The Hang Seng Index hits a new short-term low, and short sellers are active. The concept of gaming and hotels has rebounded｜Hong Kong Stock Market Benchmark-Mobile Financial Industry

The Hang Seng Index hits a new short-term low, and short sellers are active. Gambling and hotel concepts have rebounded｜Hong Kong stock market weather vane

Feng Yi, Financial Associated Press

2023-12-01 19:34:51

Financial News Agency, December 1 (Editor Feng Yi) The Hong Kong stock market’s rise encountered resistance, and the three major indexes all fell. The Hang Seng Index closed down 1.25% and fell below the 17,000 point mark again, setting a new short-term low; the State-owned Enterprises Index fell 1.64%. The technology index closed down 1.76%.

Let’s take a look at the hot spots in today’s market. They include: heavyweight technology stocks fell across the board, and short-term short-term lows in the Hang Seng Index were active; positive data catalyzed the rebound of the concept of gambling hotels; and the short-term hot spots in education stocks diverged and flamed out one by one.

[Heavyweight technology stocks fell across the board and the Hang Seng Index reached a new short-term low and short positions were active]

On the market today, heavyweight technology stocks fell across the board. Meituan, Bilibili, and Xiaomi Group fell nearly 3%. Tencent, Baidu, Kuaishou, Alibaba, etc. were all in the green.

The news that Morgan Stanley downgraded Alibaba’s U.S. stock ADR rating received a lot of attention in the market today.

Morgan Stanley said in its report that Alibaba’s recovery was slower than expected and that its decision to suspend the spin-off of its Alibaba Cloud business “has created uncertainty about the value release from the restructuring. In addition, Morgan Stanley also Remove Alibaba from its A-share/Hong Kong stock watch list.

In terms of other hot spots, stocks generally followed the market downward today. Among them, Chinese real estate stocks fluctuated and fell, led by catering and automobiles. Consumer-related sectors such as the mobile phone industry chain and sporting goods suffered significant declines.

This week’s hot education stocks continued to perform, but there are also signs of differentiation. The main ones that performed well on the market were gaming and hotel concepts, some biopharmaceutical companies and the shipping sector.

Overall, bulls and bears have repeatedly competed for the Hang Seng Index’s 17,000-point mark. Today’s Hang Seng Index transaction volume was HK$114.2 billion, which has remained above HK$100 billion for three consecutive trading days.

Data disclosed by the Hong Kong Stock Exchange shows that a total of 614 Hong Kong stocks were short-sold on December 1, with a total short-selling amount of HK$12.753 billion. Judging from the proportion of short-selling funds, after the Hang Seng Index hit a new short-term low, the short-sellers did not “close at the first sign of good news”, which is worthy of investors’ continued tracking.

[Positive data catalyzes the rebound of the concept of gaming hotels]

Today, the gaming and hotel sectors are active against the trend, but judging from the individual stock prices, the upward momentum is not enthusiastic, and they are mainly rebounding.

According to the news, Macau’s gaming revenue in the first 11 months of 2023 was 164.492 billion patacas, a year-on-year increase of 3.25 times.

However, the market had previously been concerned about the strength of the mainland’s economic recovery and its potential impact on tourism demand, and its expectations for gaming stocks were relatively weak. The sustainability of the rebound in gaming stocks remains to be seen.

In addition, the strong performance announced today by hotel leader Huazhu Group also boosted the sector. In the third quarter, Huazhu Group’s revenue increased by 53.6% to 6.3 billion yuan, and its adjusted net profit EBITDA reached 2.2 billion yuan.

Other data show that the number of rooms in national chain hotels has also recovered to 109% of the same period in 2019. However, judging from operating data and store expansion data, the advantages of leading hotel groups continue, and chain hotels are further concentrated in the top.

[The market for education stocks is diverging and short-term hot spots are turning off one by one]

Today, education stocks, which have been rising continuously this week, continue to perform, but the market differentiation within the sector deserves investors’ attention.

In addition, the recently popular mobile phone industry chain, film and television, real estate and other sectors have all turned to adjustment again in the short term. Against the backdrop of the Hang Seng Index’s new lows, hot trends may diverge and dissipate, or the market sentiment may turn bearish, further dampening market expectations and worthy of investors’ attention.