Follow up comments
On Tuesday, European and American stock markets rose collectively, and all three major stock indexes in the United States rose. The Dow Jones Industrial Average closed at 3480746, up 1.13%; The S & P 500 index closed at 451161, up 1.13%; The Nasdaq composite index closed at 1410882, up 1.95%. Recently, US Federal Reserve Chairman Powell said that considering the high inflation pressure in the United States at this stage, the Federal Reserve may increase interest rates and accelerate the pace of tightening monetary policy to deal with the increasingly severe inflation situation. On Tuesday, the yield of US Treasury bonds rose, with the yield of 10-year Treasury bonds exceeding 2.3% and that of two-year Treasury bonds exceeding 2%. Affected by the sharp rise in US bond yields, the banking sector rose collectively, with Bank of America up 3.15% and Wells Fargo up 4.44%; Large technology stocks rose collectively, with Google up 2.77% and Facebook up 2.44%. On the news, Alibaba announced to increase the scale of share repurchase, and the total share repurchase plan was raised from US $15 billion to US $25 billion to boost market confidence. Most popular Chinese stocks rose, iqiyi rose 24.4%, BiliBili rose 20.03% and Alibaba rose 11%.
In Hong Kong, the three major stock indexes in Hong Kong fluctuated on Wednesday. Hang Seng Index closed at 2251408 points, up 1.21%; Hang Seng China enterprise index closed at 763513, up 1.28%; Hang Seng Hong Kong Chinese enterprises index closed at 399779, down 0.38%. In terms of technology, Alibaba’s technology sector rose by 12.2% to close at 471.05%, with the Hang Seng technology index rising by 10.2%; The pharmaceutical sector rose significantly, with Pharmaron Beijing Co.Ltd(300759) up 11.96% and Yaoming biology up 11.91%.
Policy highlights
\u3000\u30001. Central Bank of Argentina: announced to raise interest rates by 200 basis points to 44.5%. （Wind）
\u3000\u30002. European Central Bank: it will begin to add climate risk to capital rules in 2022. （Wind）
Company dynamics
\u3000\u30001. Qualcomm (qcom. O): the company announced the establishment of a snapdragon metaverse fund with a total amount of up to US $100 million to invest in developers and enterprises building unique immersive XR experience and related core AR and AI technologies. The fund plans to deploy funds through the following ways: venture capital investment in leading XR companies through Qualcomm venture capital, and funding for creating a developer ecosystem rich in XR experience through Qualcomm technologies funded projects. （Wind）
\u3000\u30002. Baba. N: the board of directors has authorized an increase in the total share repurchase plan from US $15 billion to US $25 billion, according to an announcement on the Hong Kong stock exchange. The company also announced the appointment of Shan Weijian, executive chairman of Pacific Alliance Investment Group (PAG), as an independent director and member of the audit committee, while B? Rjeekholm left the board of directors and the audit committee with effect from March 31, 2022. （Wind）
Risk tips
Economic growth was less than expected
The spread of trade protectionism
Fed policy exceeded expectations
