U.S. stocks fell 1900 points on the 2nd, Hong Kong stocks fell but the decline narrowed. Experts say three reasons make Hong Kong stocks outperform

Financial news

Written by: Zhang Weilun

2020-02-26 15:02

The number of confirmed cases of pneumonia in Wuhan has increased significantly in Italy and South Korea, and the US Centers for Disease Control and Prevention has warned that there may be community outbreaks there. Affected by the news, the U.S. stock market fell for 4 consecutive days, including a total of more than 1,900 points on Monday and Tuesday. As the US stock market fell sharply, investors in Hong Kong stocks were relatively calm. After the market opened 414 points lower this morning, the decline continued to narrow. Why did Hong Kong and US stock markets show different performances? Some analysts have pointed out that it is closely related to the stock market trends in Hong Kong and the United States in the past year.

The Hang Seng Index was last reported at 26670 points, down 222 points, and the State-owned Enterprise Index was last reported at 10495 points, down 85 points.

The U.S. stock market fell for 2 consecutive days, down 1,900 points in total. (Pictures)

Regarding the differences in the stock market trends between Hong Kong and the United States, Chen Weicong, director of the research department of Friends Trust Securities, pointed out that since the beginning of last year and the beginning of the year, U.S. stocks have risen sharply.

He also pointed out that as the epidemic spreads in Europe, triggering the focus of investors, the impact of the epidemic on the Chinese economy will gradually shift to the impact of the European and American economies.

According to statistics from the Oxford Economic Research Institute, global GDP will lose $ 1.1 trillion, and the US and Eurozone economies will fall into recession in the first half of 2020. It described this situation as "a brief but very strong shock to the world economy." That would be the economic cost of large-scale factory shutdowns, reduced productivity, declining tourism, disrupted supply chains, and reduced trade and investment.

The SSE has repeatedly stood at 3000 points

Another reason for the gap between the performance of the stock markets of the two places is that the performance of mainland A-shares is relatively hard and net.

In fact, the recent performance of A-shares is better than that of Hong Kong and US stock markets. Among them, the Shanghai Stock Index can keep above 3,000 points.

Regarding the market outlook, Chen Weicong bluntly depends on the latest development of the epidemic, including when new drugs will be launched in the market, and the latest number of confirmed diagnoses in Japan and South Korea. However, he expects Hong Kong stocks to fall another 200 to 300 points will be supported, and also believes that if the market falls to 26,000 points, low-fishing technology stocks, mobile phone equipment stocks, and shares that can benefit from policy support such as infrastructure and interior housing .

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