Market Insight

Market Roundup

Hong Kong stock market have been fluctuated sharply today. The HSI opened 22 points lower and then extended its decline. It fell 110 points or 0.6% in mid-day. After RMB (CNY USD) weakened toward key level of 7 per USD, the decline in the HSI significantly expanded afternoon. The HSI closed at 19,560, down 417 points or 2.1%. The HSTECH closed at 3,870, down 88 points or 2.2%. The HSCEI fell 152 points, or 2.3%, to 6,636. Market turnover was HK$101.6bn. Further cloud computing company announced a big product price cut. The market worried that the price cut war will greatly damage the gross profit margin. Cloud service stocks faced under heavy selling pressure. Kingsoft Cloud (3896) and China Telecom (0728) fell 7.0% and 3.6% respectively. Sun Art Retail (6808), which announced its annual results yesterday, recorded a net profit of RMB 110min, compared with a loss of RMB740mn in 22FY. But its share price fell 22.7% to HK$2.53 today.

Source: KGI Asia Investment Strategy

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