Understanding the Market | Hang Seng TECH Index declines by more than 3%, tech stocks all in the red, Tencent turns to decline in the afternoon

Zhitong
2024.11.14 07:03
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The Hang Seng TECH Index's decline has expanded by over 3%. Among the constituent stocks, all weighted technology stocks are in the red. Tencent turned to decline in the afternoon after previously rising over 2%. The company's third-quarter revenue and net profit both exceeded expectations. As of the time of writing, KINGSOFT is down 3.73%, trading at HKD 28.4; Alibaba-W is down 2.71%, trading at HKD 88.1; Tencent is down 0.3%, trading at HKD 402.6. On the news front, on November 14th, during the Asian market session, the US dollar index maintained its intraday upward trend. As of the time of writing, the US dollar index rose to 106.69, reaching a one-year high. Zhongtai International pointed out that Trump's victory and the inclination towards trade protectionism have pushed up the risk premium of Hong Kong stocks, while strong inflation policies have also caused the US dollar index and US Treasury yields to continue to perform strongly, further putting pressure on the liquidity and valuation expansion of Hong Kong stocks. Kaiyuan Securities stated that a pullback after a rapid surge in the short term is a normal profit-taking adjustment. In the next six months, a series of policies are expected to stimulate the fundamentals of the Chinese economy, which can provide support for the Hong Kong stock market. The subsequent recovery of macroeconomic conditions and corporate profits is expected to attract more active long-term capital backflow, and the Hong Kong stock market may still have significant upside potential

According to Zhitong Finance APP, the Hang Seng TECH Index has expanded its decline by over 3%. Among the constituent stocks, all weighted technology stocks are in the red, with Tencent turning to decline in the afternoon after previously rising over 2%. The company's third-quarter revenue and net profit both exceeded expectations. As of the time of publication, KINGSOFT (03888) is down 3.73%, trading at HKD 28.4; Alibaba-W (09988) is down 2.71%, trading at HKD 88.1; Tencent (00700) is down 0.3%, trading at HKD 402.6.

On the news front, during the Asian market on November 14, the US dollar index maintained its intraday upward trend. As of the time of publication, the US dollar index rose to 106.69, reaching a one-year high. Zhongtai International pointed out that Trump's victory and the inclination towards trade protectionism have pushed up the risk premium of Hong Kong stocks, while strong inflation policies have also caused the US dollar index and US Treasury yields to continue to perform strongly, further putting pressure on the liquidity and valuation expansion of Hong Kong stocks.

Kuyuan Securities stated that a pullback after a rapid surge in the short term is a normal profit-taking adjustment. In the next six months, a package of policies is expected to successively stimulate the fundamentals of the Chinese economy, which can provide support for the Hong Kong stock market. The subsequent recovery of macroeconomic conditions and corporate profits is expected to attract more active long-term capital backflow, and the Hong Kong stock market may still have significant upside potential

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