On the first day of the week, the Hong Kong market saw the Hang Seng Index, composed of 82 major stocks, drop by 247.15 points (1.46%) from the previous business day to 16,698.36 points, while the China Mainland Stock Index (formerly known as the H Share Index), composed of mainland companies’ stocks, fell 98.21 points (1.64%) to 5,876.64 points for the third consecutive day. The Hang Seng Index has fallen to its lowest level in about three and a half months since April 22. The trading volume expanded to HKD 135 billion and 14.6 million (HKD 100.5 billion and 2 million on the second day).
The unclear domestic and international environment chilled investors' morale. China's weak domestic demand is a concern, and the US economic insecurity is also negative. The US employment statistics for July, which were announced last weekend, were weaker than expected, and the US economy is facing a recession. In addition, WTI crude oil futures on the 2nd fell 3.7%, and temporarily hit their lowest point in about two months, which was also unfavorable for related stocks. Although there were scenes in which the index reduced its decline before the morning session closed, ultimately, the momentum of the decline increased again by the close. (Edited by Asia Research Group)
In the constituent stocks of the Hang Seng Index, declines in oil and coal were prominent. CNOOC Limited (883/HK) fell 6.4%, PetroChina Co., Ltd. (857/HK) fell 5.4%, and China Shenhua Energy Co., Ltd. (1088/HK) fell 3.9% to the closing price.
The automobile sector was also down. Brilliance China Automotive Holdings Limited (1114/HK) fell 4.6%, Zhejiang Zero Point Technology Co., Ltd. (9863/HK) fell 3.9%, Great Wall Motor Co., Ltd. (2333/HK) fell 3.1%, and NIO Limited (9866/HK) fell 3.0% each.
A group of smartphone component and assembly stocks were also sold. GoerTek Inc. (1478/HK) fell 8.9%, AAC Technologies Holdings Inc. (2018/HK) fell 6.4%, Sunny Optical Technology (Group) Company Limited (2382/HK) fell 5.7%, Cowell e Holdings Inc. (1415/HK) fell 5.6%, FIH Mobile Limited (2038/HK) fell 8.8%, and BYD Electronic International Co., Ltd. (285/HK) fell 5.5%.
China's banking sector was also lackluster. Bank of China Limited (3988/HK) fell 3.5%, Agricultural Bank of China Limited (1288/HK) fell 3.1%, Industrial and Commercial Bank of China Limited (1398/HK) fell 2.3%, and China Construction Bank Corporation (939/HK) fell 1.7%.
On the other hand, the real estate sector in Hong Kong was high. The Wharf (Holdings) Limited (1997/HK) increased by 6.2%, New World Development Company Limited (17/HK) increased by 5.3%, Sun Hung Kai Properties Limited (16/HK) increased by 3.9%, and Cheung Kong Property Holdings Limited (1113/HK) increased by 2.8% each.
On the other hand, the Mainland Chinese market fell for three consecutive days. The Shanghai Composite Index, the leading indicator, ended trading at 2,860.70 points, down 1.54% from the previous business day. Energy stocks were down. High-tech stocks, material stocks, banking stocks, real estate stocks, public utility stocks, infrastructure-related stocks, automobile stocks, and others were also sold. On the other hand, brewing stocks are high. Air transport stocks and insurance stocks were also bought.
Asia Research Co., Ltd.