$HSI(HSI)$ was on a roll last week! After a record 10 consecutive gains last Monday, it surged even higher on Thursday and Friday, closing at 18,963.68 points, just shy of the 19,000 mark!
In the news, Bloomberg quoted insiders saying that China is considering waiving the 20% tax on dividends for mainland investors investing in Hong Kong stocks through the Stock Connect program. This is to avoid double taxation between the two regions.
CICC predicts that if this tax reduction is implemented, it'll further boost mainland investors' enthusiasm for Hong Kong stocks, especially those with high dividends. It'll give the market a short-term boost and improve liquidity in the long run.
As a result, high-dividend sectors like banking saw explosive gains last Friday. $CCB(00939)$ soared 6.8%, and $CHINA SHENHUA(01088)$ spiked 6.1%...
And on top of that exciting news, imports and exports in April also came good. Exports grew 1.5% year-on-year, while imports jumped 8.4%, reversing last month's decline and exceeding market expectations.
All sectors saw gains last week, with utilities, finance, and real estate leading the charge. Optional consumption and IT lagged a bit behind.
Southbound funds bought up a net of HK $11.35 billion last week.
Key Events in Hong Kong Stocks Last Week
1. $HSI(HSI)$ recorded its longest winning streak in six years, hitting 10 straight days of gains;
2. $BYD Co., Ltd.(BYDDF)$ $BYD COMPANY(01211)$ launched its insurance service on its app;
3. Citi analysts upgrade $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$ 's earnings, shares hit a two-year high;
4. Shipping stocks soared as global freight rates continued to rise due to tight capacity;
5. On May 15, $NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ will officially launch its second brand Onvo;
6. Hangzhou relaxed its real estate regulations, lifting all home purchase restrictions;
7. HKEX CEO predicted a resurgence of large IPOs in the market;
8. $SMIC(00981)$ 's first-quarter net profit fell 68.9% year-on-year;
9. Rumors are swirling that the tax on dividends for Stock Connect investors may be waived;
10. China's April exports grew 1.5% year-on-year, while imports jumped 8.4%, exceeding market forecasts.
Four Stocks Worth Attention Among Top Trading HK Stocks Last Week
Top 1: $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$ - Analysts at Citibank expected the company's strong first-quarter results and the launch of the Mix Fold4 to push its shares to new heights;
Top 8: $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ - According to the data of the passenger Association, the national passenger car market retail of 1.532 million units in April, down 5.7% year-on-year, down 9.4% month-on-month, auto stocks performed poorly;
Top 9: $BYD Co., Ltd.(BYDDF)$ $BYD COMPANY(01211)$ - Expectations of double-digit growth in iPad revenue this quarter boosted related stocks;
Top 10: $NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ - The company will unveil its second brand Onvo on May 15th, targeting the 250,000 yuan electric SUV market.
This week's Hong Kong stock market events
1. Hong Kong stocks will be closed for Buddha's Birthday on Wednesday.
2. The United States will release April CPI data on Wednesday, economists expect 3.4%, pay attention to whether it exceeds expectations;
3. China will release April economic performance data on Friday, such as retail sales of consumer goods, unemployment rate, etc., which is expected to have a big impact on the stock market;
4. Big Chinese companies like $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ $Alibaba(BABA)$ $Alibaba(09988)$ and other heavyweights will release quarterly reports, or have a greater impact on individual stocks and the market.
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