This week, Hong Kong stocks experienced significant volatility, with the $HSI(HSI)$ falling 1.12%, dropping below the key 24,000-point mark.US Market Drops Drag Down Hong Kong StocksThe US stock market took a sharp dive this week, with the $NASDAQ(.IXIC)$ down 4.9%. The cause? Trump’s aggressive stance on tariffs, raising fears that the US economy could slide into recession. In response to the market plunge, Trump softened his tone, admitting some economic turbulence ahead but reaffirming his goal to bring wealth back to Americans, which will take time.Later, the US reported a 2.8% year-on-year CPI for February, marking a new low since last November. The number was slightly below expectations, which cause

This week, Hong Kong stocks continued to rise, with the $HSI(HSI)$ gaining 5.6%, reclaiming the 24,000-point mark, and hitting a three-year high.Positive Economic Data Sparks OptimismLast weekend, China’s National Bureau of Statistics released its February manufacturing PMI data, showing a rise to 50.2%, back in the expansion zone and surpassing analysts’ forecast of 49.9%.At the same time, Caixin published its own February manufacturing PMI at 50.8%, up 0.7 percentage points and beating expectations, marking the highest in three months.With China’s highly anticipated Two Sessions meetings this week, the government announced key economic targets. The 2025 GDP growth target is set at around 5%, with a budget deficit rate around 4%. A moderately rela

The first week of the Year of the Snake saw a stellar performance in Hong Kong stocks, with the $HSI(HSI)$ rising 4.49% weekly, hitting its highest level since mid-October last year!"Sputnik Moment" for AIThe buzz around DeepSeek continues to grow. Marc Andreessen, the godfather of Wall Street venture capital, called it a "Sputnik Moment" for AI!For context, the "Sputnik Moment" refers to 1957 when the Soviet Union launched the first artificial satellite, Sputnik 1, shocking the U.S. and igniting a tech race.DeepSeek's emergence has shattered the U.S. blockade on compute power, making it possible for Chinese AI to surpass the U.S. This has stirred up the capital markets. Deutsche Bank released a report predicting that 2025 will be the year China ov

This week, Hong Kong stocks took a hit, with the $HSI(HSI)$ falling 3.52%, reaching its lowest point since September 25 last year.Sector Performance and Upcoming Big EventsOn Tuesday, the U.S. Department of Defense added $TENCENT(00700)$ to its list of Chinese military companies (1260H list). Despite Tencent’s statement saying it’s not a military firm and will resolve the misunderstanding, its stock kept dropping, dragging down the entire Hong Kong market.On Thursday, China’s National Bureau of Statistics released December CPI and PPI data. CPI rose 0.1%, the lowest growth in 9 months. PPI fell 2.3%, marking its 27th consecutive month of contraction, though the decline was the smallest in four months.This

This week, the Hong Kong stock market wrapped up 2024 with a strong finish. The $HSI(HSI)$ rose over 17% for the year, breaking a four-year streak of losses. However, 2025 kicked off on a sour note. On the first trading day, the HSI plummeted by 2.18%, marking the worst start in five years.Economic News: Manufacturing PMI Slips Data from China’s National Bureau of Statistics revealed that the manufacturing PMI for December stood at 50.1%, down 0.2 percentage points from the previous month. While still indicating expansion, it fell short of expectations. Additionally, the Caixin PMI for December, released on Thursday, came in at 50.5, dropping 1.0 percentage point from November and significantly below analysts' forecasts of 51.7.With China’s annual

This week, the Hong Kong stock market faced a tough time, with the $HSI(HSI)$ dropping 1.25%.Economic Data Misses ExpectationsThe latest economic data released by the National Bureau of Statistics showed weaker-than-expected results. In November, retail sales of consumer goods totaled RMB 43,763 billion, growing by 3.0%, well below the 5% expected and down from the 4.8% growth in October. On the other hand, industrial production rose 5.4%, in line with forecasts.U.S. Fed’s Rate Cut Overseas, the U.S. Federal Reserve cut rates by 25 basis points as expected. However, their updated forecast suggests only two rate cuts next year, far fewer than the market had anticipated. Fed Chairman Jerome Powell indicated that the central bank is nearing the end of

This week, Hong Kong stocks saw huge swings. The $HSI(HSI)$ rose 0.53% for the week, dipping below the 20,000-point mark.On Monday, the Political Bureau of the Central Committee held a meeting to discuss China's 2025 economic plans. The key takeaways were clear: stabilize the housing and stock markets, manage risks in key sectors, and guard against external shocks. The meeting also called for more aggressive fiscal policies and moderately loose monetary measures to boost consumption and investment. There was a push to expand domestic demand.Some of the comments surprised the market, like the unprecedented mention of "strengthening extraordinary counter-cyclical adjustments" and the first shift in monetary policy since 2011, aiming for "moderately l

This week, Hong Kong stocks made a steady rebound. The $HSI(HSI)$ rose 2.28%, closing near the 20,000-point mark.Positive Economic Data Drives Market Optimism On Monday, Caixin released China’s November manufacturing PMI, which came in at 51.5, the highest in seven months and far exceeding analysts' expectations. This indicates that the manufacturing sector is continuing to expand, driven by economic stimulus policies.With improving economic data, China plans to hold its annual closed-door Central Economic Work Conference next Wednesday to set economic targets and stimulus plans for 2025. The news sparked market speculation around more policy support, pushing stocks higher.Additionally, many major Wall Street firms expect China’s central bank to ma

This week, the Hong Kong stock market showed signs of stabilizing and rebounding, with the $HSI(HSI)$ rising 1% over the week.Market Buzz and RumorsWith the Central Economic Work Conference set for mid-December, rumors have been flying. On Wednesday, a rumor suggested that the meeting would be moved up and that the fiscal deficit target for next year would be increased, which sparked a rally in both Hong Kong and A-shares. However, soon after, international investment banks weighed in, predicting that the economic policies discussed at the December meeting would likely not exceed expectations. By Thursday, both Hong Kong and A-shares saw a noticeable drop.Friday’s trading was even more dramatic. After a sluggish start, major indices shot up in the

This week, the Hong Kong stock market continued to slide, with the $HSI(HSI)$ dropping 1%, hitting its lowest level since September 26th.Weak Earnings A number of internet companies released their third-quarter results this week, and the market reaction was far from positive. Stocks of $XPENG-W(09868)$ fell 3%, $KUAISHOU-W(01024)$ dropped 11.7%, $BIDU-SW(09888)$ slid 8.6%, and $PDD Holdings Inc(PDD)$ lost 10.6%.These internet giants are a key weight in the Hang Seng Index, making up over 30% of its total market cap. Their poor performance has significantly dampened market senti

This week, the Hong Kong stock market saw sharp swings, with the $HSI(HSI)$ rising 1.08% by the end of the week, following a series of significant events.Positive Economic Data from ChinaDomestically, there was some good news. On Tuesday, Caixin’s PMI for October came in at 52, the highest in three months, well above analysts’ expectations of 50.5. On Thursday, China’s customs data showed a 12.7% year-on-year increase in exports in October, far outpacing the expected 5% growth.Overseas Events and Market ReactionsOverseas, the US election result added to market volatility. Trump’s victory raised concerns about escalating trade tensions, causing a sharp drop in both Hong Kong and mainland stocks. However, the market rebounded on Thursday as expectati