Money face worries fade profit return will continue

-Hong Kong's Better-than-expected employment data and rising commodity prices have caused investors to worry about an early rise in the interest rate hike, which in Monday fell sharply, with local property stocks and Chinese resource stocks becoming the main players. The interest rate hike is expected to depress the local property index, which hit 18253.39 points, down 2.28% after the low opening of Monday, down 1.79% per cent at 10667.88 points.　　The deal shrank to HK $73.7 billion. Local property stocks have led the index, fearing a rise in mortgage rates and a weakening economic fundamentals in Hong Kong that will put pressure on the property market. Prudential Securities Liu Chaoxiang said local real estate stocks were depressed, perhaps because of market concerns about the banking system settlement has fallen sharply, resulting in higher prices, further drag the property market performance. The balance of the banking system in Tuesday will be substantially reduced from HK $230 billion to HK $180 billion, to a reduction of HK $ more than 40 billion, but the main reason is that the HKMA's issuance of bonds absorbs excess capital and avoids the change in the balance of the banking system so much that the stability of the local economy is not affected.　　However, he said that the HKMA is currently only hiding the inflow and outflow figures in other ways, and if the funds do flow out of Hong Kong and the banks do not have sufficient funds, they will sell their bonds back to the HKMA. It is another major factor that has dragged down the big city. According to market news, HSBC's financing or the need for a large amount of impairment preparation, so that the market worried about the prospect of exchange control, the exchange control fell 2.66% to HK $64 in Monday. Even if debt has been restructured with clients, the quality of HSBC's financing loans has not improved, the repayment performance is unsatisfactory, or a 10 billion dollar impairment reserve is required, says credit sights of the US Securities Research Institute.　　In addition, since Monday, the proportion of the index to the HSI to 15%, but also triggered the investors selling pressure. DBS Li Yongliang said investors were worried about the profitability of the exchange and were looking for reasons to sell it because the market was still sensitive to these negative clues.　　However, with ample liquidity, the control is likely to remain above HK $60 in the near term, but in the light of the fundamentals, the stock has peaked at a peak of HK $70.85 a year after it hit a high of HK $55 in the middle of June 1. The King's securities Lin Jianhua said that when the market expected the stock market to adjust, the US subprime mortgage issue once again became the focus of the market, the material will become the object of the capital depressed big city. It is estimated that in the worst case, the remit will fall to 50 to HK $55. KGI Securities Bin also said that the recurrence of subprime worries could put more pressure on the unit in the near future, and it is expected to receive short-term support for the 60-dollar mentality.　　Investors are starting to worry that the subprime mortgage problem could dampen interest in investment in the exchange, especially after the recent sharp rebound in share prices. Chinese stocks, power shares to become the only bright spot, Huaneng, Huadian, Datang are all red. Faba said that Shandong contract coal price rose 4%, lower than the bank expected. China Electric International Service area is less affected by the lower capacity utilization ratio than the rest of the country, the target price was raised from HK $1.95 to HK $2.8 and the rating was "held" to "buy". Credit Suisse forecast a 2% per cent rise in contract coal prices for mainland electricity companies this year, down from 5% to a fall of 20%, reducing the forecast for spot coal prices in 2010 to a rise of only 4%.　　The Hong Kong international target price rose from HK $5.6 to HK $6.5 from "neutral" to "outperform".　　In addition, due to a sharp rebound in the Friday dollar, crude oil and metal futures prices fell, steel, coal, non-ferrous and other early cumulative gains in the cyclical stock also appeared profit-taking. The financial side worries the stock market's rally since March has been driven largely by capital, with safe havens flowing out of US dollar assets and Hong Kong as a window into capital investment in Chinese assets.　　But as inflation and interest-rate expectations rise and the dollar rebounds, the return of capital to dollar assets is the biggest pitfall in the current Hong Kong stock market, and the rise in long-term US dollar interest rates and the reduction in the balance of the banking system may herald a close end to capital markets. Jin Li Fung Securities Mr. Huang several said that the apparent return of Hong Kong stocks, the early days of Good Hope has slowly been digested by the market, and listed companies continue to raise funds in the two-tier market, new shares are queued listing. As fund-raising activities become more active, the market is concerned about the future of capital outflows.　　The HKMA's data show that there is no further increase in the balance of the banking system, reflecting a slowdown in the inflow of funds, which, despite the continued presence of funds, is an excuse for profit-making, and it is expected that the 20-day line (17,620 points) of the HSI will become an important support. The first Shanghai Securities Ye Shangzhi said that at the current stage after the end of May, after the rise of the wave, the horizontal plate collation of five trading days, short-term trend facing the critical moment of choice.　　However, there is no need for the stock market performance to be overly bearish before the initiative selling is obvious, and the Hang Seng index's psychological support is at 18,000 points. Huang, director of the rich Financial Group, said rumours of a rise in interest rates had returned;　　Dafo said that as investors awaited large numbers of data to be released by the mainland and the United States later this week, it was expected that this week's apparent shortfall in ship investment would continue and that the upcoming economic data, oil prices, Treasury prices and the dollar's movements would lead to sharp swings in equities. Zengyongjin, head of research at group-benefit Securities, said that Hong Kong stocks would continue to be supported by a vision of a recovery in China and the US, but that the index has now risen to 15 times times 2010 earnings.　　It has reached the average of 14.5 to 15 times times in the past about 25 years, and unless there is good news to boost earnings expectations, it is not easy to make a breakthrough, and it can only fluctuate from 18000 to 19,000 levels. In addition, the Hang Seng Bank released the "Pulse of Hong Kong economy", which shrank by 7.8% in the first quarter of 1998 as a result of a severe contraction in both local and external demand, the biggest decline in Hong Kong since the Asian financial turmoil. Rebound in consumer demand in US and Europe key to a sustained recovery in the local economy。 Regrettably, consumers in Europe and the US still have to face problems such as shrinking wealth, high indebtedness and rising unemployment, and believe that it will be difficult to substantially increase consumer spending in the short term. While the global economic contraction may be slowing, it is still not out of the woods, and it is likely that Hong Kong's economy will shrink by 5% this year, by widening the forecast for Hong Kong's exports from its original estimate of 7.5% per cent to a double digit of 12%.