Hong Kong Stock Market Review: Huge Volatility
The Hong Kong stock market has experienced significant volatility, influenced by the US stock market and global instability factors. A-shares have shown relatively strong performance compared to Hong Kong stocks, but concept stocks still stand out, with the pharmaceutical sector showing relative strength. AI-related stocks have fallen, and sectors such as new energy are also experiencing corrections. The market is approaching the end of the sell-off phase, and the focus will be on economic data, second-quarter reports, and the trend of the US stock market. If A-shares can continue to maintain a role as a counterbalance to the US stock market, the decline will accelerate towards the bottom
The performance of the US stock market is extremely abnormal, with NVIDIA fluctuating by as much as 10% and global instability. Expectations for AI are not being met, interest rate cuts are uncertain, and various factors are mixed, causing huge fluctuations in the global market.
After rising for the past two days, it has fallen back again, with many overseas markets hitting new lows in recent days. It can be confirmed that after such a violent fluctuation, some kind of trend will change.
Observing the performance of A-shares today, it is relatively stronger than Hong Kong stocks, mainly driven by certain industries. However, this strength is only relatively less decline compared to H-shares. It is also seen that outstanding performance is still seen in various concept stocks, indicating that a correction seems to be expected.
The only remaining relatively strong sector is healthcare, partly due to oversold conditions. On the other hand, the healthcare sector in the US stock market is also relatively strong in this round of correction, so it is worth paying attention to. However, there is still a lack of sustainability.
As for the sectors that experienced significant declines today, some are related to AI stocks. Currently, the US stock market's chips and AI sectors are in turmoil, so continuing to hit new lows is quite normal. In addition, strong sectors are also experiencing corrections, such as new energy, where leading stocks are plummeting, indicating that the market is basically in the final stage of the sell-off.
Next, we need to look at economic data and second-quarter reports. We also need to observe the decline in the US stock market. If A-shares continue to play a role as a counterbalance to the US market, this kind of decline is not harmful and will instead accelerate the bottoming process