This week, Hong Kong stocks continued their rebound, with the $HSI(HSI)$ rising 1.99%.
Domestic News
Domestic news was mixed.
On one hand, July's financial data fell short of expectations. New RMB loans in July were ¥260 billion, missing expectations by ¥85.9 billion. M1 growth was -6.6% year-over-year, compared to -5% previously.
On the other hand, retail sales in July grew 2.7%, beating the market forecast of 2.6%!
Overseas News
In the US, July CPI growth slowed to 2.9% year-over-year, with core CPI hitting a three-year low! US July retail sales rose 1% month-over-month, exceeding expectations and marking the highest increase in a year and a half.
Strong economic data eased recession fears, boosting US and Japanese stocks. The US and Japan markets have recovered from early August's drop, with Japanese stocks soaring nearly 9% in a week, the largest increase in four years!
Company Earnings
Major stocks like $TENCENT(00700)$ $Alibaba(09988)$ $JD-SW(09618)$ reported earnings this week. Tencent and JD.com both exceeded expectations, with their stocks being highly sought after.
Alibaba's core business fell short of expectations, but it may achieve dual primary listing by the end of August, clearing the way for inclusion in the Hong Kong Stock Connect.
Driven by gains in financial and internet heavyweights, HSI rebounded for the second consecutive week. Next week, earnings reports from $XIAOMI-W(01810)$ and $BIDU-SW(09888)$ could provide further support for the Hong Kong market.
The best-performing sectors this week were telecom and finance, while consumer stocks lagged.
Net inflows of southbound funds this week totaled HK $16.58 billion.
Key Events in Hong Kong Stocks This Week
1. $XIAOMI-W(01810)$ s phone shipments entered the top three in Japan.
2. $BEKE-W(02423)$ expanded its share buyback to $3 billion.
3. $XPENG-W(09868)$ completed the SOP delivery of its acquisition of $DiDi Global Inc.(DIDI)$ ’s smart vehicle development assets.
4. July new social financing was ¥770.8 billion, with new RMB loans at ¥260 billion, missing market expectations.
5. $Tencent Music(TME)$ ’s paid user count hit a new high in Q2.
6. $TENCENT(00700)$ Q2 revenue was ¥161.1 billion, up 8% year-over-year, with adjusted net profit surging 53%.
7. July retail sales grew 2.7%, surpassing market expectations.
8. July residential property sales prices decreased month-over-month.
9. $JD-SW(09618)$ ’s Q2 revenue was ¥291.4 billion, exceeding market expectations.
10. $Alibaba(09988)$ ’s FY2025 Q1 revenue was ¥243.2 billion, up 4% year-over-year, with a potential dual primary listing by the end of August.
11. US July CPI growth slowed to 2.9% year-over-year, with core CPI at a three-year low.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1: $TENCENT(00700)$ : Reported strong Q2 results with 8% revenue growth and a 53% rise in adjusted net profit. Stock reaction was weaker than expected.
Top3: $Alibaba(09988)$ : Reported Q1 revenue of ¥243.2 billion, up 4%, but the domestic retail sector fell short of expectations. Dual primary listing by the end of August could clear the way for inclusion in the Hong Kong Stock Connect.
Top6: $JD-SW(09618)$ : Released impressive Q2 results, leading to a significant stock price increase.
Top7: $JD LOGISTICS(02618)$ : Q2 revenue met expectations with profits exceeding forecasts, resulting in a strong stock performance.
Next Week's Hong Kong Stock Market Events
1. Next Thursday, the Federal Reserve will release the FOMC meeting minutes. Watch for any hints on future rate cuts.
2. Next week, $XPENG-W(09868)$ $XIAOMI-W(01810)$ $BIDU-SW(09888)$ will release their earnings reports.
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