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The market fell sharply on the first trading day of 2024.
The Hong Kong market opened slightly higher on Tuesday. Hang Seng index opened up 88 points, H share index up 37 points and technology index up 39 points. Tencent rose 2.2% for 28-...
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The market fell sharply on the first trading day of 2024.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened slightly higher on Tuesday. Hang Seng index opened up 88 points, H share index up 37 points and technology index up 39 points. Tencent rose 2.2% for 28-point gain. Alibaba rose 0.66% for 10-point gain. HSBC rose 0.73% for 10-point gain. Meituan rose 1% for 8-point gain. Netease rose 4.2% to lead the blue chips. Wuxi Biologics lost 2.87% to lead the losers. Shanghai composite index opened down 2 points. The market turned from gain to loss after opening. Hang Seng index lost more than 200 points. Alibaba lost 1.6% for 22-point loss. AIA lost 3.1% for 38-point loss. Li Auto lost 6.4% for 20-point loss. Nio lost 6%. BYD lost 2.9%. Meituan lost 2.3% for 18-point loss. Ping An lost 3.9% for 15-point loss. HK Exchanges lost 2.6% for 14-point loss. Retail stocks fell. CR Beer lost 7% to become the top loser. Budweiser lost 4.4%. Tsing Tao Beer lost 4%. Lining lost 4.1%. Mengniu lost 4%. Anta Sports lost 2.5%. Haidilao lost 1.9%. Mainland developers fell. Longfor lost 5.6%. CR Land lost 5.36%. China Overseas Land lost 3.9%. Evergrande China lost 5.1%. On the contrary, online game shares rose as Chinese Government voiced support for locally developed online games. Tencent rose 2.1% for 26-point gain. Netease rose 4.6% for 7-point gain. Shanghai composite index closed the morning down 6 points. Hang Seng index fell to a low of 16754 points, down 293 points and closed the morning down 246 points, H share index down 92 points and technology index down 46 points. Turnover was $42.6 billion.

The market fell further in the afternoon. Hang Seng index lost 300 points. Financial and technology stocks led the fall. AIA lost 3.6% for 45-point loss. Meituan lost 3.5% for 27-point loss. Alibaba lost 1.45% for 20-point loss. Li Auto lost 6.2% for 20-point loss. CCB lost 2.58% for 20-point loss. HK Exchanges lost 2.6% for 14-point loss. On the other hand, Chinese officials expressed support for local online games. Online game shares rose against the market. Tencent rose 1% for 13-point gain. Netease rose 4.5% for 7-point gain. CMGE rose 1.5%. Auto shares followed Li Auto lower. BYD lost 2.43%. Nio lost 6.3%. Leap Motor lost 5.5%. Geely lost 2.7%. China’s sales of smartphone rose 34% on a year-to-year basis in November, 2023. However, handset suppliers fell. Sunny Optical lost 5.2.%. AAC lost 2.6%. Q-Tech lost 6%. Foxconn lost 3.3%. Macau December gaming income soared 4.3 times from 2022. Sands rose 5%. Galaxy rose 1.4%. Wynn rose 1.9%. Coal miners rose. China Shenhua rose 2.43%. China Coal rose 4.4%. Yankuang rose 3.7%. Shanghai composite index closed down 13 points. Hang Seng index reached a low of 16725, down 322 points and closed down points. H share index closed down points and technology index down points. Turnover was $ billion.

Overnight, overseas markets were mixed. DAX rose 17 points but both CAC and FTSE lost 12 points. Dow Jones set record high again and closed up 25 points, but S & P lost 27 points. Apple fell 4% to drag down Nasdaq which lost 245 points. Hong Kong ADR’s lost 131 points. Night future lost 175 points. We expect the market to fall today.
 
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