Investment Daily

While MSCI decides not to include A shares, it seems exerting little negativeimpact to Hong Kong stock market. Hang Seng Index closed at 20,467 points onWednesday, increasing 79 points. HSCEI closed at 8,609 points, rising 26 points.

    Turnover was $58.6 billion. The mainland brokerage stocks performance varied.

    On the other hand, there’s news that a joint-equity commercial bank started totighten housing mortgages. The loan portfolio will largely contract and the loanrate will differ in the future. It can’ t be ruled out that some other commercialbanks will follow. The mainland banking industry stock was stable.

    US stock market rebounded on early Wednesday. The Fed maintained interest rateunchanged, and also lowered US economic growth projection as well as interestrate hike pace expectation in coming years. Market initial response is positive,with the Dow once rose near 90 points. However, selling emerged in late session,as investors changed their view, concern that the Central Bank might not be able tocontrol the economy, US stock market fell for the five consecutive trading days.

    The Dow and the Nasdaq dropped 35 points (to 17,640) and 9 points (to 4,835)respectively.

    Although the Fed has slightly lower its future interest rate hike pace expectation,but stock market sentiment remained weak, HK blue chips fell in the US ADRmarket, we expect local market remain weak today. Looking ahead, investors willeye on the Brexit Vote results. Hang Seng Index initial support is at 20,000.