China and the US reached a consensus on the first phase of the trade agreement, and investors locked in profits after selling good news
The Hang Seng Index retreated 179 points yesterday and stayed close to the 250-day CBBC. CICC believes that three major factors, including the consensus reached by the United States and China on the trade agreement, will benefit the performance of Hong Kong stocks in the next three to six months. Analysts believe that as investors’ risk aversion has cooled and funds have flowed back into Hong Kong stocks, the HSI has the opportunity to test 28,000 points. Despite the market’s pullback, mobile phone equipment stocks bucked the trend, and individual shares rose more than 10%.
China and the United States announced on Friday that they reached a consensus on the first phase of the trade agreement and failed to stimulate Hong Kong stocks to a new level. The funds were shipped on good news. The Hang Seng Index fell by more than 214 points in the early stages, reaching a low of 27473 points and wearing a 250 antenna (yesterday at 27687 points). Although the friends’ funds were supported, the index turned from falling to rising, but unfortunately the rise was short, and it closed down 179 points at 27,508 points. The H-Share Index fell 59 points to 10,778.
Ruisheng Securities CEO Deng Shengxing believes that the agreement reached between China and the United States in the trade agreement has a positive effect on the overall market sentiment, but the current price level of Hong Kong stocks has already reflected relevant factors. Looking ahead, Deng Shengxing said that under the relatively loose monetary policies adopted by central banks in various countries, investors are not pessimistic about the outlook for the global economy next year, which will also support Hong Kong stocks. The Hang Seng Index is expected to stabilize at the 27th customs clearance by the end of the year. Close.
Three reasons to support Hong Kong stocks
Yao Haoran, Managing Director of CASH Asset Management, said that after the HSI’s increase of more than a thousand points last week, the current price has more or less reflected the factors of the first phase of the China-US trade agreement, but this does not indicate that the market will turn around. Because investors’ risk aversion has declined, funds have begun to re-enter the market. In view of the fact that friends have controlled the overall situation, unless there is bad news in the market, the Hang Seng Index will be made repeatedly before the end of the year, and it is not ruled out that 28000 points will be tested.
In addition, CICC listed three major favorable factors to support the performance of Hong Kong and A shares in the next three to six months. The first is that China and the United States have reached the consensus of the first phase of the trade agreement; the second is that the spirit of the Central Economic Work Conference takes the lead in stabilizing the word, and the pressure of economic growth will be eased; The valuation is not high, and it is expected to be sought after by funds. CICC also said that the mainland has continued to send signals of stable economic growth, and the outlook for the global economy has also improved. Copper prices, which are more sensitive to macroeconomics, are expected to rebound in stages. The bank suggested paying attention to Minmetals Resources (01208), Jiangxi Copper (00358), Zijin Mining (02899), and Luoyang Molybdenum (03993). Minmetals Resources’ share price fell 1.8% yesterday to 2.11 yuan; Luoyang Molybdenum’s stock price fell 2.2% to 2.99 yuan; Zijin Mining’s price fell 0.6% to 3.3 yuan; Jiangxi Copper’s stock price edged up 0.1% to 10.06 yuan .
Bank of America: Friction or heat up after election
The Bank of America is cautious about the improvement in Sino-US trade relations. The Bank of America believes that it seems premature to judge the cooling of Sino-US trade friction at this stage. Before the US presidential election next year, the trade relations between the two countries may not be able to calm down. Instead, investors need to be concerned that after the presidential election, Sino-US trade frictions may heat up.
The performance of other stocks continued to be funded by mobile phone equipment stocks, but the growth of first-line shares slowed down. AAC’s (02018) stock rose 1.3% to 67.05 yuan; Sunny Optical (02382) ‘s stock rose 2.3% to 146.1 yuan. Second-tier shares have risen more and more. The share price of Gaowei Electronics (01415) rose 13.1% to 1.46 yuan; the share price of Tongda Group (00698) rose 7.6% to 0.7 yuan.