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SEC placed Alibaba on the Delisting list. Hong Kong market to fall sharply.
The market opened slightly higher on Friday. Hang Seng index opened up 25 points, H share index up 13 points and technology index up 9 points. Blue chips were range bound at openin...
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SEC placed Alibaba on the Delisting list. Hong Kong market to fall sharply.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened slightly higher on Friday. Hang Seng index opened up 25 points, H share index up 13 points and technology index up 9 points. Blue chips were range bound at opening. AIA rose 0.44% for 7-point gain. Meituan rose 0.48% for 6-point gain. However Alibaba lost 0.45% for 6-point loss. HSBC lost 0.3% for 5-point loss. Budweiser lost 2.74% to lead the losers. Koolearn rose 11%. Pacific Basin rose 6.1%. The market turned from gain to loss after opening. Hang Seng index lost only about 100 points in early session. However, the market fell further with Alibaba leading the fall. Ma Yun was reported to contemplate giving up control of the Ant Group. Alibaba lost 6% for 86-point loss. Ali Health lost 7.37% to lead the losers. Meituan lost 5.4% for 68-point loss. Tencent lost 3.4% for 27-point loss. Wuxi Biologics lost 4% for 22-point loss. HK Exchanges lost 2.2% for 18-point loss. Mainland developers fell again. CG Services lost 6.7%. Longfor lost 4.5%. Jiayuan International lost 6.78%. Country Garden lost 3.5%. Some stocks rose against the market. Xinyi Solar rose 4.7% to lead the gainers. OOIL rose 4.56%. Geely rose 2.5%. Link rose 1.5%. However, consumption stocks fell. Budweiser lost 5.5%. Lining lost 4.44%. Anta Sports lost 2.7%. Haidilao lost 2.2%. A shares closed the morning down 24 points. Hang Seng index reached a low of 20126 points, down 496 points and closed the morning down 474 points. H share index closed down 200 points and technology index down 193 points. Turnover was $63.3billion.

The market fell further in the afternoon. Hang Seng index lost more than 500 points. Technology stocks led the fall. Alibaba lost 7.1% for 101-point loss. Meituan lost 6.7% for 83-point loss. Tencent lost 4.3% for 34-point loss. Wuxi Biologics lost 4.8% for 26-point loss. HK Exchanges lost 2.5% for 21-point loss. AIA lost 1.2% for 20-point loss. Ping An lost 2.82% for 16-point loss. Lining lost 5.5% for 16-point loss. Xiaomi lost 4.6% for 16-oint loss. HSBC lost 0.9% for 15-point loss. Budweiser lost 9.3% to lead the losers. CR Beer lost 3.8%. Technology stocks fell sharply. JD Health lost 9.56%. Bili Bili lost 7%. Kuaishou lost 7%. Chinese Literature lost 6%. Pharmaceutical stocks fell. CSPC lost 2%. Sino Biopharm lost 2.56%. Zai Lab lost 6.2%. Innovent lost 4%. Akeso lost 4.2%. However, shipping stocks rose against the market. Pacific Basin announced special dividend. Share price rose 6.2%. OOIL rose 3.3%. A shares closed down 29 points. Hang Seng index closed down 466 points, H share index down 197 points and technology index down 221 points. Turnover was $129.6 billion. Hang Seng index lost a whopping 1740 points in July. H share index lost 782 points and technology index lost 539 points.

Last Friday night, overseas markets rose. DAX rose 202 points. CAC rose 109 points and FTSE rose 78 points. Dow Jones rose 202 points. S & P rose 58 points and Nasdaq rose 228 points. Hong Kong ADR’s lost 64 points. Night future lost 63 points. The SEC placed Alibaba on the delist list in view of its application to Hong Kong Exchange to become the primary place of listing. In addition, China’s July PMI fell to 49, into contraction. We expect the market to fall today.  
 
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