Keep up with market news and trends on East Money, and choose East Money Securities for a one-stop account opening and trading service.
The Hong Kong stock market is experiencing rapid changes! This morning, the market saw increased volatility, with significant drops early on, but these were quickly reversed. On the trading front, there were several unexpected developments. Firstly, Meituan saw a reduction in holdings. According to the latest disclosure from the Stock Exchange, Meituan co-founder, executive director, and senior vice president Mu Rongjun sold 2 million shares at 171.
The FTSE A50 futures night session initially fell by 2%, but later closed down by 0.41% at 14,928.00 points. Notably, RONDHL CHINA ETF (DRAG) closed down by 0.63% on its first day of trading in the United States. Analysts believe that the current volatility may be the true beginning of a reversal. Firstly, there is still a significant amount of overseas capital that needs to establish positions, but they are also waiting for a correction opportunity; secondly, extreme emotional exuberance is obviously not sustainable, which is common sense; thirdly, without fundamental support, the stock market, after rapid bubble formation, will most likely end in chaos. Therefore, this adjustment is also the beginning of a healthy and sustained rise.
From a market perspective, there are four sudden developments worth noting. The first is share reduction. According to the latest disclosure from the Stock Exchange, Meituan’s co-founder, executive director, and senior vice president, Mu Rongjun, reduced his holdings by 2 million shares at a price of 171.8055 yuan per share on September 30, cashing out approximately 344 million yuan. After the reduction, his stake decreased from 1. 06% to 1.02%, still holding about 56.312 million shares. In fact, recently, both Hong Kong and A-shares have seen an increase in share reduction announcements. Meituan’s stock fell nearly 4% in the morning, which may be the main force behind the Hang Seng Tech’s morning decline. The subsequent narrowing of the decline also shows that the market’s current support is still strong. The second is oil. Due to concerns about an escalation of conflict in the Middle East leading to supply disruptions, especially fears of Israel attacking Iran’s oil infrastructure, oil prices have risen for three consecutive days, marking the longest period since August. US oil prices once surged by 5.5%, approaching $74, while Brent oil closed up by 5%, breaking through $77, both reaching their highest levels in over four weeks. In today’s morning session, China Oil and Gas Holdings rose by 52.08%, Yanchang Petroleum International increased by 6.33%, China Offshore Oilfield Services rose by 2.71%, and China National Offshore Oil Corporation increased by 1.91%. If the situation continues to be tense, the oil and gas stocks that have been lagging behind may become the target of speculation when the A-shares open next week. The third is the real estate market. New World Development’s new project ‘Sky Palace’ in Kai Tak received over 29,000 for the first round of sales yesterday (3rd), with an estimated 204 units released at the initial price list, resulting in an oversubscription of more than 141 times. From some mainland reports, the ‘Golden September and Silver October’ has also heated up quickly, with Shenzhen once again seeing ‘daylight discs’. The fourth is a significant change in the pharmaceutical sector’s benchmark ‘WuXi AppTec’. The Financial Times cited sources stating that under the advancement of the US ‘Biosafety Act’, WuXi AppTec has sold its cell and gene therapy manufacturing division, WuXi Advanced Therapies, which operates four laboratories and production facilities in Philadelphia.Additionally, sources have revealed that WuXi Biologics is collaborating with consultants to evaluate market interest in some of its European production facilities. The stock prices of WuXi AppTec and WuXi Biologics continue to rise today. Ultimately, analyzing the overall market trend must focus on the securities sector, which has already become a bull market during the National Day holiday, and this sector is also a barometer for the bull market. It can be said that if this sector begins to consolidate, the adjustment will truly arrive. The A-share market is no different; if CITIC Securities and Orient Wealth show signs of fatigue, the market may be approaching a period that requires consolidation. Experience the new and innovative investment research assistant immediately. (Source: Securities Times)
