Market Insights: May 13th, 2024

Financial Markets:

• AH Stock Market Adjustment: Last week, the AH stocks, which led the Asian market rally, both retreated. The Shanghai Index fell by about 0.8%, the Shenzhen Component Index by 0.97%, and the ChiNext Index by 0.86%. Early in the session, the Shanghai Index saw a larger decline, with the Shenzhen Component Index and ChiNext Index also experiencing varying degrees of decrease.
• Hong Kong Stock Performance: The Hang Seng Tech Index initially fell more than 1%, but then reversed to an increase of 0.2%. The Hang Seng Index narrowed its decline to 0.1%.
• Sector Performance: Power stocks continued their surge, but power equipment led the decline. Other sectors like pharmaceuticals, biotechnology, transportation, banking, and steel saw gains, while non-ferrous metals, real estate, beauty and personal care, oil and petrochemicals, and automobiles showed weakness.

International Economy:

• Vietnam's Economic Performance: In April, Vietnam's economy showed positive momentum in several aspects. The industrial production index continued to rebound strongly, and the Manufacturing PMI indicated that industrial production is accelerating its recovery. A significant inflow of foreign direct investment further promoted Vietnam's deep integration into the global production and trade chain.

Corporate Dynamics:

• Alibaba Earnings Release: Alibaba and several other internet companies will release their financial reports this week, with the market focusing on Alibaba's business transformation and the progress of shareholder returns. Alibaba will announce the fourth quarter and full-year earnings for the fiscal year ending March 31, 2024. Due to the slow recovery of the domestic economy and increased market competition, there is a cautious attitude towards Alibaba's short-term profit performance.

Stock Market Trends:

• Sector Performance: The CRO concept and power sectors showed strong performance, while the military sector, low-altitude economy concept, and gold stocks were weak.
• Individual Stock Performance: Some stocks showed strong performance, such as Xintiandi, Canaan Technology, Gansu Energy, and Xichang Electric Power, hitting their trading limit, but there were also decliners like Sinovac Biotech, Suzhou JKLC, and Xiaocheng Technology.

Forex Market:

• US Dollar Performance Forecast: J.P. Morgan expects the US dollar to strengthen against a range of currencies like the Euro and the British Pound, considering factors such as rising yields, economic growth buffering, and other supportive elements, the medium-term view remains bullish on the dollar.