[True Insight Institutional View] US stocks continue to rise, Hang Seng Index expected to stabilize above 27,000 points

The three major U.S. stock indices continued to perform well, with the Dow Jones up 20 points, and the S&P 500 and Nasdaq up 0.47% and 0.9% respectively. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, stabilized with a slight increase of 0.12%.

As for the Chinese and Hong Kong stock markets, both rose significantly yesterday. Following the upward trend in overseas and Asia-Pacific markets, the Shanghai and Shenzhen markets opened higher and continued to rise. The Shanghai Composite Index closed up 1.4% at 4,123 points, while the Shenzhen Component Index rose 2.17% to 14,208 points, with total turnover of about 2.25 billion yuan. Hong Kong stocks also showed strong momentum. The Hang Seng Index opened 422 points higher, with early gains narrowing, but the upward trend continued in the afternoon. The Hang Seng Index finally closed at 27,027 points, up 467 points or 1.76%. The Hang Seng TECH Index rose 1.34% to 5,417 points, with total daily turnover of about 255.1 billion yuan. Among the constituents, $INNOVENT BIO(01801.HK) performed the best, with a gain of 7.4%. Additionally, the strong performer $POP MART(09992.HK) still performed well, rising over 5%, as did $ZIJIN MINING(02899.HK). Domestic insurance stocks also saw considerable gains, with China Life Insurance (02628.HK) and Ping An Insurance (02318.HK) rising 4% and 4.9% respectively. International financial stocks also performed well, with HSBC (00005.HK) and AIA (01299.HK) both rising over 3%. Among the declining constituents, China Telecom (00728.HK) performed the worst, falling nearly 3%, while China Mobile (00941.HK) and China Unicom (00762.HK) fell 2.1% and 1.5% respectively. Kuaishou (01024.HK) continued its downward trend, falling another 2.7% yesterday, marking its seventh consecutive day of decline.

Analyzing the technical trend, the Hang Seng Index rebounded yesterday, but is still constrained by the resistance of the 10-day moving average (27,123 points). It must break through this level to potentially challenge the 27,400-point area.

Source: Bright Smart Securities