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the sharp rise in hong kong stocks reflects the fact that foreign capital and local hong kong capital have entered the market one after another due to the phobia of missing out. no one wants to miss this feast.

on october 2, hong kong stock connect and a-shares were closed. hong kong stocks that opened alone surged across the board, and trading volume continued to remain high.

as of the close of trading, the hang seng index rose by 6.2%, the hang seng technology index rose by 8.53%, the hang seng state-owned enterprises index rose by 7.08%, and the total transaction volume was hk$434.017 billion.in terms of sectors, domestic real estate stocks soared collectively. ronshine china rose by 397%, agile group rose by more than 160%, and shimao group rose by 153%. chinese securities stocks exploded, with china merchants securities rising by more than 81%, citic securities rising by more than 39%, and shenwan hongyuan. hong kong rose more than 206%.

“since the end of september, we can feel that the investment atmosphere has improved significantly. almost everyone walking on the streets of central is talking about the sharp rise in stocks. at noon, fewer colleagues are eating double meals, and they all order more expensive takeaways. "xiao chen, a trader working in hong kong, told caijing.

another financial manager of a foreign private bank in central said, "i'm too busy. i haven't been this busy for a long time. i only took four minutes to eat today. there were too many customer inquiries to respond to, and the original vacation had to be cancelled."

although the a-share market is still closed, funds are deployed in advance through hong kong stock etfs.

the southern science and technology innovation board 50 etf listed on the hong kong stock exchange once rose by more than 230% during the session today. csop had to issue a risk warning at noon, saying that the fund manager would like to remind sub-fund shareholders of relevant market transaction risks, including but not limited to substantial premiums in secondary market prices, and remind shareholders to exercise caution when trading a-share etfs, especially in the event that the mainland securities market is closed during the national day holiday. after the risk warning was released, the southern science and technology innovation board's 50 gains narrowed, rising 28.79% as of the close, with a turnover of hk$168 million and a turnover rate of 196.7%.

today's surge in hong kong stocks is a continuation of a-shares, and the opening of hong kong stocks during the national day holiday has also made investors look forward to the post-holiday market of a-shares. however, some hong kong stock analysts have reminded that before the a-share market opens after the holiday, hong kong stocks will continue to open alone for several days, and it is necessary to continue to observe whether this round of market conditions can continue.

hong kong stock market feast, who is attending?

"although i am on vacation, i was shocked by china's historic market as soon as i got off the plane." hong hao, chief economist of sirui group, told caijing, "a-shares are closed for the national day, and hong kong stocks continue to rise, which shows that investment in the hong kong market investors are looking forward to market recovery and favorable policies. "hong hao reiterated that the chinese market is the most significant contrarian value investment opportunity this year. for many analysts and traders, this is a once-in-a-lifetime historic market. many indicators on the market are now historic. for example, the five-day increase and trading volume have reached historical highs.

"today, the hong kong stock market is no longer dominated by funds from the mainland. it proves that major foreign investors who were extremely underweight the chinese stock market are rapidly replenishing chinese assets, and other funds, such as local funds, are following."chen guo, chief strategist of citic construction investment, said. chen guo previously stated in a conference call that this market is a rare market that combines three factors: upward revision of profit expectations, falling risk-free interest rates, and rising risk appetite, so it is not a simple oversold rebound. in fact, the increase in the hong kong stock index can be considered to have established a bull market in a general sense, and the a-share market under similar background and logic can be considered to be a bull market.

"the surge in hong kong stocks perfectly reflects the characteristics of foreign capital and local hong kong capital entering the market one after another due to the phobia of missing out. no one wants to miss this feast."yan zhaojun, a strategic analyst at zhongtai international, analyzed, "looking at the market, sectors or stocks that have been most severely pressured in their early valuations, such as the hang seng index, consumer discretionary, and real estate, have rebounded astonishingly, while index heavyweights have also surged across the board. the reason is that the return of foreign capital that had previously been significantly underweighted in hong kong stocks, as well as the reversal of previous trades such as long japanese stocks, indian stocks, and the seven sisters of u.s. stocks, were just like the reversal of the yen carry trade in early august, which caused the yen to rise sharply, but this time it was fulfilled in china's stock market. in addition, the gamma squeeze of options has accelerated the rise of the market and individual stocks. call option sellers need to buy more underlying stocks to hedge their risks, which inadvertently further increases the rise of the market or individual stocks."

how long can a strong pull last?

"based on discussions with investors, this round of rise will continue." daiwa securities research report stated. although most investors believe that substantial policy impetus is needed to rationalize the long-term market turn, daiwa believes that the process may take several months, and investors may take the lead. yamato also believes that many long-term global investors are eager to reduce their underweighting of china, and internet stocks have become one of the focuses. in addition, shanghai, shenzhen, and guangzhou have significantly relaxed restrictions on home purchases by non-local residents. it is believed that the effectiveness of this round of easing policies will be better than the previous ones. due to strong market sentiment, the short-term performance of the domestic real estate industry has turned cautiously optimistic.

haitong international published a research report stating that china’s internet sector rebounded last week. the hang seng technology index rose by more than 20% from september 23 to 27. during the same period, the shanghai-shenzhen china internet etf rose by 25%. looking back at the two internet industry events in the past two years, rebound, it can be seen that the prices of most stocks in the industry have not yet returned to post-epidemic highs. haitong international recommends that investors adopt a bottom-up approach to stock selection, focusing on corporate valuations and improvements in fundamentals, and paying attention to sub-sectors such as e-commerce, entertainment, online travel agencies and hotels, education, and online advertising.

ubs global research said that historically, october is one of the better months for the chinese stock market, outperforming the monthly average performance by 1.5 percentage points.short-term momentum is expected to continue until mid-october due to improving market sentiment and lower positioning. in addition, after this round of surge, the key factor to pay attention to is the scale and type of fiscal measures. a package of measures to support consumption and local government financing is expected to be most popular among investors, while in the next few quarters, we may also see more stock market support policies starting from improving corporate governance.