KGI Asia Commentary
Hang Seng Index fell 110 points on Friday
The Hang Seng Index opened 85 points higher at 18,562 points, then fell 110 points or 0.6% throughout the day to 18,367 points. The HSCEI Index fell 44 points, or 0.7%, to 6,510 points; the Hang Seng Technology Index fell 68 points, or 1.8%, to 3,772 points. The total daily turnover of the market was HK$133.1 billion. Meituan (3690) announced its results last night. Although it overall beat expectations, its stock price remain volatile. The stock price fell by 2% to HK$110. In addition, NIO (9866) also announced its results, the company's losses continued to expand, stock price fell 7.1% to HK$38.2.
U.S. May jobs report looks promising but is actually weakening
Last week, the United States announced that the number of non-farm employment increases in May was higher than market consensus, with 272,000 new jobs, higher than the expected 189,000; the unemployment rate was 4%, compared with 3.9% last month; the labor participation rate was 62.5 %, compared with 62.7% in the previous month. On the headline, the number of U.S. jobs seems to be rising, but a detailed analysis at the figures shown that the U.S. labor market was shrinking significantly. Although employment rose more than expected in May, full-time jobs actually fell by -625,000, while part-time jobs increased by 286,000.
All three major U.S. stock indexes recorded gains. The Nasdaq composite rose 59 points, or 0.35%, to close at 17,192; the S&P 500 rose 13 points, or 0.26%, to close at 5,360; the DJIA rose 69 points, or 0.18%, to close at 38,868.
China’s tourism consumption during Dragon Boat Festival in 2024 has exceeded 2019 level
According to statistics from the Chinese Ministry of Culture and Tourism, during this year’s Dragon Boat Festival, China’s domestic tourism trips totaled 110mn, an annual increase of 6.3%; and the total expenditure was RMb40.35bn, an annual increase of 8.1%. In 2019, the total number of domestic tourists received was about 96mn, and total expenditure was RMb39.33bn. This means that this year’s figures were better than the pre-epidemic level. The travel platform Ctrip (9961) also announced this year’s Dragon Boat Festival travel report. Local travel was once again popular, and traditional trip attracted more foreign tourists to experience it. The number of Dragon Boat Festival inbound travel bookings increased by 115% year-on-year.
The net inflow of Hong Kong Stock Connect on Friday was HK$3.67bn, of which China Mobile (0941) had the largest inflow, reaching HK$750mn; followed by Li Auto (2015). Tracker Fund (2800) recorded the largest net outflow of HK$1.07bn; followed by Tencent Holdings (0700).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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