The Economic Information Daily reported on the 2nd that another U.S. Federal Reserve official has adopted a dovish tone, with Vice Chair Jefferson indicating that policymakers may need more time and economic data before deciding on the next move in monetary policy, suggesting no urgency for another rate hike in the short term. However, during the recent National Day holiday closure of Hong Kong markets, the yield on the U.S. 10-year Treasury briefly broke above 5.3 percent. Although it retreated following Jefferson's comments, Hong Kong stocks continued to fall sharply upon resumption of trading this morning. Financial stocks across the board were sold off, with international financial stocks hit hardest. The Hang Seng Index opened with a gap down of 500 points and further broke below the psychological level of 24,000.
According to the street position distribution of Hang Seng Index bull and bear warrants, the two 100-point zones from 24,100 to 24,199 and 24,200 to 24,299 had accumulated over a thousand corresponding futures contracts by last Wednesday (30th), likely indicating bearish targets. Currently, the Hang Seng Index opened at 24,099, breaking through these two heavily positioned bull zones.
Financial stocks became targets for taking profits on long positions; HSBC (00005) fell 4.68%, trading at HK$150.6; Standard Chartered (02888) dropped 4.91%, at HK$232.4; Bank of China (Hong Kong) (02388) declined 2.97%, at HK$50.7; AIA (01299) fell 4.76%, at HK$70.1.
Tech and internet stocks were dragged lower together; Alibaba (09988) dropped 3.38%, at HK$103; Tencent (00700) fell 1.81%, at HK$423.2; Baidu (09888) declined 3.38%, at HK$82.9; Meituan (03690) fell 3.7%, at HK$69.05; JD.com (09618) dropped 3.16%, at HK$101.
Currently, the Hang Seng Index stands at 23,964, down 649 points or 2.64%, with main board turnover of HK$13.171 billion. The Hang Seng China Enterprises Index is at 8,016, down 203 points or 2.47%. The Hang Seng Tech Index is at 4,148, down 105 points or 2.49%. The front-month futures are at 23,928, down 664 points, at a discount of 36 points. (hc)
According to the street position distribution of Hang Seng Index bull and bear warrants, the two 100-point zones from 24,100 to 24,199 and 24,200 to 24,299 had accumulated over a thousand corresponding futures contracts by last Wednesday (30th), likely indicating bearish targets. Currently, the Hang Seng Index opened at 24,099, breaking through these two heavily positioned bull zones.
Financial stocks became targets for taking profits on long positions; HSBC (00005) fell 4.68%, trading at HK$150.6; Standard Chartered (02888) dropped 4.91%, at HK$232.4; Bank of China (Hong Kong) (02388) declined 2.97%, at HK$50.7; AIA (01299) fell 4.76%, at HK$70.1.
Tech and internet stocks were dragged lower together; Alibaba (09988) dropped 3.38%, at HK$103; Tencent (00700) fell 1.81%, at HK$423.2; Baidu (09888) declined 3.38%, at HK$82.9; Meituan (03690) fell 3.7%, at HK$69.05; JD.com (09618) dropped 3.16%, at HK$101.
Currently, the Hang Seng Index stands at 23,964, down 649 points or 2.64%, with main board turnover of HK$13.171 billion. The Hang Seng China Enterprises Index is at 8,016, down 203 points or 2.47%. The Hang Seng Tech Index is at 4,148, down 105 points or 2.49%. The front-month futures are at 23,928, down 664 points, at a discount of 36 points. (hc)
