This week, Hong Kong stocks extended their rebound, with the $HSI(HSI)$ rising 1.04%, marking three consecutive weeks of gains.
Key Drivers of the Rebound
- Internet Sector Stabilizes: Companies like $XIAOMI-W(01810)$ $BIDU-SW(09888)$ $KUAISHOU-W(01024)$ released their Q2 reports. Xiaomi’s car division exceeded margin expectations, causing its stock to surge. Baidu’s focus on cost-cutting led to a 5% rise in net profit, and its stock remained steady. Kuaishou’s stock dropped sharply due to slower e-commerce growth.
- High Dividend Stocks Surge: Especially notable are bank stocks, which have rallied significantly. $ABC(01288)$ hit a new high, and $ICBC(01398)$ ’s market value surpassed $CHINA MOBILE(00941)$ , making it the largest stock by market cap on the A-share market.
- International Developments: The minutes from the Federal Reserve's meeting released on Wednesday indicated that most members believe a rate cut could be appropriate at the next meeting if economic data continues to meet expectations.
This week, only telecom services saw an increase, while real estate and healthcare sectors led the declines.
Southbound funds saw a rare net outflow of HK$1.46 billion this week, ending a 27-week streak of inflows. This is a significant development for investors to note.
Key Events in Hong Kong Stocks This Week
1. "Black Myth: Wukong" tops the Steam hot games chart, boosting interest in gaming stocks.
2. For the first time, a gold bar exceeds $1 million in value.
3. August’s LPR remains unchanged.
4. $KUAISHOU-W(01024)$ Q2 revenue was ¥30.98 billion, with a slowdown in fan sales leading to a sharp stock drop.
5. The EU released a draft report on anti-subsidy measures for Chinese electric vehicles.
6. $XPENG-W(09868)$ Q2 revenue was ¥8.11 billion, with an adjusted EPS loss of ¥0.65, showing a narrower loss.
7. $Wal-Mart(WMT)$ sold off $JD-SW(09618)$ shares, cashing out $3.74 billion.
8. $XIAOMI-W(01810)$ car revenue reached ¥6.2 billion, with a 15.4% gross margin, far exceeding expectations.
9. Fed minutes boost expectations for a September rate cut.
10. $BIDU-SW(09888)$ Q2 revenue was ¥33.9 billion, a 0.4% decline year-on-year.
11. $NTES-S(09999)$ Q2 revenue was ¥25.5 billion, up 6.1% year-on-year, but below market expectations.
12. $Alibaba(09988)$ added Hong Kong as a primary listing venue, clearing the way for inclusion in the Stock Connect program.
Six Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $XIAOMI-W(01810)$ . The company reported its Q2 results this week, surpassing expectations, particularly with its automotive division achieving a 15.4% gross margin, well above market forecasts. This drove a significant surge in its stock price.
Top 2: $KUAISHOU-W(01024)$ . The company ’s Q2 e-commerce GMV reached ¥305.3 billion, but with only a 15% year-on-year growth, this marked a notable slowdown. This raised market concerns and led to a sharp drop in its stock price.
Top 3: $Alibaba(09988)$ . On August 23, Alibaba announced that it would add Hong Kong as a primary listing venue. This move is expected to clear the way for Alibaba to be included in the Hong Kong Stock Connect as early as September.
Top 6: $JD-SW(09618)$ . On August 20, SEC filings revealed that $Wal-Mart(WMT)$ has completed the sale of all its JD.com shares and is no longer a major shareholder with over 5% ownership.
Top 7: $WUXI BIO(02269)$ . The company reported a 1% year-on-year revenue growth for the first half of the year, but its net profit fell 34%, causing its stock price to plummet.
Top 10: $YZYBIO-B(02496)$ . The company’s Q2 report showed revenue of ¥7.3 billion, down 9% year-on-year, and net profit of ¥1.4 billion, down about 8%. The results missed market expectations, causing the stock to crash to a five-and-a-half-year low.
Next Week's Hong Kong Stock Market Events
1. Next Tuesday, China will release the year-to-date profit data for industrial enterprises with designated size.
2. Next week, companies including $SENSETIME-W(00020)$ , $LI AUTO-W(02015)$ , $MEITUAN-W(03690)$ , and $BYD COMPANY(01211)$ will announce their earnings reports.
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