The Economic Information Daily, 28th: The Xi-Trump meeting concluded, with U.S. President Trump announcing that the two leaders will meet again at the APEC and G20 summits. With uncertainties from the Xi-Trump meeting cleared and northbound funds resuming trading today, the Hang Seng Index opened slightly higher and fluctuated upward, but retreated upon touching the 10-day moving average (around 24,761 points). The Hang Seng Index closed at 24,642, up 132 points or 0.5%, with main board turnover reaching nearly HK$177.5 billion. The Hang Seng China Enterprises Index stood at 8,216, up 51 points or 0.6%. The Hang Seng Tech Index closed at 4,296, down 15 points or 0.4%.
Although Stock Connect resumed trading today, northbound funds recorded a net outflow exceeding HK$6.5 billion, and Hong Kong market turnover was only HK$177.483 billion, indicating a lack of clear direction in the short term. Additionally, although the Hang Seng Index today filled the top of last Friday's downward gap (around 24,649 points), it failed to sustain above that level at closing, suggesting persistent selling pressure above, likely leading to further gradual declines. Notably, tomorrow is the futures settlement day, and market movements are expected to be more volatile.
*Nvidia chip restrictions eased, chip stocks lead declines; U.S. 30-year yield high, gold miners underperform*
Reports indicate that the Chinese government has signaled it may allow companies such as Alibaba (09988) and ByteDance to purchase Nvidia's (US.NVDA) new RTX Pro 5500 chips. Domestic chip stocks plunged, with Hua Hong Semiconductor (01347) down 4.6% at HK$105.3, leading the decline among blue chips; SMIC (00981) fell 3.6% to HK$61.05, TianShu ZhiXin (09903) dropped 11.4% to HK$109.1, Biren Technology (06082) declined 8.2% to HK$35.04, and Montage Technology (06809) fell 5.1% to HK$285.2.
Tech and internet stocks showed mixed performance. NetEase (09999) rose 4.9% to HK$189.7, the best-performing blue chip; Alibaba fell 0.6% to HK$107.7, Tencent (00700) gained 0.7% to HK$439.8, and Baidu (09888) edged up 0.3% to HK$85.55.
The 30-year bond yield remained at 5.52%, and the 10-year yield stayed at 5.209%; interest rate futures indicate the market still assigns a 66.6% probability to a 25 basis point U.S. rate hike in October. Gold mining stocks underperformed, with Zijin Mining (02899) down 2.6% at HK$31.64, Shandong Gold (01787) plunging 9.4% to HK$18.13, Chifeng Gold (06693) falling 5.2% to HK$33.8, and China Gold International (02099) down 1.9% at HK$218.4.
Property stocks led gains, with China Overseas (00688) up 3.8% at HK$12.89; China Resources Land (01109) rising 2.9% to HK$29.46; and Longfor (00960) up 2.3% at HK$5.45.
*Jiangsu and Guangdong electricity prices to rebound next month; CR Power's breakout from triangle pattern offers opportunity at current levels*
China Resources Power (00836) is currently up 3.6% at HK$19.67, with trading volume of about 21.23 million shares, involving HK$416 million.
China Resources Power surged strongly today, breaking out decisively from a technical triangle consolidation pattern—the upper boundary formed by connecting the highs on July 23 (around HK$19.38) and September 24 (around HK$19.24), and the lower boundary formed by the lows on July 2 (around HK$16.27) and August 19 (around HK$17.33). This upward breakout is a clear positive signal, potentially establishing a new uptrend in the coming period.
On the industry fundamentals, Jiangsu and Guangdong provinces have announced their October monthly coordinated electricity prices, both showing year-on-year and month-on-month increases, signaling stabilization and recovery in electricity prices. Specifically, Jiangsu's October centralized trading weighted average price reached RMB 395.32 per MWh, up RMB 50.8 per MWh month-on-month and RMB 54.6 per MWh year-on-year; Guangdong's monthly comprehensive trading average price reached RMB 456.78 per MWh, up RMB 53.5 per MWh month-on-month and RMB 84.4 per MWh year-on-year.
