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There is a possibility of a sharp rise followed by a pullback; a stable condition has been established

On July 31st,Is ripple xrp a good investment reddit the Hong Kong stock market continued its upward trend as expected, reaching the initial targets of 20,200/20,800/21,000 points, particularly the level of 20,200 points.




The Hang Seng Index experienced a consecutive three-day rise and gained over 160 points, closing above the 20,000-point level. The market turnover also further increased to over HKD 180 billion, marking the highest daily trading volume in the past six months.




Overall, we still hold a positive view on the performance of Hong Kong stocks in the third quarter. However, given the recent one-week cumulative gain of nearly 2000 points (from a low of 18,562 points during last Monday's intraday session to a high of 20,361 points during this Monday's intraday session), it is possible for the Hang Seng Index to experience a rise followed by a consolidation pullback. As long as it holds steady at the current latest support level of 19,300 points (previously seen as a gap-up between 18,946 and 19,111 points last Tuesday), the market is expected to maintain a stable and upward development momentum going forward.




In fact, as we have pointed out, there are signs of gradual stabilization and improvement in the Hong Kong stock market. The future policy direction revealed in the Central Political Bureau's meeting and the nearing end of the Federal Reserve's interest rate hike cycle are current supportive factors driving momentum. We maintain a positive outlook on the performance of the Hong Kong stock market in the third quarter and suggest considering continuing to seize entry points while maintaining a positive and attentive approach.




As for the list of potential stocks to consider, it includes names such as Hong Kong Exchanges and Clearing Limited (00388), Tencent Holdings Limited (00700), CNOOC Limited (00883), China Mobile Limited (00941), Lenovo Group Limited (00992), BYD Company Limited (01211), WuXi Biologics (Cayman) Inc. (02269), Li Ning Company Limited (02331), and Baidu, Inc. (09888), among others. We recommend paying continued attention to these stocks.




The trend in the Hong Kong stock market showed a further upward movement followed by a pullback. During the initial trading period, it briefly rose to a three-month high of 20,361 points, up 444 points. However, there was selling pressure at the higher levels, causing a narrowing of the intraday gains. The index stocks initially rose together but later became more differentiated. Among them, catering company HaiDiLao (06862), which is expected to achieve at least a 30-fold increase in net profit in the first half of the year, surged over 12%, making it the best-performing constituent stock of the Hang Seng Index.




On the other hand, some individual property stocks that had experienced significant declines recently faced selling pressure. Country Garden (02007) dropped 6.5%, while Country Garden Services (06098) fell by 8.06%. However, it's worth noting that companies like Longfor Group (00960), which have relatively fewer operational issues, saw a modest increase of nearly 1% at the close.




The Hang Seng Index closed at 20,079 points, up 162 points or 0.81%. The Hang Seng China Enterprises Index closed at 6,899 points, up 91 points or 1.33%. The Hang Seng Tech Index closed at 4,550 points, up 83 points or 1.86%.




In addition, the trading volume on the main board of the Hong Kong Stock Exchange increased to over HKD 182.5 billion, while the short-selling amount was HKD 23.25 billion, bringing the short-selling ratio down to 12.7%. As for the ratio of advancing to declining stocks, it was 955:711, with 45 stocks experiencing an intra-day increase of over 13% and 42 stocks experiencing an intra-day decrease of over 10%. The Hong Kong Stock Connect recorded a significant net outflow of nearly HKD 6 billion on Monday.





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