The $HSI(HSI)$ has been on a four-day losing streak last week, sliding back below the 19,000 mark. It's been a tough week for Hong Kong stocks, with a weekly loss of 4.83%.
The news is not looking good. Chinese stocks released their earnings reports last week, and regardless of whether they met expectations, most of them took a nosedive. $Li Auto(LI)$ $LI AUTO-W(02015)$ dropped 19% the day after its report, $Bilibili Inc.(BILI)$ $BILIBILI-W(09626)$ fell 11.3%, and $Xiaomi Corp.(XIACY)$ $XIAOMI-W(01810)$ dipped 3.38%.
And it gets worse. The Fed's minutes revealed that officials are leaning towards keeping interest rates steady for longer than expected, after three months of surprisingly high inflation data. That sent global markets into a tailspin.
By sectors, healthcare, which is more sensitive to interest rates,fell sharply again. Only finance, daily consumption, and materials managed to stay afloat.
But there's some good news for southbound investors, as they netted a inflow of HK$10.6 billion last week.
Key Events in Hong Kong Stocks Last Week
1. $SUNHO BIO-B(02898)$ , the "first stock in antibody cytokines," kicked off its IPO;
2.Gold $E-Micro Gold - main 2406(MGCmain)$ prices hit a record high last week;
3.The Loan Prime Rate (LPR) remained unchanged in May;
4.China's National Press and Publications Administration approved 96 domestic online games for May;
5. $Li Auto(LI)$ $LI AUTO-W(02015)$'s net profit declined over 30% year-on-year in the first quarter;
6.Hong Kong's Chief Executive said the Hong Kong Stock Exchange may remain operational during extreme weather;
7.The big model wars are heating up, with $Baidu(BIDU)$ $BIDU-SW(09888)$ announcing free services;
8.China's Securities Regulatory Commission Chairman met with Saudi Arabia's Finance Minister;
9. $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ raised its gross margin to 12.9% in the first quarter;
10. $KUAISHOU-W(01024)$ 's net profit soared 103 times in the first quarter!
11. $CHINA VANKE(02202)$ secured a significant financing breakthrough with a RMB20 billion syndicated loan led by China Merchants Bank;
12. $Xiaomi Corp.(XIACY)$ $XIAOMI-W(01810)$ 's revenue grew 27% in the first quarter;
13. $Alibaba(BABA)$ $Alibaba(09988)$ is considering issuing $5 billion in convertible bonds;
14. $AKESO INC.(AKESF)$ $AKESO(09926)$ 's stock plummeted after its clinical data was questioned.
Five Stocks Worth Attention Among Top Trading HK Stocks Last Week
Top 1: $Xiaomi Corp.(XIACY)$ $XIAOMI-W(01810)$ , whose first-quarter earnings exceeded market expectations, with revenue up 27% and adjusted net profit up 101%;
Top 3: $CHINA VANKE(02202)$ , which got some good news with a RMB20 billion syndicated loan led by China Merchants Bank, with RMB10 billion already in the bank;
Top 5: $Li Auto(LI)$ $LI AUTO-W(02015)$ , whose first-quarter earnings disappointed the market, leading to a sharp drop in its share price;
Top 7: $KUAISHOU TECHNOLOGY(KUASF)$ $KUAISHOU-W(01024)$ , whose first-quarter earnings exceeded expectations, with net profit soaring 103 times and a HK $16 billion repurchase plan announced;
Top 9: $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ , whose first-quarter gross margin rose to 12.9%, much higher than market expectations.
This week's Hong Kong stock market events
1.US markets will be closed on Monday for Memorial Day;
2.China will release its May PMI data on Friday. Let's see if it meets expectations!
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