KGI Asia Commentary
Hang Seng Index rose 4 points on Friday
The Hang Seng Index opened 23 points higher, at 17,066 points, and edged up 4 points in last Friday, at 17,047 points; the HSCEI rose 4 points, or 0.1%, to 5,768 points; the HSTECH was flat at 3,764 points. The market's total daily turnover was HK$75.1 billion. Xiaomi (1810) hinted at a press conference yesterday that the equivalent car of the SU7 would be priced at over 400,000, and the market expected the price to be as high as 500,000. Xiaomi's share price fell 4.2% today to HK$15.6.
The HSI mostly rose in the first trading week of each year
Today is the first trading day of New Year's Day. Since 2013, the HSI has recorded gains in the first trading week every year. Excluding the extremely high investment sentiment in early 2023 due to the market's expectation that the mainland would abandon the "zero case policy", the average increase was 1.1% per week. Seven of the nine years have seen weekly increases, and the worst performance was the decline in 2014, 426 points or -1.8%; the best performance in 2018 was an increase of 895 points or +3.0%.
U.S. stocks were closed for the New Year's Day holiday.
China’s New Year’s Day tourism numbers and revenue both exceed those before the epidemic
The domestic tourism boom in China continued to pick up on New Year's Day, with 135mn domestic tourist trips, an increase of 9.4% compared with 2019; while tourism revenue was RMb79.73bn, an increase of 5.6% compared with the same period in 2019. Meanwhile, it can be observed that on New Year's Day The revenue generated per person during the holidays is expected to fall, from RMb612 in 2019 to RMb591 in 2024, a decrease of ~4%. This may reflect the downgrading of residents' consumption was reflected in the quality of tourism.
Hong Kong Stock Connect recorded a net inflow of HK$1.88bn on Friday, of which China Mobile (0941) had the largest inflow, reaching HK$640mn; followed by CNOOC (0883). Xiaomi Group (1810) recorded the largest net outflow of HK$240mn, followed by Meituan (3690).
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