Hong Kong Stocks See Correction, JPMorgan Continues to Increase Holdings in Chinese Assets

Hong Kong Stocks See Correction, JPMorgan Continues to Increase Holdings in Chinese AssetsAfter the three major U.S

Hong Kong Stocks See Correction, JPMorgan Continues to Increase Holdings in Chinese Assets

After the three major U.S. indices all fell in the evening, the Nasdaq reversed its losses and closed in the green, with Nvidia surging more than 3%. However, Bitcoin slumped, the Nasdaq Golden Dragon China Index also saw a correction, falling over 3% at one point, and many Chinese stocks fell. The A50 index futures also dropped more than 1%. On the Bitcoin front, the cryptocurrency continued to plummet, with Coinglass data showing that Bitcoin fell below $60,000 within 24 hours, triggering margin calls for over 93,000 traders. Gold and silver also dipped sharply in the short term. In Europe, stocks in the UK, France and Germany all declined across the board.

On October 3rd, Hong Kong stocks also entered a corrective phase. The Hang Seng Index fell 330 points or 1.47% for the day, closing at 22,113 points. The Hang Seng China Enterprises Index dropped 127 points or 1.58% to 7,914 points. The Hang Seng Tech Index fell 178 points or 3.46% to 4,978 points. Turnover on the main board reached HK$31.03 billion.

The U.S. released the latest initial jobless claims data this evening, showing that initial jobless claims for the week ending Sept. 28 were 225,000, slightly higher than the expected 220,000 and revised from the previous week's 21.8 million to 21.9 million. In addition, the S&P Global Services PMI for the U.S. in September was finalized at 55.2, in line with the expected and previous reading of 55.4.

While Hong Kong stocks, Chinese ADRs and other markets experienced a correction on October 3rd , Zhang Yidong, Global Chief Strategist at Xingye Securities, stated that the volatility in Hong Kong stocks actually validates the reversal logic, rather than being a fleeting rebound. In October, Hong Kong and A-share markets are expected to transition from the recent short-squeeze-driven rebound to a more sustainable and gradual corrective uptrend.

It's noteworthy that foreign investment banks have been continuously increasing their holdings in Chinese assets recently. According to the latest disclosure information from the Hong Kong Stock Exchange, JPMorgan increased its holdings in Hong Kong Exchanges and Clearing Ltd. by approximately 6.1164 million shares on September 27th at an average price of HK$296.4760 per share, representing an investment of approximately HK$1.813 billion. Following the increase, JPMorgan's latest shareholding stands at approximately 81.42 million shares, raising its stake from 5.93% to 6.42%.

Furthermore, JPMorgan also purchased 4.375 million H-shares of Tsingtao Brewery on September 27th at an average price of HK$55.4166 per share, involving an investment of approximately HK$242 million. After the increase, JPMorgan's latest stake rose from 7.60% to 8.27%.

On the same day, JPMorgan also added 6.52 million H-shares of BYD Company, with an average transaction price of HK$274.5244, representing an investment of about HK$1.791 billion. Subsequently, JPMorgan's stake increased from 4.85% to 5.45%.

JPMorgan's continuous increase in its holdings of Chinese assets signifies its confidence in the Chinese market. Although Hong Kong stocks have experienced a short-term correction, the Chinese market still holds enormous potential for long-term growth.

This article is for informational purposes only and does not constitute investment advice.