This week, the Hong Kong stock market surged as the $HSI(HSI)$ climbed 2.27%, breaking the 25,000-point barrier, marking a new high in nearly four years.
Key Updates
On Saturday, China officially broke ground on the Yarlung Tsangpo River Hydroelectric Project (Motuo Hydropower Station). The massive project consists of five hydroelectric stations and is expected to cost 1.2 trillion RMB.
With an installed capacity of 60-81 million kW (compared to Three Gorges' 22.5 million kW), it will generate around 300 billion kWh annually—equivalent to three Three Gorges plants—enough to power 300 million people. This will make it the world's largest dam!
The news triggered a spike in sectors like cement, steel, and blasting, fueling a positive market sentiment and boosting investor confidence.
China is also revising the 27-year-old Price Law. The proposed amendments focus on curbing "Rat Race" (often referred to as the "involution" trend), which has become a hot topic in current market dynamics. The draft includes stricter regulations on dumping, algorithms, and unfair pricing behaviors, aiming to better manage irrational price wars.
Following the news, sectors like lithium carbonate, coking coal, silicon, and manganese saw massive price jumps, driving up related stocks.
Sector Performance
Southbound funds have been pouring into Hong Kong stocks at an unprecedented pace, with net purchases totaling HK$ 32.35 billion this week.
So far this year, the net influx has exceeded HK$ 82 billion—already surpassing the entire net inflow of 2024.
Energy and Materials sectors led the charge this week, with substantial gains across key stocks in these areas.
Major Events in Hong Kong Stocks This Week
1.The groundbreaking of the Yarlung Tsangpo Project, with a total investment of 1.2 trillion RMB, has sparked a surge in cement and steel stocks.
2.HK Chief Executive Lee announced plans to enhance liquidity and attract more high-quality global firms to list in Hong Kong.
3.The 1-year LPR stays at 3.0%, and the 5-year LPR is at 3.5%.
4.W $WUXI BIO(02269)$ saw a 16% revenue growth in H1, with profit growth at about 54%.
5.Hainan will officially open its free trade port on December 18, 2025.
6. $LEADS BIOLABS-B(09887)$ 's IPO saw an oversubscription of 3493 times, with shares skyrocketing 91.7% on the first day.
7.Southbound funds invested HK$ 82 billion this year, surpassing last year's total inflows.
8. $POP MART(09992)$ 's new Labubu figures are expected to hit the market by October, sparking a surge in share prices.
9. China is tackling "Rat Race" in its market through amendments to the Price Law.
10. $MEITUAN-W(03690)$ hosted a forum addressing Rat Race trends within industries.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $LEADS BIOLABS-B(09887)$ debuted on the Hong Kong Exchange this week with a 91.7% first-day gain after being oversubscribed by 3493 times.
Top 5: The launch of the Yarlung Tsangpo hydropower project sent cement and steel stocks soaring, with $HUAXIN CEMENT(06655)$ jumping 85% in one day.
Top 9: $POP MART(09992)$ 's stock price rose following a CCTV interview with CEO Wang Ning, who teased new Labubu releases coming in October.
Next Week's Hong Kong Stock Market Events
1.China-US Trade Talks: Watch for any developments on tariff delays during the upcoming trade talks.
2.Federal Reserve's Rate Decision: The Fed's decision could impact global markets.
3.China’s PMI Release: Be ready for the July PMI data to be announced.
4.The reports from $Meta Platforms, Inc.(META)$ $Microsoft(MSFT)$ $Apple(AAPL)$ could drive stock movements next week.
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