U.S. stocks are ignoring the increase in confirmed cases of the variant virus Omicron, and the House of Representatives has approved the extension of the debt ceiling to February 18 next year. This is a good news for U.S. stocks. The three major indexes have rebounded sharply. However, the market is concerned about the risk of delisting of Chinese concept stocks, and related stocks have fallen more. Obviously, today, Hong Kong stocks are all over the place. The Hong Kong stocks bounced for two days, but they all bounced at 313 points, with average resilience. This morning, due to repeated pressure on China’s concept stocks, Alibaba (09988) fell more than 4%, setting a new low for listing. After the market closed today, JD.com (09618) and NetEase (09999) fell 6.9% and 7.5%, respectively. It is true that heavyweight stocks cannot escape the fate of falling once they are dyed blue.
The Hang Seng Index opened lower by 113 points. Hong Kong stocks fell by up to 337 points to a low of 23,451 due to the sharp decline of many China Technology and Internet stocks. However, 23500 seems to have really found support, and the market’s decline has narrowed. At noon, the Hang Seng Index fell 176 points to 23,612; the State-owned Enterprise Index fell 101 points to 8404; the Hengke Index fell 139 points to 5878 points.
The United States Securities and Exchange Commission (SEC) requires Chinese companies listed in the United States to disclose whether they are state-controlled or owned companies and provide audit certification information. If they do not meet the audit requirements, they will be delisted. It is normal for the market to worry about the risk of delisting of Chinese stocks listed in the United States. If they want to delist and return to Hong Kong stocks, then of course they can’t enjoy a higher valuation as if the U.S. stocks have a higher valuation, so the stock price will naturally have to be inserted. . As for Didi Chuxing, which had been in the U.S. market before beheading, it is ready to surrender, and start delisting on the New York Stock Exchange from today, and start preparations for listing in Hong Kong.
Blue-chip stocks developed individually, thinking that the stock price of Big Elephant (00005) would be under pressure if the EU fined one billion Hong Kong dollars. On the contrary, today it bucked the market and rose 2%, which is considered to be a contributor to the sharp decline. As for other Chinese banking stocks, they have done well against the market. The concept of rising interest rates has begun to be implanted in the minds of friends. BYD (01211) reported that it received an order for Toyota’s small electric car, and its stock price fell 3.7% in half a day. This may be a good opportunity to enter the market. Man thinks that he will get on the car and stop the loss with 290 yuan. If there are bullets, BYD can naturally go upstairs with 300 mosquitoes easily.
Technology and Internet stocks are generally under pressure, mainly due to the risk of delisting of Chinese concept stocks. However, the technology and Internet stocks that have not been listed in the United States have not been embedded in the United States. It seems that there are some borrowings. If you are in stock, don’t worry too much. The technology and Internet stocks are too impatient. If you see the scene again today, you will not be surprised or surprised.
The Mainland is accelerating the construction of a unified national power market, and Chinese power stocks have continued to outperform the market recently. Even Longyuan Power (00916), which is a row of dead snakes, has risen back to over 3%. Don’t get 17 yuan to stabilize. If you stabilize it, you can reverse the weakness and increase the tide again. Of course, the next goal of 17 yuan is 18. Other power stocks performed well. China Power (02380), which had a discount of 12% on the rights issue, rebounded to 10% today. It seems that the market has not stopped making capital allocation to power stocks. Other power stocks rose from over 3% to 7%.
(Xu Diyi ‧ Licensee of the Securities Regulatory Commission)