To The Moon

Hong Kong stocks had a pleasant begin but then fell later this week, with the $HSI(HSI)$ plunging 3% on Thursday. The panic gripped the Hong Kong stock market once again.

According to the recent news, with the release of strong employment data, the Federal Reserve continued to release hawkish rate hike information that the probability of a 25BP rate hike in July soared to 90% as well as the probability of a rate cut by January 2024 was close to zero.

The announcement from the Fed exceeded the market expectation, leading to the nose dive of global stock markets.

In addition to interest rate hikes, Goldman Sachs released a bearish research report on China's banking sector this week, stirring the turbulence in the Hong Kong stock market, with shares of major state-owned banks falling heavily and the Hang Seng Index plummeting sharply.

On July 12, the U.S. will release CPI data in June, which may trigger another round of volatility.

As for sectors, financials and real estate suffered heavy losses this week, leading the decline:

Southbound funds had a net inflow of HK$6.7 billion this week:

Big events in Hong Kong Stocks this week:

1. New energy vehicles announced sales data in June, for example $Li Auto(LI)$’s monthly sales of more than 30,000 units; many manufacturers deliveries record highs.

2. The pharmaceutical sector surged after the National Health Protection Bureau issued the "Rules for Renewal of Negotiated Drugs (2023 Edition Draft for Comments)" and "Rules for Competitive Pricing of Non-Exclusive Drugs (Draft for Comments)

3. U.S. climate data: The day on July 3 was world's hottest day on record.

4. According to the preliminary statistics from Passenger Car Association , passenger car market retailed 1,896,000 units between June 1st and June 30, which was down 2% year-on-year and an increase of 9% quarter-on-quarter; so far this year, the cumulative total retail sales has reached 9,528,000 units, up 3% year-on-year.

5. The new model G6 released by $XPeng Inc.(XPEV)$ has received considerable orders, driving stocks higher.

6. $Goldman Sachs(GS)$  released the research report “Testing the Impossible Trinity”, downgrading the ranking for major state-owned banks.

7. 16 automobile enterprises jointly signed “The Commitment on Maintaining Fair Competition Market Order in the Automobile Industry”.

8. Ministry of Commerce: It tended to draft policy documents to promote household consumption together with relevant departments, will be issued in the near future

9. It’s said that regulators announced a fine of at least $8 billion in penalties against Ant Financial Service Group $Alibaba(BABA)$ $Alibaba(09988)$ , paving the way for the resumption of its IPO plans.

10. Yellen,the U.S. Treasury Secretary, paid visit to China.

Top Stocks for Tiger Members to Trade This Week

Top2: $Alibaba(BABA)$ , Friday intraday, Baba’s shares once soared 6%. According to the market information, the Ant Group's regulatory reform will come to end and welcome the chance of relisting.

Top4: After the release of the new model G6, $XPeng Inc.(XPEV)$  won the great recognition in the market. Management said it has received a large number of orders, with the third quarter monthly deliveries reaching 15,000 units as well as the fourth quarter of a single month over 20,000 units;

The Note-worthy Issues In Hong Kong Stocks Next Week

1. On Monday, China will release CPI data of June that the market is expected to 0.2%, with attention to whether in line with expectations —— the market observe the data to decide whether the risk to fall into deflation. At the same day, China will publish  social financing and M2 data of June;

2. On Wednesday, the U.S. will release CPI data of June with predictive value of 3.1% from economists;

3. On Thursday, China will release import and export data of June.

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