[True Burn Institution Viewpoint] U.S. stocks mixed, Nasdaq up 1.6%, Hong Kong stocks expected to reach 26,000

The three major U.S. stock indices showed mixed performance, with the Dow Jones Industrial Average slightly down 0.15%, while the S&P 500 and Nasdaq Composite rose 0.8% and 1.6% respectively, both hitting new record highs. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, also continued to rise by 0.75%, marking its fourth consecutive day of gains.

Regarding the Chinese and Hong Kong stock markets, A-shares were volatile yesterday. The Shenzhen Component Index opened higher but turned lower, eventually closing at 14,498 points, down 0.97%, with an intraday decline once approaching 1.4%. The Shanghai Composite Index also saw its gains narrow after opening higher, but managed to hold onto a slight increase, closing at 4,027 points, up by less than 1 point. The combined turnover for the two markets was 2.4 trillion yuan. In the Hong Kong market, the Hang Seng Index regained the 26,000 level at the open, and its gains expanded later, reaching a high of 26,216 points, up 344 points. In the afternoon, the Hang Seng Index weakened, and its gains narrowed to less than 100 points. The Hang Seng Index eventually closed at its daily low of 25,947 points, up 75 points or 0.29%. The Hang Seng Tech Index rose 1.2%, closing at 4,911 points, with a daily turnover of 245.6 billion yuan. Among the constituent stocks, $LAOPU GOLD(06181.HK) performed best, rising over 6.8%. Pharmaceutical stocks also performed well, with $INNOVENT BIO(01801.HK) and $SBP GROUP(01177.HK) both rising close to 6%. Among the declining stocks, $NEW ORIENTAL-S(09901.HK) performed the worst, down about 6%. Additionally, $LI NING(02331.HK), $AIA(01299.HK), Geely (00175.HK), and $PETROCHINA(00857.HK) fell between 3% and 4.6%.

Due to favorable external market conditions, Hong Kong stocks are also expected to benefit and open higher. Whether the upward trend can continue depends on the performance of A-shares. From a technical analysis perspective, the Hang Seng Index is still temporarily constrained by the 50-day moving average (26,068 points). It needs to break through and stabilize above this level to potentially challenge levels above 26,200 points.

Source: Bright Smart Securities