This week, despite a shortened trading week due to the Christmas holidays, Hong Kong stocks saw solid gains. The $HSI(HSI)$ rose by 1.87%, reclaiming the 20,000-point mark, driven largely by strong performance in high-dividend stocks.
Market Overview
The global market was relatively quiet this week, with many overseas markets also closed for Christmas.
However, the release of China’s industrial profit data for January-November 2024 showed a 4.7% year-on-year decline, with November's drop at 7.3%. Bloomberg's economic forecast was a 6% decline, so the figures came in worse than expected.
In the face of weaker macroeconomic conditions, high-dividend stocks continued to attract investor interest. Agricultural Bank of China, for example, surged 5.5%, hitting a new all-time high!
Southbound funds, which tend to favor high-dividend stocks, saw a net inflow of HK $16.4 billion this week.
All sectors ended the week in the green, with no declines in sight.
With the global market heading into New Year’s holidays, news flow will likely remain quiet. Key events to look out for include China's release of December’s manufacturing PMI on Tuesday, which will provide insight into economic trends.
Major Events in Hong Kong Stocks This Week
1. $MENGNIU DAIRY(02319)$ Faces Layoffs: The company’s headcount dropped by around 3,000 employees compared to the end of last year.
2. Morgan Asset Management and Fidelity are among those significantly increasing their positions in Chinese banks.
3.WeChat Store Function Gains Attention: The new gifting feature in $TENCENT(00700)$ WeChat has sparked a huge surge in stock prices for $WEIMOB INC(02013)$ .
4.China’s Fiscal Policy Update: The 2025 fiscal policy will be more aggressive, aiming for stronger economic support.
5.Bank Stocks Soar: Several bank stocks hit new historical highs.
6. The third session of the 14th NPC will be held in March 2025.
7. $LI AUTO-W(02015)$ CEO Li Xiang predicts the company will definitely develop humanoid robots in the future.
8. $XIAOMI-W(01810)$ is building a massive GPU cluster to boost its AI model development.
9. $Contemporary Amperex Technology Co.,Ltd.(300750)$ plans to issue H-shares and list on the Hong Kong Stock Exchange.
10. $XIAOMI-W(01810)$ 's stock price continues to climb, approaching its all-time peak.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1: $XIAOMI-W(01810)$ . Stock rose 7.9%, nearing its all-time high. Positive news includes strong delivery projections for its EVs and plans to heavily invest in AI.
Top3: $WEIMOB INC(02013)$ . Surged over 30% due to the market excitement around WeChat’s WeChat Store function.
Top7: $KINGSOFT CLOUD(03896)$ . Benefiting from $XIAOMI-W(01810)$ ’s AI push, the stock surged as it’s the only strategic cloud platform within the Xiaomi & Kingsoft ecosystem.
Top10: $MINIEYE(02431)$ . Listed on Friday, with a strong debut, rising 14.1%. The IPO market is heating up.
Next Week's Hong Kong Stock Market Events
1.Hong Kong stock market will close early next Tuesday and remain closed on Wednesday for New Year.
2.China will release its December PMI next Tuesday, with the manufacturing PMI expected to be 50.3. Watch for any surprises.
3.A-shares will be closed for New Year’s Day next Wednesday.
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