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Fitch lowered US long-term bond rating from AAA to AA+. Hong Kong market crashed.
The market fell sharply on Wednesday. Fitch downgraded US long-term debt. Hang Seng index opened down 108 points, H share index down 32 points and technology index down 30 points. ...
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Fitch lowered US long-term bond rating from AAA to AA+. Hong Kong market crashed.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market fell sharply on Wednesday. Fitch downgraded US long-term debt. Hang Seng index opened down 108 points, H share index down 32 points and technology index down 30 points. Meituan lost 1.1% for 14-point loss. AIA lost 1.16% for 17-point loss. Tencent lost 0.68% for 14-point loss. Mainland developers soared. CG Services rose 13% to become the top gainer. Country Gardenrose 4.1%. Shanghai composite index opened down 12 points. The market rebounded shortly after opening. Hang Seng index reached a high of 19981 points, down only 30 points. However, the market fell sharply in midmorning. Hang Seng index lost more than 400 points. Meituan lost 4.4% for 57-point loss. Tencent lost 3.2% for 53-point loss. AIA lost 2.2% for 32-point loss. Alibaba lost 2.1% for 39-point loss. HSBC lost 1.36% for 28-point loss. CCB lost 2.45% for 21-point loss. HK Exchanges lost 2.2% for 15-point loss. Ping An lost 2% for 12-point loss. Crude oil fell. Petrochina lost 2.2%. CNOOC lost 1.6%. Electric car shares fell. XPeng lost 8.1%. Nio lost 6.3%. Consumption stocks fell. Lining lost 2.65%. Haidilao lost 1%. Shabu Shabu lost 4.6%. Jiumaojiu lost 5.3%. Budweiser lost 2%. Pharmaceutical shares fell. Hansoh Pharm lost 4.7% to become the top loser. Sino Biopharm lost 3%. CSPC lost 3.23%. Wuxi Biologics lost 2.6%. Peijia Pharm lost 8%. Technology stocks fell. GDS lost 5.5%. Bili Bili lost 5.1%. Kuaishou lost 4.3%. Chinese Literature lost 4.2%. Shanghai composite index closed the morning down 28 points. Hang Seng index fell to a low of 19559, down 452 points and closed the morning down 298 points. H share index closed down 147 points and technology index down 116 points. Turnover was $59.8 billion.

The market was little changed in early afternoon as Hang Seng index lost more than 400 points. Meituan lost 3.8% for 50-point loss. Tencent lost 3% for 50-point loss. Alibaba lost 2% for 37-point loss. AIA lost 2.1% for 31-point loss. HSBC lost 1.2% for 25-point loss. CCB lost 2.67% for 23-point loss. Ping An lost 2 .54% for 16-point loss. HK Exchanges lost 2.1% for 15-point loss. ICBC lost 2.4% for 13-point loss. Hang Seng Bank lost 5.8% to become the top loser for 9-point loss. Cement stocks rose against the market. Conch Cement rose 2.4%. CNBM rose 0.83%. CR Cement rose 2.4%. Consumption stocks fell. Mengniu lost 4.1%. Tingyi lost 3.1%. Chow Tai Fook lost 2.54%. Lining lost 2.87%. However, Chow Sang Sang rose 10.7% as it announced 70% increase in interim profit. Hang Seng index fell to a low of 19475, down 536 points. Tencent lost 3.7% for 62-point loss. Meituan lost 4.1% for 53-point loss. Alibaba lost 2.5% for 46point loss. AIA lost 2.2% for 32-point loss. Shanghai composite index closed down 29 points. Hang Seng index closed down 493 points, H share index 185 down points and technology index down 149 points. Turnover was $113.4 billion.

Overnight, Fitch’s downgrade of US long term debt from AAA to AA+ caused reverberations across the globe. Overseas markets fell. DAX lost 220 points. CAC lost 93 points and FTSE lost 104 points. Dow Jones lost 348 points. S & P lost 63 points and Nasdaq lost 310 points. Hong Kong ADR’s lost 134 points and night future lost 124 points. We expect the market to fall today.  
 
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