This week, Hong Kong stocks showed strong resilience, with the $HSI(HSI)$ rising 0.27% over the week.
Key Earnings Reports Drive Stock Prices Up
Several companies released their earnings reports this week, with standout performances from:
$LEAPMOTOR(09863)$ : The company turned a profit for the first half of the year, becoming the second new Chinese carmaker to achieve profitability. This boosted its stock by over 8%, hitting an all-time high.
$POP MART(09992)$ : The company saw its net profit skyrocket by 396.5%, with a 204.4% year-on-year revenue increase. The stock surged by 18%, pushing its market value past HK$ 430 billion.
$XPENG-W(09868)$ : The company posted a 125% revenue growth in Q2, reaching a new record. Founder He Xiaopeng bought an additional 3.1 million shares of the company, propelling the stock up 18.7%.
$MNSO(09896)$ : The company’s Q2 revenue grew by 23.1%, and it expects faster growth in the second half of the year. Its stock soared 21%.
Other companies like $XIAOMI-W(01810)$ $LAOPU GOLD(06181)$ $HKEX(00388)$ also exceeded earnings expectations. While their stock prices didn’t jump as much, they weathered the second-quarter earnings test without major setbacks.
A-shares Show Strong Bullish Sentiment
On the mainland, the Shanghai Composite Index continued to climb, breaking through the 3,800-point barrier and hitting a 10-year high.
The ChiNext Index surged by 5.85%, reflecting a bullish sentiment in the market. This momentum positively impacted Hong Kong stocks as well.
On Friday, the semiconductor sector saw massive gains, with stocks like $Cambricon Technologies Corporation Limited(688256)$ hitting the 20% daily limit, and $SMIC(00981)$ up 10%. A semiconductor ETF surged nearly 9%, closing in on its daily cap.
Key Developments in Tech and AI
$NVIDIA(NVDA)$ reportedly asked its suppliers to pause production of the H20 chip.
Chinese AI company DeepSeek released a new version of its model, DeepSeek V3.1, which supports FP8 precision and next-gen Chinese chip architectures, signaling a step closer to achieving a "Made in China" AI chip ecosystem.
US Stocks Struggle
The US stock market had a rough week, with tech stocks like $NVIDIA(NVDA)$ $Taiwan Semiconductor Manufacturing(TSM)$ $Palantir Technologies Inc.(PLTR)$ falling sharply. The Nasdaq Index continued its downward trend.
Economic data from the US revealed a slight slowdown in the labor market, with initial jobless claims rising to 235,000, higher than expected. However, Federal Reserve officials are still prioritizing inflation control over easing, signaling a hawkish stance.
Sector Performance
Technology: Led the charge, with semiconductor and AI stocks posting gains.
Energy & Telecom: Underperformed, with little to no movement in these sectors.
Southbound Funds continued to flow into Hong Kong stocks, with net purchases totaling HK$ 17.9 billion this week.
Major Events in Hong Kong Stocks This Week
1. $LEAPMOTOR(09863)$ turned a profit for the first time, becoming one of China’s new electric vehicle makers to achieve profitability.
2. $EAST BUY(01797)$ 's Stock Plummets Amid Rumors of CEO's Involvement in Connected Transactions; Company Denies Allegations.
3. $POP MART(09992)$ reported massive growth in both revenue and net profit.
4. $XIAOMI-W(01810)$ hit new records in revenue and net profit, reporting a 30.5% increase in Q2.
5. $XPENG-W(09868)$ reported a 125% growth in Q2 revenue, setting a new record. Founder He Xiaopeng also bought 3.1 million more shares of the company in Hong Kong stocks.
6.The Loan Prime Rate (LPR) for August remains at 3.0% for 1-year loans and 3.5% for loans over 5 years.
7. $BIDU-SW(09888)$ reported Q2 revenue of 32.7 billion yuan, a 4% year-on-year decline.
8. $LAOPU GOLD(06181)$ 's net profit for the first half of the year reached 2.268 billion yuan, marking a massive 285.8% year-on-year increase.
9. $HENGRUI PHARMA(01276)$ reported a 29.67% year-on-year increase in net profit for the first half of the year.
10.The Federal Reserve's July meeting minutes showed that most members believe inflation is a bigger risk than unemployment.
11. $MNSO(09896)$ saw a 23.1% year-on-year revenue increase in Q2, with strong growth expected in the second half of the year.
12. $KUAISHOU-W(01024)$ reported an adjusted net profit of 5.62 billion yuan for Q2, exceeding the expected 5.06 billion yuan.
13.Reports suggest that $NVIDIA(NVDA)$ has asked some suppliers to halt production of the H20 chip.
Five Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $XIAOMI-W(01810)$ : The company’s Q2 revenue hit a historic high, growing by 30.5%, with net profit up 75.4%.
Top 2: $EAST BUY(01797)$ : The stock saw major volatility after rumors about the CEO being investigated for related-party transactions.
Top 3: $POP MART(09992)$ : Shares surged after reporting a 396.5% increase in net profit for the first half of the year.
Top 6: $SMIC(00981)$ : The semiconductor giant was boosted by news of a new AI model launch and Nvidia’s request to pause H20 chip production.
Top 8: $XPENG-W(09868)$ : After reporting record-high earnings, the company’s stock jumped, particularly after its founder’s stock buyback.
Next Week's Hong Kong Stock Market Events
1.Next Wednesday, China will release the year-to-year growth rate of profits for industrial enterprises above a designated size (January-July).
2.Next week, companies including $NVIDIA(NVDA)$ $MEITUAN-W(03690)$ $MIXUE GROUP(02097)$ $Tiger Brokers(TIGR)$ $BABA-W(09988)$ $BYD COMPANY(01211)$ will announce their earnings reports.
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