KGI Asia Commentary
Hang Seng Index rose 390 points on Friday
The Hang Seng Index rose 390 points, or 2.4%, to 16,792 points last Friday; the H-Share Index rose 127 points, or 2.3%, to 5,700 points. The Hang Seng Technology Index rose 82 points, or 2.2%, to 3,780 points. The total market turnover was HK$136.2 bn. Beijing and Shanghai adjusted the minimum down payment ratio, and mainland property stocks generally rose. The share prices of Sunac China (1918) and Longfor (0960) rose by 16% and 6.3% respectively. In terms of technology stocks, JD.com (9618) performed best, with its share price rising 7%.
Officials say there is no formal discussion of rate cut yet
U.S. stocks closed mixed on Friday. The Dow Jones index rose 57 points, or 0.15%, to 37,305 points; the Nasdaq index rose 52 points, or 0.35%, to 14,814 points; the S&P 500 index fell 0.36 points. It fell 0.01% to 4,719 points. The three major U.S. stock indexes performed well last week, all recording their seventh consecutive week of gains. The Dow Jones Industrial Average rose 2.93% for the week. The S&P 500 rose 2.49% and the Nasdaq rose 2.85%.
Last week, the market focused on the direction of the Federal Reserve's interest rates in 2024. The dot plot after the earlier interest rate meeting indicated that interest rates will be cut three times next year, boosting investors' expectations for a shift in policy stance and driving the stock market last week performance. However, an official said on Friday that there was still no official discussion on cutting interest rates at the meeting and stated that the key issue is whether interest rates are sufficiently suppressing economic activities or not.
Industrial added value exceeded market expectations
Mainland China announced on Friday the figures for industrial added value, fixed asset investment and retail sales in November. Among all, the national industrial added value in November increased by 6.6% year-on-year, which was significantly higher than the previous month's figures and market expectations, and the MoM growth rate accelerated to 0.9%. In the first eleven months, fixed asset investment excluding rural households increased by 2.9% year-on-year, which was flat month-on-month, ending the downward trend for eight consecutive months; total retail sales of consumer goods increased by 10.1% year-on-year, hitting a new high since May this year, compared with Last month's 7.6% increase accelerated, the performance of fixed asset investment and retail sales were both lower than market expectations.
The net outflow of Hong Kong Stock Connect on Friday was HK$ 3.96 bn. CNOOC (883) had the largest inflow, reaching HK$227 mn; followed by Meituan (3690). Tencent (700) recorded the largest net outflow of HK$1.84 bn; followed by Xiaomi (1810).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.