Hong Kong Stock Strategy: the trend of Hong Kong stock continued to fluctuate this week. The market’s concern about the US economy or falling into recession has intensified, and the wide-ranging shocks in the peripheral markets have exacerbated the volatility of the Hong Kong stock market. The marginal weakening of China’s epidemic situation, coupled with the increase of China concept stock rating by many institutions and the reduction of five-year market quotation interest rate by the central bank, has boosted the sentiment of Hong Kong stock market.
US stock strategy: the performance of large retail businesses and a number of US economic data were lower than expected, which exacerbated the market’s concerns about inflation or economic recession, and the market showed a volatile downward trend.
European stocks: inflation in the euro zone continued to rise, with CPI hitting a year-on-year high in April.
A shares: A shares generally rose in the past week, and the top three sectors were coal / electrical equipment / non-ferrous metals; Only the pharmaceutical and biological sector recorded a decline of – 2.0%.
Foreign exchange: in the past week, the US dollar index corrected somewhat and fell from the high level in recent 20 years, while most non US currencies rebounded.
Bonds: the issuance of Chinese offshore US dollar bonds has decreased sharply, and the issuance of investment grade bonds and high-yield bonds has decreased since this year.
Commodities: the US dollar and US bonds fell, while gold prices rose slightly; The price of nonferrous metals is divided, and the price of steel is rising; Crude oil prices fluctuated upward as a whole.
Automobile: the resumption of work and production is promoted, and the subsidy policy for automobile going to the countryside leads to market fluctuations; It is expected that the horizontal fluctuation of car demand will still be reversed, and the car purchase policy will still be more powerful.
Medicine: the State Council Office issued the national health plan for the 14th five year plan, which proposed to encourage the R & D, innovation and use of new drugs, expand / advance the screening of key diseases, increase commercial insurance and strengthen drug supervision.
Real estate: the commercial loan interest rate of the first house is 20 basis points lower than that of LPR; The latest five-year LPR fell 15 basis points to 4.45%. The policy releases positive signals and pays attention to the sales collection of real estate enterprises.
Materials, machinery and Engineering: all sub sectors rose this week, with electrical equipment, metal mining and industrial intermediates leading the rise.
Consumption: in the past week, the consumption sector continued to pick up, with the Hang Seng essential consumption index and non essential consumption index accumulating + 2.3% and + 4.4% respectively.
Banking and non bank finance: we expect that the cost of bank liabilities is expected to go out of a steady downward trend during the year. We recommend BOC Hong Kong (02388. HK).
TMT: the prosperity of the semiconductor industry continues to differentiate, and the demand for consumer electronics continues to decline.
US stock TMT: the foundry industry has started a new round of price rise. Leading companies such as TSM. Us and Samsung Electronics (ssngy. US) plan to raise the foundry price.
American stock medicine: FDA authorized Pfizer (PFE. US) / biontech (bntx. US) covid-19 vaccine booster injection aged 5 to 11.
US stock consumption: the US consumer confidence index fell to its lowest level in more than a decade in early May, and the University of Michigan index fell to 59.1. US retail sales rose 0.9% in April.
