KGI Asia Commentary
HSI fell 321 points on Friday
The Hang Seng Index opened 67 points lower and closed at 20,330 points. The trend throughout the day was weak, fell 321 points or 1.6% to 20,076 point; the China Enterprises Index fell 131 points or 1.9% to 6,764 point; the Hang Seng Technology Index fell 128 points or 3.1 %, at 3,970 point. The market turnover was HK$106.1 bn. Li Ning (2331) announced a mid-single-digit growth in the first quarter on Thursday. The share price once rose by 13%, but narrowed to 2.9% on Friday, closing at HK$59. Chinese stocks continued to break through the top and turned down due to market conditions. China Railway Group (390) and China Railway Construction (1186) fell 0.5% and 1.5% respectively.
U.S. PMI hits record high
The three major U.S. stock indexes closed slightly higher on Friday. The Dow rose 22 points, or 0.1%, to 33,809; the Nasdaq rose 13 points, or 0.1%, to 12,072; the S&P 500 rose 4 points, up 0.1% to 4,134 points, but indexes still closed down for the week.
The initial value of the Markit manufacturing PMI in the United States in April hit a 6-month high; the initial value of the Markit service PMI in the United States hit a 12-month high in April. S&P economist Chris Williamson said that business activity continues to accelerate, but this situation is not in line with the emerging signs of cooling demand. This data reflects the continued optimism of US companies, which may partly explain the stubbornly maintained core inflation rate. The reason for the high at 5.6%.
Chinese Labor Day holiday is approaching, hotel prices in popular areas increased
The Chinese labor holiday is approaching, and numbers of relevant tourism shows strong recovery after the epidemic. According to the data released by the Ministry of Culture and Tourism, in the first quarter of 2023, the total number of domestic tourists was 1.216 billion, an increase of 386 million over the same period of the previous year, an increase of 46.5% over the same period last year; domestic tourism revenue (total tourism expenditure) was Rmb 1.30 tn, an increase of An increase of Rmb 0.53 tn, an increase of 69.5%. In response to the "labor day" holiday, hotels in some popular areas in China has increased their prices multiple times, reflecting a significant increase in demand.
Hong Kong Stock Connect had a net outflow of HK$ 3.06 bn on Friday, among which Hang Seng China Enterprises (2828) had the largest net inflow of HK$1.66 bn; followed by Tracker Fund (2800). SenseTime (20) recorded the largest net outflow of HK$580 mn, followed by China Construction Bank (939).
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