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HSI Poised to Attempt 22,500 in Jun, Backed by National Policy Hopes
Hong Kong bourses fared quite well last week, rising 384 pts or 1.86%, said Stanley Chik, a research head at Bright Smart. This was mainly helped by a rebound of big tech names lik...
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HSI Poised to Attempt 22,500 in Jun, Backed by National Policy Hopes
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Hong Kong bourses fared quite well last week, rising 384 pts or 1.86%, said Stanley Chik, a research head at Bright Smart. This was mainly helped by a rebound of big tech names like MEITUAN-W (03690.HK)  -2.450 (-2.506%)    Short selling $1.00B; Ratio 24.359%   and TENCENT (00700.HK)  -0.600 (-0.197%)    Short selling $1.42B; Ratio 24.070%   , which advanced 10% and 5% last week. Chinese consumer names bounced back given Shanghai's lockdown removal and China's rollout of multiple economic stimulus. Multiple consumption-concept stocks rocketed, with LI NING (02331.HK)  -0.500 (-2.900%)    Short selling $82.84M; Ratio 20.255%   and HAIDILAO (06862.HK)  -0.700 (-4.202%)    Short selling $50.45M; Ratio 21.577%   surged nearly 14% and 10.8%.

Regarding Meituan's QoQ result, the company tracked an adjusted net loss of RMB3.586 billion as of 31 March 2022, with in-store, hotel and travel contributing the most. Operating profit thrived 26.4% YoY to RMB3.47 billion. Food delivery services OP jumped to RMB1.577 billion. He found it hard for new business initiatives, despite narrower loss of RMB9.024 billion QoQ, to turn around in a short period of time.

Related NewsNomura Expects TENCENT (00700.HK) 1Q24 Non-GAAP NP to Rise 33% YoY, Rev. to Grow 6%
Hong Kong shares would be in shape amid China's easing Covid pandemic and better supportive measure rollout despite jumbling external market conditions during the long holiday. Separately, a raft of Chinese economic data will be unveiled this week, including import and export data, CPI and PPI for May. However, the author continued to stay optimistic about Hong Kong stocks in June, expecting the index to hold steady at the 22,500 target.

(The author is the licensee of SFC)
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-04-19 16:25.)

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