It’s another day to turn off the lights and eat noodles!
On October 11, Hong Kong stock opened low, Hang Seng Index fell by more than 1.8% to hit a new low in 11 years, and the Science and Technology Index fell by more than 3.6%. technology stock has a weaker trend. During the session, Bilibili's decline expanded to more than 10%, Meituan fell nearly 8%, Tencent and Alibaba fell more than 3%.
Hong Kong stocks had nearly "thousand points" gains on October 5, which made many investors really excited during the holidays. However, in the past week, the stock market was hopeful and disappointed first. In a few days, the rebound at the beginning of last week was eliminated and it was once again defeated.
There are currently two major drag factors in the market. One is that Feder continues to raise interest rates . Now the market believes that the probability of raising interest rates by 75 basis points is more than 90%. Second, the conflict between Russia and Ukraine is getting bigger and bigger, and there is no possibility of sudden improvement in these two points in the short term.
Without improving the overall environment, except for specific sectors, funds will not be nostalgic. October 10 is a time window. According to data disclosed by the Hong Kong Stock Exchange, a total of 654 Hong Kong stocks were shorted by on October 10, with a total short selling amount of HK$15.121 billion.
Among them, there are 37 stocks with short selling amounts of over HK$100 million. Meituan-W, Alibaba -SW, and Ideal Auto -W ranked in the top three, with short selling amounts of HK$1.573 billion, HK$698 million and HK$659 million respectively.
The so-called short selling ( short selling ) refers to investors predicting that the stock price will fall, then borrow the stock and sell it in the market, and when the stock price falls, they will repurchase the stock at a low price and return it, making a profit from it.
But it has to be said that there are a lot of short funds in Hong Kong stocks recently. The proportion of in the total trading volume of in Hong Kong stocks soared to a record 23%, which means that more than 23 of the 100 yuan are shorted, which is a bit exaggerated.
short selling is active, reflecting that many investors are not optimistic about the future market and short selling with the trend. The reason for shorting is nothing more than that the major shareholders of the Hong Kong stock market, including Tencent, Alibaba, , BYD, and other companies, are selling. The selling behavior of these major shareholders may affect the trend of these stocks for a longer period of time.
But from another perspective, extreme short selling also means that Hong Kong stocks may experience short squeeze at any time, that is, once some short sellers have almost made a profit, they are likely to turn to long , and short squeeze short sellers are left that have not escaped. Hong Kong stocks have the opportunity to usher in a rebound and rise.
Currently, Hong Kong stocks have broken the net, and their valuation is at a historical low. As of October 10, Hang Seng Index PB was 0.83 times, and the historical percentile was 0.04%, which must have fallen out of the long-term allocation value.
In order to promote the matching of the company's stock market price with its intrinsic value, Chinese technology companies have recently set off a wave of repurchases. As of October 10, Tencent has carried out repurchase operations for 35 consecutive trading days, with a total cost of HK$12.316 billion. The cumulative number of repurchases this year has reached 72 times, and the cumulative repurchase amount is HK$22.329 billion, setting a new maximum of the repurchase amount of Hong Kong stocks this year.
In addition to Tencent and Xiaomi , JD Health also spent HK$5.0634 million on October 5 to repurchase 105,800 shares of the company, and repurchased a total of 2.9896 million shares this year, accounting for 0.09% of the number of issued shares.
In addition, southbound funds have once again flowed significantly into the Hong Kong stock market, showing the trend of " bottom-up " when the valuation of Hong Kong stocks is very cost-effective. The valuation of biomedical and the Internet sectors are highly favored. Among them, southbound funds have net purchases of and Tencent have accumulated nearly HK$7 billion for 22 consecutive days.
may be found in Tencent's second-quarter performance conference call for repurchasing companies. Tencent executives said that Tencent's stock price and portfolio value are currently seriously underestimated, and a large amount of ammunition continues to be repurchased.
Tencent President Liu Chiping said at the Q2 call that Tencent’s annual free cash flow is around billions of dollars, with more than $150 billion in investments on the listing and non-listing. “There are a lot of reserves to continue to distribute dividends and repurchase at a positive speed.”
On the other hand, the repurchase of shares is based on confidence in the company's future development prospects and high recognition of the company's value, so that by repurchasing shares, it shows the market its determination to maintain market value stability and protect shareholders' interests.
returns to the essence of investment, and long-term value ultimately depends on the development of the company and the social value created by entrepreneurs. However, the frequent fluctuations in the Hong Kong stock market at this stage, and the boost in confidence in the economy and the future is now comparable to gold.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-