KGI Asia Commentary
Hang Seng Index fell 280 points on Friday
The Hang Seng Index opened 122 points higher last Friday, at 16,743 points. The Hang Seng Index fell 280 points, or 1.7%, to 16,340 points on Friday; the H-Share Index fell 131 points, or 2.3%, to 5,489 points; the Hang Seng Technology Index fell 162 points, or 4.4%, reported at 3,548 points. The total daily turnover of the market was HK$141.2 billion. In terms of sectors, the mainland continued to be affected by cold weather. Coal stocks Shenhua (1088) and Yankuang Energy (1171) performed well, rising 2.4% and 2.6% respectively. In terms of individual stock trends, Shenzhou International (2313) was affected by NIKE's lowered outlook, and its stock price fell 7.7% on Friday to HK$78.
Core PCE data fell faster than market expectations
U.S. stocks closed higher on Tuesday, with the Dow Jones Index closed up 159.36 points, or 0.43%, at 37545.33 points; the Nasdaq Index rose 81.60 points, or 0.54%, to 15074.57 points; the S&P 500 Index rose 20.12 points, or 0.42% and reported 4774.75 points.
In terms of economic data, the United States released the core PCE price index in November last Friday. The year-on-year growth rate fell back to 3.2%, lower than market expectations of 3.3% and the previous value of 3.5%. It rose 0.1% month-on-month, lower than the expected 0.2%. %. The cooling PCE data strengthened expectations for the Federal Reserve to cut interest rates next year. At the same time, the price of gold once rose above US$2,060 per ounce, reached a maximum of US$2,070 per ounce.
Online game regulatory risks
The National Press and Publication Administration issued the "Online Game Management Measures (Draft for Comments)" last Friday, which prohibits inductive rewards such as first-time top-up and continuous top-up in games, and all online games must set user top-up limits. News droveTencent (700) and NetEase (9999) fell 12.3% and 24.6% respectively. Even if the relevant departments point out that it is only in the stage of collecting opinions and point out that the draft opinion will be further improved and amended, the market's regulatory risk considerations for online games sector will put pressure on related stocks.
The net outflow of Hong Kong Stock Connect on Friday was HK$ 4.277 bn. Among them, China Mobile (941) had the largest inflow, reaching HK$ 330 million; followed by China National Offshore Oil (883). Tencent Holdings (700) recorded the largest net outflow of HK$2.68 billion; followed by Tracker Fund (2800).
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