Today's Market Review: Renminbi reaches a three-and-a-half-month high, Hang Seng Index rebounds, Tencent and 'Wei Xiaoli' rise.
The Chinese yuan reached a three-and-a-half-month high, and the Hong Kong stock market rebounded. The US stock market saw a slight increase, while bond yields rose. The People's Bank of China and financial regulatory agencies called on financial institutions to support domestic real estate enterprises in raising funds through the capital market. The Hang Seng Index rose significantly, with technology stocks performing well. UBS predicts a positive outlook for the Chinese stock market. The Hong Kong stock market is broad, and the short-selling rate has decreased. The above is a summary of the important news of the day.
The onshore and offshore RMB have surged and returned to a 7.2 level, reaching a three-and-a-half-month high. The Hong Kong stock market rebounded today (20th). The market continues to focus on corporate performance and the direction of the Federal Reserve's monetary policy. The Dow Jones Industrial Average and the Nasdaq both rose slightly by 0.01% and 0.08% respectively last Friday (17th). At the time of writing, the yield on the US 10-year Treasury bond has risen to 4.472 basis points, the US dollar index has fallen to 103.63, Dow Jones futures have fallen by 10 points or 0.03%, and Nasdaq futures have fallen by 0.1%. The People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission have called on financial institutions to support real estate companies in raising funds through the capital market. The spot RMB has risen by 718 basis points to 7.1747 against the US dollar. The Shanghai Composite Index rose by 13 points or 0.46% to close at 3,068 points, and the Shenzhen Component Index rose by 0.4% to close at 10,022 points (returning to the 10,000-point level). The total turnover of the Shanghai and Shenzhen stock markets was 927.3 billion RMB. The Hang Seng Index opened high and expanded its gains repeatedly, rising by 334 points to 17,788 points at one point, and closed up by 323 points or 1.9% at 17,778 points. The Hang Seng China Enterprises Index rose by 128 points or 2.2% to close at 6,103 points, and the Hang Seng Tech Index rose by 97 points or 2.5% to close at 4,077 points. The total turnover of the market was 106.365 billion RMB, and the net outflow of southbound trading through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect was 2.76 billion RMB and 748 million RMB respectively. China CITIC Bank (00267.HK) saw its stock price rise by 6.5% to close at 7.49 yuan, Xinyi Solar (00968.HK) rose by 5.2%, and Haidilao (06862.HK) rose by 5.3%. HSBC Holdings (00005.HK) and Standard Chartered (02888.HK) saw their stock prices rise by 1.9% and 5.2% respectively. [HSBC and Standard Chartered rise, supported by Tencent] Internet stocks performed well, with Tencent (00700.HK) seeing its stock price rise by 3.6% to close at 326.6 yuan, Alibaba-SW (09988.HK) and Meituan-W (03690.HK) both rose by nearly 1.6%, Xiaomi-W (01810.HK) rose by 1.5%, and Kuaishou-W (01024.HK) rose by nearly 2.6%. UBS has released its stock strategy report for the Chinese market next year, estimating that the US economy will experience a relatively mild recession while global interest rates decline, and it is optimistic about the prospects of the Chinese stock market. UBS expects the global environment in 2024 to also favor a reasonable performance of the Chinese stock market. The industries favored by the bank have added education, sports equipment, and food and beverages, replacing hotels, home appliances, and highways, while the internet remains the bank's top choice. [Short selling rate drops, Weixiaoli performs well] The Hong Kong stock market was broad today, with a ratio of 27 to 14 for the rise and fall of main board stocks (compared to 15 to 25 the previous day). There were 1,139 rising stocks (a 2.7% increase), and 74 constituent stocks of the Hang Seng Index rose today, while 6 fell, with a ratio of 92 to 8 (compared to 18 to 81 the previous day). The market recorded a short selling volume of 15.295 billion RMB today, accounting for 16.654% of the total turnover of shortable stocks of 91.844 billion RMB (compared to 18.24% the previous day). "Quasi-blue chip" Ideal-W (02015.HK) saw its stock price rise by 2.4% to close at HKD 160.9, while NIO-SW (09866.HK) increased by 2.6% and Xiaopeng-W (09868.HK) surged by 5.1%. According to a report by CICC, the 21st Guangzhou International Automobile Exhibition opened on the 17th of this month. Overall, there were fewer new car releases last year due to the impact of the pandemic. However, this year, the pace of new car releases has been slow at the beginning and then picked up. The Guangzhou Auto Show featured a dense release of new car models, with 59 global debut models, focusing on new energy vehicles. Among them, Ideal and Xiaopeng unveiled their first pure electric MPV models. The bank stated that the intensive release of new cars on the supply side, as well as the steady increase in total sales volume, the improvement in new energy penetration, and the maintenance of high export growth, are all positive factors. CICC predicts that domestic demand and exports will exceed expectations this year, with wholesale and export volumes reaching 25.24 million and 4 million vehicles, respectively, representing a year-on-year increase of 9% and 58%. (wl/da)