Investment Daily

Hang Seng Index benefitted little from the surge in Dow Jones Industrial Index theday before. The index decreased 15 points to close at 22,134 points on Wednesday.

    HSCEI closed at 9,440 points, rising 18 points. Turnover for the morningsession was as low as $52.5 billion. Several technology stocks were stimulated bypositive industry news update, and their stocks rose 1% to 7%. On the other hand,there’s news that China Railway Corporation was studying the feasibility ofdebt-to-equity swap within the industry this year so as to deepen the refinancingreform. This spurred some railway stocks to increase 2%.

    US auto sales rose sharply in December, beating market expectation, US autocompanies like Ford and General Motor share price rose near 5% on Wednesday.

    US stock market also performed well. The Fed minutes released later showed thatalthough most Fed members agreed to increase rate in a gradual and measuredmanner, but several of them warned that Trump fiscal policy could trigger higherrate. However, it does not have much impact on US stock market. The Dow andthe Nasdaq rose 60 points (to 19,942) and 48 points (to 5,477) respectively.

    RMB Offshore exchange rate sharply rebounded, as well as local blue chipsperformed well in the US ADR market, we expect HK stock market to open highertoday. However, both offshore RMB interest rate and Hong Kong interbank rateobviously rose, does not favor market sentiment, market turnover also remainedweak recently, it might limit Hang Seng Index short term upside room.