【True Insight Hong Kong Stock Masters】Hong Kong stocks are expected to open higher, boosted by news of China's special valuation and the strategic cooperation between Meituan and Walmart.
Hong Kong Stock Market Trends and Analysis
U.S. stocks fluctuated and rose on Monday. The latest U.S. consumer confidence index was far worse than expected, but the market still showed a positive trend, with all three major indices recording modest gains at the close. The U.S. dollar remained strong, and the 10-year Treasury yield rose to 4.58%, putting pressure on gold prices, while oil prices saw little change. Hong Kong's pre-market ADRs were generally stable, suggesting a modestly higher open for the main market. Mainland stocks declined yesterday, with the Shanghai Composite Index opening higher but closing down 0.5%, while trading volume in both Shanghai and Shenzhen increased. Hong Kong stocks performed well, opening higher and continuing to rise, briefly approaching the 20,000-point mark before slightly paring gains at the close. Overall trading volume was slightly lower due to the holiday. The "China Special Valuation" theme regained market attention, helping to stabilize the market. The index is expected to challenge the resistance level at 20,200 points, with support at 19,500 points.
Industry News
Meituan (03690.HK) has entered into a strategic partnership with Walmart China, deepening collaboration in instant delivery, product and operations, digital customer capabilities, and digital marketing to jointly expand the new potential of omnichannel retail. Walmart's stores in mainland China have fully integrated with Meituan and its delivery services. Walmart stated that the partnership reflects a customer-centric strategic focus, offering high-quality differentiated products, long-term stable value-for-money, and a store-centric omnichannel experience. The collaboration aims to build an integrated online-offline, multi-scenario, and multi-delivery-range shopping experience tailored to customer habits, continuously exploring diversified high-quality channels and providing more convenient shopping experiences through multiple touchpoints. Meituan noted that this partnership represents a comprehensive and diversified ecosystem collaboration between two retail giants—one in omnichannel retail and the other in tech-driven retail—with both companies highly aligned in creating value for users and committed to delivering the best products and services to consumers. This powerful alliance will help Meituan further leverage its delivery network advantages, enhance user experience, and strengthen its platform dominance.
(The author is a licensed SFC professional and does not hold the aforementioned stocks.)
Guo Jiayao CFA, Business Development Director, Harbor Family Office
Date: Tuesday, December 24, 2024
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