【True Insight Hong Kong Stock Experts】US stocks showed mixed performance on Monday, as Federal Reserve officials indicated they are beginning to study interest rate cuts.
Hong Kong Stock Market Trends and Analysis
U.S. stocks were mixed on Monday, with Federal Reserve officials signaling the start of discussions on interest rate cuts. The Dow Jones Industrial Average showed positive momentum, while tech stocks faced pressure, leading the S&P 500 and Nasdaq to decline against the trend. The U.S. dollar weakened, and the 10-year Treasury yield fell to 4.23%. Gold and oil prices performed well. Hong Kong ADRs generally rose, suggesting a higher open for the local market. Mainland stocks fell yesterday, with the Shanghai Composite Index opening lower and closing down 1.2%. Trading volume in Shanghai and Shenzhen remained subdued. Hong Kong stocks followed the weak trend of mainland markets, with the index hovering around the 18,000-point level and trading volume staying low. Market sentiment was cautious, lacking clear direction, and the index is expected to fluctuate between 17,800 and 18,500 points.$Hang Seng Index(00HSI.HK)
Industry News
China Reform Holdings, a subsidiary of the State-owned Assets Supervision and Administration Commission (SASAC), announced that its subsidiary, China Reform Investment, has partnered with leading institutions such as GF Fund, Southern Fund, and Invesco Great Wall Fund to launch the CSI China Reform HK Connect Central SOEs Dividend ETF, which has officially begun issuance. China Reform Investment subscribed to the ETF's initial offering. The announcement stated that this move signals strong confidence in the long-term value of central SOEs listed in Hong Kong and highlights the responsibility of state-owned capital operating companies in maintaining market value and enhancing pricing power for these firms. Building on the successful implementation of the first batch of "1+N" central SOE indices and ETFs, China Reform Investment collaborated with CSI Index Company to compile the CSI China Reform HK Connect Central SOEs Dividend Index. The index selects central SOEs listed in Hong Kong that demonstrate strong industry positioning, stable operations, robust cash flows, and high dividend payouts. Against the backdrop of deepening SOE reforms and the new "National Nine Articles" policy emphasizing cash dividends, the index offers long-term investment value. Additionally, by partnering with professional institutions to launch multi-currency ETF products in both domestic and Hong Kong markets, the initiative aims to foster synergy between capital markets and attract more international capital and industrial resources to high-quality central SOEs listed in Hong Kong. The news is expected to boost overall market sentiment and channel more funds into high-dividend central SOE valuations.
Independent Stock Analyst
Guo Jiayao CFA
The author and related parties do not hold the aforementioned stocks
Date: Tuesday, June 25, 2024
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