Jinwu Financial News | The Hang Seng Index closed at 17113 on Wednesday (14th), down 60 points or 0.35%. The market traded 68 billion yuan a day. The national index fell 24 points, or 0.4%, to 6025. The index fell 33 points, or 1%, to 3395. Tencent (00700), which announced its interim results after closing, was dragged down by the sharp drop of Tencent Music (01698). Tencent fell 1.3%; Tencent Music closed down 18.1%. After closing, Tencent announced that in non-IFRS terms, the profit for the first half of the year was RMB 107.578 billion, an increase of 53% year-on-year.

The Dow closed at 4,008 points on Wednesday (14th), up 242 points, or 0.61%. The index rose 0.38% to 5,455 points for 5 consecutive trading days; the NASDAQ rose 0.03% to 17,192 points. European stocks remained stable, with British, French and German stocks rising by 0.56%, 0.79% and 0.41%, respectively. In terms of individual stock performance, Google's parent company Alphabet is rumored to have been torn down at the request of the US Department of Justice, and the stock price fell 2.3%; Nvidia (Nvidia) rose 1.6%. American Express jumped 2%, and Goldman Sachs and J.P. Morgan Chase both climbed more than 1% as the strongest performing Dow constituents. American food company Kellanova was acquired by candy giant Mars, and the stock price rose 7.7%; Swiss banks performed well, and the stock price rose 5.3%. The Asia-Pacific stock market moved individually this morning (15th). The Nikkei 225 Index now reports 36,587 points, up 144 points, or 0.4%. The South Korea Composite Index now stands at 2,644 points, up 23 points, or 0.88%. Mainland data is weak, and the trend of Hong Kong stocks is weak and contentious.

(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)

Market Focus: China Telecom (00728)

The number of mobile users of China Telecom reached 416.85 million in June of this year, with a net increase of 1.47 million users in the month, and a cumulative net increase of 9.08 million users in the year. Among them, the number of 5G package users was 336.63 million, and the cumulative net increase in the number of users over the year was 17.97 million. Among them, the number of cable broadband users was 193.35 million, with a cumulative net increase of 3.19 million subscribers over the year. The Group's operating data for January-June of this year is good, and the Group's profit for the second quarter is expected to be steady. In recent years, China has actively promoted digital transformation, and the Group has been strengthening the investment and long-term development potential of the digital business. In addition, the Group has clear dividend rate targets and a stable business and profit growth mix, which is worth holding online.

Target price is $4.8, stop loss price is $3.9.

(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)

Author: Dr. Tang Sheng-hing, Chairman of the Hong Kong Association of Equities Analysts