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The market rebounded as Tencent denied that it planned to sell Meituan.
The Hong Kong market rebounded on Wednesday after falling sharply on Tuesday. Hang Seng index opened up 165 points, H share index up 57 points and technology index up 42 points. Me...
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The market rebounded as Tencent denied that it planned to sell Meituan.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market rebounded on Wednesday after falling sharply on Tuesday. Hang Seng index opened up 165 points, H share index up 57 points and technology index up 42 points. Meituan rose 3.1% to lead the blue chips for 40-point gain. HSBC rose 1.16% for 20-point gain. AIA rose 1.3% for 20-point gain. Alibaba rose 0.94% for 13-point gain. US retailers outperformed. Techtronic rose 2.2%. A shares opened up 1 point. The market’s gain narrowed after opening, as Hang Seng index gained under 100 points. Financials and Technology stocks retreated from opening highs. Techtronic rose 6% for 16-point gain. WH Group rose 4.24%. The market then fell into negative territory momentarily. Hang Seng index fell to a low of 19800, down 30 points. However, the market had support at low level. Tencent clarified that it had no intention to sell its holding of Meituan shares. Meituan rose 4.8% for 60-point gain. Alibaba rose 0.9% for 11-point gain. HSBC rose 0.6% for 10-point gain. Mainland developers rebounded. Country Garden rose 2.8%. Cifi rose 5.2%. SMIC rose 2.5% after result announcement. Huahong Semiconductor rose 1.3%. Shanghai Fudan rose 1%. Mainland banks rose. CCB rose 0.8% for 6-point gain. ICBC rose 1% for 6-point gain. Hang Seng index closed the morning up 167 points. H share index closed up 55 points and technology index up 40 points. Turnover was $44.7 billion.

The market rose further in the afternoon. Hang Seng index rose more than 200 points and reached a high of 20070, down 240 points. Meituan rose 5% for 66-point gain. Tcchtronic rose 9.8% for 28-point gain. Alibaba rose 1.6% for 18-point gain. CCB rose 1% for 10-point gain. HSBC rose 0.6% for 10-point gain. HK Exchanges announced 26% fall in interim profit. Share price fell 1.5%. Consumption stocks rose. CR Beer rose 4.4%. Haidilao rose 2.6%. Jiumaojiu rose 3.8%. Anta Sports rose 1.5%. Lining rose 0.64%. Oil stocks rose. Sinopec rose 2.25%. Petrochina rose 1.8%. CNOOC rose 0.9%. Power generators rose further. China Power rose 8%. CR Power rose 6.25%. Huaneng rose 3.87%. Datang NE rose 7.2%. The Xinyi list of companies rose. Xinyi Glass rose 2.6%. Xinyi Energy rose 3.5%. Xinyi Solar rose 0.2%. China Graphite’s stabilization period ended. Share price soared 60%. A shares closed up 14 points. Hang Seng index closed up 92 points, H share index up 27 points and technology index up 18 points. Turnover was $84.2 billion.

Overnight, overseas markets fell. European markets closed lower. DAX lost 283 points. CAC lost 64 points and FTSE lost 20 points. US markets fell. Dow Jones ended its 5-day rising streak and closed down 172 points. S & P lost 31 points and Nasdaq lost 164 points. Hong Kong ADR’s lost 28 points. Night future rose 42 points. We expect the market to rise today. 
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