{Economic Information Daily, 14th} China's major memory manufacturer ChangXin announced successful enhancement of the next-generation DRAM architecture performance. Market concerns over intensified competition in memory chips triggered a continued decline in US memory-related stocks, with Micron dropping 3.6%. Despite the overnight softness in US markets, neutral-to-dovish comments from Federal Reserve officials provided some support. Both New York Fed President Williams and Boston Fed President Collins expect one more rate hike this year, while further actions next year are still deemed unnecessary. The three major indices edged lower: the Dow fell 180 points to 51,670, the Nasdaq dropped 41 points to 27,204, and the S&P slipped 1 point to 7,805.
*Chinese ADRs quiet, slight weakening in ADRs*
Chinese ADRs traded in a narrow range; Alibaba rose 0.06% to $110.85, Pinduoduo gained 1.29% to $81.96, JD.com increased 0.22% to $26.78, Baidu fell 0.66% to $83.74, Li Auto climbed 3.07% to $11.75, NIO advanced 2.59% to $3.56, XPeng rose 0.93% to $9.75, KE Holdings dropped 0.51% to $17.59, Trip.com declined 0.03% to $38.75, GDS Holdings fell 2.60% to $29.60.
ADR prices generally closed lower than their corresponding Hong Kong closing prices; Tencent (00700) ADR was 0.33% lower than its Hong Kong counterpart, equivalent to HK$423.8; Xiaomi (01810) ADR was 0.21% lower, equivalent to HK$25.0; Meituan (03690) ADR was 0.03% lower, equivalent to HK$72.3; AIA (01299) ADR was 0.14% lower, equivalent to HK$72.9; HSBC (00005) ADR was 1.21% lower, equivalent to HK$148.9; HKEX (00388) ADR was 0.02% lower, equivalent to HK$379.5.
*Concerns over memory competition heightened by Musk's comments; Hong Kong market's bullish formation still faces profit-taking pressure*
Rising risks of memory chip competition—following ChangXin's announcement, Musk commented, "Once China figures out a product, its scale of production capacity will surpass the combined output of the rest of the world," further fueling market speculation. Asian markets saw a slight rebound this morning, with market optimism ahead of the opening of the South Korean semiconductor exhibition. South Korea's stock index rebounded over 2%, while Japan's index rose 0.4%. The Singapore HS50 index, reflecting expectations for the Hong Kong market, currently stands at 24,332, up 16 points, 13 points below the current Hang Seng Index spot level, suggesting a likely intraday fluctuation of within 100 points at market open.
Yesterday, the Hang Seng Index formed a bullish hammer pattern after an initial decline followed by a recovery, immediately attracting stronger bullish positioning. According to the distribution of Hang Seng Index bull and bear warrants, yesterday saw a net addition of 542 bull warrants (in terms of corresponding futures contracts), with the 23,900 to 23,999 range recording the largest net increase of 502 corresponding futures contracts. Meanwhile, the 23,600 to 23,699 range remains the heaviest concentration area with 1,182 corresponding futures contracts. This suggests the Hang Seng Index is unlikely to trigger a sharp bull liquidation immediately, with the intraday immediate support expected around the 10-day moving average at approximately 24,200. (hc)
*Chinese ADRs quiet, slight weakening in ADRs*
Chinese ADRs traded in a narrow range; Alibaba rose 0.06% to $110.85, Pinduoduo gained 1.29% to $81.96, JD.com increased 0.22% to $26.78, Baidu fell 0.66% to $83.74, Li Auto climbed 3.07% to $11.75, NIO advanced 2.59% to $3.56, XPeng rose 0.93% to $9.75, KE Holdings dropped 0.51% to $17.59, Trip.com declined 0.03% to $38.75, GDS Holdings fell 2.60% to $29.60.
ADR prices generally closed lower than their corresponding Hong Kong closing prices; Tencent (00700) ADR was 0.33% lower than its Hong Kong counterpart, equivalent to HK$423.8; Xiaomi (01810) ADR was 0.21% lower, equivalent to HK$25.0; Meituan (03690) ADR was 0.03% lower, equivalent to HK$72.3; AIA (01299) ADR was 0.14% lower, equivalent to HK$72.9; HSBC (00005) ADR was 1.21% lower, equivalent to HK$148.9; HKEX (00388) ADR was 0.02% lower, equivalent to HK$379.5.
*Concerns over memory competition heightened by Musk's comments; Hong Kong market's bullish formation still faces profit-taking pressure*
Rising risks of memory chip competition—following ChangXin's announcement, Musk commented, "Once China figures out a product, its scale of production capacity will surpass the combined output of the rest of the world," further fueling market speculation. Asian markets saw a slight rebound this morning, with market optimism ahead of the opening of the South Korean semiconductor exhibition. South Korea's stock index rebounded over 2%, while Japan's index rose 0.4%. The Singapore HS50 index, reflecting expectations for the Hong Kong market, currently stands at 24,332, up 16 points, 13 points below the current Hang Seng Index spot level, suggesting a likely intraday fluctuation of within 100 points at market open.
Yesterday, the Hang Seng Index formed a bullish hammer pattern after an initial decline followed by a recovery, immediately attracting stronger bullish positioning. According to the distribution of Hang Seng Index bull and bear warrants, yesterday saw a net addition of 542 bull warrants (in terms of corresponding futures contracts), with the 23,900 to 23,999 range recording the largest net increase of 502 corresponding futures contracts. Meanwhile, the 23,600 to 23,699 range remains the heaviest concentration area with 1,182 corresponding futures contracts. This suggests the Hang Seng Index is unlikely to trigger a sharp bull liquidation immediately, with the intraday immediate support expected around the 10-day moving average at approximately 24,200. (hc)
