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Evergrande managed to repay interest due and avoided default. Mainland developers rose.
The Hong Kong market opened higher on Friday. Hang Seng index opened up 97 points, H share index up 50 points and technology index up 37 points. Ping An rose 2.8% for 22-point gain...
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Evergrande managed to repay interest due and avoided default. Mainland developers rose.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened higher on Friday. Hang Seng index opened up 97 points, H share index up 50 points and technology index up 37 points. Ping An rose 2.8% for 22-point gain. Meituan rose 0.55% for 13-point gain. On the other hand, Alibaba lost 0.75% for 17-point loss. China Evergrande managed to repay the US dollar interest due, avoiding default. The news sparked a rally in Mainland developers. Longfor rose 7.9% to become the top gainer for 10-point gain. CG Service rose 2.6%. CR Land rose 2.15%. China Overseas rose 2%. China Evergrande rose 4.2%. Sunac rose 6%. A shares opened up less than 1 point. The market rose further after opening, as Mainland developers led the rally. The top four blue chips gainers were all Mainland developers. AAC acquired Toyo Precision Kunshan. Share price rose 6%. Hang Seng index reached a high of 26166, up 149 points. However, profit taking soon depressed the market, which turned from gain to loss. Alibaba lost 1.2% for 27-point loss. Meituan lost 0.8% for 22-point loss. AAC lost 0.95% for 14-point loss. Electric car concept stocks rose. BYD rose 5%. Geely rose 2.5%. Li Auto rose 4.4%. XPeng rose 2.2%. Wuling Motor rose 2.2%. Internet stocks rose. Kuaishou rose 5.1%. Bili Bili rose 2.7%. Newborn Town rose 3.9%. Yeahka rose 4%. A shares closed the morning up 3 points. Hang Seng index closed up 115 points, H share index up 98 points and technology index up 125 points. Turnover was $71.3 billion.

The market was little changed in early afternoon. Hang Seng index gained more than 100 points. Meituan rose 1.1% for 27-point gain. BYD rose 4.8% for 23-point gain. Tencent rose 1.2% for 21-point gain. Li-ning rose 4% for 16-point gain. On the contrary, AIA lost 1% for 17-point loss. HK Exchanges lost 0.96% for 17-point loss. The US Commerce Department approved the export licenses for goods ordered by Huawei and SMIC, to the amount of US$100 billion. Semiconductor shares rose. SMIC rose 5.6%. Huahong Semiconductor rose 2%. Huawei’s software partner Chinasoft rose 4.55%. Creditors of Evergrande held meeting and decided not to seek immediate repayment of outstanding debt. Evergrande list of companies rebounded. China Evergrande rose 3.1%. Evergrande Property rose 3.4%. Evergrande Vehicle rose 2.6%. The market’s gain narrowed in midafternoon. AIA lost 0.84% for 15-point loss. HK Exchanges lost 0.83% for 10-point loss. Oil stocks followed the price of crude oil lower. Petrochina lost 4.7%. Sinopec lost 2.3%. CNOOC lost 1.84%. Oil stocks were the top blue chips losers. A shares closed down 12 points. Hang Seng index closed up 109 points, H share index up 83 points and technology index up 118points. Turnover was $124.3 billion.

Over last Friday night, overseas markets were mixed. European markets rose. DAX rose 70 points. CAC rose 47 points and FTSE rose 14 points. US markets were mixed. Social media stocks fell sharply. Dow Jones rose 74 points. S & P lost 5 points and Nasdaq lost 125 points. ADR’s lost 1 6 points. Night future lost 102 points. We expect the market to fall today.  
 
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