This week, the Hong Kong stock market showed signs of stabilizing and rebounding, with the $HSI(HSI)$ rising 1% over the week.
Market Buzz and Rumors
With the Central Economic Work Conference set for mid-December, rumors have been flying. On Wednesday, a rumor suggested that the meeting would be moved up and that the fiscal deficit target for next year would be increased, which sparked a rally in both Hong Kong and A-shares.
However, soon after, international investment banks weighed in, predicting that the economic policies discussed at the December meeting would likely not exceed expectations. By Thursday, both Hong Kong and A-shares saw a noticeable drop.
Friday’s trading was even more dramatic. After a sluggish start, major indices shot up in the afternoon. The GEM Index surged more than 4%, and the Hang Seng Index gained 1.5%.
More Rumors Fueling Market Moves
On the same day, rumors spread that the government might set up a stabilization fund, and some expected positive PMI data to be released the next day.
In short, the market was full of rumors, with volatility in full swing. But looking at the Southbound funds flow, there was consistent net inflow throughout the week, with a total of HK $24.4 billion flowing in.
Sector Performance
In terms of sector performance, materials and telecom services led the gains, while energy and utilities underperformed.
Next week, we’ll see more economic datas, including the Caixin PMI for November and official export figures. These will provide insights into the effectiveness of recent stimulus policies. If the data shows clear improvement, it could boost market sentiment.
Major Events in Hong Kong Stocks This Week
1. The Central bank launched a 900 billion RMB MLF operation in November, keeping the interest rate unchanged.
2. $POP MART(09992)$ ’s stock hit a nearly three-year high, up 351% year-to-date, as the IP economy heats up.
3. Trump made controversial comments about imposing a 10% tariff on imports from China.
4. The CEO of HKEX announced that A-shares could be fast-tracked for Hong Kong listings.
5. $EVERGRANDE(03333)$ and its chairman, Xu Jiayin, were banned from high-consumption activities.
6. $BYD COMPANY(01211)$ demanded a 10% price cut from its suppliers, sparking market discussions.
7. Li Shufu increased his stake in $GEELY AUTO(00175)$ by over HK $3 billion, bringing his shareholding to 41.4%.
8. $JIUYUAN GENE(02566)$ debuted but fell 38.4% on its first day.
9. Hong Kong's Chief Executive, John Lee Ka-chiu, announced plans for Hong Kong to join RCEP.
10. $SF HOLDING(06936)$ officially listed on the Hong Kong Stock Exchange, becoming the first logistics company to have both A and H shares.
11. $MEITUAN-W(03690)$ 's Q3 revenue was HK $93.58 billion, a 22.4% YoY increase, surpassing expectations.
12. China approved Shenzhen's “multi-entry” policy for travel to Hong Kong starting in December.
Five Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 2: $MEITUAN-W(03690)$ . Strong Q3 earnings announcement on Friday, with revenue beating expectations.
Top 3: $SF HOLDING(06936)$ . Listed on the Hong Kong Stock Exchange this week, with shares jumping over 3% on the first day.
Top 4: $JIUYUAN GENE(02566)$ . Despite being a “weight-loss drug” stock, it dropped 38.4% on its debut.
Top 8: $CMSC(06099)$ . Brokers surged ahead as rumors about upcoming policies gained traction.
Top 10: $LOPAL TECH(02465)$ . A new stock added to the Hong Kong Stock Connect list, saw a major price jump.
Next Week's Hong Kong Stock Market Events
1. Next Monday, Caixin will release the November manufacturing PMI data. With stimulus policies in play and the tariff threat looming, the market expects an uptick in the PMI. Pay attention to whether it meets expectations.
2. Next Saturday, China will release November export data. It will be interesting to see if the export numbers outperform expectations.
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