Understanding the Market | HKEX fell more than 3% at the close, Hong Kong stock market turnover shrank in June, fundraising total still at historical lows

According to the Zhitong Finance and Economics APP, Hong Kong Exchanges and Clearing Limited (00388) fell more than 3% at the close, with a decrease of 2.83% as of the time of publication, closing at HKD 247 with a turnover of HKD 10.68 billion. Caitong Securities pointed out that the trading volume of Hong Kong stocks in June shrank, with an average daily turnover (ADT) of HKD 111.2 billion, a decrease of 20.4% month-on-month but an increase of 11.5% year-on-year. In the second quarter, there was an overall marginal improvement, with ADT reaching HKD 121.4 billion, a 22.2% increase month-on-month and an 18.1% increase year-on-year. In terms of IPOs, there were 9 new listings on the Hong Kong Stock Exchange in June, with a total fundraising amount increasing by 103.9% month-on-month and 80.8% year-on-year to HKD 3.582 billion. In the second quarter, a total of 18 new listings were made on the Hong Kong Stock Exchange, raising a cumulative total of HKD 8.446 billion, a decrease of 57.6% month-on-month and 44.0% year-on-year. The bank pointed out that the ADT of the Hong Kong Stock Exchange from the beginning of 2024 to date is HKD 109.7 billion, a 3.4% decrease compared to the same period last year. However, the ADT of the Hong Kong Stock Exchange in 2023 showed a trend of peaking and then declining, while since 2024, it has shown a trend of marginal improvement. With the significant increase in market expectations of a rate cut by the Federal Reserve, the ADT of the Hong Kong Stock Exchange is expected to continue to rise. At the same time, based on the lag in changes in investment returns relative to overseas interest rates, it is expected that the company's investment returns will continue to remain at a high level in 2024. The bank also pointed out that the company's valuation has dropped to historical lows due to the downward impact of the Hong Kong stock market in June. With lower-than-expected U.S. inflation data in June, rate cut trades may return to the market mainstream