Investment 28/1/2025

Hong Kong stocks are traded on the futures settlement date. The Hang Seng Index opened 51 points higher at 20,118 points and continued to rise, rising 230 points to 20,296 points. It rose 131 points or 0.65% for the day to 20,197 points; the Technology Index rose 29 points or 0.63% to 4,687 points. The Main Board's turnover was HK$147.3 billion.

 The Sino-US trade tariffs are not as strong as previously expected. In addition, the mainland is actively promoting the entry of medium- and long-term funds into the market. The current investment atmosphere of Hong Kong stocks is good. If Sino-US relations continue to improve, the Hang Seng Index will likely challenge the 21,000 mark after the Lunar New Year. In an optimistic scenario, it may reach 22,700 in the future. The support below is at the 100-DMA (19,732).

 European stock markets developed individually, with British stocks closing slightly higher by 0.02%, while French and German stocks fell by 0.27% and 0.53% respectively.

 The popularity of DeepSeek, a large-scale artificial intelligence (AI) model in China, triggered market concerns about the overvaluation of global technology stocks. Major US technology companies plunged across the board, with Nvidia's stock price plummeting by 18.2% at one point, hitting a low of The stock price fell by 16.9% to $116.7 at the close of trading at $118.07, dragging the Nasdaq down by 3.76%.

 At the close of U.S. stocks, the Nasdaq still fell 3.07% to 19,341 points; the S&P 500 fell 2.27% and closed down 1.46% at 6,012 points. The Dow Jones Industrial Average opened 275 points lower and then fell as much as 397 points to a low of 44,026. It then rebounded by as much as 303 points to a high of 44,727 before closing at 44,713, still up 289 points or 0.65%.

 Many investors were surprised by the sudden emergence of DeepSeek. Since they had never heard of it before, some investors sold their stocks first and then found out the truth. DeepSeek actually uses a lot of chatGPT technology and 50,000 of Nvidia's most advanced GPU H100. The actual cost will not be too low. The Chinese authorities simply provided a lot of subsidies secretly under the surface. Even if China's artificial intelligence products are truly "high quality and low price", the information and secrets of users may be obtained by the Chinese authorities, and this is made by a group of people with restricted brains. Do those large multinational companies dare to use these things? There may be some setbacks in the short term, but if we look at the long term, everyone has confidence in Nvidia and TSMC.

 The US dollar index fell 0.44% to 106.969; the euro once rose 0.34% to $1.0533, and then softened. Traditional safe-haven currencies such as the Japanese yen and the Swiss franc were in high demand, with the yen hitting a five-week high of 153.72 against the U.S. dollar, up 1.46%, and the high of 5.0686 Hong Kong dollars per 100 yen.