This week, Hong Kong stocks surged, with the $HSI(HSI)$ rising 5.12%, reclaiming the crucial 18,000-point mark!
The biggest boost came from the Fed's decision to cut interest rates by 50 basis points, slightly exceeding market expectations, which triggered a rally across global markets.
Domestically, the People's Bank of China did not follow suit with a rate cut, keeping the September LPR for both the 1-year and 5-year rates unchanged. While hopes for a domestic rate cut were dashed, bank stocks benefitted.
Every sector saw positive returns this week, with consumer and real estate leading the charge:
According to Bloomberg, to stimulate a recovery in the real estate market, policymakers are considering further relaxing purchase restrictions in first-tier cities, such as eliminating the distinction between first and second homes. This means buyers of second homes could enjoy lower down payments and mortgage rates.
Despite only being open for two days due to the Mid-Autumn Festival, the Stock Connect still attracted enthusiasm from southbound funds, with a net inflow of HK $6 billion this week.
Key Events in Hong Kong Stocks This Week
1. $MIDEA GROUP(00300)$ debuted on the Hong Kong Stock Exchange, soaring 7.85% on its first day.
2. China and Europe held talks on electric vehicle tariffs.
3. The Federal Reserve cut rates by 50 basis points.
4. The U.S. Biodefense Act was not included in the Senate's National Defense Authorization Act for FY 2025.
5. The September LPR rates were released, with both 1-year and 5-year rates unchanged, disappointing domestic rate cut expectations.
6. $NIO Inc.(NIO)$ launched its second brand, ONVO, with the new model L60.
7. China plans to optimize real estate policies.
8. China's gold imports in August fell 83% year-on-year, reaching the lowest level since 2021.
9. The total buyback amount for Hong Kong stocks this year has exceeded HK $200 billion.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 3: $MIDEA GROUP(00300)$ . The stock surged 7.85% on its debut Tuesday and jumped another 8.7% the next day, igniting the appliance sector.
Top 8: $WUXI BIO(02269)$ . On Friday, news that the U.S. Biodefense Act was not included in the Senate’s FY 2025 National Defense Authorization Act boosted shares, with rising over 10%.
Top 10: $AKESO(09926)$ . The company’s innovative drug, Ivonescimab, outperformed $Merck(MRK)$ 's Keytruda in a head-to-head Phase III trial, driving the stock price up.
Next Week's Hong Kong Stock Market Events
1. Next Thursday, the U.S. will release initial jobless claims, a key indicator closely watched by the Fed. A significant miss could raise recession concerns, affecting U.S. stocks.
2. Next Friday, China will announce profits from industrial enterprises above a designated size.
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