Hong Kong Stock Market Review: Pulled back
Hong Kong stocks rebounded at a critical moment, recovering most of the decline, but the market is skeptical about the sustainability of the rapid rise. Long-term funds will not blindly chase after gains, with the growth rates of the ChiNext and the STAR Market surpassing the Hang Seng TECH Index, indicating active domestic capital. Despite the recovery in sentiment, the semiconductor speculation mode may lead to subsequent issues, as stock prices have already discounted future profits in advance. Some individual stocks such as CTIHK and PaoPaoMa hit new highs, demonstrating the stability and higher visibility of the concept of Chinese companies listed in Hong Kong
At a critical moment, the market pulled back again, recovering most of this week's decline. However, it is uncertain whether this rapid rise is a blow to the short sellers or an opportunity, but one thing is certain, long-term funds will not blindly chase after.
The fact that the growth of the ChiNext and the STAR Market today can exceed that of the Hang Seng TECH Index may also indicate that it is simply domestic funds that are excited. Of course, emotions that have been suppressed for many days can revive in just one day, and even after experiencing a sharp rise and fall at the beginning of the month, there is still great anticipation for funds.
Moreover, Hong Kong stocks are unlikely to experience a 9% drop in one day again. If it does not drag down A-shares, the domestic market may continue to be lively next week.
Still, the speculative nature of the semiconductor sector is bound to end up in a mess. Even if it can generate a large amount of profit in the future, the current stock prices have greatly anticipated the future fruits, not to mention that it is uncertain whether it can become China's NVIDIA in the future.
Furthermore, pay attention to the fact that while Hong Kong stocks have been oscillating in recent days, some individual stocks have reached new highs, such as CTIHK and Bubble Mart, both of which share the concept of going global. Going global, like technology, can carry a grand narrative, but relatively speaking, the former may have higher stability and visibility in terms of performance