Market Insight

Market Roundup

The RMB exchange rate continued to weaken today, with USD/RMB regaining the level of 7.2, and Hong Kong stocks weakened in the morning market. The Hang Seng Index opened 229 points lower, and fell 426 points in the early stage, and once fell as low as 19,112 points. The Hang Seng Index closed fell 354 points, or 1.8%, to 19,184 points; the China Enterprises Index fell 146 points, or 2.2%, to 6,588 points; the Hang Seng Technology Index fell 125 points, or 2.8%, to 4,374 points. The market's full-day turnover was HK$ 104.6 bn. Part of the mainland developers announced their July contracted sales, which generally recorded double-digit declines. Mainland property stocks fell across the board today. Among them, Country Garden (2007) failed to pay the coupons on US dollar bonds as scheduled, and its stock price fell 14%. Xiabuxiabu (0520) announced that it turned from loss to profit in the first half of the year, with a profit of at least RMB 2 million in half a year. The stock price fell 3% to RMB 4.43.

Source: KGI Asia Investment Strategy

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