Daily Investment Strategy
HSI fell 277 points on Friday
The Hang Seng Index opened 192 points lower and closed at 19,535 points. The decline extended to 374 points and closed at 19,451 points, down 277 points. The China Enterprises Index fell 122 points, or 1.8%, to 6,594 points; the Hang Seng Technology Index fell 95 points, or 2.4%, to 3,822 points. The market turnover was HK$ 95.2 bn. After Alibaba (9988) announced its quarterly results last night, its share price retreated 6% to HK$82.45. China Mobile (941) bucked the trend and rose 1.2% to HK$66.4.
Debt Ceiling issue remains
The U.S. Republican negotiators temporarily withdrew from Friday's debt ceiling negotiations, and the market was skeptical about the earlier rumors that an agreement would be reached. U.S. stocks closed down on Friday. The Dow Jones Industrial Average fell 109 points, or 0.3%, to 33,427; the Nasdaq fell 31 points, or 0.2%, to 12,658; the S&P 500 fell 6 points, or 0.1%, to 4,192.
In addition to the debt issue, the market continues to focus on the outlook for the Federal Reserve's monetary policy. Powell again proposed that inflation is much higher than the 2% target. In view of credit pressure, there may be no need to continue to raise interest rates, but he pointed out that if the fight against inflation fails, it will cause long-term pain. In addition, it also pointed out that the current policy tightening has made great progress, and the policy stance is restrictive, and there is uncertainty about the lagging effect of tightening and the degree of credit tightening caused by the pressure on the banking system.
Chinese express companies continue to focus on growing market share
At present, Chinese express companies are gradually widening the gap. As of May 18, SF Express, ZTO, YTO, STO, and Yunda, the five companies had revenues of RMB 102.1 billion and net profits of RMB 4.79 billion. Leading express delivery companies continue to focus on growing market share as their primary goal. ZTO Express (2057) share in the first quarter increased by 1.8 percentage points to 23.4%. At the same time, it also raised the annual business volume of this year to 20-24%, an increase of 2 percentage points compared with last year's annual results announcement. Investor could closely following the develop of the leading company of the industry
Hong Kong Stock Connect had a net inflow of HK$778 mn on Friday, among which China Mobile (941) had the largest net inflow of HK$320 mn; followed by China Shenhua (1088). Tracker Fund (2800) recorded the largest net outflow of HK$1.68 bn; followed by Tencent (700).
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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