Daily Investment Strategy
Hang Seng Index rose 8 points on Monday
The Hang Seng Index closed at 21,746 yesterday, only up 8 points. HSTECH closed at 4,506, down 48 points or 1.1%. HSCEI fell 40 points, or 0.6%, to 7,350. Market turnover was HK$140.8bn yuan. Apart from Alibaba (9988), which rose 0.6%, other Chinese technology stocks fell. Tencent (0700) and JD.com (9618) fell 0.3% and 1.8% respectively.
High energy costs may continue to be a long-term risk for European countries
16 January is Martin Luther King, Jr., Day, and the U.S. stock market was closed yesterday. On the European side, according to research centers, Germany has become less attractive for investment. Among the 21 advanced western industrial countries ranked by investment attractiveness, Germany's ranking dropped by 4 ranks to 18th. The main reasons for the sharp drop are rising energy costs and labor shortages. Although Europe's energy problems can be alleviated in the middle and late 2022, unstable energy supply is believed to be a long-term risk faced by European producing countries.
Electric vehicles accounted for 10% of the global market, especially in China
The sales of electric vehicles also entered a milestone last year. For the first time, EV sales achieved a market share of around 10%, according to research firm LMC Automotive. Among them, the penetration rate of EV in the Chinese market is increasing. Pure EV account for 19% of the total vehicle sales in China, much higher than the 11% in Europe. The CEO of Volkswagen China even said that plug-in hybrid electric vehicles (PHEV) will be more popular, and the proportion of sales last year is expected to rise from 25% to 33%
Hong Kong Stock Connect had a net outflow of HK$846mn on Monday, of which WuXi Biologics (2269) had the largest net inflow of HK$364mn. New Oriental Online (1797) ranked second. Meituan (3690) recorded the largest net outflow of HK$1.54bn; followed by HKEx (0388).
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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