The United States Securities and Exchange Commission (SEC) announced the new regulations and rules of the "Foreign Company Accountability Act", which dragged down China's concept stocks to be washed out.
Among them, Alibaba's US stocks plummeted by nearly 10%, discounting a contract of 109 Hong Kong dollars.
And Tencent's ADR also fell by more than 4% compared with Hong Kong's closing market, equivalent to 442.57 yuan.
Hong Kong stocks opened lower on Monday (6th) and almost no suspense.
In fact, the Hang Seng Index night market closed down 405 points sharply, closing at 23380 points, 387 points lower.
Wu Lixian, a strategist at Everbright Sun Hung Kai Securities, believes that Hong Kong stocks have their own negative factors and weak rebound, but 23,000 points are expected to be supported.
In terms of individual stocks, China's concept stocks plummeted due to the haze of delisting. New energy vehicles and the Hong Kong Stock Exchange were highly valued. However, the fundamentals of Ali deteriorated and were not recommended.
Alibaba's (9988) US stock price fell 8.23% throughout the day, closing at $111.96, a very poor performance.
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The US Securities and Exchange Commission announced on Thursday (2nd) US time the new regulations and rules of the "Foreign Company Accountability Act", requiring Chinese companies listed in the United States to submit audit papers and disclose whether they use variable interest entities (VIE) ﹚The structure must prove that it is not controlled or owned by China, and the listed Chinese concept stocks that do not meet the requirements will be delisted.
The prelude to the delisting of Chinese concept stocks opened by Didi Chuxing has caused many Chinese concept stocks listed in the United States to be washed out on Friday (4th), including many of the second-listed stocks in Hong Kong, including Alibaba (9988) ﹚The U.S. stock price fell 8.23% throughout the day to close at 111.96 US dollars, which was equivalent to 109.2 Hong Kong dollars; Baidu Group's (9888) US share price fell 7.77% to 137.39 US dollars, which was equivalent to 133.9 Hong Kong dollars.
At the same time, Meituan (3690), Tencent (0700), and Xiaomi (1810) ADR were 5.4%, 4.3% and 2% lower than the Hong Kong closing price on Friday (3rd) respectively.
The Hang Seng Index night market futures closed at 23,380 points, down 405 points, 387 points lower than the closing of the Hang Seng Index yesterday at 23,766 points.
Everbright Sun Hung Kai Securities strategist Wu Lixian (right) estimates that Hong Kong stocks are still looking for low support.
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Expected support for 23,000 points but lack of good news for rebound
Everbright Sun Hung Kai Securities strategist Wu Lixian estimated that the Hong Kong stock market opened lower on Monday, showing a pattern of finding low support downwards.
He pointed out that after the sharp decline of Hong Kong stocks last week, the rebound force was weak, and the earlier rebound of U.S. stocks did not help Hong Kong stocks, reflecting that Hong Kong stocks have their own negative factors, including changes in the new crown virus, the average quarterly performance of technology stocks, and the collapse of Chinese concept stocks. Technology stocks, and even year-end factors.
Ng Lixian did not rule out that the Hang Seng Index reached a new low. "The Hang Seng Index's low level (23,175 points) appeared last week, and the current points are only 500 or 600 points short. It is not difficult to pass." Although the Hong Kong stock market has fallen by more than 8,000 points from the high level of the year. But it’s hard to say that there will be a big counterattack. Wu Lixian believes that retail investors are advised to take a wait-and-see attitude and wait and see when the market conditions improve next year. There is little chance for a major adjustment, but at the same time there is no good news and there is no excuse for a rebound."
Wu Lixian suggested that investors take advantage of the decline in China's concept stocks to select companies with strong businesses and room for growth, such as new energy vehicle stocks.
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Hong Kong Stock Exchange, new energy vehicle value Bo but don't touch Ali
As for the Chinese concept stocks that are in the eye of a declining market, Wu Lixian believes that U.S. regulation focuses on the capital market, but China's concept stocks business is mainly in the Mainland, and the long-term business fundamentals are not bad. , The increase in risk premium has nothing to do with business fundamentals.”
He suggested that investors take advantage of the decline in the stock price of China's concept stocks to select companies with strong business and room for growth, such as new energy vehicle stocks, including Xiaopeng Motors (9868), Ideal Motors (2015) and Weilai (US: NIO), and Or large technology stocks, such as Baidu.
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When asked about Alibaba, another large technology stock, Wu Lixian did not suggest that. He believes that Alibaba’s quarterly performance is disappointing, and the revenue growth forecast is lowered. The market is disappointed with its future performance. It may not be the choice for Bo’s rebound. "There is a chance. Look at the large psychological bit of 100 mosquitoes."
Trading in Hong Kong stocks was weak, but the long-term prospects were higher.
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On the other hand, the Chinese concept stocks are returning. The Hong Kong Stock Exchange (0388) bounced more than 4% last Friday. He believes that the Hong Kong Stock Exchange has long-term investment value, although Hong Kong stock trading income and financial market investment income have been difficult for most of the past half year. However, in the first three quarters of Hong Kong Stock Connect, Bond Connect, and other transactions reached new highs, and there were IPO optimization and related interconnection optimization measures, financial green products, and the long-term prospects were clear. "The downturn in stock prices is affected by short-term factors. And the development of Sino-US relations is more attractive.” Wu Lixian estimated that the Hong Kong Stock Exchange will open on Monday (6th) and fall with the market. Investors can hold 430 and 435 yuan to attract long-term attention.
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