This week (September 15-19), the Hong Kong stock market showed an up-and-down but overall upward trend, driven by the Federal Reserve's interest rate cut and the wave of developments in the AI industry. The $HSI(HSI)$ closed at 26,533.04 points on Friday, with a weekly gain of 0.55%. The $HSTECH(HSTECH)$ performed even better, rising 4.97% over the week to 6,287.02 points. Trading was active across the market, with total weekly turnover reaching HK$1.67 trillion. On September 18, turnover exceeded HK$4,133 billion, the highest since April 9.
Non-essential consumer goods and technology sectors were the market highlights. The Hang Seng Tech Index had a strong showing throughout the week, with an intraday swing of 8.15%. The State-owned Enterprises Index also climbed 1.10% to 9,468.15 points. In contrast, the Red Chip Index underperformed, dropping 6.23% for the week.
On Monday, the Hang Seng Index hit a four-year high, sparking strong market reactions to potential stimulus policies after weak Chinese economic data and expectations of Fed easing. Later in the week, market sentiment cooled a bit, with some tech and growth stocks drawing in funds. However, they faced pullbacks due to uncertainties around valuations, the sustainability of foreign capital inflows, and US-China policy directions.
Right now, picking strong stocks is the main investment focus in the Chinese, Hong Kong, and US markets.
The Fed's interest rate cut was the key event impacting global markets this week. On September 17, the Fed announced a 25 basis point cut in the federal funds rate target range to 4.00%-4.25%, matching market expectations. The Hong Kong Monetary Authority followed suit on September 18 by cutting its base rate 25 basis points to 4.50%. This provides some support to real estate, consumer spending, and high-leverage sectors. It could also boost market expectations for future rate cuts.
Positive news for the AI industry came thick and fast. Hong Kong Chief Executive John Lee said in the new Policy Address that the SAR government will set up an AI Efficiency Enhancement Group to push forward "AI+" development. Major Hong Kong-listed internet stocks signed strategic cooperation agreements with central state-owned enterprises to help upgrade China's industries through smart technology.
On the funding side, southbound funds kept flowing in. Data shows net inflows throughout the week, with a single-day net buy of HK$14.473 billion on Monday, and total weekly net inflows of about HK$36.8 billion.
Fund preferences for sectors were clear. $BABA-W(09988)$ saw heavy inflows this week. $Meituan-W (03690)$ got net buys from southbound funds for three straight days, totaling HK$3.489 billion. Others like $POP MART(09992)$ and $HORIZONROBOT-W(09660)$ also attracted funds.
In industry sectors, AI and healthcare concept stocks shone. Shares like $BIDU-SW(09888)$ and $SENSETIME-W(00020)$ hit all-time highs, while $TENCENT(00700)$ and Alibaba reached new highs for the year!
In the IPO market, $ZIJIN MINING(02899)$ overseas gold mine assets kicked off a up to US$3.2 billion IPO in Hong Kong as $ZIJIN GOLD INTL(02259)$ , making it the biggest new listing in Hong Kong this year. $CHERY AUTO(09973)$ is also offering shares, aiming to raise US$1.2 billion, putting the spotlight back on autos and new energy. $Shenzhen Hipine Precision Technology(02583)$ started its offering.
Major events in Hong Kong stocks this week
$HKEX(00388)$ signed a cooperation memorandum with the Abu Dhabi Securities Exchange to explore opportunities in the two capital markets and strengthen ties between them.
$DONGFANG ELEC(01072)$ plans to place new H shares to raise about HK$1.1 billion, offering 68 million new H shares at HK$15.92 each.
$WEIMOB INC(02013)$ plans to place shares to raise over HK$1.5 billion, with about 30% going toward exploring AI integration and applications in SaaS.
$POP MART(09992)$ share price dropped sharply, drawing attention to falling second-hand prices for LABUBU and a surge in short selling, but southbound funds and foreign investors still bought in at lower levels.
$CATL(03750)$ held a meeting on resuming production at the Jianxiawo lithium mine, with output expected to restart soon.
Innovation-driven Chinese biopharma firm $XUANZHUBIO-B(02575)$ passed its HKEX hearing; the company has over ten drug assets in active development.
$NVIDIA(NVDA)$ invested US$5 billion in $Intel (INTC)$ and will work together to develop PC and data center chips. Announced** a chip roadmap, planning and developing three chip series over the next three years.
$TRANSTHERA-B(02617)$ was officially added to the Stock Connect on September 15, but its very small free float led to wild price swings.
$KUAISHOU-W(01024)$ s Keling AI launched a new digital human feature, creating 1080p/48FPS videos up to 1 minute long from just a character image plus text or audio.
Outlook and key points for next week
Monitor economic data: Keep a close eye on changes in domestic figures, especially for consumption, investment, and jobs (like early September's manufacturing and services Flash PMI, consumer/retail/housing sales/industrial production, etc.).
First-day performance of IPOs: Watch major ones like Zijin Gold International and Chery closely.
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