This week, Hong Kong stocks experienced a significant downturn, with the $HSI(HSI)$ dropping by 6.53%, which has certainly dampened the spirits of restless investors.
Hong Kong, A-shares Decline
On the first day after the National Day holiday, the State Council Information Office held a press conference to discuss how to "systematically implement a package of incremental policies to solidly promote an upward economic structure and ensure continuous positive development."
There was a lot of anticipation surrounding this meeting, as many hoped to hear detailed stimulus plans. However, it turned out to be merely an informational session, with no new policies announced. As a result, both Hong Kong and A-shares plummeted, marking the end of the recent bull market.
Additionally, market expectations regarding the Fed’s upcoming interest rate cuts have cooled. The general consensus now leans towards a 25 basis point cut rather than the previously anticipated 50 basis points. Coupled with Thursday's CPI data exceeding market expectations, which highlights persistent inflation, this may restrict the Fed’s ability to lower rates and could complicate domestic monetary policy.
On Friday, Hong Kong stocks were closed for the Chung Yeung Festival.
From a sector perspective, all sectors experienced declines this week, with real estate leading the drop.
Moreover, southbound funds saw a net inflow of HK $11.98 billion this week.
This Saturday at 10 AM, the State Council Information Office will hold a press conference featuring Finance Minister, discuss "increasing the strength of counter-cyclical adjustments in fiscal policy to promote high-quality economic development" and will answer questions from reporters.
This meeting is seen by the market as a key focus for short-term market trends, and investors will be paying attention to whether the announcements surpass expectations.
Key Events in Hong Kong Stocks This Week
1. The Semiconductor Industry Association (SIA) reported that global semiconductor sales reached $53.1 billion in August 2024, marking a year-on-year increase of 20.6%.
2. Citigroup raised its target for the $HSI(HSI)$ to 26,000 points by the end of June next year.
3. New energy vehicle manufacturers reported their September delivery figures, with $LI AUTO-W(02015)$ and $LEAPMOTOR(09863)$ achieving record highs.
4. The National Development and Reform Commission stated its commitment to boosting the capital market, with various policies being expedited.
5. The Ministry of Housing and Urban-Rural Development and the Financial Regulatory Bureau held a national video conference to advance work on guaranteeing housing deliveries.
6. JPMorgan reduced its holdings in $PING AN(02318)$’s H-shares by approximately HK $1.514 billion.
7. The People's Bank of China and the Ministry of Finance held their first official meeting with a joint working group.
8. $BIDU-SW(09888)$ plans to launch a autonomous taxi service in Hong Kong.
9. A new tool aimed at stabilizing the stock market has been initiated, with a scale of 500 billion yuan that can only be invested in the stock market.
10. A draft law to promote the private economy is open for public consultation.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $SMIC(00981)$. According to the latest data from the SIA, global semiconductor sales reached $53.1 billion in August 2024, a year-on-year increase of 20.6%. Fueled by this favorable news and bullish market expectations, the semiconductor sector initially surged. However, with market indices pulling back this week, SMIC experienced a significant decline.
Top 3: $China Merchants Securities Co.,Ltd.(600999)$ . Amid a strong rally in Hong Kong and A-shares, brokerage stocks attracted considerable investor interest, surging during the National Day holiday. Unfortunately, this week saw a sharp correction following the overall market retreat.
Top 6: $SUNAC(01918)$. Following the government's relaxation of property purchase restrictions, real estate sales in first-tier cities soared during the National Day holiday, leading to a temporary spike in real estate stocks. However, they also followed the market trend downward due to the index adjustment.
Next Week's Hong Kong Stock Market Events
1. Next Monday, China will release its September import and export data.
2. Next Thursday, U.S.A will unveil its retail and industrial production data for September, providing insight into the strength of the U.S. economy.
3. Next Friday, China will announce its September industrial value added, retail sales, and third-quarter GDP, focusing on whether growth rates stabilize.
4. Next week, the earnings season begins for Hong Kong and U.S. stocks, with companies like $Bank of America(BAC)$ $ASML Holding NV(ASML)$ $Taiwan Semiconductor Manufacturing(TSM)$ $Netflix(NFLX)$ $CHINA MOBILE(00941)$ set to report their financial results. These announcements could significantly impact individual stocks and related sectors.
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