Understanding the Market | Hengke Index rises by over 4% again, with a cumulative increase of 10% in the past five days. Overall, the profit release of internet giants in the mid-year report is better than other sectors

Hengke Index rose by over 4% in the morning session, with a cumulative increase of over 10% in the past five trading days. As for the component stocks, Nio-SW rose by 8.76% to HKD 43.45; JD Group-SW rose by 7.43% to HKD 121.5; Meituan-W rose by 4.52% to HKD 138.8; Tencent rose by 2.01% to HKD 395.4. On the news front, on the morning of September 24th, the State Council Information Office held a press conference to introduce the relevant situation of financial support for high-quality economic development. At the conference, People's Bank of China Governor Pan Gongsheng announced a series of major policies. In addition, the Federal Reserve recently lowered the target range for the federal funds rate to 4.75% to 5%, marking the first rate cut by the Federal Reserve since 2020. Guosen Securities pointed out that the Hong Kong stock internet sector is clearly bottoming out, with the operating characteristics of giants in the new stage showing a focus on core business and high-margin business development; improving operational efficiency through organizational structure integration; and increasing share buybacks and dividends, with shareholder returns stronger than most sectors. Looking at the mid-year reports of 2024, the overall mid-year profit release of internet giants is better than other sectors