Investment 21/8/2023

Negative news about China's macro economy is endless. Even if the authorities continue to take measures to maintain stability, the HSI paid for the bill last week and fell by more than 1,000 points, and the 18,000 point level was even breached. The HSI may open 145 points lower today, reaching as low as 17,806 points. 

Last Friday, Hong Kong stocks were mainly worried that US interest rates had not peaked. Coupled with the emergence of bad news from the real estate and medical industries, and the intensified decline in the RMB, the HSI opened 117 points lower and reported at 18,208 points. At 9 o'clock, it reached a high of 18,336 points. However, the selling pressure reappeared later, and fell below the 18,000-point mark, reaching as low as 17,936 points, down 390 points, and finally closed at 17,950 points, down 375 points. The wave fell, with a cumulative loss of 1,297 points, and a daily high and low volatility of 399 points, hitting a low of more than 8 months, and it was the first time this year that the market closed below 18,000 points. The HS Tech index narrowly guarded the 4,000-point mark and closed down 150 points at 4,007. Market turnover was HK$106.4 billion , down nearly 5.8% on a daily basis. 

In one week, the HSI fell by 1,124 points, falling for 3 consecutive weeks; the HS Tech index fell by 265 points, falling for 2 consecutive weeks. 

The technical indicators of the HSI are very poor. Last week, there was a death cross between the 10-DMA line and the 50-DMA, downside target is 16,198 points, which is obviously at a disadvantage. Even if there is a technical rebound, the 10-DMA (18,825) will also show resistance. It is expected that the chance of falling after the bounce is high, and the bottoming trend should not be over.

European stocks continued to suffer, with British, French and German stock markets falling 0.65%, 0.38% and 0.65% respectively.

The market is increasingly worried about China's economic risks, and is also worried about the continued high level of interest rates. U.S. stocks developed individually on Friday. After the Dow opened 106 points lower, the decline expanded to 211 points, and the lowest reached 34,263 points; 34,587 points. The S&P 500 fell as much as 0.8 percent at one point. The Nasdaq, which is dominated by technology stocks, fell for the fourth consecutive trading day, with a continuous loss of 1.17% at most, and the closing decline tended to be moderate.

The U.S. stock market closed :  The Dow rose 25 points to 34,500; the S&P 500 dropped less than 1 point to 4,369; the Nasdaq narrowed its losses to 26 points to 13,290.