The Fed's interest rate hike boots have landed, Powell said that aggressive rate hikes of 75 basis points will not become the norm. The Hong Kong Monetary Authority followed the pace and announced a rate hike today, raising the base interest rate to 2% according to the preset formula, which will take effect immediately. This is also the third time the Hong Kong Monetary Authority has raised the base interest rate this year.
In terms of Hong Kong stocks, the three major stock indexes opened higher collectively, but then turned to decline. The decline trend expanded around the afternoon and after the afternoon trading, it fell lower at the end of the trading session, and finally closed down collectively. As of the close, the Hang Seng Index closed down 2.17%, down 462.8 points to 20,844.43 points, falling below 21,000 points again; the State-owned Enterprise Index fell 2.60%, to 7,259.41 points; the Hang Seng Technology Index fell 3.33%, to 4,547.22 points.
In terms of market and individual stocks, technology leaders led the decline, Kuaishou fell nearly 9%, NetEase fell more than 5%, Meituan fell 4%, Tencent and Alibaba fell more than 3%; education stocks suddenly pulled up, and New Oriental Online, which transformed into live broadcasts, soared 100% today, closed up more than 70%, with a turnover of HK$11 billion, and Tianli Education rose more than 100%; securities stocks generally fell, and Everbright Securities, which plunged in the late trading, also fell more than 14%.
Looking ahead to the future market, Ping An Securities pointed out that as the US inflation data is once again high, Hong Kong stocks, as emerging markets, may also be affected. However, the inherent low valuation of Hong Kong stocks and the guidance of the healthy development policies of the platform economy will provide strong support, and the market can continue to be positive and optimistic.
The HKMA and the Finance Department spoke out to appease the market
Today, in response to the turmoil caused by the Federal Reserve's aggressive interest rate hike, Hong Kong Financial Authority ("HKMA") President Yu Weiwen and Hong Kong Financial Secretary Chan Mo-po responded to some concerns respectively to alleviate market sentiment.
Yu Weiwen said that in response to the US inflation hit a 40-year high, the Federal Reserve's sharp interest rate hike is still in line with market expectations, and with the widening of the Hong Kong-US interest rate spread, it is expected that the Hong Kong dollar will maintain a weak exchange guarantee of 7.85.
Yu Weiwen said that as the United States raises interest rates again, the interest rate spreads between Hong Kong and the United States will widen again. Under the joint exchange system, when the interest rate spread widens to a certain extent, there will naturally be incentives to trigger interest rate arbitration transactions, and funds flow from the Hong Kong dollar to the US dollar, which is normal to make the Hong Kong dollar exchange rate weaker.
He said that he was not worried about large-scale capital outflows. The HKMA expected to continue to take money to defend the exchange rate, but the frequency depends on the supply and demand of Hong Kong dollars in the market, and interest rate spread is the key factor.
Yesterday (June 15), the Hong Kong Monetary Authority bought HK$11.775 billion during the Hong Kong trading session. This is the third time he bought Hong Kong dollars and sold US dollars this week, and it is also the largest purchase scale in this round. With the Hong Kong Monetary Authority taking action, by June 17, the balance of the Hong Kong banking system will fall to HK$294.562 billion. In fact, since the Hong Kong dollar hit the 7.85 weak party exchange guarantee on May 12, the Hong Kong Monetary Authority has already purchased HKD 8 times so far, with a total purchase amount of HKD 43.011 billion.
Yu Weiwen pointed out that the Hong Kong monetary and financial market is currently operating smoothly and stably, the foreign exchange market is operating smoothly and orderly, and the market liquidity is abundant. However, as US interest rate quotas continue to rise and balance sheets are simultaneously reduced, the market trend will become unclear, reminding everyone to be careful.
