The Hong Kong government released rumors during the holidays that it will actively consider the “0 + 7” entry plan. It was good news for the stock market, but it was blocked by the US to intervene last week, and the RMB fell below. 7. Once again, it has hit a half-year low, and investors looking for low-priced commodities will continue to pay the price.
The SAR government has relaxed its stance on epidemic prevention measures in the last two days. There seems to be an inconsistency with the position of the director in charge of epidemic prevention, Dr Lu Chongmao, who previously criticized the new death rate. various virus is misleading. The government emphasized that “flu is not the new crown” to ask people to get injections. In addition, imported cases only account for 1.5% of the total number of cases. Easing access restrictions has little effect on the epidemic and is useful for the economy, so I want to do it as soon as possible.
Friends of central tea pointed out that the business community gradually lost patience as interest rates rose, stocks fell, and buildings fell, and they continued to lobby the government. The government does not dare to be neglected, and is doing its best to maintain a balance between the fight against the epidemic and the economy.
Goldman Sachs estimates that A shares will outperform H shares
Regardless of how officials and businessmen interact behind the scenes, it is good news for the authorities to release “0 + 7”, which is good news from a business point of view, because there is no need for quarantine on the go in from other places. , only 7 days of medical observation is required. With the removal of hoods and meals in restaurants, the opportunity cost of going out to the port has been greatly reduced, which has improved Hong Kong’s external relations and should boost the stock market. Unfortunately, this week is the interest rate negotiation period of European and American central banks. The external interest rates have been raised one after another, together with the decline in the value of the RMB, mainland A shares have softened , causing the Hong Kong stock market to fall.
Goldman Sachs issued a report saying that in the months leading up to the past party congress, the MSCI China index overall returned about 2%, and that commodity cyclical stocks and some consumer stocks performed well. But the index has fallen more than 8% so far this month, underperforming regional and global stocks. It is expected that there will be no major changes in policy after the 20th National Congress of the Communist Party of China, but it is said that the personnel changes will be completed, which could improve policy coordination and operate more effectively. Strategically speaking, mainland A shares are in a better position than foreign H shares, because the foreign share ratio is lower and the sensitivity to external risk factors is lower, especially the “national team” has nearly 400 billion yuan of idle cash on hand, some Can provide support when A shares go down.
The report released by Goldman Sachs this time is more detailed than the simple dichotomy of positive or negative in the past. The main reason is that the factors facing the stock market are very complex and volatile. The most immediate is the recent outflow of foreign capital. The weakening of the renminbi will naturally put pressure on assets other than US stocks. Yesterday, the Hong Kong stock market was still under the good news of “0 + 7”, which was largely affected by the soft feet of the miniatures. Lu Yuren felt that there would be support for the small figures to fall to around 7.2, and the stock would improve a bit by then.
The Hang Seng Index closed down 195 points at 18,565 points, closing at its lowest level in more than half a year. Looking forward to the relaxation of the quarantine before November, stocks with the concept of returning to normal are improving. Cathay rose Pacific (293) 1.1%; Wharf Properties (1997) hit a four-month high, rose 1.2% throughout the day; Motong changed Chow Tai Fook’s rating (1929) from “underweight” to “overweight”, and the target price was raised significantly from 12 yuan to 19 yuan. Chow Tai Fook rose 6% on the day to 15.38 yuan, the best performing blue chip stock.
The China Enterprise Index fell 82 points to 6338 points, and the KSE Index once hit a low of 3760 points, setting a new low of more than 4 months, and closed at 3778 points, down 79 points, and fell 4.7% for two consecutive days. Major stock Tencent (700) fell 1.4% to 289 yuan; Meituan (3690) fell 1.5% to 169.4 yuan; PCAOB is said to have arrived at the accounting firm’s Hong Kong office to review drafts of Chinese companies, Alibaba (9988) plunged 3.6%, At 83.7 yuan; NetEase (9999) fell 3.6% to 127.4 yuan; JD.com (9618) fell 2.5% to 217.4 yuan.
Bad news for biotech stocks continues to pour in
A number of biotech stocks sold off, and the Hong Kong-listed biotech index plunged 3.4% throughout the day. WuXi Biologics (2269), which fell 22% last week, fell another 5% to 49.25 yuan. Morgan Stanley lowered the target price of CanSino (6185), which fell 7% to 50.2 yuan; Tengsheng Boyao (2137) added 9% to 6.07 yuan; Jiahe Biotechnology (6998) plunged 21% to 1.89 yuan. Like science and technology stocks, pharmaceutical stocks are high-investment and low-dividend sectors, and are most affected by capital withdrawals when interest rates rise. The difference is that science and technology stocks fell earlier, and the position of money-burning science and technology stocks is not as strong as biotechnology stocks. In addition, the United States is now targeting biopharmaceuticals, and the negative news has not ‘to fully digest, so the risk of fishing in this sector is still high. , especially the concept stocks that do not have the ability to pay dividends and make money.
Jin Riku
