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Inflation in the US moderated in July, US markets soared and Hong Kong to follow.
The market opened slightly lower on Wednesday. Hang Seng index opened down 47 points, H share index down 17 points and technology index down 13 points. Meituan lost 0.74% for 10-po...
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Inflation in the US moderated in July, US markets soared and Hong Kong to follow.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened slightly lower on Wednesday. Hang Seng index opened down 47 points, H share index down 17 points and technology index down 13 points. Meituan lost 0.74% for 10-point loss. Wuxi Biologics lost 2.2% to lead the losers for 10-point loss. AIA lost 0.65% for 10-point loss. JD lost 2% for 11-point loss. On the other hand, Tencent rose 0.54% for 7-point gain. OOIL rose 1.53% to lead the gainers. A shares opened down 5 points. The market fell further after opening, as Hang Seng index lost more than 100 points. Wuxi Biologics lost 5.6% for 28-point loss. AIA lost 1.4% for 22-point loss. Meituan lost 0.9% for 13-point loss. Auto stocks fell. Geely lost 1.95%. BYD lost 2.3%. Nio lost 5.9%. XPeng lost 4.4%. Li Auto lost 5%. Consumption stocks fell. Anta Sports lost 5.8%. Lining lost 5%. Nongfu Spring lost 2.8%. CR Beer lost 4.1%. The market fell sharply in midmorning as Hang Seng index lost more than 400 points. Meituan lost 4.3% for 61-point loss. Alibaba lost 2.7% for 36-point loss. Wuxi Biologics lost 9.6% for 50-point loss. AIA lost 2% for 32-point loss. JD lost 3.6% for 21-point loss. Tencent lost 1.4% for 20-point loss. A shares closed the morning down 12 points. Hang Seng index fell to a low of 19565, down 438 points. At morning’s close, Hang Seng index closed down 414 points, H share index down 160 points and technology index down 133 points. Turnover was $47.8 billion.

The market fell further in the afternoon. Hang Seng index lost more than 500 points. Technology stocks led the fall. Meituan 4.8% for 68-point loss. Wuxi Biologics lost 9.3% for 47-point loss. Alibaba lost 2.7% for 35-oint loss. AIA lost 1.75% for 28-point loss. JD lost 4.8% for 27-point loss. Tencent lost 1.5% for 21-point loss. BYD lost 4.7% for 20-point loss. Handset suppliers fell sharply. Sunny Optical lost 5%. Hengten lost 15% despite earning 8 times more in interim profit. AAC lost 3.85%. Q-Tech lost 3%. Electric car shares fell. BYD lost 4.7%. Li Auto lost 5.8%. Nio lost 7%. XPeng lost 6.5%. Technology stocks fell sharply. Bili Bili lost 5%. Kuaishou lost 5.2%. JD Health lost 4.8%. Ali Health lost 4.7%. Baidu lost 4%. Mainland developers fell sharply. Longfor crashed 18.8% it was rumoured that Longfor failed to repay its commercial paper. Country Garden lost 8%. China Overseas Land lost 3.6%. Pharmaceutical shares followed Wuxi lower. Junshi Bio lost 7.9%. Zai Lab lost 6.9%. BRII lost 6.3%. Beigene lost 5.9%. A shares closed down 17 points. Hang Seng index fell to a low of 19469, down 534 points, and closed down 392 points. H share index closed down 150 points and technology index down 121 points. Turnover was $89.3 billion.

Overnight, overseas markets rose sharply. July CPI in the US came in at 8.5%, lower than expected. The news sparked rally in stock markets. DAX rose 166 points. CAC rose 33 points and FTSE rose 19 points. US markets soared about 2% on the news. Dow Jones rose 535 points. S & P rose 88 points and Nasdaq rose 361 points. Hong Kong ADR’s rose 62 points. Night future rose 214 points. We expect the market to rebound today. 
 
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