To The Moon

The Hong Kong market's rebound accelerated in the third week of June. The Hang Seng Index $HSI(HSI)$ rose 2.26% last week, while the Hang Seng Technology Index $HSTECH(HSTECH)$ rose 6.71% in the week. The Hang Seng Index, a market sentiment indicator, recovered to 7.4, while the Hang Seng Technology Index recovered to 7.2.

Capital flow of Hong Kong stocks

From the sectors, as the main rebound last week was in the Hong Kong and US dual-listed Chinese stocks that had fallen sharply before, the information technology sector led the rise last week (up +7.93% in one week), followed by consumer discretionary (up +6.03% in one week).

Last week, only utilities (weekly decline of -0.13%), telecom (weekly decline of -2.61%), energy (weekly decline of -4.02%) closed down.

In terms of north-south capital flows, there has been a different trend last week. The southbound funds have been on a buying spree, but the overall southbound funds last week is a net outflow, of which on Friday, June 16, the weekly outflow amount reached HK $9.6 billion.

The top 5 net outflows for the week were: Construction Bank $CCB(00939)$ , Meituan $MEITUAN-W(03690)$ , Tencent Holdings $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ , Li Auto $Li Auto(LI)$ , Xiaomi Group $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$ , of which the net purchase of funds of Meituan and Tencent in the near 20 was still HK $2.7 billion and HK $3.5 billion. So it's just profit-taking by some investors, while other stocks have sustained outflows.

It is worth mentioning that the reverse inflow of funds in the A-share market last week was obvious, with A single-day inflow of 10.5 billion yuan on June 16.

Last week, Hong Kong stocks saw an inflow of $43 million from overseas investors, with active outflows of $355 million, despite two consecutive weeks of inflows, largely driven by passive inflows of $398 million.

Key Events in Hong Kong Stocks Last Week

1.The Federal Reserve suspended interest rate hikes on Wednesday as the market expected, and institutions expect Hong Kong stocks to usher in liquidity easing. The next day, the HKMA left its benchmark interest rate unchanged at 5.50%.

2.Us Secretary of State Abraham Lincoln will visit China from June 18 to 19.

3.The Chinese president's meeting with Bill Gates, an American entrepreneur and philanthropist, helped boost the confidence of international investors in investing in China.

4.According to foreign media, the Chinese government plans to take major measures to boost the weak economy, including potentially billions of dollars in new infrastructure spending, relaxing rules to encourage real estate investors to buy more properties, and issuing about 1 trillion yuan of special treasury bonds.

5.The National Bureau of Statistics said that the economic growth in the second quarter was significantly faster than that in the first quarter, which is expected to return to the normal growth level.

6.Li Qiang will visit Germany and hold the seventh round of consultations between the Chinese and German governments. He will visit France and attend the New Global Financing Compact summit.

7.The HKEx will launch the Hong Kong dollar-RMB dual-counter model on June 19. The securities of 21 companies, including Kuaishou $KUAISHOU-W(01024)$ , Alibaba $Alibaba(09988)$ , Meituan $MEITUAN-W(03690)$ and JD.com $JD.com(JD)$ , will be designated as dual-counter securities by the HKEx, effective from the launch of the dual-counter model.

8.The number of ETFs now included in the Connect scheme has expanded from the initial 87 to 103.

Four Stocks Worth Attention Among Top Trading HK Stocks Last Week

1.Tencent Holdings $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ , The company has increased its daily buyback efforts to more than HK $400m per day since June 2, to June 16, the number of repurchases has exceeded 36.606 million shares since the beginning of the year. And its major shareholder Naspers $Naspers Ltd.(NPSNY)$ (Tencent South Africa majority shareholder) also owns about 2.4 billion shares of Tencent, and will need to reduce about 67 million shares to the next disclosure tipping point (for every 1% reduction, that is, 24% of the stake).

2.Alibaba $Alibaba(BABA)$ $Alibaba(09988)$ , Alibaba Cloud Circle has 15 open source models supporting Chinese in the magic community online, in addition to the operating system, cloud native, database, big data four open source areas, AI model community magic debut. In addition, there are media reports that Alibaba International Digital Business Group (AIDC) plans to expand Tmall to Europe, hoping to establish a local business and online platform in Europe.

3.Sensetime $SENSETIME-W(00020)$ $SENSETIME GROUP INC.(SNTMF)$ , SenseTime and Shanghai AI Lab released the "Scholar · Pu Yu" large model. Alibaba reduced its stake in SenseTime from 7.11% to 6.84%, according to the filing.

4.Xpeng Motor $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ , Xopeng City NGP officially opened in Beijing, becoming the first high-end intelligent driving brand in the industry to open in Beijing urban area. In addition, a number of car companies have recently applied for GPT related trademarks, such as NIO $NIO Inc.(NIO)$ $NIO Inc.(NIO.SI)$ $NIO-SW(09866)$ application "NIOGPT", Xpeng $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ application "XPGPT", Li Auto $Li Auto(LI)$ application "MindGPT" and so on.