As China’s economic momentum gathers, foreign capital starts to buy, buy and buy, and the stock markets in China and Hong Kong continue to rebound. On the last trading day of the Year of the Tiger, the Hang Seng Index stood above the 22,000 mark, and the Hang Seng Index closed up at a high level.
The Hang Seng Technology Index (HSTECH) adjusts its constituent stocks at the end of each month, and the latest update time is December 31, 2022. After adjustment, the three companies with the largest proportion since January 2023 are: Kuaishou, Tencent Holdings and Meituan. The stock prices of these three companies have the greatest impact on the trend of the Hang Seng Technology Index.
Hong Kong stocks continue to be affected by the trend of mainland China and the US stock market. At present, China has great potential for recovery. Driven by the Fed’s slowdown in raising interest rates and the weakening of the US dollar, foreign capital continues to flow in. The market sentiment before the Spring Festival is excellent.
Overseas, cooling U.S. inflation stimulated market bets that the Federal Reserve would slow down interest rate hike expectations, but U.S. economic data still sparked fears of a recession. At the same time, the market is in the US stock earnings season, and the performance of listed companies plays an important leading role in the market. In general, the impact of external markets on the Chinese and Hong Kong stock markets is getting smaller and smaller.
In mainland China, after the first wave of infection peaked in mainland China, economic momentum and consumption expectations gathered, and foreign capital continued to flow into the Chinese and Hong Kong stock markets, which greatly restored market sentiment. The stock markets in China and Hong Kong rarely maintained gains before the festival. It is expected that the market will still maintain its upward trend after the holiday.
Next, the stock markets of the two places will enter the Spring Festival holiday, and the Hong Kong stock market will open on January 26 (Thursday).
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HSTECH continued to rebound, and the support moved up from 4000 to 4400. As the Hang Seng Technology Index stabilized above 4400, it is expected to further look at the resistance of 4800-5000; if it falls below 4400 in the market outlook, it will return to the 4000-4400 range. weakened.
In the long run, the valuation of Hong Kong stocks is low, and the Hang Seng Technology Index has concentrated the best technology and Internet stocks in Hong Kong. However, new changes are taking place in the macro fundamentals, especially the weakening expectations of the Fed’s interest rate hike. After the relaxation of China’s epidemic prevention and control, the economic momentum has re-gathered. Foreign capital has refocused on the pricing of the Chinese and Hong Kong stock markets. Hang Seng Technology Index ETF is preferred. The previous regular investment has continued to make profits, and it is still at a relatively low point. It is advisable to consider holding it firmly and wait for the market to continue to rise.
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