The mainland has recently become the protagonist of international financial news. It has thrown a large order of 300 billion aircraft to Airbus in Europe, which shocked the Western world, and then discussed the tariff issue with the United States, which seems to reflect Beijing’s confidence in the economy this year.
The U.S. Democratic mid-term elections are on the political agenda. President Biden has aroused dissatisfaction among voters because of the inflation caused by the Russian-Ukrainian war. It is very shameless for the mainland to throw plane orders to Europe at this time. Speaking of the technology sector, the mainland’s current policy of “pro-Europe and rejecting the United States” is believed to be based on the American’s “food and housing” character. The more you make concessions, the more aggressive he will be.
At the same time, Vice Premier Liu He, who has dealt with the United States, had a phone call with Treasury Secretary Yellen to discuss the cancellation of tariffs. The last government imposed punitive tariffs on China, and as a result, fined its own taxpayers. Now that inflation in the United States is rising, the cancellation of the measures is equivalent to a disguised tax cut, which can temporarily relieve the pain. On the surface, the United States seems to be more anxious than China. The mainland’s economic toolbox has more solutions, and its ability to endure pain is stronger than that of the democratically elected government. After the game, it began to reverse the passive situation in the past. The cancellation of tariffs by the United States became good news for Hong Kong stocks, driving the Hang Seng Index to rebound. It was only in the afternoon that the A shares closed on the soft side. narrowed the increase.
BOC expects mainland growth to pick up in second half
One of the explanations for the drop in mainland A shares is that the People’s Bank of China conducted a reverse repurchase this week. Although the funds involved were small and had no impact on the money supply, the attitude showed that the central government was not in a hurry to release water, and the stock market took the news. From another point of view, it is a normal procedure for the central bank to adjust the supply of funds, reflecting the orderly operation, and there is no major change in monetary policy for the time being, and the news should be digested quickly.
The “China Economic and Financial Outlook Report” released by the Bank of China Research Institute in Beijing also pointed out that since May, with the improvement of the epidemic situation, the government has adopted a series of policy measures to stabilize the macroeconomic market, and the economic operation has gradually stabilized. GDP grew by 4.8% in the first quarter and is expected to grow by around 1% in the second quarter. Looking forward to the second half of the year, the external environment will become more severe and complex, and domestic demand will replace external demand as the key to stabilizing the macroeconomic market. With the optimization of epidemic prevention policies, the impact of the epidemic on the economy has weakened, and economic stabilization policies have gradually become effective. In the second half of the year, China’s economy is expected to rebound quarter by quarter.
The rise of Hong Kong stocks narrowed, not so much because A-shares fell. Another possibility is that they were afraid that the US stock market would not know how to resume the market. After all, the US market is timid. Even if the president moves to withdraw taxes, the effect of pain relief may not last long.
The Hang Seng Index closed at 21,853 points yesterday, up 22 points slightly; the State-owned Enterprises Index closed at 7,642 points, down 5 points; the KSE Index closed at 4,861 points, down 22 points, with a turnover of 122.6 billion yuan. WuXi Biologics (2269) was reportedly reviewed by the U.S. Department of Commerce, hoping to be removed from the U.S. “Unverified List”. Stimulated by this news, WuXi Biologics rose 6.5% to close at 82.6 yuan, the best performing blue-chip stock. Sunny Optical (2382) plunged 4.77% to close at 113.8 yuan, the worst performing blue-chip stock.
OneConnect dares to burn cold stoves and harvests a lot
In terms of other stocks, SenseTime (020), which has been falling sharply in the past few days, fell 6% in the early part to hit a new low of 2.38 yuan after listing, and then rebounded and rebounded 8% to close at 2.75 yuan. The stock was at 9:51 am due to stock price fluctuations The market fluctuation adjustment mechanism will be triggered to enter a 5-minute cooling-off period.
The returning Chinese concept stock OneConnect (6638) jumped 37% the next day after its listing in Hong Kong, closing at 7.4 yuan. Investors who were brave enough to cook a cold stove on the first day gained a lot.
Another cold stove stock, Dah Sing Financial (440), surged 10% yesterday and closed up 6% at 23.8 yuan. Dah Sing Financial mainly holds Dah Sing Bank (2356), and the asset discount is really a big deal. Years ago, the company sold insurance companies at a good price and paid high dividends, but unless Dah Sing Bank is sold now, it will be 4 The interest rate of 1% is not lost in bank stocks.
Hitoshi Rikuha
