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Tencent rebounded to lead the market.
The Hong Kong market opened slightly higher on Friday. Hang Seng index opened up 58 points, H share index up 9 points and technology index up 40 points. Meituan rose 4.35% to lead ...
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Tencent rebounded to lead the market.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened slightly higher on Friday. Hang Seng index opened up 58 points, H share index up 9 points and technology index up 40 points. Meituan rose 4.35% to lead the blue chips for 72-point gain. Tencent rose 1.32% for 22-point gain. BYD rose 4.3% for 21-point gain. On the contrary, Dairy and milk share fell. Mengniu lost 4% to lead the losers. State media criticized baby formula manufacturers for misleading advertisement. Feihe lost 9.1%. Ashely lost 6.5%. A shares opened down 0.4 point. BYD reported strong interim earnings. Share price soared 8.3% for 42-point gain. Geely rose 1%. Great Wall rose 2%. Semiconductor shares also rose on strong earnings. SMIC rose 6.9%. Huahong rose 6.5%. The market turned from gain to loss after opening. Meituan turned from gain to loss 1.8% for 28-point loss. Alibaba lost 0.78% for 15-point loss. Sunny Optical lost 4.6% to top the losers for 19-point loss. Wuxi Biologics lost 2.23% for 22-point loss. AIA lost 1% for 17-point loss. Hang Seng index fell to a low of 26002, down 203 points. Kuaishou lost 10% as a major shareholder sold out. Bili Bili lost 2.3%. Mainland developers fell. CG Service lost 4%. Longfor lost 3.64%. CR Land lost 3.58%. Country Garden lost 2.3%. China Overseas Land lost 1.8%. Shanghai composite index closed the morning down 17 points. The market turned from loss to gain on the strength of Tencent. Tencent rose 3.6% for 65-point gain to lead the rebound. Hang Seng index closed the morning up 2 points. H share index closed down 13 points but technology index closed up 3 points. Turnover was $84.4 billion.

The market was little changed in early afternoon. Hang Seng index rose about 30 points. Tencent rose 4.3% to lead the blue chips for 70-point gain on broker upgrade. HK Exchanges rose 1.15% for 16-point gain. Tencent led the markets’ rally. However, Wuxi Biologics lost 3.93% to become the top loser for 38-point loss. Anta Sports lost 2.73% for 10-point loss. Sunny Optical lost 2.65% for 10-point loss. Pharmaceutical shares fell sharply. Fosun Pharm A share lost the board limit. H share lost 7%. Cansino lost 3.5%. Kintor Pharmaceutical lost 8.2%. Wuxi Apptec lost 6.3%. Venus Medtech lost 7%. Tencent’s gain did not translate into support for other technology stocks. On the contrary, most fell. Kuaishou’s blackout period ended and share price fell 4.9%. Vobile lost 7.9%. China Youzan lost 4.2%. Bili Billi lost 2%. Newborn Town lost 2.9%. Crude oil rose. CNOOC rose 4.6%. Petrochina rose 0.6%. China-US freight charges set record high. Shipping stocks rose. Cosco Holding rose 3.3%. Cosco Development rose 1.4%. OOIL rose 2.4%. Pacific Basin rose 2.5%. A shares closed down 0.3%. Shanghai composite index closed down 11 points. Hang Seng index closed down 25 points. But H share index closed down 23 points and technology index down 18 points. Turnover was $148 billion.

Over last Friday night, overseas markets mostly rose. European markets edged higher. DAX rose 16 points; CAC rose 36 points and FTSE rose 2 points. US markets set record highs again. Dow Jones rose 144 points. S & P rose 7 points, but Nasdaq lost 59 points. Hong Kong ADR’s lost 39 points. Night future lost 87 points. We expect the market to fall today.  
 
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