To The Moon

This week, the Hong Kong stock market had a rough time, with the $HSI(HSI)$ falling for the fourth consecutive day, down by 6.28%. The index has broken out of its sideways range since October.Domestic News Last Friday after the market closed, China announced a fiscal stimulus plan, with 6 trillion yuan in new funds for debt reduction. However, there was no mention of any policy support for the real estate or consumption sectors.On Wednesday, the Ministry of Finance rolled out a "big gift" with tax cuts, including reduced deed tax, land value-added tax, and VAT. For example, the deed tax for the purchase of a family's first or second home (under 140 square meters) has been cut to 1%, down from 1-1.5% for regular homes and 3% for non-standard homes.O

This week, the Hong Kong stock market saw sharp swings, with the $HSI(HSI)$ rising 1.08% by the end of the week, following a series of significant events.Positive Economic Data from ChinaDomestically, there was some good news. On Tuesday, Caixin’s PMI for October came in at 52, the highest in three months, well above analysts’ expectations of 50.5. On Thursday, China’s customs data showed a 12.7% year-on-year increase in exports in October, far outpacing the expected 5% growth.Overseas Events and Market ReactionsOverseas, the US election result added to market volatility. Trump’s victory raised concerns about escalating trade tensions, causing a sharp drop in both Hong Kong and mainland stocks. However, the market rebounded on Thursday as expectati

This week, the Hong Kong market saw some fluctuations, with the $HSI(HSI)$ dipping slightly by 0.41%. CRIC announced that the sales of China's top 100 real estate companies reached 435.49 billion yuan in October. That’s a 7.1% year-on-year increase and a 73% jump from the previous month—marking the second-highest monthly sales this year. It’s also the first time this year that we’ve seen positive year-on-year growth in a single month!In addition, the National Bureau of Statistics released the manufacturing PMI for October, which came in at 50.1, surpassing analysts’ expectations of 49.9. This figure crosses the crucial line into expansion territory, signaling that the manufacturing sector is on the rebound. It’s the first economic data released sin

This week, the Hong Kong stock market remained stable, with the $HSI(HSI)$ declining by 1.03%.Key Economic DevelopmentsOn Monday, the PBOC authorized the National Interbank Funding Center to announce the latest Loan Prime Rates (LPR). The one-year LPR decreased to 3.10% from last month’s 3.35%, while the five-year LPR fell to 3.60% from 3.85%, marking a 25 basis point drop for both.In the same vein, the PBOC executed its first swap operations for securities, funds, and insurance companies, with an operation amounting to 50 billion yuan. This drew participation from 20 institutions, with CICC winning the bid.Additionally, the Chinese Academy of Social Sciences released a macro-financial analysis report for the third quarter, suggesti

This week, after a strong rally, Hong Kong stocks saw a pullback, with the $HSI(HSI)$ falling 2.11% over the week.Recently, multiple ministries, including the Ministry of Finance and Ministry of Housing and Urban-Rural Development, held press conferences to introduce growth-stabilizing policies. However, market expectations were not fully met, leading to consecutive declines in Hong Kong stocks.On Friday, the Governor of the People's Bank of China announced at the 2024 Financial Street Forum that, depending on market liquidity, there could be an additional 0.25-0.5 percentage point cut in the reserve requirement ratio (RRR) before year-end. It’s also anticipated that the Loan Prime Rate (LPR), to be announced on the 21st, will decrease by 0.2-0.25

This week, Hong Kong stocks experienced a significant downturn, with the $HSI(HSI)$ dropping by 6.53%, which has certainly dampened the spirits of restless investors.Hong Kong, A-shares DeclineOn the first day after the National Day holiday, the State Council Information Office held a press conference to discuss how to "systematically implement a package of incremental policies to solidly promote an upward economic structure and ensure continuous positive development." There was a lot of anticipation surrounding this meeting, as many hoped to hear detailed stimulus plans. However, it turned out to be merely an informational session, with no new policies announced. As a result, both Hong Kong and A-shares plummeted, marking the end of the recent bul

This week, a barrage of monumental boosts shook up the Hong Kong stock market, with the $HSI(HSI)$ rocketing 13% and soaring past the 20,000-point milestone!On the news front, Tuesday witnessed a press conference hosted by the State Council Information Office, where Governor of the People's Bank of China unveiled three game-changing policies: 1.Cuts in both the required reserve ratio and policy interest rates, driving down market benchmark rates. 2.Reductions in existing mortgage rates and lowering the minimum down payment for second homes. 3.Establishment of a ¥500 billion swap facility for securities, funds, and insurance companies, alongside a ¥300 billion special re-lending program for share repurchases and increased holdings.Thursday then brou

This week, Hong Kong stocks surged, with the $HSI(HSI)$ rising 5.12%, reclaiming the crucial 18,000-point mark!The biggest boost came from the Fed's decision to cut interest rates by 50 basis points, slightly exceeding market expectations, which triggered a rally across global markets.Domestically, the People's Bank of China did not follow suit with a rate cut, keeping the September LPR for both the 1-year and 5-year rates unchanged. While hopes for a domestic rate cut were dashed, bank stocks benefitted.Every sector saw positive returns this week, with consumer and real estate leading the charge:According to Bloomberg, to stimulate a recovery in the real estate market, policymakers are considering further relaxing purchase restrictions in first-ti

This week, Hong Kong stocks saw a dip followed by a rebound, with the $HSI(HSI)$ ending the week down 0.43%.Nvidia led the rallyThe rebound wasn’t easy. On Monday, the Statistics Bureau released August CPI and PPI data. CPI rose 0.6% year-on-year, missing the expected 0.7%, while PPI fell 1.8%, worse than the forecasted 1.5%.Following the data release, A-shares fell continuously, with the Shanghai Composite Index nearing 2700 points!Fortunately, on Wednesday, the US August CPI came in at a 2.5% year-on-year increase, falling for the fifth consecutive month. Markets now expect the Fed to cut rates by 25 basis points at next week’s meeting.Meanwhile, $NVIDIA Corp(NVDA)$ CEO Jensen Huang revealed huge demand

This week, Hong Kong stocks ended a four-week rebound streak, with the $HSI(HSI)$ dropping 3%!Key Drivers of the Slump- Over the weekend, the National Bureau of Statistics reported that the official manufacturing PMI for August fell to 49.1 from 49.4 in July, a larger drop than expected.- On Wednesday, Caixin released the August Caixin China Services PMI, which decreased from 52.1 in July to 51.6, showing a slower expansion rate.- Internationally, U.S. economic data came in weaker than expected. The ISM Manufacturing PMI for August was 47.2, below the forecast of 47.5 and the previous 46.8. This marks the fifth consecutive month of decline, reaching its lowest level since November last year.As a result, concerns about a U.S. economic downturn inten