The global capital market tremor last week. Hong Kong stocks and A shares plummeted. $HSI(HSI)$ fell 3.6% in a week, approaching the 17000-point; $SSE Comp(000001.SH)$ fell below the 3000-point mark.
On the news, the Palestinian-Israeli conflict has intensified, crude oil prices have risen, and the 30-year US bond yield has exceeded 5%, a new 16-year high, causing foreign investors to sell Chinese assets frantically.
U.S. and European fund managers have sold a net $1.6 billion of Chinese stocks this month, according to data from EPFR Global and Morgan Stanley. Technology stocks including $Tencent(00700)$ $Tencent Holding Ltd.(TCEHY)$, $Alibaba(BABA)$ $Alibaba(09988)$ and $JD.com(JD)$ $JD-SW(09618)$ are being hit the hardest, following outflows of $3.5 billion in September.
Although the surge in U.S. bond yields hit global stock markets, Federal Reserve Chairman Jerome Powell said that interest rate hikes will be suspended in November. If the Israeli-Palestinian conflict does not expand, U.S. bond yields may be back, and the pace of foreign capital selling Chinese assets may slow down.
In terms of the economy, GDP, social zero and other data were intensively released last week, comprehensively exceeding expectations. Overseas investment banks have raised the annual GDP growth rate in 2023, but it is trapped in the real estate crisis, and the growth rate in 2024 is lowered.
Generally speaking, there is a turning point under pessimism, and perhaps despair is followed by hope.
Except for energy, all sectors were down, led by health care and telecommunications services:
Southbound funds continue to buy net, rain or shine, inflow of HK $3.9 billion this week:
Key Events in Hong Kong Stocks Last Week
1. J&T Expres opened its IPO last week, and the amount of capital raised was reduced;
2. $ZHEJIANG LEAPMOTOR TECHNOLOGY CO., LTD.(09863)$ announced its third quarterly reports, with gross margin turned positive for the first time;
3. $EAST BUY(01797)$ online paid membership model, 199 yuan/year;
4. $GOME RETAIL(00493)$ 's stores in Guangdong have all been closed;
5. Lei Jun said that the official version of $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$'s operating system, Xiaomi HyperOS, has completed the package and will gradually replace MIUI;
6. $BYD Co., Ltd.(BYDDF)$ $BYD COMPANY(01211)$ expects its net profit in the first three quarters to be 20.5 billion yuan to 22.5 billion yuan, up by 120.16% to 141.64% year-on-year;
7. Biden administration upgrades chip export controls to China;
8. $ANTA SPORTS(02020)$ released the development plan for the next three years, and sales volume will maintain double-digit growth in the next three years;
9. The National Bureau of Statistics released housing price changes in 70 large and medium-sized cities in September, with new home prices in first-tier cities turning from a month-on-month decline to flat;
10. $HKEX(00388)$ made a net profit of HK $2.95 billion in the third quarter, exceeding expectations.
Four Stocks Worth Attention Among Top Trading HK Stocks Last Week
Top1: $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$, under the gloom of Hong Kong stocks, Xiaomi has recently strengthened against the trend, up 5.56% last week, standing proudly among all the science and technology stocks;
Top2: $Tencent(00700)$ $Tencent Holding Ltd.(TCEHY)$, the company fell below the HK $300 mark last week, a new low for the year. On the news, Tencent major shareholders will hold 96 million shares of Tencent stock in the form of bills into the Hong Kong Central clearing and settlement system, which may indicate a new round of reduction coming;
Top7: $SMIC(00981)$, semiconductors are strong against the trend last week. According to TSMC's third quarterly report, the management said that the mobile phone and computer market has initial signs of stabilization, and expected to welcome healthy growth next year. While the fourth quarter revenue guidance exceeds market expectations, semiconductor plate change;
Top9: $XPeng Inc.(XPEV)$ $XPENG-W(09868)$, Tesla $Tesla Motors(TSLA)$ released financial results last week, affected by fierce competition, its gross profit margin fell sharply, stock price plummeted. The new energy sector as a whole was under pressure.
Next week's Hong Kong stock market events
1. Hong Kong stocks will be closed on Monday for the Double Ninth Festival, and will resume trading on Tuesday.
2. On Wednesday, $EAST BUY(01797)$ will release earnings.
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