CSI300 dropped 3.29%
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The overall market experienced a pullback this week, with major stock indices all declining to some extent. The SSE Index fell by 3.52%, the CSI 300 by 3.29%, the Shenzhen Index by 3.70%, and the ChiNext by 3.36%. Meanwhile, the HangSeng Index saw a significant drop of 6.28%, showing the weakest performance. In comparison, the declines of the Nasdaq Composite and the S&P 500 were relatively smaller, at 0.93% and 0.77% respectively. These pullbacks reflect uncertainties in the global economy and markets, particularly influenced by U.S. economic data and Federal Reserve policies.
This week, the economic data from the United States remained relatively stable, with the unadjusted CPI for October annually at 2.6%, meeting expectations but rising from the previous value, indicating that inflationary pressures persist. At the same time, initial jobless claims for early November decreased to 217,000, lower than the forecast of 223,000, suggesting that the labor market remains strong. Fed Chairman Jerome Powell stated that the current economic performance is robust and that interest rate cuts do not need to be rushed, hinting at the possibility of continued tightening policies in the future. On the other hand, foreign investors have revised their predictions for China’s economic growth upward, which could offer some support to the Hong Kong stock market, although caution should be exercised regarding changes in the global economic environment.
In terms of China, foreign investors continue to raise their forecasts for China’s economic growth, especially with policy support being communicated for the real estate and technology sectors, which may lead to increased capital inflows into these industries. Notably, Shanghai has introduced policies to support mergers and acquisitions of listed companies, which is expected to invigorate the capital market and further boost the performance of related stocks.
Regarding industry performance, Internet-Content (G3334IG.CN), Retail/Whlsle-Bldg Prds (G5211IG.CN), and Diversified Operations (G9900IG.CN) were the top three strongest-performing industries this week, with gains of 5.17%, 4.57%, and 4.47% respectively. The strength of these industries offers potential opportunities for investors.
Among the top 33 stocks, overall performance was weak, with only 8 stocks rising and 25 falling. Despite this, Doushen Beijing Education (300010) achieved a weekly gain of 30.51%. The company’s business development in education and information security, as well as its focus on educational technology strategy, may be the primary reasons for the significant rise in its stock price. The stock has an O’Neil Score of 54 and an RS Rating of 99, indicating strong market performance and potential.
Overall, the market exhibits high uncertainty during the pullback process, and investors should pay attention to changes in Federal Reserve policies and the recovery process of China’s economy. In terms of industries, strong-performing sectors such as Internet-Content and Retail/Wholesale-Building Products may present some opportunities, while outstanding individual stocks like Doushen Education could continue to attract capital inflows.
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Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on November 15, 2024