Hong Kong Stock Market Open | Hang Seng Index Opens 0.42% Lower, Concept Stocks Rise; China Flying Pigeon Rises 5%
Hang Seng Index opens 0.42% lower, Hong Kong Technology Index falls 0.57%. The government's childcare subsidy plan is officially announced, and concept stocks rise; Jin Xin Reproductive rises nearly 9%, China Flying Pigeon rises 5%; pharmaceutical stocks continue to perform strongly, with Yuyue Pharmaceutical rising 4% after the performance report, and Hengrui Medical rising over 2%. Xing Communications falls nearly 3%, plans to issue approximately HK$35.8 billion of zero-coupon convertible bonds.
About the Hong Kong Stock Market
Panasonic Securities (Hong Kong) research also points out that the current Hong Kong stock market still has advantages such as relatively low valuation and the "money-making effect" of transactions gradually becoming more active, which will maintain a optimistic outlook for the medium to long term. It is recommended to continue paying attention to new production technology plates such as artificial intelligence, robotics, semiconductors, and industrial software, as well as policy-supportive innovation pharmaceuticals and medical plates with consumer attributes.
China Securities Research Report indicates that looking ahead, it is still expected to be a good opportunity for the Hong Kong stock market; there may be greater repair space for the Hang Seng Index. Looking ahead, global liquidity may still be abundant, and asset returns will determine the direction of capital flow, which in turn will affect market fluctuations. Even after experiencing a significant rebound from early this year, China's asset valuation level is still relatively undervalued from a PB and ROE perspective. Especially considering changes in exchange rates, the RMB is still undervalued or has further room for appreciation, and the Hong Kong stock market may see an increase in its attractiveness globally.
China Tai International Research points out that the current Hong Kong stock market still has relatively abundant liquidity, with net inflows into the Hong Kong Stock Connect and a high degree of enthusiasm for foreign capital. The market is expected to help the Hong Kong stock market stabilize at a higher level. However, there are signs of sector rotation in the overall market, and the market's ability to maintain its position in the window of inter-policy coordination will be affected by sentiment and policy expectations, which may constrain the index from rising significantly.
Bank of China International Analysis points out that recent improvements in Hong Kong's liquidity have mainly been driven by the injection of liquidity by the Hong Kong Monetary Authority, net inflows from mainland China and foreign capital, a hot IPO market, and accelerated share repurchases by Hong Kong-listed companies. The overall environment for Hong Kong dollar liquidity remains relatively loose. In the coming half-year reporting period, market expectations are high. If there is a difference between expectations and actual performance, it is expected that the market will rotate from crowded areas such as new consumption, innovative pharmaceuticals, and banking to less crowded areas with lower valuations and potential for outperformance, such as the technology plate, AI industry chain-related.
Industrial Securities proposes that the Hong Kong bull market has entered a "long summer", benefiting from government empowerment, international financial center status upgrades, and incremental capital inflows. The second half of the year will continue to rise.
Fund Management Company indicates that this year's first half performance in the Hong Kong stock market is eye-catching, with both fundamental and liquidity factors resonating, resulting in a consensus among investors for a positive outlook. Looking ahead, it is still expected to be a good opportunity for the Hong Kong stock market, with many structural opportunities that can be explored.
Galaxy Securities points out that looking ahead, it is expected that the overall trend of the Hong Kong stock market will continue to rise and stabilize, with a focus on structural trends. In the global equity market, the valuation of the Hong Kong stock market is at a relatively low level, with a valuation ratio in the middle-upper range historically.