Due to the US Labor Day holiday, US markets were closed on Monday, September 2, and will resume trading on Tuesday, September 3.

This week, the market’s primary focus is on the August Non-Farm Payrolls report, set to be released on Friday, as investors seek clues on the Federal Reserve’s potential rate cut path for September.

Additionally, traders remain cautious about a potential repeat of the sharp global market sell-offs, dubbed “Black Friday” and “Black Monday,” which were triggered by the early August jobs data.

Mislav Matejka, a strategist at JPMorgan and one of Wall Street’s most bearish voices on the stock market this year, recently noted that even if the Federal Reserve begins the much-anticipated rate cut cycle, the stock market rally could stall near its historical highs.

US Markets

US markets were closed on Monday, September 2, for the Labor Day holiday.

Hong Kong Stock Market

Fundamental Analysis: 

Hong Kong’s three major indices were sluggish. In sector performance, tech stocks were mixed, with Meituan rising nearly 2% and NetEase falling almost 2%.

Banking stocks saw a collective decline, with China Merchants Bank and Agricultural Bank of China both down over 3%. Coal stocks were weak, with China Shenhua Energy down nearly 2%.

Restaurant stocks were active, with Jiumaojiu International rising almost 4%, while real estate stocks showed signs of recovery, with Shimao Group up over 6%.

Sunpower Group’s stock price plunged 98% after being flagged by the Hong Kong Securities and Futures Commission (SFC) for highly concentrated shareholding.

According to the SFC, as of August 19, 2024, 25 shareholders collectively held 279 million shares, representing 27.65% of the issued share capital. Combined with a controlling shareholder’s 582.5 million shares (57.67% of issued share capital) and approximately 49.3 million shares (4.88%) not held in the Central Clearing and Settlement System or registered in the Hong Kong shareholders’ register, these account for 90.2% of Sunpower Group’s issued share capital. This leaves only 98.9 million shares (9.80% of issued share capital) held by other shareholders.

Technical Analysis: 

Market Trends: 

• Hang Seng Index: Down 0.37%, closing at 17,627.01 points
• Hang Seng Tech Index: Up 0.29%, closing at 3,496.60 points
• Hang Seng China Enterprises Index: Down 0.33%, closing at 6,191.42 points

FTSE China A50 Index

Fundamental Analysis: 

China’s A-share market showed a mixed performance in early trading on Monday. By midday, the Shanghai Composite Index fell by 0.52%, dropping below the 2,800-point level.

Meanwhile, the Shenzhen Component Index rose by 0.82%, and the ChiNext Index gained 0.90%. The combined half-day turnover of the Shanghai and Shenzhen markets was RMB 379.2 billion, a decrease of RMB 82.8 billion compared to the previous trading day. Over 2,800 stocks were up across both exchanges.

Sector-wise, defense (China Shipbuilding Industry Corporation-related), new tobacco, battery, and energy metals led the gains, while banking, highway and railway transportation, and coal stocks led the declines.

The “China Shipbuilding Industry Corporation” sector outperformed, with Kunming Shipbuilding Equipment and CSSC Science & Technology both hitting the daily limit, and CSSC Hanguang and CSSC Emergency up over 9%.

In contrast, banking stocks were among the biggest losers, with Agricultural Bank of China down nearly 5% and Bank of China, China Construction Bank, and Industrial and Commercial Bank of China all falling over 3%.

Technical Analysis: 

Market Trends: 

• Shanghai Composite Index: Down 0.52%, closing at 2,796.48 points
• Shenzhen Component Index: Up 0.82%, closing at 8,239.55 points
• ChiNext Index: Up 0.90%, closing at 1,550.75 points

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Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it. 

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