. In terms of bank interest rate, Yu Weiwen said that the best interest rate is determined by the commercial bank itself. Banks will decide the timing and extent of adjusting interest rate based on their own capital cost structure and other considerations. When making decisions on home purchase and borrowing, citizens should be careful to manage risks, and be careful to consider the impact of rising interest rates and their repayment ability.
discount window provides banks with short-term liquidity window. The interest rate charged by the HKMA to banks is calculated at the base interest rate. The current basic interest rate is set to be at the lower limit of the current target range of the US federal funds rate plus 50 basis points, or the average of the 5-day moving average of overnight and 1 month Hong Kong interbank rate interest rates, whichever is higher.
, and Chan Mo-po said that since Hong Kong banks have sufficient funds, they may not need to raise the preferential interest rate immediately. It depends on future arbitration activities and funding conditions. Banks will consider whether to adjust the preferential interest rate according to factors such as capital costs. He also said that the property market in Hong Kong is stable, with the total amount of newly built mortgages accounting for only about 55% of the property price, and the repayment amount accounts for about 37% of the borrower's income. The mortgage underwriting has also been stress-tested, so there is no need to worry too much.
New Oriental drives education stocks to rise.
Tianli Education once soared nearly 1.6 times
Hong Kong stock education sector continues to be popular, keeping the clouds clear and the moon is bright. Tianli Education soared by 1.58 times today, closing up more than 105%. The total market value directly doubled to HK$3.489 billion, with a share price of HK$1.62 per share, breaking away from the ranks of "phenomenon stocks".
Tianli Education led the rise, and Hong Kong stock education stocks rose collectively. New Oriental Online rose 100% during the trading session to HK$33.15, and finally closed up 72.71% to HK$28.60, with a total market value of HK$28.621 billion; "Oriental Selection" broke the 10 million mark on the afternoon of June 16, and on June 9, the total number of fans had just exceeded 1 million.
In addition, Guangzheng Education rose by nearly 50%, Sikaole Education rose by nearly 45%, Australia Chengfeng Higher Education rose by nearly 22%, Dadi Education rose by more than 18%, and Excellent Education Group rose by more than 11%.
CITIC Securities research report pointed out that the education sector has rebounded recently, and the market's pessimistic policy expectations for the sector have eased, and the focus has gradually returned to the company's fundamentals and asset value. GF Securities said that after the double reduction, education and training institutions are seeking transformation and new businesses begin to start.
Looking forward to the subsequent market, CITIC Securities recommends layout around three major sectors: 1) Hong Kong stock higher education sector with high performance certainty, low valuation and high dividends; 2) vocational training sector with marginal recovery; 3) Education and training transformation companies with gradually emerging transformation effects and cash value highlighted.
html average DAU in April far exceeded peers
Meitu Company once soared by more than 45%
Meitu Company rose sharply after midday, and once rose 45%, and then the increase narrowed to around 35%, and finally closed up nearly 28%, at HK$1.19 per share, with a total market value of HK$5.25 billion.
According to the latest data, in March this year, the average monthly DAU of Meitu Xiuxiu APP, a subsidiary of Meitu Company, was approaching 20 million, significantly leaving other applications in the same industry. Previously, Meitu announced that the number of global VIP members has reached 4.5 million. Last year, the company's business showed a balanced development trend, with the VIP subscription business growing significantly, with the sector achieving revenue of 519 million yuan, accounting for 31% of total revenue, an increase of 13.6%.
Tianfeng Securities stated that the current penetration rate of domestic VIP members in the MAU of Meitu Xiuxiu APP is still at a low level (the membership ratio is within 2.2%), which is lower than the member penetration rate of Meitu's overseas applications (the penetration rate of some applications has exceeded 7%), and the paid penetration rate has room for improvement.
In addition, in early April this year, Wu Xinhong, founder, CEO and executive director of Meitu, entered the market to increase his holdings of the company's shares by 1 million shares. Wu Xinhong said that he is full of confidence in the company's future revenue and profit prospects, and it is not ruled out that he will further increase his holdings at an appropriate time.
This article is from China Fund News
