Today's Hong Kong stocks are also a day of sad clouds and mist.
On Friday, March 11, Hong Kong's Hang Seng Index opened low and fell more than 4% at one point, while the Hang Seng Technology Index fell more than 8%, the largest decline on record.
Despite a rebound in the afternoon, the Hang Seng Index eventually closed down 1.61% at 20,553.79 points, while the Hang Seng Technology Index closed down 4.28% at 4246.97 points.
On the surface, the performance of technology stocks is still miserable: JD.com once fell more than 18% intraday, and finally closed down 11%; Bilibili fell more than 10%, Kuaishou and Meituan fell more than 6%, Ali fell 5.5%, and Tencent fell 4.47%.
Why is the Hong Kong Stock Internet Leader "bleeding non-stop"?
It all has to do with the overnight across-the-board slump in U.S. stocks, which was the root cause of the avalanche in U.S. stocks, which was the "scheduled delisting list" released by the U.S. Securities and Exchange Commission (SEC) on Thursday.
Recently, the SEC identified five U.S.-listed companies as "relevant issuers" at risk of delisting under the Foreign Companies Accountability Act, namely BeiGene, Yum China, Zaiding Pharmaceutical, ShengMei Semiconductor and Hehuang Pharmaceutical. The five companies could provide evidence to the SEC by March 29 that they were not eligible for delisting. If it cannot be proved, it will be included in the "Confirmed Delisting List".
In this regard, the China Securities Regulatory Commission responded urgently in the middle of the night, saying:
This is a normal step for U.S. regulators to enforce the Foreign Companies Accountability Act and related implementing rules. We have made our position on the implementation of the Foreign Companies Accountability Act on many occasions before.
We respect the supervision of relevant accounting firms by foreign regulatory authorities in order to improve the quality of financial information of listed companies, but we resolutely oppose the erroneous practices of some forces to politicize securities supervision.
We have always adhered to the spirit of openness and cooperation, and are willing to solve the problem of inspection and investigation of relevant firms by US regulatory authorities through regulatory cooperation, which is also in line with international practice.
At the same time, the above five companies have also announced and explained before the Hong Kong stock market, saying that being temporarily identified does not mean that the company will be directly delisted, and the relevant communication work is underway.
Despite this, the market's pessimism about Chinese stocks can not be suppressed for a while, directly giving two critical blows to China in the United States and China in Hong Kong.
Is there any hope for Hong Kong stocks?
Since the beginning of this week, the Hong Kong stock market has been cloudy, and only a glimmer of light was revealed on Wednesday.
Looking at the performance of the five trading days this week, the Hang Seng Index fell by more than 6%, and the Hang Seng Technology Index has fallen by more than 10%.
Among them, JD.com and Bilibili fell by more than 19%, Meituan fell by 17.84%, Tencent and Ali both fell by more than 8%, and Kuaishou fell by nearly 10%.
In the new energy vehicle sector, Xiaopeng Automobile fell more than 9% this week, Ideal Automobile fell slightly by 0.29%, and Weilai, which has just returned to Hong Kong for listing, fell 8.5% in two days.
According to Wall Street news articles, some analysts said that after a new round of adjustment, the maximum adjustment of the Hang Seng Technology Index from last year's high has exceeded 60%, and the maximum adjustment of many stocks from last year's high has exceeded 70%.
Is there a future for such Hong Kong stocks? Brokers still have confidence in Hong Kong stocks!
SPDB International believes that although there are many negative factors overseas, the Hong Kong stock market has sent a rare signal that deserves investors' high attention:
1) Technical: The Hang Seng Index has touched the long-term support of the 250-month moving average for the first time in 30 years, and the current high retracement is close to 2018;
2) Capital level: The current outflow of Hong Kong stocks is comparable to that of the 2008 financial crisis, second only to the outflow during the Asian financial crisis in 1998;
3) Position surface: Hong Kong stocks short selling positions are at a historical high, market sentiment has dropped to the freezing point, market sentiment is extremely pessimistic, and the space for Hong Kong stocks to continue to sell short is limited.
CICC also sees that due to multiple factors, the market valuation has experienced a significant correction, and at present, the valuation of Hong Kong stocks is at an extremely low level in history. Although valuations have limited significance for short-term market trends, the attractiveness of long-term valuations in the market has further increased after the recent correction.
At the time of the violent and deep decline of Hong Kong stocks, some institutions are optimistic that this is an opportunity for the valuation of technology stocks to build a bottom!
Cinda Securities said that Hong Kong stocks have always been more sensitive to geopolitical risks, funds due to risk aversion briefly withdrawn from the Hong Kong stock market, combined with the historical situation, it can be expected that after the end of the conflict, the global market, including Hong Kong stocks, will most likely pick up emotions and repair the decline caused by geopolitical conflicts.