【True Insight Hong Kong Stock Experts】The Hong Kong stock market performed weakly, with the index falling below the 17,500-point level, and overall market turnover also decreased.

Hong Kong Stock Market Trends and Analysis

U.S. stocks were mixed and slightly weaker on Tuesday as investors awaited earnings reports from tech companies, with cautious market sentiment leading to declines in all three major indices. The U.S. dollar strengthened, while the 10-year Treasury yield remained at 4.25%. Gold prices stabilized after fluctuations, and oil prices continued to trend lower. Hong Kong's ADRs lacked direction, suggesting limited movement in the early session. Mainland stocks fell yesterday, with the Shanghai Composite Index opening lower and closing down 1.7%, while trading volume in Shanghai and Shenzhen increased slightly. Hong Kong stocks remained weak, with the index falling below the 17,500-point level and trading volume declining. The PBOC's interest rate cut provided only a short-term boost, as concerns over corporate earnings weighed on blue-chip stocks. The index is expected to remain range-bound between 17,000 and 18,000 points in the near term.

Industry News

According to IDC, global smartphone shipments rose 6.5% YoY to 285 million units in Q2, marking the fourth consecutive quarter of growth. However, challenges persist in many markets, particularly with intensified and polarized competition among leading brands. Apple and Samsung have consolidated their dominance in the high-end market, while many mainland manufacturers are boosting sales of low-end phones to offset weak demand with volume-driven strategies. By brand, the top three remained unchanged: $Samsung Electronics (SSNGY.US) shipped 53.9 million units, up 0.7% YoY, but its market share fell from 20% to 18.9%. $Apple(AAPL.US) shipped 45.2 million units, up 1.5% YoY, though its market share dipped from 16.6% to 15.8%. $XIAOMI-W(01810.HK) shipped 42.3 million units, surging 27.4% YoY, with market share rising from 12.4% to 14.8%. The anticipated launch of AI phones is expected to drive a replacement cycle, boosting sales for related brands and increasing orders for accessories, presenting opportunities in related stocks.

Independent Analyst Kwok Ka Yiu, CFA

Date: Wednesday, July 24, 2024

(The author and related parties do not hold the aforementioned stocks.)