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EV’s and Apple concept shares rose to lead the market’s rally.
The market opened higher on Thursday. Hang Seng index opened up 166 points, H share index up 61 point and technology indexup 52 points. Technology stocks led the rally. Tencent ros...
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EV’s and Apple concept shares rose to lead the market’s rally.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened higher on Thursday. Hang Seng index opened up 166 points, H share index up 61 point and technology indexup 52 points. Technology stocks led the rally. Tencent rose 1.5% for 22-point gain. Alibaba rose 1.55% for 21-point gain. AIA rose 1.5% for 15-point gain. Meituan rose 1.6% for 17-point gain. BYD rose 3% for 11-point gain. Shanghai composite index opened up 0.6 point. The EU announced special import duty up to 38.1% on Chinese-made EV’s. BYD, which cooperated with the investigation would be charged 17.4%. Geely would be charged 20% special import duty. SAIC which did not cooperate with EU would be charged with 38.1% duty. The market rose further after opening as Hang Seng index rose more than 200 points. BYD rose 7.5% for 29-point gain. Geely rose 3%. Li Auto rose 3%. Nio rose 3.6%. XPeng rose 1.9%. Apple soared to record high. Handset suppliers rose. BYD Electronics rose 4.4%. AAC rose 3.3%. Q-Tech rose 4.9%. Hongten rose 5%. Hang Seng index reached a high of 18173 points, up 235 points. However, the market retreated in midmorning as profit taking trimmed the market’s gain. Hang Seng index rose less than 100 points. HSBC lost 0.66% for 11-point loss. Shanghai composite index closed the morning down 9 points. Hang Seng index closed the morning up 96 points, H share index up 31 points and technology index up 23 points. Turnover was $57.8 billion.

The market’s gain narrowed. Hang Seng index rose about 100 points. Heavyweights retreated from opening highs. Auto shares rose. The EU will impose from 17.4% to 38.1% import duty on Chinese EV’s. The market believed that the increased import duty would not suffocate Chinese EV factories. BYD could handle 17.4% import duty by cutting its own margin. BYD rose 6% to lead the blue chips for 22-point gain. Meituan rose 3% for 32-point gain. Tencent rose 1.5% for 22-point gain. China Mobile erose 1.6% for 12-point gain. Xiaomi rose 1.4% for 6-point gain. Handset suppliers rose on Apple’s record surge overnight. BYD Electronics rose 4.6%. Sunny Optical rose 3%. Q-Tech rose 11.2%. Cowell rose 4%. Foxconn rose 5%. Hongten rose 6.6%. Metals fell. Precious metals fell. Zijin lost 2.5%. Zhaojin lost 3.23%. Non-ferrous metals fell. China Hongqiao lost 3.65%. Chalco lost 2.7%. Jiangxi Copper lost 2.05%. Luoyang Moly lost 3%. Shanghai composite index closed down 8 points. Hang Seng index closed up 174 points, H share index up 62 points and technology index up 48 points. Turnover was $ 107.3 billion.

Overnight, European markets fell sharply. DAX lost 365 points. CAC lost 156 points and FTSE lost 52 points. US markets were mixed. Dow Jones lost 65 points, but S & P rose 13 points and Nasdaq rose 59 points. Hong Kong ADR’s lost 135 points. Night futures lost 137 points. We expect the market to fall today.  
 
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