Investment 17/1/2024

The Hong Kong stock market opened 186 points lower and repeatedly searched for the bottom. Before noon, it finally fell below the 16,000 point mark. In the afternoon, it fell as much as 381 points, reaching a low of 15,834 points, a new low since early November 2022. It closed at 15,865 points, down 350 points or 2.16%.  The Hang Seng Index entered 2024 with a total loss of 1,181 points, a decrease of 6.92%. The technology index closed at 3,325 points, down 78 points or 2.29%. The main board's total daily turnover was HK$84.4 billion. 

The market is looking forward to the mainland's introduction of measures to stimulate the economy, but no relevant news has been released yet. The Hong Kong economy is also facing difficulties, which affects investors' willingness to enter the market. In addition, the U.S. stock market has already accumulated a lot of gains in the past, and there is pressure for adjustment in the short term, which may further drag down the performance of Hong Kong stocks. In addition, the recent trading volume of the market has continued to be weak, reflecting that the market bottom is quite weak. Due to multiple factors, it is difficult for Hong Kong stocks to have high hopes before the Lunar New Year. , the Hang Seng Index has a chance to fall back to the pre-return level (15,196), and may even test the low of 14,597 points last year again, which means that the Hong Kong stock market will once again see a price-to-earnings ratio of 7.3 times. 

It is rumored that the central government has taken action and decided to ask mainland banks to do their best to save mainland property stocks to avoid collapse. Ping An Bank will take the lead in listing 41 companies as real estate developers eligible for financing, including Longfor (0960), Vanke (2202), New World (0017) and SHKP (0016), etc. 

European stock markets were soft, with British, French and German stock markets falling 0.48%, 0.18% and 0.3% respectively. 

Officials from the International Monetary Fund (IMF) and the European Central Bank have successively poured cold water on market expectations of interest rate cuts. U.S. bond interest rates and the U.S. dollar have both risen. U.S. stocks have been under pressure since they resumed trading after the holidays. The Dow opened 99 points lower and then fell further, falling by as much as 391 points. , as low as 37,201 points, narrowing its losses at the close; the S&P 500 once fell 0.77%, and the Nasdaq, which is dominated by technology stocks, once fell 0.73%, and then performed repeatedly. 

At the close of the U.S. market, the Dow still fell 231 points, or 0.62%, to 37,361 points; the S&P Index fell 17 points, or 0.37%, to 4,765 points; the Nasdaq fell back 28 points, or 0.19%, to 14,944 points.

 The U.S. dollar index rose 1% to 103.43, the strongest in a month; the yen fell as much as 1.07% to 147.31 per dollar; the pound once fell 0.85% to as low as $1.2619; the euro fell 0.79% to $1.0863.