This week, Hong Kong stocks extended their rebound trend, marking four consecutive weeks of gains. The $HSI(HSI)$ rose 2.14% this week, nearing the 18,000-point milestone!
Key Drivers of the Rebound
On the news, Federal Reserve Chair Jerome Powell's dovish speech at the Jackson Hole conference last Friday bolstered expectations for a September rate cut, which is positive for Hong Kong stocks.
Domestically, several major companies released their earnings reports this week. Meituan's results exceeded expectations, and with a $1 billion share buyback, its stock surged!
However, banks reported disappointing results for the first half of the year. For example, ICBC's net profit for H1 was ¥170.5 billion, down 1.9% year-over-year. This led to a collective sell-off in bank stocks, with capital shifting away from dividend stocks and flowing into previously oversold sectors like consumer goods and healthcare.
On Friday, a major rumor stirred the real estate sector. Bloomberg reported that China is considering further lowering existing mortgage rates, allowing up to ¥38 trillion in existing mortgages to seek refinancing.
This move aims to reduce household debt burdens and boost consumption. Under the new plan, mortgage customers could renegotiate rates with banks without waiting until January, the usual time for rate adjustments. This news caused real estate stocks to soar and helped restore market confidence!
Looking at the sectors, all segments saw gains this week, with telecom services, consumer goods, healthcare, and real estate leading the charge.
As dividend stocks correct, net inflows from southbound funds dropped to HK $5 billion.
Key Events in Hong Kong Stocks This Week
1. $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ chairman He Xiaopeng increased his stake by 1 million Class A shares, spending nearly ¥100 million.
2. Hong Kong Securities and Futures Commission & HKEX reduced the market cap thresholds for tech IPOs. The thresholds are now HK $4 billion for commercialized companies and HK $8 billion for non-commercialized companies, down from HK $6 billion and HK $10 billion, respectively.
3. Federal Reserve chair Jerome Powell’s dovish remarks at the Jackson Hole conference heighten expectations for a September rate cut.
4. $NONGFU SPRING(09633)$ reported a 18% drop in bottled water revenue due to public sentiment issues.
5. $JD.com(JD)$ $JD-SW(09618)$ announced a $5 billion share buyback plan.
6. US National Security Advisor Jake Sullivan visited China for a new round of strategic talks between the US and China.
7. $Alibaba(BABA)$ $BABA-W(09988)$ officially completed its dual listing.
8. $ANTA SPORTS(02020)$ shares surged after its earnings exceeded expectations and it announced a large buyback plan.
9. $BYD Co., Ltd.(BYDDF)$ $BYD COMPANY(01211)$ reported a net profit of ¥13.63 billion for the first half of the year, up 24.44% year-over-year.
10. $Li Auto(LI)$ $LI AUTO-W(02015)$ posted a Q2 net profit of ¥1.5 billion, a 44% decline from last year.
11. National Medical Products Administration announced a focus on the development and innovation of medical devices.
12. $MEITUAN(MPNGY)$ $MEITUAN-W(03690)$ achieved a 77% increase in Q2 net profit and revealed a $1 billion buyback plan.
13. $XPENG-W(09868)$ $XPeng Inc.(XPEV)$ ’s New Model MONA M03 saw over 10,000 orders within just 52 minutes of its launch.
14. $SMIC(00981)$ reported a net profit of ¥1.646 billion for the first half of the year, down 45.1% year-over-year.
15. $ICBC(01398)$ announced a net profit of ¥170.5 billion for the first half of the year, a 1.9% decline from last year.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $MEITUAN-W(03690)$ $MEITUAN(MPNGF)$ reported a 77% increase in Q2 net profit and announced a $1 billion buyback plan, causing its stock price to soar.
Top 6: $Li Auto(LI)$ $LI AUTO-W(02015)$ 's Q2 earnings report revealed a 44% drop in net profit, missing market expectations and leading to a 10% drop in its stock price.
Top 7: $XPENG-W(09868)$ $XPeng Inc.(XPEV)$ made headlines with founder He Xiaopeng's nearly ¥100 million stake increase and the new MONA M03 model. The car saw over 10,000 orders within 52 minutes of launch, boosting the stock price.
Top 8: $NONGFU SPRING(09633)$ 's half-year report showed an 18% decline in bottled water revenue due to public sentiment issues, though its tea beverage segment grew 59.5%, leading to significant stock price fluctuations.
Next Week's Hong Kong Stock Market Events
1. Next Monday, US markets will be closed for Labor Day.
2. Next Monday, the Caixin Manufacturing PMI for August will be released. The previous reading was 49.8, watch for whether it crosses the 50 mark.
3. Next Thursday, $NIO Inc.(NIO)$ $NIO-SW(09866)$ will announce its Q2 earnings before the US market opens, with expected revenue of ¥17.385 billion. Watch to see if it meets expectations.
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