{Economic Information Daily, 28th} The Xi-Trump meeting has concluded, with U.S. President Trump announcing that the two leaders will meet again at the APEC and G20 summits. With uncertainties from the Xi-Trump meeting cleared and northbound funds resuming today, the Hang Seng Index opened slightly higher and fluctuated upwards, but retreated upon touching the 10-day moving average (around 24,761 points). The Hang Seng Index closed at 24,642, up 132 points or 0.5%, with main board turnover reaching nearly HK$177.5 billion. The Hang Seng China Enterprises Index stood at 8,216, up 51 points or 0.6%. The Hang Seng Tech Index closed at 4,296, down 15 points or 0.4%.
Although Stock Connect trading resumed today, northbound flows recorded a net outflow of over HK$6.5 billion, and Hong Kong market turnover was only HK$177.483 billion, indicating a lack of clear short-term direction. Additionally, while the Hang Seng Index today filled the upper end of last Friday's downward gap (around 24,649 points), it failed to sustain above that level at closing, suggesting persistent selling pressure above, and a gradual downtrend may continue. Notably, tomorrow is the futures settlement day, and market movements are expected to be more volatile.
*Nvidia chip restrictions eased, chip stocks lead declines; high U.S. 30-year yields dim gold miners*
Reports indicate that the Chinese government has signaled it may allow companies such as Alibaba (09988) and ByteDance to purchase Nvidia's (US.NVDA) new RTX Pro 5500 chips. Domestic chip stocks plunged, with Hua Hong (01347) down 4.6% at HK$105.3, leading the blue-chip declines; SMIC (00981) fell 3.6% to HK$61.05, TianShu Zhixi (09903) dropped 11.4% to HK$109.1, Biren Technology (06082) declined 8.2% to HK$35.04, and Montage Technology (06809) fell 5.1% to HK$285.2.
Tech and internet stocks showed mixed performance. NetEase (09999) rose 4.9% to HK$189.7, the best-performing blue chip; Alibaba fell 0.6% to HK$107.7, Tencent (00700) gained 0.7% to HK$439.8, and Baidu (09888) rose 0.3% to HK$85.55.
The 30-year bond yield remained at 5.52%, while the 10-year yield held at 5.209%. Interest rate futures indicate the market still assigns a 66.6% probability to a 25 basis point U.S. rate hike in October. Gold mining stocks underperformed: Zijin Mining (02899) fell 2.6% to HK$31.64, Shandong Gold (01787) dropped 9.4% to HK$18.13, Chifeng Gold (06693) declined 5.2% to HK$33.8, and China Gold International (02099) fell 1.9% to HK$218.4.
Property developers led gains, with China Overseas (00688) up 3.8% at HK$12.89; China Resources Land (01109) rose 2.9% to HK$29.46; Longfor (00960) gained 2.3% to HK$5.45.
*Jiangsu and Guangdong electricity prices to rise next month; China Resources Power's breakout from triangle pattern offers opportunity at current price*
China Resources Power (00836) is currently up 3.6% at HK$19.67, with approximately 21.23 million shares traded, involving HK$416 million.
China Resources Power surged strongly today, breaking out decisively from a technical triangle consolidation pattern—the upper boundary formed by connecting the highs of July 23 (around HK$19.38) and September 24 (around HK$19.24), and the lower boundary formed by the lows of July 2 (around HK$16.27) and August 19 (around HK$17.33). This upward breakout is a clear bullish signal, potentially establishing a new uptrend in the coming period.
On the fundamental side, October monthly coordinated electricity prices for Jiangsu and Guangdong provinces have been announced, both showing year-on-year and month-on-month increases, signaling stabilization and recovery in electricity prices. Specifically, Jiangsu's October centralized trading weighted average price reached RMB 395.32 per MWh, up RMB 50.8 per MWh month-on-month and RMB 54.6 per MWh year-on-year. Guangdong's monthly comprehensive trading average price reached RMB 456.78 per MWh, up RMB 53.5 per MWh month-on-month and RMB 84.4 per MWh year-on-year.
