It may be possible to compete for pricing power in Hong Kong again

Hong Kong stock liquidity now awkward to dig a hole to put yourself in. Although it was not very high in the past, at least it rose a lot last year, which was acceptable. Now, on the contrary, the market has been tightened and tightened, with funds from inside reluctant to come out and those from outside trying to come in but afraid to come in.

Hong Kong stocks can also have a look, I wrote a post before, the game within the United States and Kuaishou new low, results today kuaishou has been very close to a new low, the United States is almost. How bad is the liquidity of Hong Kong stocks? Today's trading volume is 90 billion Hong Kong dollars, which is not more than tesla's overnight trading volume. It is absurd that the volume of a single stock in a single market is smaller than that of an American stock. However, this is the norm for a long time, so now the decline of Hong Kong stocks, on the one hand, is to kill valuation, on the other hand is the so-called lack of liquidity.

If you are caused by a lack of liquidity under is not very understanding, can see the stocks when fusing outbreak last year, all asset prices have fallen sharply, the reason behind is that no money is willing to flange, and run the money pot, caused the crash down, sometimes, the decline was caused panic selling of emergency stocks fuse is a typical example. Another situation is that the market transaction is bleak, no trading volume, the current Hong Kong stocks is such A situation, 2 o 'clock in the afternoon to see today's Meituan transaction of 2 billion Hong Kong dollars, this transaction volume is not A shares of the demon shares active.

Before the typical liquidity crisis, such as the gem in 2018, the lowest point was 1100 points, now it has 3300 points, then is also a liquidity problem.

So now if you want to ask about the undervaluation of Hong Kong stocks, in fact, it has begun to become undervalued, but if the liquidity problem can not be solved, it is difficult to raise the valuation, maybe we can wait for the next time domestic capital to seize the pricing power.

Recently, Hong Kong stocks are mostly down, some stocks are still resisting, but the feeling is not significant. When can we form a rebound, I think we need to wait for the mood to improve, although a lot of funds are bottom-fishing, but most of them are small funds, or even big funds, it is very difficult to see, so, we are very panic, not long consistency. My bottom you dish I screwed up, and then you see the bedding bag, can't lie flat are all moving, saw fell in a few days I may be in bottom, fall as a result, I also caught, rather then continued to fall, loss too much, l need a lot of money, because there is no clear reversal signal appeared at the same time, a lot of money is short play wild off.

Have to say, this time to do bottom-fishing action far more than the beginning of the year to seize the mighty pricing power meaningful. A lot of things change, valuations change, liquidity changes, earnings change, people change, but the idea of making money is hard to change. With the ongoing issuance of current public funds, the liquidity spillover of A-shares is likely to continue in the future, as was typical at the beginning of the year, when Hong Kong stocks were touted as cheap, only to find themselves lower now.

Even Tencent can continue to rise 10%, did the fundamentals change at that time, in fact, there is a lot of short-term capital influx. But unsustainable liquidity is unlikely to lead to sustained valuation improvement.

Bottom or on the sidelines, the problem of this test is very soul, if you can accept this position fell another 50%, then the bottom should be no big problem, the best choice, may also be tencent and group, in an extremely dry up market liquidity, want to buy to buy the highest liquidity, such as tencent Meituan, other really interest. You shouldn't buy it at all. But clearly can buy Hong Kong stocks, many people can buy American stocks, why not go to a place with better liquidity to group, such as Hong Kong stocks have the opportunity to go back.

Take the typical tencent, follow-up if will invest in various industries continue to sell, no longer keep the cage position, so there is some future, at least for now, even if liquid such as class A shares, superior to that of the tencent company didn't have A lot of, the valuation is lower than tencent company many, but the valuation is lower than tencent but performance better seems to be few.

Take the continuously soaring scale of public funds for example, as more people buy equity assets, the scale may continue to form a positive feedback effect, but with more money, there are only so many high-quality assets, liquidity spillover is likely to occur again.