Weekly | Major Events Ahead, HK Stocks Might Face a Turning Point!

This week, Hong Kong stocks saw a dip followed by a rebound, with the $HSI(HSI)$ ending the week down 0.43%.

Nvidia led the rally

The rebound wasn’t easy. On Monday, the Statistics Bureau released August CPI and PPI data. CPI rose 0.6% year-on-year, missing the expected 0.7%, while PPI fell 1.8%, worse than the forecasted 1.5%.

Following the data release, A-shares fell continuously, with the Shanghai Composite Index nearing 2700 points!

Fortunately, on Wednesday, the US August CPI came in at a 2.5% year-on-year increase, falling for the fifth consecutive month. Markets now expect the Fed to cut rates by 25 basis points at next week’s meeting.

Meanwhile, $NVIDIA Corp(NVDA)$ CEO Jensen Huang revealed huge demand for AI chips at a Goldman Sachs tech conference. The shortage of Blackwell chips drove NVIDIA’s stock soaring, sparking a tech stock rally and boosting US stocks.

Thanks to high dividends and internet stocks, the Hang Seng Index managed to rebound despite A-share declines.

By sector, Real estate and consumer sectors led the decline.

Southbound Funds saw a net inflow of HK $12.5 billion this week.

Next Thursday, the Fed will announce the interest rate resolution, the market is expected to cut interest rates by 25 basis points, which could cause significant market fluctuations and impact Hong Kong stocks.

Key Events in Hong Kong Stocks This Week

1. $MIDEA GROUP(00300)$ launches its IPO, the largest in Hong Kong in three years.

2. Retail sales of passenger vehicles were 1.921 million, down 1.1% year-on-year.

3. August CPI up 0.6%, PPI down 1.8%, both missing expectations.

4. $BABA-W(09988)$ added to the Hong Kong Stock Connect.

5. US House passed the Biosecurity Act, limiting federal agencies’ dealings with foreign biotech firms.

6. $HUAZHONG IN-V(06830)$ and $STARPLUS LEGEND(06683)$ stocks plummeted this week.

7. $BYD COMPANY(01211)$ management bought 142,000 A-shares.

8. EU reportedly to reduce proposed tariffs on Chinese electric vehicles.

9. US August CPI up 2.5%, in line with forecasts and down from 2.9%.

10.Brent Crude Oil price fell below $70.

11. Bloomberg said China may cut existing mortgage rates as soon as September.

Five Stocks Worth Attention Among Top Trading HK Stocks This Week

Top 2: $BABA-W(09988)$ : Added to the Hong Kong Stock Connect, surged 4.21% on its first day, with turnover hitting HK $16.9 billion—highest in nearly three and a half years.

Top 3: $MEITUAN-W(03690)$ : Stock climbed after a strong Q2 report, nearing a year-to-date high.

Top 4: $CNOOC(00883)$ : Oil stocks fell as Brent crude dropped below $70.

Top 6: $STARPLUS LEGEND(06683)$ : Stock crashed 72% on Wednesday, despite no major business or financial changes.

Top 8: $XPENG-W(09868)$ : New model Mona 03 is hot-selling, with daily orders of 2,000 units and total pre-orders over 50,000 units!

Next Week's Hong Kong Stock Market Events

1. A-shares closed Monday and Tuesday, and Hong Kong stocks will be closed on Wednesday.

2. Next Thursday, Fed’s interest rate decision, watch for rate cut impact.

3. Next Friday,China’s central bank will announce the loan prime rate (LPR), keep an eye on potential rate cuts.