On September 25, boosted by the positive news of China's comprehensive policy package, Hong Kong stock trading continued its significant upward trend from the previous day, with all three major indices opening over 2% higher in the morning session. The Hong Kong dollar exchange rate against the US dollar rose again in the evening market, reaching 7.7831, and the Chinese concept stock index soared by 9%.

Hong Kong Stock Market Stages a Bullish Comeback

Following the implementation of China's rescue measures, foreign investors have flocked to Hong Kong, driving the market's continued upward trend. After yesterday's significant gain of 753 points, the Hang Seng Index (Hsi Index) opened with a gap of nearly 600 points, reaching a level near 19,600 points, representing an increase of approximately 2.5%. Within the first hour of trading, the main board turnover exceeded 900 billion yuan.

Across sectors, technology stocks led the rally, with Weibo soaring over 7%, Kuaishou surging over 6%, and Bilibili climbing over 5%. NetEase, Meituan, JD.com, Tencent, and Baidu all saw increases of over 2%, with Baidu also gaining nearly 2%.

Financial stocks also continued their upward momentum from yesterday, with Chinese securities firms leading the charge. Zhongtai Futures jumped over 7%, CICC soared over 6%, and Huatai Securities, China Galaxy Securities, CITIC Securities, China Securities, and GF Securities all gained over 4%.

Offshore Renminbi Breaks 7 Yuan Mark

On September 25, the offshore Renminbi briefly surpassed the 7 yuan mark, reaching its strongest level in 16 months. However, the onshore price appreciated but did not break through 7. The People's Bank of China (PBOC) set the central parity rate of the Renminbi against the US dollar at 7.0202, an increase of 308 points, in line with market expectations and without sending any additional policy signals.

The offshore Renminbi experienced its largest appreciation since September 24, reaching a maximum increase of 0.23%. It appreciated to 6.9951 yuan, its strongest level since May 17, 2023. Currently, it is trading at 7.0151 yuan, representing a slight depreciation of 0.06%.

The onshore Renminbi appreciated by a maximum of 0.27%, marking its largest increase since September 24. It reached 7.0129 yuan, its strongest level since May 19, 2023. Currently, it is trading at 7.0211 yuan, representing an appreciation of 0.15%.

Goldman Sachs Phone Conference Overwhelmed

Following the strong performance of Chinese assets, Goldman Sachs' phone conference attracted a large number of participants. The firm's trading department addressed several key questions from clients.

Goldman Sachs noted a significant increase in market trading activity, with Hong Kong stock trading volume up 137% from the average of the past 20 days, Shanghai Stock Exchange volume up 83%, and Shenzhen Stock Exchange volume up 66%. Similarly, Goldman Sachs' trading volume in Hong Kong stocks increased by 143% compared to the average of the past four weeks, while A-share trading volume increased by 154%.

Long-term investors were the primary buyers in these transactions, with their purchases in Hong Kong and A-shares reaching 1.87 times the average level, primarily concentrated in the Hong Kong market. In Hong Kong, hedge funds were net buyers, accounting for 22% of Goldman Sachs' trading volume. Long-term investors' purchases in the Hong Kong market reached 2.77 times the average level, accounting for 78% of total trading volume, with the main buying areas including financials, consumer goods, and ETFs.

Goldman Sachs emphasized that the market rally was not driven by short covering. The Hong Kong short stock basket rose 3.6% on the day, lower than the Hang Seng Index's 4.13% gain, indicating that short positions were not under pressure. Notably, hedge funds had already begun short covering in the Hong Kong market before today, with their long-short ratio decreasing from a high of 3.5 to 3.2.

Furthermore, southbound capital accounted for 15% of the day's trading volume, with a net selling amount of US$553 million, primarily in stocks such as Tencent, Meituan, and ETF 2800 HK. The derivatives market was also active, with call option trading on A-share and H-share indices being frequent, involving the A50, CSI300/500/1000, and HSCEI indices.

Goldman Sachs concluded that the market's upward trend is expected to continue.

How to Invest Using uSMART

After logging into the uSMART HK app, click on the "Search" option located at the top right of the page. Enter the stock code, such as "09626," to access the details page where you can review transaction details and historical trends. Then, click on the "Trade" option at the bottom right corner, select the "Buy/Sell" function, and finally fill in your transaction conditions before submitting your order.