KGI Asia Commentary
HSI fell 105 points on Monday
The Hang Seng Index fell 105 points or 0.6% to 18,096 on Monday. HSTECH fell 8 points or 0.2% to 4,083 and HSCEI fell 15 points or 0.3% to 6,298. Daily market turnover was HK$124.4bn.
Tech stocks rebound, Nasdaq gains 1%
U.S. stocks rose on Monday as investors took advantage of the dip in technology stocks. The Nasdaq Composite Index rose 1.14% to 13917.89 points. The S&P 500 rose 0.67% to 4,487.46. The Dow Jones Industrial Average rose 87.13 points, or 0.25%, to 34,663.72 points. Morgan Stanley upgraded Tesla stock due to breakthroughs in Tesla's self-driving software. TSLA shares rose 10%. Qualcomm shares rose nearly 4% after the semiconductor company said on Monday it would supply Apple with 5G modems for smartphones by 2026. In addition, Disney shares rose about 1.2% after CNBC's David Faber reported on Monday that the media group and Charter Communications had reached an agreement to end the dispute.
Signal to maintain the stability of the RMB exchange rate
The financial management department held a special meeting for the comment of foreign exchange development yesterday (11th) to send a signal to the market to maintain the basic stability of the RMB exchange rate. It was pointed out at the meeting that recently released data, such as CPI turned positive, import and export data better than expected, real estate policy gradually taking effect and consumption picking up, will help the RMB exchange rate remain stable at a reasonable and balanced level. However, in addition to domestic economic factors, the RMB exchange rate depends on the trend of the US dollar. The strength of RMB required the support from the China's overall economy truly regains growth momentum.
Hong Kong Stock Connect saw a net outflow of HK$10.25 bn on Monday. Oriental Selection (1797) had the largest inflow, reaching HK$240 mn, followed by Meituan (3690). Tracker Fund (2800) recorded the largest net outflow of HK$8.9 bn, followed by Southern Hang Seng Technology (3033).
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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