Category: Money tips Release Date: 2006-02-20
Hong Kong stocks surge power
Into the second quarter, the first trading day, Hong Kong stocks have been showing a breakthrough, at the outset of this breakthrough in the market skeptical, thinking that this is only investment traps and disagree, but as the index rose, the sharper the more investors realize that this is not what the investment traps, but a major breakthrough, the most noteworthy is that this city of turnover liters with an initial daily turnover as high as 40 billion yuan, the next day there are 30 billion, the earlier two Baiyiyiri has been no longer be seen.
Whether the money come from? What do you think?
To answer that question can be divided into two angles, one is the basic analysis, recent market stir-yuan appreciation, Chinese President Hu Jintao visited the United States, raising speculation the yuan against the U.S. dollar can go up to wear eight points, against the Hong Kong dollar rose to wear on the level of 10 yuan, This triggered speculation that a large number of hot money influx; followed by large state-owned enterprises listed in Hong Kong after another, the BOC (China) will be the first kick, followed by Industrial and Commercial Bank of China, there are others such as China Merchants and Minsheng Bank, etc., this massive Chinese-funded IPO boom, also attracted many of the "mad waves Butterflies," the surging hot money.
From a technical perspective, the Japanese return after victory Hui Zhao done earlier days of the year-end has passed, that the huge Japanese but also find a way out. Hui Zhao earlier due to return after victory Japanese hedge funds have been scaled back, and now again active form of both large and small have slightly fries fried situation, you noticed that recently a report accusing him of also predicted to rise to the Hang Seng Index 18000-19000 Point! This shows that the Dahon again gearing up, it is estimated the volatility of Hong Kong equities into the second quarter will be even greater.
This would particularly like to explore with readers yuan prospects, and then talk about what a good appreciation of the renminbi to do next. Appreciation of the renminbi can be said to be iron-clad fact, the question is how many liters? L How fast? Recent market focus on the U.S. dollar against the yuan can rise above the 8:00 issue, one may wonder why the level of 8:00 attach so much importance? Because l break 8:00, the market will focus on seven issues, first 7:08, the latter is 7.5, and then they approached the edge of 7:00, then again towards the 6 o'clock! So, in short 8:00 is the psychological critical point.
As Hong Kong dollar as the yuan rose above 10 o'clock, people began to psychological pressure on an increasingly large market has been abuzz recently the Hong Kong dollar will be forced to rise, Mr Yam immediately jumped out to deny, but concluded that the Hong Kong dollar will not be separated in order to avoid the market to make various as speculation, aroused speculation excuse.
That the RMB will rise very much? Premier Wen stressed that even if a one-off revaluation of the yuan will no longer (as in July last year, up 2% in a one-off phenomenon will no longer have), but does not deny the possibility of appreciation day, in fact, the RMB current new high day after day, from since the beginning of the yuan has risen by nearly 2%, and so predicted the yuan this year, up about 5%, the RMB exchange rate will be higher than Hong Kong dollar, we must be prepared, in the rising yuan, Hong Kong's asset is becoming more and more cheap, in other words, the mainland funds will be held following the influx of funds into the mainstream of Hong Kong.
To go along with Social Security Fund
If so, how should investors in Hong Kong since it? The answer is actually quite simple, that is part of the cash sweep yuan would be a long-term preservation methods, although some people complained that the RMB deposit interest is only one PCT, is far too low, but do not forget that, when the continuous appreciation of the yuan, the Hong Kong dollar have continued to depreciate. The Hong Kong dollar time deposit interest rate may not be up to the exchange rate losses.
However, holders of yuan is only a very conservative approach, whether there is another aggressive approach? Social Security Funds in the Stock Exchange has recently opened an account that the persons concerned have indicated that the social security fund will focus on investments in the Mainland to Hong Kong-listed large new shares, the Social Security Fund's operations there are two meanings: First, coming to Hong Kong-listed state-owned enterprises, the initial at least to keep the fund, in other words, invest in state-owned shares will have a certain degree of protection; the other is the social security funds which are conservative organizations to buy state-owned shares, individual investors may wish to follow the example of what will be invested in shares on yuan assets to earn more than RMB appreciation of the (estimated at 5%) and interest on a better return.
Exactly what to buy stocks? Can see in the coming year are known to have companies listed in Hong Kong arrangement, the first kick is the BOC (China), China Merchants Bank and Industrial and Commercial Bank of China can be said that investor's investment strategy may be necessary every Chinese-funded financial stocks to buy, However, the long-term holding, will have to judge on individual stocks to be specific.
