HKG33 Index

Whenever you want to trade, MALAFY helps you discover unlimited opportunities

HKG33 Index

Quartet International helps you discover unlimited opportunities whenever and wherever you want to trade

HKG33 Index

HKG33 index is reflected in the Hong Kong stock market an important indicator of the stock market, the index calculated by the market value of fifty constituent stocks of HKG33 index, on behalf of the Hong Kong Stock Exchange for all listed companies in twelve-month average market capitalization of covers 63% of the rate. HKG33 index constituent stocks are blue chip stocks in Hong Kong . HKG33 index is calculated by Hang Seng Index Co., Ltd. and reviewed quarterly to announce the adjustment of constituent stocks. HKG33 index was created in 1964 by Guan Shiguang , head of the research department of Hang Seng Bank . Guan Shiguang is therefore known as the "father of the HSI." In the foreword of Guan Shiguang's autobiography, The Dragon and the Crown: Hong Kong Memoirs , Robert Naird , Chairman of the Royal Society of Asia Hong Kong, hailed HKG33 index as the ultimate in capitalism in Hong Kong. Metrics".

In 2018, HKG33 index was not as good as before the Sino-US trade war continued to heat up. Both the US stock market and the mainland China stock market fell between May and June. After seeing 29,129 points on February 9th, HKG33 index rebounded to nearly 32,000 points in March and then fell back. In June, HKG33 index accelerated. On the afternoon of June 19, HKG33 index plunged 977.21 points. 29,332.28 points, lost the bull-bear line. On June 26, affected by the decline in US stocks, the HSI fell to the early December low of 2017 at 28,505.09. As of the close of the market on August 2, HKG33 index closed at 27,714.56 points, closing for the first time in 2018 for the first time under 28,000 points. At the same time, the Shanghai Composite Index was also dragged down by the trade war, showing the same big decline . On September 6, HKG33 index fell below 27,000 points for the first time since the beginning of August 2017. On September 7, the HSI fell to a 14-month low of 26,669.58 points, a cumulative drop of more than 20%. On October 4, the HSI was overtaken by the US Dow Jones Industrial Average for the first time since April 28, 2003 . On October 25, 2018, HKG33 index fell below 25,000 points for the first time since May 9, 2017 . On October 30, 2018, HKG33 index saw a low of 24,540.63 points. On October 31, 2018, HKG33 index closed at 24,979 points. In October, HKG33 index fell 2,808 points or 10.1%, the largest monthly decline since January 2016. At the same time, HKG33 index fell for six consecutive months, the longest drop since 1982 .

However, after about a week, HKG33 index was greeted by US President Trump and Chinese President Xi Jinping . The market was driven by the good news of Sino-US trade war easing. On November 2, the market closed at 26,486 points, up 1070 points, or It accumulated a total of 1768 points in the week, ending a five-week decline and hitting the biggest single-day market in nearly seven years. Meanwhile, the Asia-Pacific stock markets such as the HSCEI, SSE, Nikkei, South Korea and Taiwan all showed an uptrend .

At the G20 summit in Argentina in early December 2018, the US dollar met for the first time. The two sides agreed to freeze the increase in tariffs and the trade war showed signs of cooling. The news led HKG33 index to rise. On December 3, the HSI rose 675 points or 2.6% for the day, closing at 27,182 points, which rose above the 100-day moving average at noon. The Shanghai Composite Index, Taiwan, Japan, South Korea and the US stock market are all good .

Entering 2019, HKG33 index continued to turn from a low of 24,540 points. On April 3, HKG33 index rose to 29,999 points, which was only 1 point lower than 30,000 points and was the highest in nine months.

Precious metal products

gold

The history of gold is the history of human civilization. Thousands of years ago, when people discovered the first natural gold particles, gold was considered a valuable material. Because of its beautiful color, very stable chemical properties, good mechanical properties, and the best value-preserving items, gold jewelry plays the most important role in all jewelry. The biggest consumer of gold is jewelry making. In 1970, the world's gold used in jewelry production reached 1,062 tons, accounting for more than 77% of the world's total gold consumption. In 1978, the amount of gold processed in various industries worldwide was 1,400 tons, and the jewellery industry used 1,000 tons. In modern jewellery, gold can be alloyed with different metals to achieve the desired variety of colors, such as golden yellow, water green, pure white, blue, and the like. The natural reserves of gold in the earth's crust are 90,000 tons, and the recoverable reserves are about 42,000 tons. In 2004, the world's gold mining volume was 2,430 tons, including 341 tons in South Africa, 259 tons in Australia, 258 tons in the United States, 215 tons in China and 173 tons in Peru. According to the China Gold Association, China’s gold production in January-August in 2013 reached 270.167 tons, an increase of 8.2% over the same period last year.

