To The Moon

This week, the Hong Kong stock market faced a tough time, with the $HSI(HSI)$ dropping 1.25%.Economic Data Misses ExpectationsThe latest economic data released by the National Bureau of Statistics showed weaker-than-expected results. In November, retail sales of consumer goods totaled RMB 43,763 billion, growing by 3.0%, well below the 5% expected and down from the 4.8% growth in October. On the other hand, industrial production rose 5.4%, in line with forecasts.U.S. Fed’s Rate Cut Overseas, the U.S. Federal Reserve cut rates by 25 basis points as expected. However, their updated forecast suggests only two rate cuts next year, far fewer than the market had anticipated. Fed Chairman Jerome Powell indicated that the central bank is nearing the end of

This week, Hong Kong stocks saw huge swings. The $HSI(HSI)$ rose 0.53% for the week, dipping below the 20,000-point mark.On Monday, the Political Bureau of the Central Committee held a meeting to discuss China's 2025 economic plans. The key takeaways were clear: stabilize the housing and stock markets, manage risks in key sectors, and guard against external shocks. The meeting also called for more aggressive fiscal policies and moderately loose monetary measures to boost consumption and investment. There was a push to expand domestic demand.Some of the comments surprised the market, like the unprecedented mention of "strengthening extraordinary counter-cyclical adjustments" and the first shift in monetary policy since 2011, aiming for "moderately l

This week, Hong Kong stocks made a steady rebound. The $HSI(HSI)$ rose 2.28%, closing near the 20,000-point mark.Positive Economic Data Drives Market Optimism On Monday, Caixin released China’s November manufacturing PMI, which came in at 51.5, the highest in seven months and far exceeding analysts' expectations. This indicates that the manufacturing sector is continuing to expand, driven by economic stimulus policies.With improving economic data, China plans to hold its annual closed-door Central Economic Work Conference next Wednesday to set economic targets and stimulus plans for 2025. The news sparked market speculation around more policy support, pushing stocks higher.Additionally, many major Wall Street firms expect China’s central bank to ma

This week, the Hong Kong stock market showed signs of stabilizing and rebounding, with the $HSI(HSI)$ rising 1% over the week.Market Buzz and RumorsWith the Central Economic Work Conference set for mid-December, rumors have been flying. On Wednesday, a rumor suggested that the meeting would be moved up and that the fiscal deficit target for next year would be increased, which sparked a rally in both Hong Kong and A-shares. However, soon after, international investment banks weighed in, predicting that the economic policies discussed at the December meeting would likely not exceed expectations. By Thursday, both Hong Kong and A-shares saw a noticeable drop.Friday’s trading was even more dramatic. After a sluggish start, major indices shot up in the

This week, the Hong Kong stock market continued to slide, with the $HSI(HSI)$ dropping 1%, hitting its lowest level since September 26th.Weak Earnings A number of internet companies released their third-quarter results this week, and the market reaction was far from positive. Stocks of $XPENG-W(09868)$ fell 3%, $KUAISHOU-W(01024)$ dropped 11.7%, $BIDU-SW(09888)$ slid 8.6%, and $PDD Holdings Inc(PDD)$ lost 10.6%.These internet giants are a key weight in the Hang Seng Index, making up over 30% of its total market cap. Their poor performance has significantly dampened market senti

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