Source: Bloomberg
The recent rise in the Hong Kong stock market has led the world, but one of the driving forces behind this wave of ups and downs will not move in the next few days, which may lose a key support for Hong Kong stocks.
As the Hang Seng Index is at the edge of the technical bull market, mainland investors are becoming increasingly important for Hong Kong stocks, and cross -border buying of funds has repeatedly promoted some stocks soaring.However, with the Chinese Labor Day holidays starting from Wednesday, this power will be absent from the remaining trading day this week.
"The suspension of the southbound transaction may mean that the power of buying a disk has become smaller," said Jiang Liangqing, managing director of Zhuhai Qingzhu Private Equity Fund."It may have some impact in the short term," he said. "Because 30%of the transaction volume is a big piece for any stock, the same is true for the overall market."
Hong Kong in April is one of the best stock markets in the world. The Hang Seng Index once set the best weekly performance since 2011.UBS claims that Hong Kong stocks are cheap, and the market has recently been cautious and optimistic about China supporting real estate companies.In addition, last month, the southbound funds accounted for more than one -third of the transaction volume of Hong Kong stocks, which was the highest since it was recorded.
Southbound funds have been chasing cost -effective for many years, but they will follow the market momentum from time to time. They bought Hong Kong stocks of 213 billion Hong Kong dollars (S $ 37 billion) this year, about two -thirds of last year, and as of Tuesday as of TuesdaySouthbound funds have been bought for 22 consecutive trading days.
But analysts said that the global hedge fund may still be one of the main driving drivers for Hong Kong stocks last week.
"Overseas funds are not in a hurry to sell. No matter whether there are southern funds or not, this trend should continue," Jiang Liangqing said. "I think Hong Kong stocks still have obvious 'buy' signals. We bought growth.Stocks, many of them are as cheap as cabbage. "
