Investment Insights

CIO Viewpoints

Can Hong Kong equities rally further?

Daily Insights

Focus of the Day

  • Magnificent Seven valuations converge with broader tech

Other Commentaries

  • Japan growth gets lift from looser financial regulation; AI expansion sustains semiconductor equipment capex upcycle; UK to scrap VAT on household electricity from October

Market Analysis

FX Markets Analysis

Latest Technical Highlights

CNH - Uptrend↗

Support / Resistance

vs HKD 1.1445 / 1.1614

vs USD 6.75 / 6.85

The renminbi is trading near a one-week high versus the US dollar as markets await the late-July Politburo meeting. Investors are focused on the authorities’ second-half policy stance and any accompanying stimulus measures, which are expected to provide support for the currency

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

*Pertaining to historical technical trend analysis only and do not reflect any forecasts or any forward looking views

Provided by Hang Seng Investment Services Limited

Stock Markets View

  • US June CPI and PPI came in below expectations, briefly lifting risk appetite. However, the stop‑start Middle East situation and earnings season’s focus on whether AI profits can be delivered may keep near-term US equity performance volatile.
  • With US–Iran tensions intensifying, oil has rebounded sharply from recent lows, potentially clouding Europe’s inflation and rate outlook. After hitting new highs in early month, European equities are consolidating and may remain choppy in the near term.
  • A swift correction in semiconductors and AI triggered sharp declines in some North Asian markets. Together with recurring Middle East tensions, near-term volatility is likely to persist. That said, underlying AI demand remains intact and other regional opportunities are still attractive.
  • US–Iran tensions have re-escalated, reviving concerns over shipping through the Strait of Hormuz and energy supply. This could weigh on sentiment and influence global allocations to emerging markets.
  • Stronger Southbound net inflows and a firmer RMB are supportive for China-related stocks. Near-term resistance for the HSI is around 25,700.
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Bond Markets View

  • As of 17 July, US long-end yields traded in a narrow range. US investment-grade credit rose 0.1% week-on-week, with spreads slightly wider by 2bp.
  • As of 10 July, US long-end yields were volatile. US investment-grade credit returned -0.6% WoW, with spreads marginally wider by 2bp.
  • The Bank of Korea raised rates by 25bp—its first hike in 3.5 years—to cool an overheated equity market. Bond market moves were limited.
  • Geopolitical risks lifted oil prices and put spreads under episodic pressure. Softer inflation and resilient earnings have eased rate fears, helping support valuation repair.
  • China’s Jan–Jun property investment and sales were notably weak. China property HY remains driven by fundamentals, and market sentiment is likely to stay cautious.
  • S&P affirmed Indonesia’s investment-grade rating at BBB/A‑2, signalling confidence in fiscal and economic prospects and supporting investor sentiment and Indonesian sovereign debt performance.
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Featured Videos

Financial Breakfast

Do Hong Kong equities’ valuations still have room to recover? (Cantonese version) #AI_Mark #Investment #CIOInsights #Equity Markets #Hong Kong Equities #FinancialBreakfast

Opportunities amid Asia equity market correction (Cantonese version)

Belle Liang & Mark Wan

Latest Market Focus

CIO Answered the Top 4 Questions from Investors

Innovation and Tech Support A-Shares

Strategy amid AI Hardware Corrects

CNH: Expect to rise toward HKD 1.17

High Carry Underpins EM Bonds

Semiconductor Sector Turns Volatile

Inflation Trends to Dominate US Equity Performance

Market Calendar

Central Bank Release Calendar

Track the proposed dates of publishing major central bank rate at a glance.

Economics Calendar

View the key upcoming events in global markets

Activate Investment Account

Want to trade different investment products anytime, anywhere? Activate your investment account now.

Investment Product At A Glance

From stocks, bonds to ETFs, discover various options that can help you grow your wealth. 

Latest Offers

Discover our latest investment offers tailored to help you make the most of your investments.

