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US President Biden planned to issue executive order limiting US funds’ investment in Chinese stocks.
The Hong Kong market opened slightly higher on Tuesday and mixed. Hang Seng index opened up 3 points but H share index down 4 points and technology index down 2 points. Meituan los...
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US President Biden planned to issue executive order limiting US funds’ investment in Chinese stocks.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened slightly higher on Tuesday and mixed. Hang Seng index opened up 3 points but H share index down 4 points and technology index down 2 points. Meituan lost 1 .2% for 13-point loss. China Mobile lost 1.1% for 7-point loss. On the other hand, Alibaba rose 2% to lead the blue chips for 31-point gain. Shanghai composite index opened down 2 points. Mainland developers fell. Longfor lost 3%. CG Services lost 1.8%. Country Garden lost 1.6%. China Overseas Land lost 1.45%. CEO for China business resigned. Chow Tai Fook lost 9% to lead the losers. CEO for China business resigned. Budweiser lost 1.45%. The market remained range bound and fluctuated between gain and loss after opening. However, the market suddenly soared in midmorning. Hang Seng index gained as much as 402 points at the peak. Alibaba rose 4.2% for 74-point gain. AIA rose 1.6% for 24-point gain. Oils rose. CNOOC rose 5.6% for 20-point gain. Sinopec rose 4.2%. Petrochina rose 4.4%. CCB rose 2.9% for 30-point gain. HK Exchanges rose 1.6% for 10-point gain despite being sued by 80 million pounds. HSBC rose 1.3% for 24-point gain. Hang Seng index closed the morning up 246 points, H share index up 89 points and technology index up 16 points. Turnover was $70 billion.

The market’s gain narrowed in the afternoon. Hang Seng index fell sharply and gained under 100 points in early trading. Alibaba rose only 2.52% for 45-point gain. CCB rose 2% for 20-point gain. AIA rose 1.1% for 19-point gain. CNOOC rose 4% for 16-point gain. HSBC rose 0.7% for 16-point gain. The market suddenly turned from gain to loss and heavyweights suddenly crashed. Rumor circulated that US President Biden planned to issue executive order to limit US private equity funds’ investment in Chinese stocks. Hang Seng index fell to a low of 20359, down 244 points. Tencent lost 1.82% for 35-point loss. Meituan lost 4.2% for 44-point loss. China Mobile lost 2.7% for 20-point loss. Wuxi Biologics lost 3.8% for 15-point loss. Telecoms fell. China Unicom lost 3.76%. China Telecom lost 3.3%. ZTE lost 4.4%. Comba lost 3.7%. A shares closed down 37 points. The market recovered from the Biden shock and rose strongly near the close. Hang Seng index closed down 68 points, H share index down 25 points and technology index down 54 points. Turnover was $127.7 billion.

Overnight, overseas markets fell sharply. DAX lost 94 points. CAC lost 34 points and FTSE lost 10 points. US Federal Reserve Chairman Powell announced that he must increase the measures to tame inflation. US markets fell sharply. Dow Jones lost 575 points. S & P lost 62 points and Nasdaq lost 145 points. Hong Kong ADR’s lost 230 points. Night future lost 270 points. We expect the market to fall today.
 
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