The strategic value of gold

In the past few years, the prestige of gold as an alternative currency transaction has increased. Many traders use the precious metal as a tool to fight inflation and hedging – so it is often referred to as a “safe haven” investment. Historically, gold prices tend to be the opposite of the dollar, but as geopolitical uncertainty has soared over the past five years, the correlation has become less pronounced. As demand increases and products diversify, gold also begins trading with other currencies. Currently, we offer trading products such as XAU/USD.

Price driver

Gold is affected by the health of the global economy – measured by GDP growth, inflation, employment data and interest rates. In addition, some of the world's largest central banks' monetary policy and its policies are tightening or expanding, which also has a huge impact on gold prices. Investors should also consider factors such as supply and demand dynamics and financial market sentiment when trading the yellow metal.

silver

In addition to gold, silver is the most widely used metal for jewelry making. The use of silver in the jewellery industry is mainly due to two reasons: first, the use of silver is more economical, and second, silver has a beautiful white color, has the strongest metallic luster, and can achieve better light color effect on jewelry. For example, the use of silver for the support of diamonds and other transparent gemstones enhances the reflective properties, which makes gemstone jewelry look brighter and more vivid. The natural reserves of silver in the earth's crust exceed 570,000 tons, and the recoverable reserves exceed 270,000 tons. In 2004, the world's silver mining volume was 19,700 tons, including 3,060 tons in Peru, 2,700 tons in Mexico, 2,450 tons in China, 2,240 tons in Australia and 1,360 tons in Chile.

Silver investment value

Silver is another precious metal, which is why it has attracted investors' interest as a safe-haven investment. But because gold, real demand, industrial demand, and increased demand for money tend to benefit silver more, silver tends to be closer to "high-risk" assets (such as the stock market) than gold. Therefore, when the overall economic outlook is bullish, silver often outperforms gold, and when the market turns bearish, silver is likely to experience even greater losses. Thus, the relationship between silver and gold expressed in gold/silver parity can be used as a representative of the overall “risk” – a lower price will promote risk seeking, while a higher price implies risk aversion.

Price driver

The multiple drivers of silver are the same as gold – inflation and inflation expectations, global GDP growth, interest rates and monetary policy of some of the world's major central banks – the US Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan and the People's Bank of China. Due to the relative lack of liquidity in the silver market, the supply and demand factors have a higher impact on the fluctuation of silver prices than the gold price. Finally, market sentiment plays an important role in the price of “poor gold”, so silver traders will closely monitor consumer confidence data and multiple global bond and stock market trends.

Trading rules

Gold against the dollar trading rules

Transaction code XAUUSD
Standard trading contract 100 ounces per hand
Target bid-ask spread Floating spread
Minimum trading unit 0.01 hand
Minimum plus unit 0.01 hand
   
USD value per point (per 1 lot) $1 USD
USD value per point (per 0.01 lots) $0.01 USD
Margin ratio 100%
Minimum price gap for placing instructions 200
Profit/loss calculation Real-time price
Interest settlement Daily settlement, tripled on Wednesday
Trading hours (GMT+2) 00:15-22:55

Gold-dollar trading example

  transaction Earning/loss
First day Buy 1 lot of gold at 1588.60 + USD 160
  End of day price: 1590.20  
Second day Interest: USD8.90 # - USD 8.90
  Selling a hand of gold at 1590.90 + USD 70.0
  Total profit +USD221.10

Silver against the US dollar trading rules

Transaction code XAUUSD
Standard trading contract 5000 ounces per hand
Target bid-ask spread Floating spread
Minimum trading unit 0.01 hand
Minimum plus unit 0.01 hand
   
Margin ratio 100%
   
Interest settlement Daily settlement, tripled on Wednesday
Trading hours 00:15-22:55

Silver against the dollar trading example

  transaction
First day Buy 5 lots at 17.350
Second day Sold 5 lots at 17.683
profit 5 x 1000 x ($17.683 – $17.350) x 5 = USD 8325
Pay interest 5 x 23.45 x 5 = USD 586.25
Total profit USD 8325 – USD 586.25= USD 7738.75