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During the double festival period, unlike the “roller coaster” market, where the US stock market rose and fell sharply, the Hong Kong stock market showed a steady upward trend after the market opened on the 5th, and the tech sector increased significantly.
According to data from Wind, at the close of October 7, the Hang Seng index rose for 3 consecutive business days and stood at 24,000 points to 24,242.86 points.
It is worth noting that the Hang Seng Shanghai-Shenzhen-Hong Kong Stock Connect AH Share Premium Index (the “AH Share Premium Index”) has been increasing since the end of its volatility in early June this year, reaching a 5-year maximum for intraday operations on September 29. With the continued rise of H shares in the Hong Kong stock market in recent trading days, the AH share premium index changed and decreased.
A shares will open the day after tomorrow Will A shares that have the same fundamentals as Hong Kong H shares bring surprises?
Hong Kong stocks are doing well over the holidays
The double festival is coming to an end. Looking back over the past few days, the foreign markets that are still trading are not calm. Affected by news such as the diagnosis of corona pneumonia by US President Trump and the advance of his disease, US stocks have shown a “roller coaster” market that has risen and fallen sharply. Hong Kong stocks have performed relatively well since the market opened on the 5th, showing a steady uptrend.
US stocks slumped overnight and market sentiment took a hit. Today, the three major Hong Kong stock indices were weak and fluctuated in the short term after opening. However, they quickly turned into an uptrend and the trend was relatively firm. According to Wind data, at the close, the Hang Seng Index, the China Hang Seng Index of Companies and the Hong Kong Hang Seng Chinese Companies Index were up 1.09%, 0.97% and 0.89%, respectively.
From an industry sector perspective, technology stocks have become the “leaders” in the Hong Kong stock market rally in the past three days. At the end of October 7, the information technology sector rose 2.23%, ranking first in the Hang Seng industrial sector, the sector has risen 6.15% in the last three business days.
Judging by the performance of nearly three trading days from October 5 to the present, according to Wind data, the Hang Seng Index has risen 783.81 points, or 3.34%, and has successfully reached the 24,000 points. In contrast, the S&P 500 Index fell 0.59% in the three business days ending Oct. 6 local time.
Judging from the market situation from the beginning of October to the present, the Hang Seng index has become the most prominent stock index among the major foreign stock indices.
A shares may rise along with H shares
Analysts said the better performance of H shares will have a positive impact on A shares that share common fundamentals.
Wind data shows that, as of now, there are a total of 129 shares listed in both Hong Kong and A shares.
Among the 129 H shares that contain A shares, 12 H shares have gained more than 5% in the last three days. among them,Flat(601865,Clinical Unit) Glass has risen more than 20% in the last 3 days,Ganfeng Lithium(002460,Diagnostic unit) 、Goldwind technology(002202,Clinical Unit) 、Sinotrans(601598,Clinical Unit) The accumulated increase in the last 3 days has exceeded 10%.
With the rise of Hong Kong-listed H shares, the Hang Seng Shanghai-Shenzhen-Hong Kong Stock Connect AH-Share Premium stock premium index was rejected. In the four business days since September 30, the Shanghai-Shenzhen-Hong Kong Stock Connect AH equity premium index has fallen 1.80%.
Analysts noted that the AH share premium index is an important benchmark for capital flows. The fall of the AH share premium index means that the price of the H shares will rise and the corresponding A shares will be more attractive.
Analysts said that in the past two years, the link between A shares and Hong Kong shares has become increasingly obvious. This is a new pattern brought about by the opening of A shares. The effects of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect have emerged gradually. The characteristics of A-share internationalization may become more prominent in the future.
However, analysts also said that while the AH equity premium index has recently fallen, it is still at a 5-year high overall. Therefore, from a medium to long-term perspective, A shares primarily have a premium to Hong Kong shares, highlighting the value of the H share allocation.
