Recently, Fed officials have frequently expressed support for raising interest rates, while European inflation and economic prospects have raised concerns, the dollar has strengthened again, and European and American stock markets have come under pressure. The mainland epidemic continued to impact consumer stocks, and fluctuations in major constituent stocks also affected the Hang Seng Technology Index.
The constituent stocks of the Hang Seng Technology Index (HSTECH), the data is from the official website of the Hang Seng Index, and the update time is July 29, 2022. After adjustment, the three companies with the largest proportion this month are: Xiaomi Group, JD.com Group and Alibaba.
The performance of Hong Kong stocks continues to be affected by both mainland and overseas factors. Currently, both internal and external factors are more cautious.
Overseas, the fall in U.S. inflation data once made investors relieved, and the stock market continued to rebound. However, Fed officials kept jumping out to support interest rate hikes, and further tightening expectations. At the same time, weak European economic data and soaring European energy prices triggered market worries about economic recession. Risk aversion began to prevail, and European and American stock markets turned around and fell. Driven the Hang Seng Technology Index weakened.
On the mainland, the epidemic situation in many places in China is still in the developing stage, which continues to suppress consumer sentiment. The weak performance of related sectors and individual stocks has driven the stock market sentiment to be cautious. Recently, it has also been reported that Tencent plans to reduce its holdings of Meituan, superimposed that the performance of Xiaomi, Tencent and other constituent stocks is lower than expected, and the fluctuation of individual stocks affects the performance of the index.
In general, the HSTECH index was attacked by internal and external attacks, and cautious sentiment dominated market volatility.
HSTECH continues to oscillate at 4800-3800, and continues to focus on 4150-4130 support in the short term. At present, it has stopped falling here three times. If it rebounds and rises back above 4500, it will help the bulls to return; if it falls below 4100, it will continue to test the 4000-3800 area. The final break below 3800 will test the previous low of 3500.
In terms of strategy, in the long run, the valuation of Hong Kong stocks is relatively low. The Hang Seng Technology Index has concentrated on the best technology stocks in Hong Kong. It is still the best choice to buy the Hang Seng Technology Index. Opportunities for chips, maintain the idea of wet storage and fixed investment unchanged.
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