Against the backdrop of improving power sector fundamentals, China Resources Power's technical breakout from the triangle pattern can be seen as a reversal signal. Investors may consider gradually building positions at current levels, aiming for a move towards the previous high of HK$22. If the share price falls back below the breakout level (around HK$19.3), the breakout would be invalidated, and a stop-loss should be triggered. (nw)
Although Stock Connect trading resumed today, northbound flows recorded a net outflow of over HK$6.5 billion, and Hong Kong market turnover was only HK$177.483 billion, indicating a lack of clear short-term direction. Additionally, while the Hang Seng Index today filled the upper end of last Friday's downward gap (around 24,649 points), it failed to sustain above that level at closing, suggesting persistent selling pressure above, and a gradual downtrend may continue. Notably, tomorrow is the futures settlement day, and market movements are expected to be more volatile.
*Nvidia chip restrictions eased, chip stocks lead declines; high U.S. 30-year yields dim gold miners*
Reports indicate that the Chinese government has signaled it may allow companies such as Alibaba (09988) and ByteDance to purchase Nvidia's (US.NVDA) new RTX Pro 5500 chips. Domestic chip stocks plunged, with Hua Hong (01347) down 4.6% at HK$105.3, leading the blue-chip declines; SMIC (00981) fell 3.6% to HK$61.05, TianShu Zhixi (09903) dropped 11.4% to HK$109.1, Biren Technology (06082) declined 8.2% to HK$35.04, and Montage Technology (06809) fell 5.1% to HK$285.2.
Tech and internet stocks showed mixed performance. NetEase (09999) rose 4.9% to HK$189.7, the best-performing blue chip; Alibaba fell 0.6% to HK$107.7, Tencent (00700) gained 0.7% to HK$439.8, and Baidu (09888) rose 0.3% to HK$85.55.
The 30-year bond yield remained at 5.52%, while the 10-year yield held at 5.209%. Interest rate futures indicate the market still assigns a 66.6% probability to a 25 basis point U.S. rate hike in October. Gold mining stocks underperformed: Zijin Mining (02899) fell 2.6% to HK$31.64, Shandong Gold (01787) dropped 9.4% to HK$18.13, Chifeng Gold (06693) declined 5.2% to HK$33.8, and China Gold International (02099) fell 1.9% to HK$218.4.
Property developers led gains, with China Overseas (00688) up 3.8% at HK$12.89; China Resources Land (01109) rose 2.9% to HK$29.46; Longfor (00960) gained 2.3% to HK$5.45.
*Jiangsu and Guangdong electricity prices to rise next month; China Resources Power's breakout from triangle pattern offers opportunity at current price*
China Resources Power (00836) is currently up 3.6% at HK$19.67, with approximately 21.23 million shares traded, involving HK$416 million.
China Resources Power surged strongly today, breaking out decisively from a technical triangle consolidation pattern—the upper boundary formed by connecting the highs of July 23 (around HK$19.38) and September 24 (around HK$19.24), and the lower boundary formed by the lows of July 2 (around HK$16.27) and August 19 (around HK$17.33). This upward breakout is a clear bullish signal, potentially establishing a new uptrend in the coming period.
On the fundamental side, October monthly coordinated electricity prices for Jiangsu and Guangdong provinces have been announced, both showing year-on-year and month-on-month increases, signaling stabilization and recovery in electricity prices. Specifically, Jiangsu's October centralized trading weighted average price reached RMB 395.32 per MWh, up RMB 50.8 per MWh month-on-month and RMB 54.6 per MWh year-on-year. Guangdong's monthly comprehensive trading average price reached RMB 456.78 per MWh, up RMB 53.5 per MWh month-on-month and RMB 84.4 per MWh year-on-year.
Against the backdrop of improving power sector fundamentals, China Resources Power's technical breakout from the triangle pattern can be seen as a reversal signal. Investors may consider gradually building positions at current levels, aiming for a move towards the previous high of HK$22. If the share price falls back below the breakout level (around HK$19.3), the breakout would be invalidated, and a stop-loss should be triggered. (nw)
