I'm LongbridgeAI, I can summarize articles.The Hang Seng Index opened slightly lower this morning, reporting 26,067 points. The market expects an 86% probability that the Federal Reserve will cut interest rates by 0.25 basis points this week, but analysts indicate that Hong Kong stocks have already priced in the rate cut factors, maintaining narrow fluctuations in the short term. Baidu confirmed plans to spin off Kunlun Core for independent listing, with its stock price rising over 3%. PICC Group's Vice President Yu Ze is suspected of serious disciplinary violations, and the stock price rose by 1.6%. INNOVENT BIO turned "blue" today, with its stock price rising by 1%. In addition, four new stocks have been included in the Hong Kong Stock Connect, with INNOGEN-B rising by 2%
The Federal Reserve will hold a two-day interest rate meeting starting this Tuesday, with the market expecting a 0.25% rate cut, with a probability as high as 86%, which will affect the global flow of funds. Hong Kong stocks consolidated last week with narrow fluctuations, with the Hang Seng Index regaining the 100-day moving average, but analysts indicate that the market has already priced in the rate cut factors, and Hong Kong stocks will maintain narrow fluctuations in the short term, oscillating between 25,700 and 26,200 points.
The Hang Seng Index opened 17 points lower this morning, at 26,067 points. Tech stocks showed mixed developments, with Tencent (700) down 0.4%; Alibaba (9988) unchanged; Meituan (3690) down 0.7%; JD.com (9618) up 0.3%; Xiaomi (1810) also up 0.3%.
Baidu Confirms Proposed Spin-off News
Baidu (9888) stated that it noticed media reports last Friday (5th) about the group's plan to spin off its non-wholly-owned subsidiary Kunlun Chip (Beijing) for independent listing. It confirmed yesterday that it is evaluating the proposed spin-off and listing, stating that if the proposed spin-off and listing proceed, it will require relevant regulatory approval procedures, and there is no guarantee that the proposed spin-off and listing will take place. The stock opened up over 3%, at 125.6 yuan.
PICC Group's Yu Ze Suspected of Serious Violations
In individual stock news, China People's Insurance Group (1339) announced that according to information disclosed on December 6 by the Central Commission for Discipline Inspection and the National Supervisory Commission, PICC Vice President Yu Ze is suspected of serious violations of discipline and law and is currently undergoing disciplinary review and supervisory investigation by the Central Commission for Discipline Inspection and the National Supervisory Commission. However, this matter does not affect the company's management. The stock opened up 1.6%, at 7.12 yuan.
Four New Stocks Included in Stock Connect
In addition, Innovent Biologics (1801) officially "turned blue" today, opening up 1%; on the same day, four new stocks were included in the Stock Connect, among which FWD Group (1828) opened down 0.5%; Aux Electric (2580) down 2%; INNOGEN-B (2591) up 2%; Chery Automobile (9973) down 0.8%.
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Rate Cut Expectations Already Reflected in US Stocks
This week's market focuses on global central bank meetings and the monetary policy press conference held by Chairman Powell, which may indicate the trend of interest rates next year. Bowei Global Asset Management's Chief Financial Analyst Nie Zhenbang stated that if the Federal Reserve implements a 25 basis point rate cut as expected, since this expectation has already been reflected in the performance of US stocks, US tech stocks may face pressure, dragging down the performance of Hong Kong stocks. He further pointed out that the Nasdaq has recently shown a series of doji candlesticks, indicating fierce competition between bulls and bears, and even if the rate cut is realized, the Hang Seng Index is unlikely to see a significant upward trend.
Hang Seng Index Faces Resistance at 26,300 Points
uSMART Yingli Securities Research Department Executive Director Huang Deji also stated that the Hang Seng Index faces resistance at 26,300 points, and this situation may persist until the end of the year. He further pointed out that influenced by former President Trump, the next Federal Reserve Chairman is expected to be dovish, thus there is still room for future monetary policy to cut rates, providing a relatively loose external liquidity environment for the Hong Kong stock market Looking ahead to this week, in addition to the Federal Reserve announcing its interest rate decision on Thursday, Bank of Japan Governor Kazuo Ueda will attend a public event next Tuesday; Oracle will also announce its earnings next week. In addition, mainland China will release important economic data such as the Consumer Price Index (CPI) and import and export figures