This week, Hong Kong stocks surged before pulling back, with the $HSI(HSI)$ nearly reaching the 26,000-point mark. However, it failed to break through and ended the week down by 1.03%.
US Fed's Powell Suggests Possible Rate Cut
The market was influenced by US Federal Reserve Chairman Jerome Powell’s remarks at the Jackson Hole symposium last Friday. He noted that, despite inflation concerns, the rising risks in the job market could lead the Fed to cut rates in September.
This sent US stocks soaring, with the Nasdaq gaining over 1.8%, nearing its all-time high. The rally in US stocks helped lift the Hang Seng Index on Monday, which rose by over 1.9%, hitting 25,918.86 points, just shy of the 26,000-point threshold.
However, after the sharp rise in the Hong Kong and A-share markets, a pullback occurred on Tuesday and Wednesday. Additionally, China’s industrial profit data for January-July showed a 1.7% decline, which dampened sentiment, and the Hang Seng Index briefly dipped below 25,000 points.
Corporate Earnings and Market Reactions
On Wednesday after the market closed, $MEITUAN-W(03690)$ reported its Q2 results, with adjusted net income plunging 89% YoY to 1.49 billion RMB. The news triggered a sharp sell-off in its stock, dragging down other tech stocks like Alibaba and JD.com.
Despite the weak performance of the Hang Seng Index, semiconductor stocks surged due to strong earnings reports.
$Cambricon Technologies Corporation Limited(688256)$ reported a 4424.9% YoY jump in Q2 revenue, far exceeding market expectations, driving its stock price up by over 20%. At one point, Cambrian surpassed $Kweichow Moutai Co.,Ltd.(600519)$ in share price, becoming the highest-priced stock in A-shares, which led to a rally in the semiconductor sector. $SMIC(00981)$ rose over 10% on Thursday.
Market Sentiment Boosted by Tech Stock Surge
The strong performance of tech stocks lifted investor sentiment, and Southbound Funds flow into Hong Kong stocks was positive, with a net inflow of 22.17 billion RMB this week.
This week, Telecom stocks led the market, while Healthcare stocks performed poorly.
Major Events in Hong Kong Stocks This Week
1.Federal Reserve Chairman’s speech hinted at a potential rate cut in September due to job market risks.
2. $LAOPU GOLD(06181)$ raised product prices by 5%-13% for the second time this year.
3.Outer ring areas of Shanghai now allow unlimited purchases for qualified individuals, and single people are treated as families for home buying.
4. Double Ascension shares were 3,900 times oversubscribed, with a one-hand profit exceeding HK$ 6,000.
5.Trump promises to lower drug prices by 1,500%.
6. $NONGFU SPRING(09633)$ ’s H1 net profit rose by 22.1%, reaching 7.62 billion RMB.
7.China’s AI Action Plan released, the State Council issued an opinion on further promoting AI integration.
8. $Apple(AAPL)$ has scheduled its highly anticipated Fall event for September 9.
9. $MIXUE GROUP(02097)$ reported H1 revenue of 14.87 billion RMB, up 39.3% YoY. Net profit reached 2.72 billion RMB, a 44.1% increase from last year.
10. $MEITUAN-W(03690)$ ’s Q2 adjusted net profit fell by 89%, triggering stock price drop.
11. $JIAXIN INTL RES(03858)$ ’s stock surged 177.8% on its debut.
12. $LI AUTO-W(02015)$ posted a 4.5% decline in Q2 revenue, totaling 30.2 billion RMB.
13.The mini LABUBU collection sold out in just 60 seconds, sparking significant excitement.
14. $NVIDIA(NVDA)$ ’s Q2 revenue grew 56% YoY, reaching $46.7 billion.
15.From January to July, China’s industrial enterprises reported a total profit of 40.2 trillion RMB, down 1.7% compared to the same period last year.
Five Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1： $MEITUAN(MPNGF)$ – Meituan’s Q2 results disappointed, triggering a massive sell-off, making it the most traded stock.
Top3： $JIAXIN INTL RES(03858)$ – The stock soared 177.8% on its debut, attracting high attention.
Top4： $SMIC(00981)$ – SMIC rallied 10% after Cambrian’s stellar earnings report, signaling strength in the semiconductor sector.
Top6： $NIO-SW(09866)$ – NIO’s new ES8 model launched at a lower-than-expected price, boosting sales and stock performance.
Top9： $POP MART(09992)$ – Pop Mart’s mini LABUBU sold out in 60 seconds, sparking hype, with rare versions being resold for much higher prices.
Next Week's Hong Kong Stock Market Events
1.China will release its PMI data for August this Sunday, with the manufacturing PMI expected to be 49.5. The market will be watching closely to see if it meets expectations.
2.US stock markets will be closed on Monday in observance of Labor Day.
3.Next week, companies including $NIO-SW(09866)$ and $Broadcom(AVGO)$ will release their quarterly earnings reports, which will be closely watched by investors.
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