistic about the medium-term performance of Hong Kong stocks. One of the main reasons for this positive outlook is the central bank’s decision to cut interest rates, which has initiated a new round of stable growth policies in China. Additionally, China’s inventory cycle is gradually shifting towards passive destocking, and the US 10-year bond yield is being impacted by various factors including the peak of policy interest rates, the slowdown of US economic growth, and a gradual decline in inflation. These factors are expected to ease the pressure on the valuation and liquidity of Hong Kong stocks.

In terms of blue-chip stocks, Meituan-W (03690) led the way by rising 4.34% to HK$127.3. The stock contributed 47.74 points to the Hang Seng Index. Reports suggest that the Meituan app now features a “Meituan Live” entry on its recommended page, which brings together a collection of live streams from various merchants. Zhongtai International predicts that Meituan will continue testing and implementing live broadcast integration on its app in the future, based on feedback from merchants and users.

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Other blue-chip stocks also performed well. Lenovo Group (00992) rose by 2.97% to HK$8.31, while Sunny Optical Technology (02382) increased by 2.86% to HK$77.35. On the other hand, Zhongsheng Holdings (00881) fell by 1.86% to HK$28.95, and Hang Lung Properties (00101) dropped by 1.53% to HK$11.56.

In terms of sector performance, technology stocks were strong throughout the day. Bilibili-W (09626) rose by 6% to HK$123.7, Meituan-W (03690) increased by 4.34% to HK$127.3, Kuaishou-W (01024) saw a rise of 3.26% to HK$55.45, and Lenovo Group (00992) rose by 2.97% to HK$8.31.

Movie concepts also experienced a rise in their stock prices. Ningmeng Film and Television (09857) increased by 7.91% to HK$10.64, Maoyan Entertainment (01896) rose by 6.03% to HK$8.26, and Alibaba Pictures (01060) saw a rise of 3.26% to HK$0.475. The summer season has seen strong box office numbers for mainland Chinese movies, exceeding 7 billion yuan in total. Analysts predict that the box office for summer movies could reach 15 billion yuan, further supporting the recovery of the film industry.

The “three barrels of oil,” consisting of CNOOC (00883), PetroChina (00857), and Sinopec (00386), all saw increases in their stock prices. This rise can be attributed to the support of weaker dollar and a forecast of a global crude oil glut this year. Furthermore, the Central Deepening Reform Commission has emphasized the need to deepen the reform of the oil and gas market system.

Domestic insurance stocks also had a positive day. Zhongan Online (06060) rose by 2.9% to HK$23.05, China Ping An (02318) increased by 2.13% to HK$50.3, China Pacific Insurance (02601) saw a rise of 1.85% to HK$20.35, and China Life Insurance (02628) rose by 1.66% to HK$12.26. The State Administration of Financial Supervision issued a notice expanding the individual income tax preferential policies for commercial health insurance. This move is expected to boost sales of critical illness insurance and support the recovery of the life insurance industry.

Some mainland banking stocks also saw increases. Zhongyuan Bank (01216) rose by 4.17% to HK$0.375, Bank of Tianjin (01578) increased by 3.47% to HK$1.79, Postal Savings Bank of China (01658) saw a rise of 2.05% to HK$4.47, and China Merchants Bank (03968) rose by 1.82% to HK$33.6. The central bank released a report on financial statistics for the first half of the year, indicating positive performance in corporate and resident credit. This reflects the impact of loose credit policies as China aims to boost the market and increase confidence. Thus, there is optimism surrounding the banking sector.

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In terms of popular stocks, Shougang Resources (00639) rose significantly by 4.41% to HK$2.13. The company announced that Octagon Financial would make a conditional cash offer on its behalf. If the conditions are met, the offer would involve the repurchase and cancellation of the maximum number of shares at an offer price of HK$2.4 per share.

The AH shares of Jingcheng Machinery & Electric Co., Ltd. (00187) also saw a rise of 8.74% to HK$3.11. This increase can be attributed to the successful operation of the Sinopec Xinjiang Kuqa Green Hydrogen Demonstration Project, which is the largest photovoltaic power generation green hydrogen project currently in operation worldwide.

Broad Homes (02163) continued its upward trend, rising by 17.65% to HK$2.2. The company announced yesterday that it would acquire a certain number of shares.

Overall, today’s trading day was positive for Hong Kong stocks, with various sectors experiencing gains. The optimistic outlook for Hong Kong stocks in the medium term, along with positive market conditions and government policies, have contributed to the overall positive sentiment in the market.

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