[True Insight Institutional View] U.S. stocks hit record highs, Hang Seng Index continues strong upward trend

The three major U.S. stock indices continued to perform well and hit new highs, with the Dow Jones rising 0.43%, and the S&P 500 and Nasdaq rising 0.27% and 0.37%, respectively. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, rose 1.48%, marking its third consecutive day of gains.

As for the performance of the Chinese and Hong Kong stock markets yesterday, they showed mixed results. In the A-share market, the Shanghai Composite Index and the Shenzhen Component Index both closed lower, with the former falling 0.51% to close at 3,807 points, while the latter fell more than 1.2% to close at 12,510 points, with a total turnover of 2.1 trillion yuan for the day. Hong Kong stocks continued to perform well, with the Hang Seng Index breaking through the 26,000-point mark at one point, supported by the strong performance of Alibaba (09988.HK). The index ultimately rose 304 points or 1.2% to close at 25,938 points, while the Hang Seng Tech Index also performed well, rising 1.3% to close at 5,828 points, with a total market turnover of 294 billion yuan. Alibaba continued to be the driving force behind the market's rise, gaining more than 3.4% and contributing more than 71 points to the Hang Seng Index. The best-performing constituent stock was its affiliate, Alibaba Health (00241.HK), which rose more than 10%, while JD Health (06618.HK) also rose 6.4%, making it the second-best-performing constituent stock. Property-related stocks also saw some speculative activity, with Longfor (00960.HK) and China Resources Mixc (01209.HK) both rising more than 6%, while China Resources Land (01109.HK) and China Overseas Land (00688.HK) also rose more than 3%. Among the declining stocks were previously strong pharmaceutical stocks, with WuXi Biologics (02269.HK) and CSPC Pharmaceutical (01093.HK) falling 3.4% and 3.1%, respectively. Additionally, Meituan (03690.HK) remained weak, falling another 2.3% yesterday, with its share price hitting a low of 97.1 yuan at one point, the lowest in nearly a year.

The Hang Seng Index has risen for three consecutive days and hit a new high for the year, showing a breakout in its trend. As long as it remains above the 10-day moving average (25,378 points), the outlook remains optimistic, and it is expected to continue testing the top of its range.

Source: Bright Smart Securities