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Hong Kong market fell on the weakness of technology stocks.
The market opened higher on Friday. Hang Seng index opened up 86 points, H share index up 30 point and technology index up 15 points. Meituan rose 2% for 21-point gain. Alibaba ros...
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Hong Kong market fell on the weakness of technology stocks.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened higher on Friday. Hang Seng index opened up 86 points, H share index up 30 point and technology index up 15 points. Meituan rose 2% for 21-point gain. Alibaba rose 1.3% for 18-point gain. HSBC rose 0.73% for 13-point gain. Oil stocks rose. CNOOC rose 1.4% for 8-point gain. Petrochina rose 2% for 5-point gain. Zijin rose 2.5% to lead the blue chips. Lenovo lost 2.3% to lead the losers. Shanghai composite index opened up 5 points. Zijin rose 2.5% to lead the gainers. Lenovo lost 2.3% to lead the losers. The market was little changed after opening. Hang Seng index rose about 50 points. Alibaba, HSBC and CCB led the rally. Mainland banks and insurers rose. CCB rose 1%. ICBC rose 1.1% and Ping An rose 1%. Mainland developers rose. China Overseas Land rose 3.2% to lead the gainers. CR Mix rose 2.7%. Longfor rose 1.8%. CR Land rose 1.2%. Sunac rose 3%. Shimao rose 6.7%. The market then turned from gain to loss. Tencent lost 1.4% f or 25-point loss. AIA lost 0.85% for 9-point loss. Meituan lost 0.9% for 10-point loss. Techtronic lost 2.8% for 7-point loss. Lenovo lost 4.2% for 6-point loss. Li Auto lost 3% bfor 5-point loss. Nio fell 6.67% on weak quarterly results. XPeng lost 1.7% and Geely lost 1%. Shanghai composite index closed the morning down 7 points. Hang Seng index closed the morning down 77 points, H share index down 35 points and technology index down 54 points. Turnover was $56.9 billion.

The market fell further in the afternoon, as Hang Seng index lost more than 100 points. Hang Seng index lost as much as 175 points. China’s May exports grew more than expected. However, it had no bearing on the stock market. Financial stocks rose. CCB rose 1.4% for 14-point gain. HSBC rose 0.6% for 10-point gain. ICBC rose 1.2% for 7-point gain. Technology stocks led the fall. Tencent lost 2% for 35-point loss. Meituan reported strong results but was considering issuing convertible bond. Share price fell 1.5% for 15-point loss. AIA lost 1.2% for 12-point loss. Lenovo lost 6% to become the top loser. Handset suppliers fell. Sunny Optical lost 2.8%. Cowell lost 8%. Hongten lost 8.5%. Foxconn lost 2.4%. However, power generators rose. CR Power rose 3.2%. Huaneng International rose 3.2%. Datang Power rose 4.8%. Huadian International rose 4.25%. Solar power shares fell. Xinyi Solar lost 5.3%. Xinyi Glass lost 4.5%. GCL lost 2.8%. Shanghai composite index closed up 3 points. Hang Seng index closed down 110 points, H share index down 44 points and technology index down 68 points. Turnover was $133.1 billion.

Last Friday night, overseas were mixed ahead of the Federal Reserve meeting on interest rate. US’s May non-farm payroll increased by 273000, much higher than the expected 190000 job. Unemployment rate rose to 4%. US interest rates rose and stock market fell. Dow Jones lost 87 points. S & P lost 6 points and Nasdaq lost 40 points. Monday night, Dow Jones rose 69 points. S & P rose 14 points and Nasdaq rose 49 points. ADR’s lost 59 points. Night future lost 177 points. We expect the market to fall.  
 
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