The reason for the sharp decline in Hong Kong stocks!
$Tesla (TSLA.US)$ $TENCENT (00700.HK)$ This week, Hong Kong stocks continued the volatile trend of last week. They jumped low on Monday to hit a low of 21086 points in the current round, then rebounded weakly. Although a counterattack was launched on Thursday, they were suppressed again on Friday.
The Hang Seng Index plummeted 2% on Friday, and the Hang Seng Technology Index plummeted 4.58%, falling below the 4,400 mark, retreating nearly 10% from its high point. Fortunately, there was no significant increase in volume.
The trigger for the Hong Kong stock market dive on Friday was due to another incident on the US side. The “New York Times” said that the US government plans to implement new regulations to restrict US companies from providing capital to Chinese companies developing advanced technology. This was a precise attack on TechNet stocks. Affected by this news, Hong Kong stock technology stocks fell in a straight line.
The low opening of Hong Kong stocks on Friday was originally dragged down by the fall in US stocks last night. On the US side, Tesla's stock price surpassed 200 US dollars. After doubling from this year's low, I feel that this round of recovery in US stocks has come to an end. Moreover, the US faces the dilemma of not being able to reduce inflation without raising interest rates this year, and raising interest rates may also lead to a recession.
Currently, the 2-year US Treasury yield is 4.49%, and the 10-year Treasury yield is 3.69%. The yield on long and short treasury bonds has hit the biggest inversion in 40 years. This is generally seen as a sign of a recession in the short term.
Having analyzed so many external factors, I think the direct reason is that the favorable expectations of the liberalization of the epidemic have all been released. They want to run away when they rise a lot, and profits fall out of pocket.
Judging from recent trends, Hong Kong stocks are likely to consolidate and digest between 20,000 points and 22,000 points, mainly structured markets. The next catalyst is the amount of domestic social finance and the Federal Reserve's policy shift. The timing may be around the second quarter $Hang Seng TECH Index (800700.HK)$
The Hang Seng Index plummeted 2% on Friday, and the Hang Seng Technology Index plummeted 4.58%, falling below the 4,400 mark, retreating nearly 10% from its high point. Fortunately, there was no significant increase in volume.
The trigger for the Hong Kong stock market dive on Friday was due to another incident on the US side. The “New York Times” said that the US government plans to implement new regulations to restrict US companies from providing capital to Chinese companies developing advanced technology. This was a precise attack on TechNet stocks. Affected by this news, Hong Kong stock technology stocks fell in a straight line.
The low opening of Hong Kong stocks on Friday was originally dragged down by the fall in US stocks last night. On the US side, Tesla's stock price surpassed 200 US dollars. After doubling from this year's low, I feel that this round of recovery in US stocks has come to an end. Moreover, the US faces the dilemma of not being able to reduce inflation without raising interest rates this year, and raising interest rates may also lead to a recession.
Currently, the 2-year US Treasury yield is 4.49%, and the 10-year Treasury yield is 3.69%. The yield on long and short treasury bonds has hit the biggest inversion in 40 years. This is generally seen as a sign of a recession in the short term.
Having analyzed so many external factors, I think the direct reason is that the favorable expectations of the liberalization of the epidemic have all been released. They want to run away when they rise a lot, and profits fall out of pocket.
Judging from recent trends, Hong Kong stocks are likely to consolidate and digest between 20,000 points and 22,000 points, mainly structured markets. The next catalyst is the amount of domestic social finance and the Federal Reserve's policy shift. The timing may be around the second quarter $Hang Seng TECH Index (800700.HK)$
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