[Zhenzhuo Institution Viewpoint] U.S. stocks rebound, Nasdaq up 1.3%; Hong Kong stocks regain 250-day moving average

The three major U.S. stock indices rebounded, with the Dow Jones Industrial Average rising nearly 0.5%, and the S&P 500 and NASDAQ indices gaining 0.78% and 1.29% respectively. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, also recovered nearly 0.8%.

Chinese and Hong Kong stock markets continued to face selling pressure. In the A-share market, the Shanghai and Shenzhen markets opened lower and then moved in different directions. The Shanghai Composite Index maintained its downward trend, while the Shenzhen Component Index briefly turned positive during the mid-session but soon reversed and fell again. Ultimately, the Shanghai Composite Index fell 0.98% to close at 4,082 points, and the Shenzhen Component Index fell 0.75% to close at 13,917 points, with a total daily turnover of approximately 2.4 trillion yuan. The performance of the Hong Kong market was even more lackluster. The Hang Seng Index opened 298 points lower, struggled to rebound, and continued to decline step by step. In the afternoon, it even briefly fell below the 25,000-point mark, hitting a low of 24,958 points. The trend improved slightly later, but for the whole day, the Hang Seng Index still fell 518 points or 2%, closing at 25,249 points. The Hang Seng TECH Index also fell nearly 1%, closing at 4,829 points. Both indices recorded "three consecutive declines." The overall market turnover increased slightly to 364.3 billion yuan. Among the constituent stocks, only 9 recorded gains, with $CHINAHONGQIAO(01378.HK) performing the best, rising over 6%. $XINYI SOLAR(00968.HK) also rose 4.2%. Among the declining constituents, $AIA(01299.HK) performed the worst, falling over 4%. $WUXI BIO(02269.HK) and $CKH HOLDINGS(00001.HK) also fell more than 4%. Other constituents with larger declines included $CITIC(00267.HK) and $CHINA LIFE(02628.HK), both of which fell nearly 4%. It's worth noting that the oil stocks, which had been surging recently, retreated. PetroChina (00857.HK) and CNOOC (00883.HK) fell 3% and 1.9% respectively.

Due to the strong performance in overseas markets, Asia-Pacific stock markets also rebounded significantly this morning. It is believed that the Hong Kong market can also benefit. Furthermore, the Hang Seng Index regained its 250-day moving average (25,008 points) yesterday, indicating solid support at that level. It is expected that the Hang Seng Index will remain volatile in the near term, fluctuating between 25,000 and 26,000 points.

Source: Bright Smart Securities