Hong Kong stock actually soared by nearly 6%, which is shocking! Originally expected to rise by only 3%, I still underestimated the rebound strength of the "worst market in the world"!
But thinking that Hong Kong stocks have missed the market due to the suspension of US stocks rose sharply in two days, Dow Jones Index on Monday's increase was 2.66%, and on Tuesday's 2.80%. It is logical that the two are simply added together, and it is more than 5.5% to follow the trend.
What's more, there is also an assist with "sharp appreciation of the RMB". offshore RMB exchange rate, from its pre-holiday high of 7.26 to breaking through 7.02 today, it has appreciated by 3% in just over ten days. As a gathering place for RMB assets, Hong Kong stocks should be favored by funds.
In addition, there is another message, Hong Kong government html said on October 3 that it will support the addition of RMB stock trading counters. This is a major event in the capital market field. This means that RMB funds can be legitimately bought stocks in Hong Kong in the future, which will enhance the liquidity of the Hong Kong stock market. is a " rescue " action by the central government in Hong Kong!
Why should Hong Kong stocks be saved? has fallen too tragically in recent years and has almost never risen since 2018, but the decline has never been absent. This Monday fell below the low of 17,000 since 2009, and the "world's worst" is worthy of its reputation.
Currently, Hong Kong stock Hang Seng Index Price-to-earnings ratio is 0.86 times, and the price-to-earnings ratio is 8.66 times! This means that the market is now trading Hong Kong stocks in bankruptcy, and you can buy something worth HK$1 at HK$0.86!
This year marks the fifth year of the decline in the Hang Seng Index. Judging from the decline and time, the lethality of this decline is higher than the 2008 financial crisis and the 1997 Asian financial crisis! Such a serious decline in means that the war to defend Hong Kong must be launched. If we don’t help each other, the global asset pricing power of the Hong Kong stock market may be completely lost.
In fact, Hong Kong's status as an Asian financial center has been forced to hand over to Singapore this year. The latest " Global Financial Center Index " shows that Singapore surpassed Hong Kong and advanced to third place, New York and London still ranked first and second in this ranking, while Hong Kong ranked fourth.
Why has Hong Kong stocks become the "worst world" market? has many reasons. I thought about it carefully and listed it briefly as follows:
1. Houses are for living, not for speculation. After the "three red lines" of real estate, real estate stocks represented by Evergrande fell from the altar. Radical developers such as Evergrande, Sunac , Country Garden are basically listed in Hong Kong. Moreover, it has a high weight in Hong Kong stocks. The market value of domestic real estate stocks often evaporates more than 90%, seriously dragging down the Hong Kong stock index.
2. Internet antitrust. Tencent Alibaba Meituan and others are the leaders of Hong Kong technology stock . These Internet giants with a trillion-dollar market value are beginning to decline, which will inevitably lead to the decline of Hong Kong stocks. The most typical one is Tencent Holdings. As soon as the major shareholder of South Africa reduces its holdings, it will be a scale of 100 billion yuan. If it spends 300 million yuan a day, who can take over it?
3, Feder rate hike . US dollars continues to flow back to the United States, and the pressure on RMB depreciation is increasing. Foreign capital recovered the US dollar and sold RMB assets, and the first thing it was to bear was the selling of Hong Kong stocks. Buffett reduces stake in BYD , which is operated in Hong Kong stocks. A shares Although the scale of foreign investment is also huge, it cannot be compared with Hong Kong stocks where "funds are completely free to enter and exit".
4, and was dragged down by US stocks and A-shares at the same time. Hong Kong dollar and US dollar are connected to the exchange rate mechanism. When US stocks fall, Hong Kong stocks will inevitably follow; while Hong Kong stocks gather too many Chinese companies, and they are closely linked to A-shares through Hong Kong Stock Connect Mainland Stock Connect channel. When A-shares sells down , Hong Kong stocks will also fall.
5, a series of major events such as the Sino-US trade war, the decoupling of Sino-US economy, the Russian-Ukrainian war, and the visit to Taiwan, all of which have hurt Hong Kong stocks. There was a little turbulence in Sino-US relations, and sensitive foreign capital sold Hong Kong stocks crazily. It can be said that Hong Kong stocks are the frontier battlefield of the Sino-US financial war. If Sino-US relations cannot improve, Hong Kong stocks will continue to be bleak.
6, Chinese stocks listed in the United States have been at risk of delisting over the years. people have backed up the listing in Hong Kong, such as Alibaba, , JD.com , NetEase, , Pinduoduo and other giants. Blood draw and diversion funds are relatively serious, which makes the already weak market even weaker. It can be said that the liquidity of Hong Kong stocks cannot afford the full return of Chinese stocks listed in the United States.
7, stamp duty. The Hong Kong Stock Exchange is committed to death. In order to attract investors, countries are reducing the transaction costs of , but Hong Kong stocks have done the opposite and significantly increased stamp duty last year. This is undoubtedly a suicide act.
8. Some other reasons why it cannot be expanded. includes the control of masks, etc., making Hong Kong's international free port position less prominent than before. Singapore "takes the risk of others" and robs some resources and funds (many bigwigs are immigrating to Singapore), indirectly diverting the global attraction of Hong Kong stocks.
is the reason above for many reasons that Hong Kong stocks have fallen endlessly. From a valuation perspective, Hong Kong stocks are indeed seriously undervalued. Today's violent rebound is a good phenomenon and can make global capital notice such undervaluation. , but if you want to see the historical bottom "restart upward trend", it still depends on the overall improvement of US stocks, A-shares, RMB exchange rate , Sino-US relations, etc.
Relying solely on a little policy preference, it can cure the symptoms but not the root cause. It will take some time for to buy the bottom Hong Kong stocks!
