{Market Preview}Home appliance stocks won't continue to rise

  The Hang Seng Index was at 17,033 in the morning session, up 28 points or 0.2%, with main board turnover of nearly HKD 60.2 billion. The Hang Seng China Enterprises Index was at 6,012, down 4 points or less than 0.1%. The Hang Seng Tech Index was at 3,443, up 22 points or 0.7%.
  The three largest traded stocks in the Hang Seng Index were Tencent (00700), China Mobile (00941) and Meituan (03690); Tencent reported HKD 355.4, up HKD 4.2 or 1.2%, with a turnover of HKD 2.662 billion; China Mobile reported HKD 72.4, down HKD 2.35 or 3.1%, with a turnover of HKD 1.89 billion; Meituan reported at HKD 106.9, down HKD 0.2 or 0.2%, with a turnover of HKD 1.812 billion. The three largest traded stocks on the Hang Seng China Enterprises Index are Tencent, China Mobile and Meituan. The three largest traded stocks on the Hang Seng Tech Index were Tencent, Meituan and Alibaba (09988); Alibaba reported HKD 73.25, down HKD 0.05 or less than 0.1%, with a turnover of HKD 919 million.

"Yip Sheung Chi: the market turnover must be at least HKD 130 billion to be considered high"

  The Hang Seng Index was still struggling at 17,000. It once rose to more than 200 points in the early stage, and then fell repeatedly and even fell. Yip Sheung Chi, the Chief Strategist of First Shanghai Securities, told the ET Net News Agency that currently 17,000 for the Hang Seng Index is not technically an important level, and 17,200 is the key level. However, in terms of the current trend, it will be difficult for the Hang Seng Index to close above 17,200 this month. He pointed out that the main hype points for Hong Kong stocks in the first half of the year were "high dividends" and "buybacks." However, all dividend-paying stocks have passed ex-dividend date recently, and as the results period is approaching, share buybacks must stop one month before the results are released. The failure of both major factors will add to the adjustment pressure on the weak market.
  Yip Sheung Chi believes that in the short term, it is difficult to find the bottom of the market based on technical trends, because the market is digesting the selling pressure, and the market will have to wait until bearish funds complete selling before the market bottoms out. He pointed out that judging when the market bottoms out is the same as when it peaks. It depends on the financial aspect. For example, the Hang Seng Index reached a peak of 19,700 earlier. At that time, there was a single-day market transaction record of HKD 200 billion. Therefore, when the market bottoms out, large transactions are also needed. As for what "big trading volume" means, he believes that it must be at least more than the second quarter's average daily trading volume of about HKD 130 billion, and more than HKD 140 billion is representative, reflecting that the market has completed the sell-off and the market has reached a phased bottom.

"The market is taking turns to avoid, it is expected that home appliance stocks are easy to speculate and disperse"

  The National Development and Reform Commission and the Ministry of Finance issued a notice on "Several Measures to Increase Support for Large-Scale Equipment Renewal and Trade-in of Consumer Goods", proposing three measures to coordinate the overall arrangement of ultra-long-term special government bond funds of approximately RMB 300 billion to increase support for large-scale equipment renewal and trade-in of consumer goods. There are a total of sixteen major measures. It is mentioned that consumers who purchase eight categories of home appliances with second-level or above energy efficiency will be given trade-in subsidies. Each consumer is limited to one subsidy, and the subsidy for each item shall not exceed RMB 2,000.
  The news stimulated home appliance stocks to rise sharply in the late trading yesterday. Funds are chasing them again this morning. Haier Smart Home (06690) rose more than 4% in half a day, and Hisense HA (00921) rose more than 3%. However, Yip Sheung Chi pointed out that the trade-in news provided the market with a "taking turns to avoid" sector. Home appliance stocks had already adjusted a round earlier, and now they are taking advantage of the news to rebound. He believes that today's rebound will not occur without the accumulated declines. Taking Haier Smart Home as an example, as the stock price has only rebounded from a low level and continued to rebound today after yesterday's rebound, it is expected that the positive effects will be absorbed soon, and it will be quite difficult to return to the May high of HKD 31 in the short term.
  Yip Sheung Chi added that because home appliances and automobiles are easier to promote in terms of policies, for other retail products, apart from measures such as consumer coupons, it is difficult to promote related consumption, and the intensity is also small. It is expected that it will be difficult to have policies to support them.