Middle East capital “enters the market” and software stocks are booming, the Hang Seng Index rises in the afternoon and short-selling funds continue to put pressure | Hong Kong stock market weathervane-Mobile Financial Industry

Middle East capital “enters the market” and software stocks are gaining momentum, the Hang Seng Index rises in the afternoon and short-selling funds continue to put pressure | Hong Kong stock market trends

Feng Yi, Financial Associated Press

2023-12-11 19:16:30

Financial News Agency, December 11 (Editor Feng Yi) Today, the three major Hong Kong stock indexes first declined and then rose, and the decline in the market rebounded significantly in the afternoon. The Hang Seng Index closed down 0.81% throughout the day, regaining the 10,000 mark, while the H-Share Enterprise Index and the Hang Seng Technology Index fell 1.17% and 1.06% respectively. It is worth noting that all three major indexes refreshed periodic lows during the session.

Let’s take a look at today’s market hot spots. They are as follows: the Hang Seng Index rebounded in the afternoon and short-selling funds continued to put pressure; the entry of Middle Eastern capital has ignited the enthusiasm for speculation in software stocks; the thermal power chain bucked the trend and rose, and the market is waiting for data to catalyze it.

[The Hang Seng Index rebounded in the afternoon and short-selling funds continued to put pressure]

On today’s market, heavyweight technology stocks generally fell, with JD Group falling by more than 6%, Meituan and Baidu falling by more than 3%, Alibaba falling by more than 2%, Kuaishou and NetEase following the decline, and only Tencent closing in the red.

In terms of other hot spots, Li Ning’s plunge of more than 14% led to the decline in textile, apparel and sporting goods stocks; the education sector fell back, and the retail, catering, building materials and cement sectors were all green.

In addition, domestic property stocks continued their previous decline today, suppressing market sentiment.

Lu Ting, chief economist of Nomura China, said recently that real estate has shown signs of stabilizing, but it is not yet confirmed that it has completely bottomed out.

Overall, the Hong Kong stock market has become increasingly deserted at the end of the year. In the absence of better-than-expected gains, the short-term weakness may continue. Today, the Hang Seng Index once fell below the 16,000-point mark during intraday trading, which also highlighted that short-term shorts are relatively stronger.

On the other hand, although the Hang Seng Index rebounded in the afternoon today, the trading volume was only HK$98.729 billion. On December 11, a total of 612 Hong Kong stocks were short-sold, with a total short-selling amount of HK$10.966 billion. The short-selling funds The occupancy ratio continues to remain above 10%.

[The entry of Middle Eastern capital ignited the enthusiasm for software stock speculation]

Among the sectors that rose today, software stocks generally strengthened, among which the SaaS concept was particularly active, mainly driven by the good news that the Qatar Investment Authority planned to subscribe for nearly HK$1.6 billion in Kingdee International (00268.HK) shares.

Hong Kong SaaS sector leads gains in stocks today

It is worth noting that the connection between Middle Eastern funds and Hong Kong stocks has become increasingly active this year, and investment institutions affiliated to various Middle Eastern countries have also invested in the Hong Kong stock market many times.

In June this year, Weilai announced that it had signed a share subscription agreement with CYVN Holdings, an Abu Dhabi investment institution, and received a strategic investment of approximately US$1.1 billion.

In addition, in August, Little Yellow Duck Deying (02250.HK) signed a memorandum of understanding with Saudi Arabia’s Public Investment Fund (PIF), received an investment of US$250 million (approximately HK$1.96 billion), and launched related cooperation on projects, brand development, etc.

In August, Fengxiang Shares (09977.HK), a leading domestic meat and poultry export manufacturer, also received an investment of over HK$200 million from the Abu Dhabi Investment Authority.

According to the recent statement of Ou Guansheng, CEO of the Hong Kong Stock Exchange, the Middle East is a key region where Hong Kong has been actively promoting cooperation. In February this year, the Hong Kong Stock Exchange signed a memorandum of cooperation with the Saudi Arabian Stock Exchange.

Ou Guansheng also said before that the Hong Kong stock IPO market is showing signs of gradual recovery. Not long ago, he visited the Middle East and other places. Local investors have shown great interest in Chinese investment. Many sovereign wealth funds in the Middle East are actively investing in the A-share and Hong Kong stock markets.

It can be seen from many phenomena that the “play” of Middle Eastern capital in the Hong Kong stock market is continuing to increase, and the industries and trends it deploys deserve investors to keep close track.

[The thermal power chain bucked the trend and the market is waiting for data to catalyze it]

In addition to software stocks, the thermal power chain also bucked the trend today. The coal sector has rebounded significantly, and power stocks have continued to rise in recent days.

The coal sector led the gains in stocks today

In terms of news, last week the State Council issued the “Action Plan for Continuous Improvement of Air Quality”, which mentioned vigorously developing new and clean energy. By 2025, the proportion of non-fossil energy consumption will reach about 20%, and electric energy will account for about 30% of final energy consumption. Continue to increase the production and supply of natural gas, and give priority to new natural gas to ensure residents’ living and clean heating needs.

The power sector led the gains in stocks today

In addition, the electricity consumption data of the whole society in November will be released this week, which does not rule out the possibility of some funds being raised in advance and waiting for the news to drive the situation.