Investment 4/7/2023

The Hong Kong stock market ushered in a big rebound in the second half of the year. The HSI opened 86 points higher and recovered the 19,000-mark. After that, it continued to climb. In the late market, it soared up to 455 points, reaching a high of 19,371 points, and closing at 19,306 points, an increase of 390 points. The HS Technology Index regained the 4,000-point barrier and closed att 4,054 points, up 143 points. The full-day turnover of the main board was HK$88.7 billion , an increase of 10.6% from the previous day, and it was the most after June 27. 

The HSI broke through last week’s horizontal zone (18,800 to 19,200) with a large white candle yesterday, and re-exceeded the 10-DMA(19,190). Unfortunately, the 20-DMA(19,312) was lost again. But it is expected to break through the 20-DMA today, or even the not-too-distant 50-DMA(19,458) and the 250-DMA(19,475), which is the boundary between bulls and bears. It is expected that the HSI will have a chance to test the 20,000 mark in July, and the lower support level is 18,800 points. 

Caixin China’s manufacturing PMI fell back to 50.5 in June, still above the critical point, and the offshore renminbi also stabilized. In addition, the market looks forward to the introduction of policies and measures to stimulate the economy in the Mainland from July to August. The July meeting of the Political Bureau of the Central Committee will be the focus of the market, which will focus on the deployment of economic work in the second half of this year. The market expects the Federal Reserve to raise interest rates this year, causing the US dollar index to fall. In addition, US Treasury Secretary Yellen's visit to China this week, the market looks forward to improving Sino-US relations, which has a positive effect on Hong Kong stocks. 

European stocks rose first and then retreated. British, French and German stock markets dropped slightly by 0.06%, 0.18% and 0.41% respectively. 

Tuesday is the Independence Day holiday in the United States, and the U.S. stock market will be closed. On Monday, there will be only half a day of trading. Poor manufacturing data has exacerbated concerns about economic recession. After the Dow opened 37 points lower, the decline once extended to 121 points, reaching a low of 34,286, and then repeated On the upside, the half-day closed at 34,418, up 10 points; the S&P 500 index closed at 4,455, up 5 points; the Nasdaq closed at 13,816, gaining 28 points.