Against the backdrop of improving power sector fundamentals, China Resources Power's technical breakout from the triangle pattern can be seen as a reversal signal. Investors may consider gradually building positions at current levels, aiming for a challenge toward the previous high of HK$22. If the share price falls back below the breakout level (around HK$19.3), it would indicate a failed breakout, requiring a stop-loss. (nw)
Although Stock Connect resumed trading today, northbound funds recorded a net outflow exceeding HK$6.5 billion, and Hong Kong market turnover was only HK$177.483 billion, indicating a lack of clear direction in the short term. Additionally, although the Hang Seng Index today filled the top of last Friday's downward gap (around 24,649 points), it failed to sustain above that level at closing, suggesting persistent selling pressure above, likely leading to further gradual declines. Notably, tomorrow is the futures settlement day, and market movements are expected to be more volatile.
*Nvidia chip restrictions eased, chip stocks lead declines; U.S. 30-year yield high, gold miners underperform*
Reports indicate that the Chinese government has signaled it may allow companies such as Alibaba (09988) and ByteDance to purchase Nvidia's (US.NVDA) new RTX Pro 5500 chips. Domestic chip stocks plunged, with Hua Hong Semiconductor (01347) down 4.6% at HK$105.3, leading the decline among blue chips; SMIC (00981) fell 3.6% to HK$61.05, TianShu ZhiXin (09903) dropped 11.4% to HK$109.1, Biren Technology (06082) declined 8.2% to HK$35.04, and Montage Technology (06809) fell 5.1% to HK$285.2.
Tech and internet stocks showed mixed performance. NetEase (09999) rose 4.9% to HK$189.7, the best-performing blue chip; Alibaba fell 0.6% to HK$107.7, Tencent (00700) gained 0.7% to HK$439.8, and Baidu (09888) edged up 0.3% to HK$85.55.
The 30-year bond yield remained at 5.52%, and the 10-year yield stayed at 5.209%; interest rate futures indicate the market still assigns a 66.6% probability to a 25 basis point U.S. rate hike in October. Gold mining stocks underperformed, with Zijin Mining (02899) down 2.6% at HK$31.64, Shandong Gold (01787) plunging 9.4% to HK$18.13, Chifeng Gold (06693) falling 5.2% to HK$33.8, and China Gold International (02099) down 1.9% at HK$218.4.
Property stocks led gains, with China Overseas (00688) up 3.8% at HK$12.89; China Resources Land (01109) rising 2.9% to HK$29.46; and Longfor (00960) up 2.3% at HK$5.45.
*Jiangsu and Guangdong electricity prices to rebound next month; CR Power's breakout from triangle pattern offers opportunity at current levels*
China Resources Power (00836) is currently up 3.6% at HK$19.67, with trading volume of about 21.23 million shares, involving HK$416 million.
China Resources Power surged strongly today, breaking out decisively from a technical triangle consolidation pattern—the upper boundary formed by connecting the highs on July 23 (around HK$19.38) and September 24 (around HK$19.24), and the lower boundary formed by the lows on July 2 (around HK$16.27) and August 19 (around HK$17.33). This upward breakout is a clear positive signal, potentially establishing a new uptrend in the coming period.
On the industry fundamentals, Jiangsu and Guangdong provinces have announced their October monthly coordinated electricity prices, both showing year-on-year and month-on-month increases, signaling stabilization and recovery in electricity prices. Specifically, Jiangsu's October centralized trading weighted average price reached RMB 395.32 per MWh, up RMB 50.8 per MWh month-on-month and RMB 54.6 per MWh year-on-year; Guangdong's monthly comprehensive trading average price reached RMB 456.78 per MWh, up RMB 53.5 per MWh month-on-month and RMB 84.4 per MWh year-on-year.
Against the backdrop of improving power sector fundamentals, China Resources Power's technical breakout from the triangle pattern can be seen as a reversal signal. Investors may consider gradually building positions at current levels, aiming for a challenge toward the previous high of HK$22. If the share price falls back below the breakout level (around HK$19.3), it would indicate a failed breakout, requiring a stop-loss. (nw)