Investment Academy

Gain knowledge on diverse investment products to make informed decisions.

Other Related Links

Need help?

Visit our branches

footnote

Disclaimer

Information provided on these webpages is for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation, or recommendation to deal in any securities or investments. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors stated therein) in detail before making any investment decision.

a. (For information produced by Hang Seng Bank Limited or its affiliates) The information is provided by Hang Seng Bank Limited or its affiliates ("Hang Seng") for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation, or recommendation to deal in any of the securities or investments mentioned herein. The information provided is based on sources which Hang Seng believes to be reliable but has not been independently verified. Any projections and opinions expressed herein are expressed solely as general market commentary and do not constitute solicitation, recommendation, investment advice, or guaranteed return. They represent the views of Hang Seng or the analyst(s) who prepare(s) the information at the time of publication and are subject to changes without notice. No guarantee, representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy, timeliness, completeness or correctness of any general financial and market information, news services and market analysis, projections and/or opinions (“Market Information”) provided on these webpages and the basis upon which any such Market Information have been made, and no liability or responsibility is accepted by Hang Seng in relation to the use of or reliance on any such Market Information whatsoever provided on these webpages. Investors must make their own assessment of the relevance, accuracy and adequacy of the information, projections and/or opinions provided on these webpages and make such independent research/investigations as they may consider necessary or appropriate for the purpose of such assessment. Hang Seng does not make any representation or recommendation or assessment as to whether or not any of the investment(s) mentioned herein is/are suitable or applicable to any persons and thus shall not be held responsible in this regard. Investors should make investment decision(s) based on his/her own financial situation, investment experience, investment objectives, and specific needs; and if necessary, should seek independent professional advice before making any investment decision(s).

All investments involve risks. Investors should note that prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors therein) in detail before making any investment decisions.

The research analyst(s) who prepared the information certifies(y) that the views expressed herein accurately reflect the research analyst's(s') personal views and that no part of his/her/their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in the information provided on these webpages.

b. (For information produced by third-party information providers) Hang Seng Bank Limited and its affiliates (“Hang Seng”) neither endorses nor is responsible for the accuracy or reliability of, and under no circumstances will Hang Seng be liable for any loss or damage caused by any opinion or statement made in the information produced and provided by third-party information providers. The information is for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation or recommendation to deal in any of the securities or investments mentioned herein. Any projections and opinions expressed herein are expressed solely as general market commentary and do not constitute solicitation, recommendation, investment advice, or guaranteed return. The opinions expressed are those of the featured speaker(s), and do not represent Hang Seng's views. The opinions given by the featured speaker(s) are subject to changes without notice and should not be construed as a solicitation, recommendation, or advice on any individual holdings or market sectors. No guarantee, representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy, timeliness, completeness or correctness of any third party information, projections and/or opinions provided on these webpages and the basis upon which any such third party projections and/or opinions have been made, and no liability or responsibility is accepted by Hang Seng in relation to the use of on any such third party information, projections and/or opinions whatsoever provided on these webpages. Investors must make their own assessment of the relevance, accuracy and adequacy of the information, projections and/or opinions provided on these webpages and make such independent research/investigations as they may consider necessary or appropriate for the purpose of such assessment. Hang Seng does not make any representation, solicitation, recommendation, or assessment as to whether or not any of the investment(s) mentioned herein is/are suitable or applicable to any persons and thus shall not be held responsible in this regard. Investors should make investment decision(s) based on his/her own financial situation, investment experience, investment objectives, and specific needs; and if necessary, should seek independent professional advice before making any investment decision(s).

All investments involve risks. Investors should note that prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors therein) in detail before making any investment decisions.

These webpages have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

It is prohibited to reproduce, store in a retrieval system, or transmit, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise any part of the information provided on these webpages. The information provided on these webpages is solely for personal and non-commercial use and for general information and reference only. Re-distribution of any part of the information in any means or use of the information for any other purposes is strictly prohibited.