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Technology stocks brought down the market for the second consecutive day.
The Hong Kong market opened slightly lower on Wednesday. Hang Seng index opened down 17 points, H share index down 45 points and technology index down 41 points. Technology stocks ...
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Technology stocks brought down the market for the second consecutive day.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened slightly lower on Wednesday. Hang Seng index opened down 17 points, H share index down 45 points and technology index down 41 points. Technology stocks took a tumble. Alibaba lost 3.25% for 54-point loss. Tencent lost 1.71% for 32-point loss. JD lost 3.3% for 18-point loss to lead the losers. However, HSBC rose 5.5% to lead the gainers for 105-point gain. A shares opened down 13 points. The market turned from loss to gain momentarily as Alibaba and Tencent rebounded. However, the rebound did not last and the market fell again as selling pressure depressed technology stocks. Alibaba lost 2.8% for 47-point loss. Tencent lost 2.7% for 50-point loss. JD lost 3.74% for 20-point loss. HK Exchanges lost 2.36% for 15-point loss. Techtronic lost 6.4% for 18-point loss. Hang Seng index fell to a low of 20345, down 185 points. The market had support at low level and rebounded on the strength of technology stocks. Hang Seng index turned from loss to gain. HSBC rose 5.2% for 98-point gain. Meituan rose 2.1% for 22-point gain. Meito issued positive profit alert. Share price soared 15.4%. A shares closed the morning down 13 points. Hang Seng index reached a high of 20620, up 91 points but closed up only 5 points. H share index closed down 44 points and technology index down 36 points. Turnover was $67.7 billion.

The market turned from gain to loss, as blue chips went their separate ways. Financials rose but technology stocks fell. HSBC rose 5.3% for 96-point gain. Hang Seng Bank rose 2.65%; BOC HK rose 2%. AIA rose 0.79% for 13-point gain. Baidu announced $5 billion in share buyback. Share price rose 1.7%. On the contrary, technology stocks fell. Alibaba lost 2.4% for 40-point loss. Tencent lost 1.66% for 30-point loss. Price war hurt its performance. JD lost 3% for 16-point loss. Techtronic lost 6.9% for 19-point loss as Home Depot announced profit warning. Ping An lost 3% for 18-point loss. Xiaomi lost 2.86% for 10-point loss. Power generators fell. CR Power lost 2.73%. China Power lost 3.4%. Huaneng lost 2%. China Longyuan lost 2.6%. Auto stocks fell. BYD lost 1.4%. Geely lost 1.4%. Li Auto lost 3.7%. XPeng lost 3.6%. Nio lost 1.6%. Technology stocks fell. Sensetime lost 3.6%. Kuaishou lost 2.98%. GDS lost 2.66%. Chinese Literature lost 2.5%. Hang Seng index closed down 105 points, H share index down 92 points and technology index down 57 points. Turnover was $114.6 billion.

Overnight, overseas markets were mixed. DAX rose 2 points but CAC lost 9 points and FTSE lost 47 points. US markets were also range bound. Dow Jones lost 84 points and S & P lost 6 points, but Nasdaq rose 15 points. Hong Kong ADR’s lost 98 points. Night future lost 28 points. We expect the market to fall again today.  
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