Wednesday, January 1: Global markets, including US and Hong Kong stocks, gold, and crude oil, were closed for the New Year holiday. Trading will resume today (Thursday, January 2) for US stocks and gold markets. Doo Prime will continue to provide daily market analysis on Friday, January 3. Stay tuned.
2024 Market Recap
US markets recorded strong gains in 2024:
- Nasdaq: +28%
- S&P 500: +23%
- Dow Jones: +13%
AI-related stocks, led by NVIDIA, were standout performers, dominating the year’s top gainers.
2025 Market Outlook
Wall Street institutions generally hold an optimistic outlook for US stocks in 2025. However, cautious analysts have warned that the prevailing optimism may overlook the risk of a potential US recession in 2025.
Hong Kong Market Overview
Thursday, January 2: After the holiday break, Hong Kong and mainland China’s markets reopened to a weak start.
Gold Stocks Outperform
The gold sector bucked the downtrend, with Lingbao Gold surging over 13% and China Gold International rising 6%. Lingbao Gold previously announced that its 2024 revenue and operating performance are expected to reach record highs. Goldman Sachs’ latest research report forecasts that gold prices could exceed $3,000 per ounce by 2025, citing structural factors supporting the metal’s continued rise.
Broader Market Performance
The three major Hong Kong indices pared losses after hitting intraday lows.
- Tech Stocks: JD.com fell over 2%, while Baidu and Kuaishou dropped more than 1%. Tencent and NetEase posted slight gains of nearly 1%.
- Semiconductors: Semiconductor stocks were among the worst performers, with SMIC down nearly 7%.
- Brokerages: Chinese brokerage stocks also fell, with China Merchants Securities dropping over 6%.
- Other Movers: Alibaba dropped 16% after announcing the sale of its entire stake in Sun Art Retail for approximately HKD 13.138 billion at HKD 1.75 per share.
Technical Analysis
Market Recap
- Hang Seng Index: -1.48%, closing at 19,762.85.
- Hang Seng Tech Index: -1.35%, closing at 4,407.93.
- Hang Seng China Enterprises Index: -1.86%, closing at 7,154.31.
A50 & China A-Shares Overview
Thursday, January 2: China’s A-shares opened lower, with all three major indices declining by midday. Total turnover stood at RMB 782.3 billion, down RMB 21.3 billion from the previous session. Over 2,900 stocks gained.
Sector Highlights
- Gainers: Retail, e-commerce, tourism, hotels, and food & beverage led the gains.
- Decliners: Semiconductors, insurance, brokerages, and automobiles lagged.
Market Performers
- Retail & Consumer: The consumer sector rallied across the board. Over 10 stocks in the retail segment, including Debi Group, Wenfeng Stocks, Hualian Shares, and Yimin Group, hit their daily limit-up.
- TMT & Tech: TMT stocks showed mixed performance. CPO concept stocks, such as Haide Control and Mornsun Magnetics, briefly hit their daily limit-up, while Taichen Light surged over 10%.
- Financials: The insurance and brokerage sectors struggled. Guolian Securities and Huaxin Shares dropped more than 6%, with China Galaxy Securities, CITIC Securities, New China Life, and PICC also declining.
- Semiconductors: The semiconductor sector underperformed, with Changchuan Technology falling over 9%, followed by Liyang Chips, Taiji Shares, and Shanghai Belling leading the declines.
Technical Analysis
Market Recap
- Shanghai Composite Index (SSE): -1.05%, closing at 3,316.50.
- Shenzhen Component Index (SZSE): -1.26%, closing at 10,283.67.
- ChiNext (Growth Enterprise Market Index): -1.79%, closing at 2,103.17.
Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above strategies reflect only the analysts’ opinions and are for reference only. They should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
