Evergrande sells shares and Alibaba raises funds (May 27, 2024)

Preface: There were two financial news that caught my attention before the market opened this morning: one was the resumption of trading of $EVERG VEHICLE(00708.HK), and the other was $BABA-W(09988.HK) selling shares to raise capital...

Hong Kong Market Update

$Hang Seng Index(00HSI.HK) opened lower but rose higher today, hitting a low of 18,504 points before reversing course and climbing steadily. It closed near the day's high at 18,827 points, up 218 points, with a turnover of HKD 118.9 billion.

Strategy

As mentioned in yesterday's article, the gap below 18,200 has strong defensive support and is unlikely to be easily broken. However, it was also pointed out that if the Hang Seng Index rises again this time, don't be too greedy—reduce positions before reaching 19,500. After all, the Hong Kong market still carries risks.

Before the market opened this morning, news reported that the major shareholder of $EVERG VEHICLE(00708.HK) plans to sell shares—first 29%, with the option to buy the remaining 20%+ later. In other words, Evergrande NEV has turned a corner, transitioning from conceptual drawings in recent years to actual products. As a result, the stock surged over 100% after resuming trading today and closed nearly 90% higher.

The other news was about $BABA-W(09988.HK) issuing convertible bonds. Judging from the terms, it seems to give accredited institutions an opportunity to buy shares at what will later be considered a very cheap price within a specified period. So, in the medium to long term, Alibaba is worth watching.

(The above views represent my personal opinion. Any investment strategies provided in this article may not be suitable for everyone and should not be considered as an invitation or intention to buy or sell financial products. Securities prices can rise or fall, even becoming worthless. Trading securities does not guarantee profits and may result in losses. Investors and clients should exercise caution and consider this as one of many factors when making investment decisions.)