{Market Preview}Car stocks are ok for short-term trading

  The Hang Seng Index closed at 19,650 in the morning session, up 96 points or 0.5%. The main board's trading volume exceeded HKD 92.3 billion. The Hang Seng China Enterprises Index reported 6,963, up 28 points or 0.4%. The Hang Seng Tech Index reported 4,137, up 25 points or 0.6%.
  The top three stocks by trading volume in the HSI were Tencent (00700), Ping An (02318), and Alibaba (09988). Tencent closed at HKD 394.6, down HKD 0.4 or 0.1%, with a trading volume of HKD 49.56 billion. Ping An closed at HKD 45.5, up HKD 0.05 or 0.1%, with a trading volume of HKD 21.8 billion. Alibaba closed at HKD 85.5, down HKD 0.2 or 0.2%, with a trading volume of HKD 20.94 billion. The top three stocks by trading volume in the Hang Seng China Enterprises Index were Tencent, Ping An, and SenseTime (00020). SenseTime closed at HKD 1.53, up HKD 0.13 or 9.3%, with a trading volume of HKD 21.3 billion. The top three stocks by trading volume in the Hang Seng Tech Index were Tencent, SenseTime, and Alibaba.

"Wong Wai Ho: entering the current market does not offer high profit potential"

  Last Friday (17th), the Dow Jones Industrial Average (DJIA) made a strong comeback, surpassing 40,000 points for the first time in history. The Hong Kong stock market continues to hover at high levels with mixed trading. Although the mid-day gain was less than 100 points, the total trading volume exceeded HKD 90 billion. Wong Wai Ho, an executive director of the Research Department of China Vered Securities Limited, told ET Net News Agency that the Hong Kong stock market has maintained its strength, accumulating a 3,600-point increase from the 16,000 level. However, there are no signs of a market correction yet, and sector rotation has been observed, indicating that rotational trading activities are expected to continue.
  However, he mentioned that the current Hong Kong stock market is different from the period when it was at the 17,000 to 18,000 levels. In terms of valuation, it has reached a relatively high level. Even if it continues to rise, the pace of increase will significantly slow down. He expects that the significant resistance level at present is around 19,700. This level is calculated as a Fibonacci retracement of 0.618 from the high of 22,700 last year to the low of 14,794 earlier this year. It is expected that there will be resistance at this level, indicating that entering the market at the current level will not likely result in significant gains.

"It is expected that the prices of new energy vehicles will decrease rather than increase, making it difficult to make long-term investment in automotive stocks"

  XPeng (09868) has announced the launch of two pure electric vehicle models, including the pure electric SUV model G6 and the pure electric seven-seater vehicle X9, with the earliest deliveries expected in the third quarter. This morning, the overall automotive stocks experienced a rise, but XPeng saw a more than 7% increase during the mid-day session, leading the gains. Wong Wai Ho pointed out that the automotive sector has indeed lagged behind in the recent strong market conditions, and with policy expectations in the Mainland China, short-term increases in automotive stocks are expected to be stimulated. However, he believes that the price war in the new energy vehicle market is still ongoing, and with intense competition, it is expected that car prices will decrease rather than increase. Therefore, there is limited room for valuation increase in automotive stocks, and current investment in automotive stocks can only be short-term trades, ranging from one or two days to one week.