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Stanley Chik: H-, A-Shrs Jumble; HSI May Challenge Jun's Peak
Stanley Chik, a research head at Bright Smart, said U.S. bourse closed for the Juneteenth holiday, and as for the Hong Kong and Mainland China bourses, the trends were mixed. Hong ...
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Stanley Chik: H-, A-Shrs Jumble; HSI May Challenge Jun's Peak
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Stanley Chik, a research head at Bright Smart, said U.S. bourse closed for the Juneteenth holiday, and as for the Hong Kong and Mainland China bourses, the trends were mixed. Hong Kong stocks leapfrogged by more than 514 pts, regaining the level of 18,400, while the Shanghai and Shenzhen markets executed worse. Hong Kong stocks were mainly favored by the stellar performance of shares with "Valuation System with Chinese Characteristics (VSCC)", compounded with the strength of technology stocks. The HSI hiked to 18,448 at one point, and finally rested at 18,430, surging 514 pts or 2.87%. The HSTECH also mounted by more than 3.7%, and the turnover of the market amplified to $112.76 billion. LENOVO GROUP (00992.HK)  -0.130 (-1.413%)    Short selling $101.89M; Ratio 17.090%   shot up 9%, being the best performing constituent. Yet, the contributors to the index were definitely the VSCC stocks, with a number of them gaining more than 4%, among which CNOOC (00883.HK)  -0.100 (-0.583%)    Short selling $230.34M; Ratio 13.262%   rallied 5.8%, hitting a new high, while PETROCHINA (00857.HK)  -0.060 (-1.070%)    Short selling $155.27M; Ratio 30.891%   also jumped up 4.5%.

As for the reason for the surge in Hong Kong stocks, it is primarily tied to the announcement on the official website of the State-owned Assets Supervision and Administration Commission (SASAC)'s China Reform Holdings, which stated that its subsidiary Guoxin Investment subscribed to the first batch of CSI Guoxin Hong Kong Southbound SOE Dividend ETFs issued by fund companies such as GF, Southern Assset and Invesco Great Wall. This is the second time that Guoxin Investment made a move to buy a series of SOE ETFs after it increased its stake in the CSI Guoxin Hong Kong Southbound SOE Dividend ETFs in December 2023. The news may bode well to Hong Kong stocks in the short term, but in the medium to long term, the performance will depend on whether there will be more policy stimulus. It is expected that the lower support for HSI will remain around the 250MA, i.e. 17,600, while the upper resistance will be around 18,700, i.e. this month's peak of 18,724.

Related NewsUBS Cuts LENOVO GROUP (00992.HK) TP to $10; Geopolitical Uncertainty May Pose Risk
(The author is a licensee of SFC, holding shares of CNOOC)
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-11-22 16:25.)

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