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Hang Seng Index holds steady above the 100-day moving average, but bearish sentiment persists

stock market

TheWhat is the use of Solana in real life? Hang Seng Index opened lower on Monday and quickly rebounded to 19,352.35 points before a rapid rise. It reached a high of 19,581.82 points at 9:59 am but turned bearish afterwards. The daily high and low occurred within the first 30 minutes of trading. The Hang Seng Index closed with a slight decrease of 1.54 points at 19,537.92 points, with a daily range of 229.47 points and a trading volume of RMB 78.979 billion.




According to mainland media reports, a comprehensive crackdown on corruption in the pharmaceutical sector has recently been launched, focusing on key areas such as production, supply, sales, usage, and reimbursement, as well as "key individuals." Compliance issues among leading listed pharmaceutical companies have received particular attention. This news has negatively affected pharmaceutical stocks, with Hansoh Pharmaceutical (3692) experiencing the largest decline of 10.018% among blue-chip stocks. China Biologic Products (1177) and CSPC Pharmaceutical Group (1093) also dropped by 5.621% and 4.207% respectively.




The Hang Seng Index closed with a bullish "hammer" candlestick, indicating that the market had previously breached the 100 and 200 SMA but managed to close just above the 100 SMA. The bearish divergence in MACD suggests a weakening trend. Throughout the day, there were 577 advancing stocks and 1040 declining stocks, indicating overall market weakness, although the Hang Seng China Enterprises Index and the Hang Seng Index increased by 0.03% and 0.05% respectively, showing slight support.




William Williams, Vice Chair of the Federal Open Market Committee (FOMC) and President of the New York Federal Reserve Bank, who has a permanent voting right, expects that interest rate cuts may begin next year depending on economic data. Investors anticipate that the tightening cycle is nearing its peak, and the three major US stock indices are performing well.




The overnight futures and ADR are down, indicating a potential lower opening for the Hang Seng Index. The 200-day Simple Moving Average (SMA) at approximately 19,394.13 may provide support. 




In addition, Mainland China is expected to release trade data for July at 11:00, which could introduce additional uncertainty.







individual stock

De Yung Garments Limited (0321) is primarily engaged in the production, sales, dyeing, and retail distribution of knitted fabrics, cotton yarn, and ready-made garments, as well as the retail and distribution of casual wear and accessories, and providing franchise services.




The group acquired the entire equity of Fashion Time Viet Nam Limited for a total of $78.591 million. Fashion Time Viet Nam Limited is mainly involved in the production of knitted fabrics in Vietnam, with its main assets including land, buildings, factories, equipment, and software systems. Despite recording post-tax losses of approximately $0.60 million and $5.56 million in the 2021 and 2022 fiscal years respectively, De Yung Garments was still willing to acquire it. The reason behind this decision is to expand its production base, reduce geopolitical risks, and establish a more flexible and diversified business development environment.




The seller of Fashion Time Viet Nam Limited is Parkson Retail Group (2678). The reason for the sale is to gradually adjust the industry layout, organization, and production structure, focusing more on and developing the main business to adapt to changes in the macro environment.




After the announcement of the transaction, De Yongjia's stock price improved and showed signals in the financial technology system. The group's valuation is on the higher end within the industry, worth paying attention to. If valued at a P/E ratio of 25, the target price would be 1.36 yuan.




The author is a licensed individual of the Hong Kong Securities and Futures Commission and does not hold the aforementioned shares. The above article represents personal opinions.







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