Understanding the Market | Hengke Index declines by more than 4%, Hua Hong Semiconductor falls nearly 8%, Alibaba-W drops over 5%
The Hengke Index's decline has expanded by over 4%, with BYD ELECTRONIC down 8.86%, HUA HONG SEMI down 7.73%, and Alibaba-W down 5.02%. Affected by the regional bank credit crisis, the Asia-Pacific stock markets have generally fallen. Analysts believe that the recent trade environment is unfavorable for valuations, and the significant decline in U.S. stocks has a notable impact on global markets. Despite the risks, liquidity in the Hong Kong stock market has improved, and the structural recovery of profits has become the main driving force. It is expected that the profit growth rate of Chinese stock indices will reach double digits next year
According to Zhitong Finance APP, the Hengke Index's decline expanded by over 4% towards the end of trading. As of the time of publication, among the constituent stocks, BYD ELECTRONIC (00285) fell by 8.86% to HKD 37.46; HUA HONG SEMI (01347) dropped by 7.73% to HKD 75.15; Alibaba-W (09988) decreased by 5.02% to HKD 153.1; Tencent (00700) fell by 2.42% to HKD 605.
On the news front, the regional bank credit crisis has intensified, dragging down U.S. stocks overnight, leading to widespread declines in the Asia-Pacific stock markets today. Reports indicate that two regional banks in the U.S. recently disclosed loan issues, with cumulative potential losses reaching tens of millions of dollars, raising concerns in the market about the further deterioration of bank credit quality and asset transparency. Analysts believe that the recent trade environment is unfavorable for valuation development, and many individual stocks that had previously seen significant gains are now facing valuation correction issues; additionally, the regional bank events in the U.S. have led to a sharp drop in U.S. stocks, significantly impacting global markets, with expectations of a repeat of the Silicon Valley Bank incident.
Eddie Wu Securities pointed out that although trade disputes have led to some risk-sensitive funds exiting, the overall stability logic of the Hong Kong stock market is now different. The continuous inflow of southbound funds and the anticipated interest rate cuts by the Federal Reserve have significantly improved the liquidity of the Hong Kong stock market. Furthermore, the structural rebound in earnings has become a major driving force for the Hong Kong stock market, with market expectations that the profit growth rate of Chinese stock indices will reach double digits next year
