U.S. stocks suffered, weighing on the performance of Hong Kongs ADR index, which closed at 24963 points on a pro rata basis, down 300 points or 1.2%. Large blue chips were softer, with HSBC Holdings closing at HK $36.2, down HK $0.35 from the end of Hong Kong market; Tencent holdings closed at HK $545.97, down HK $11.03.
As for the night trading of the Hang Seng Index, the July contract closed at 24946 points, down 285 points, with a low of 317 points, with 22737 transactions.
International oil prices fell, with New York Futures (September) closing at $41.07 a barrel, down $0.85 or 2.03%; Brent Futures (September) closed at $43.31 a barrel, down $0.98 or 2.21%.
The US dollar and other international health events continued to rise. New York gold (August) closed at $1890 an ounce, up $24.9, or 1.3%. According to New York Mercantile Exchange (Comex) records, New York gold is less than $2 from the record high.
On the news, the number of Americans who applied for unemployment benefits for the first time last week rose for the first time since March to 1.416 million, a three week high and expected to be 1.3 million.
The famous Yale economist has made a shocking prediction that the US dollar may fall at the speed of light, with a drop of as much as 35%, mainly due to the increase of US deficit and the decrease of savings.
For todays HSI trend, dragged down by US stocks, ADR index and the night under pressure, Xiaobian thinks that it is a big probability to open low and go high. The long road of Hong Kong stock market is really uneven. Overnight collective correction of large technology stocks such as faang and Tesla in the US stock market will certainly affect the performance of the heavyweight stocks in the technology sector of Hong Kong stock market. They all share a common feature. The early rise is too good and the valuation is at a high level. Mention of large stocks, before the correction of large stocks, also need to be careful. However, the pullback of US technology stocks is expected. With the strong support of A-shares, we believe that Hong Kong stocks will have a rebound trend.
Global capital may accelerate to flow into emerging markets, especially the Hong Kong stock market with low valuation and active trading. It seems that there is no suspense about the further weakening of the US dollar. Some analysts even think that its falling space is as high as 35%! CICC said that the medium and long-term weakening of the US dollar has a positive impact on the world: in the short term, the weakening US dollar will further promote the US dollars return to emerging markets and help their capital markets recover; in the medium and long term, the weakening US dollar will help us dollar credit expansion in emerging markets.
In terms of sectors, domestic auto sales in June this year were 2.3 million, with a year-on-year increase of 11.6%, among which the electric intelligent vehicle sector rose significantly. The related targets of Hong Kong shares are Fuyao Glass (03606), GAC group (02238), and focus on the opportunity of domestic substitution of IGBT, CRRC era electric (03898) and saijing power electronics (00580).
In terms of individual shares, PetroChina (00857) plans to inject specific pipeline business and assets into national pipeline network group to acquire 29.9% equity and 119.2 billion yuan in cash; Shandong gold (01787) raised the price per share of cartino shares to a $0.7.
Source: Zhitong finance and economics net editor: Wang Honggui_ NF7326