Introducing the innovative investment research assistant, immediately experience the “Hong Kong stock market sudden change” topic that has surged to the top of Weibo’s hot search today. As of the midday closing, the Hang Seng Index fell by 3.12%, the Hang Seng China Enterprises Index fell by 3.44%, and the Hang Seng Tech Index fell by 5.19%. However, in the afternoon, the Hong Kong stock market began a “major counterattack,” with the declines of the three major indices quickly narrowing.
By the end of trading, the Hang Seng Index was down 1.47%, at 22,113.51 points; the Hang Seng China Enterprises Index was down 1.58%, at 7,914.16 points; and the Hang Seng Tech Index was down 3.46%, at 4,978.64 points. Concurrently, the FTSE China A50 Index futures turned red, having fallen nearly 2% during the session.In terms of sectors, real estate stocks exploded, with many individual stocks leading the gains within the sector. Tai United Holdings surged by 660%, Hengsheng Real Estate rose by over 166%, Langshi Green Management increased by 50%, and Guorui Life rose by over 45%. China-invested securities stocks followed the market’s recovery. The sector once rose by more than 5%, with Hongye Futures up by over 14%, Huatai Securities up by over 12%, China Merchants Securities up by over 6%, and China Galaxy up by over 3%.
Moreover, domestic bank stocks performed strongly. Shengjing Bank opened high and continued to rise, with intraday gains once exceeding 200%, and still closed significantly up by over 95%. Additionally, Jiangxi Bank rose by over 35%, Zhongyuan Bank by 20%, Gansu Bank by over 16%, and Harbin Bank by over 10%. Hong Kong stocks staged a V-shaped reversal this morning, with the Hang Seng Tech Index once plunging by 7%. Around 11:19 AM, Hong Kong stocks began to rebound, and by the midday closing, the Hang Seng Tech Index’s decline had narrowed to 5.19%. In the afternoon, Hong Kong stocks continued their upward trend, with the declines of the three major indices significantly narrowing. By the end of trading, the Hang Seng Index was down 1.47%, at 22,113.51 points; the Hang Seng China Enterprises Index was down 1.58%, at 7,914.16 points; and the Hang Seng Tech Index was down 3.46%, at 4,978.64 points. Meanwhile, the FTSE China A50 Index futures also turned from a decline to a gain. As of press time, the index futures were up 1.19%, at 15,010 points, having fallen nearly 2% earlier in the session. UBS Global Research stated that historically, October is one of the months when the Chinese stock market performs well, outperforming the monthly average by 1.5 percentage points. Due to improved market sentiment and lower positions, it is expected that the short-term momentum will continue until mid-October. China International Capital Corporation believes that after the recent rapid market rise, it is expected that the rapid valuation repair and short-term profit-taking funds will follow. Historically, it cannot be ruled out that the short-term upward slope will slow down or encounter setbacks, but considering the policy signals are still in the process of emerging, the current market uptrend is expected to continue.Sirui Group’s Chief Economist, Hong Hao, reiterated that the Chinese market is the most significant contrarian value investment opportunity this year. Many indicators on the market are historically high, such as the five-day increase and trading volume, reaching their highest levels ever. It is normal to see some pullbacks. Real estate stocks have surged today, with the sector halting its decline and leading the Hong Kong stock market.
By the close, the Hong Kong real estate sector’s single-day maximum increase exceeded 5%, closing up 3.81%. Multiple stocks within the sector were among the top gainers. Taihe Holdings rose by 660%, Hengsheng Real Estate by over 166%, Langshi Green Management by 50%, and Guorui Life by over 45%. Jingwei Group, Xintiandi Real Estate Group, and Vanke Overseas rose by over 20%, while Yutian China, Baoxin Land, Rongxin Services, Midland Group, and Rongtai Group increased by over 10%. Some analysts believe that the full-line pullback of Hong Kong real estate stocks in the morning is related to the realization of short-term profit-taking funds. In the past few days, some real estate stocks have risen sharply, accumulating a large amount of profit-taking positions, with speculative funds’ short-term profits far exceeding expectations, and the need to secure profits is strong. After a significant pullback in the morning, some Chinese brokerage stocks turned red, and domestic bank stocks performed strongly. Following the market’s clear rebound, the sector once rose by over 5% but ultimately closed slightly down by 0.17%. Within the sector, Hongye Futures rose by over 14%, Huatai Securities by over 12%, China Merchants Securities by over 6%, and China Galaxy by over 3%. Zhongtai Futures and Zhongzhou Securities rose by over 2%, and CITIC Construction Investment Securities edged up slightly. Around 2 pm, domestic bank stocks suddenly surged, with a sharp increase in the market, once rising by over 8%. By the close, the sector’s increase exceeded 6%. Among the constituent stocks, Shengjing Bank opened high and went higher, with a maximum increase of over 200% during the day. By the close, the bank’s stock still closed up by over 95%. In addition, Jiangxi Bank rose by over 35%, Central China Bank by 20%, Gansu Bank by over 16%, Harbin Bank by over 10%, Luzhou Bank by over 8%, Jincheng Bank by over 7%, Tianjin Bank by over 4%, China Merchants Bank by over 3%, Guangzhou Rural Commercial Bank by over 2%, and Huishang Bank by over 1%. (Source: Shanghai Securities News)