To The Moon

There were only three trading days for Hong Kong stocks last week due to the Christmas holiday, but the $HSI(HSI)$ still performed brilliantly, rising 4.33% in a week, bringing the gloomy 2023 to a close.

Looking back at the whole year, the $HSI(HSI)$ performed poorly, with an annual decline of 13.82%, which is the fourth consecutive year of decline.

As we look ahead to 2024, with the possibility of Fed rate cuts and foreign capital returning to Hong Kong, the Hong Kong stock market could see a rebound from its current low valuation. The Northbound funds have bought a record amount of A-shares this week, totaling 18.7 billion yuan, which could be a good omen for the Hong Kong stock market.

The news was relatively calm last week, with gaming stocks making a significant recovery after the release of positive regulatory news. $NTES-S(09999)$ rose 15% last week, and $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ returned to the HK $300 level.

All sectors rose last week, possibly a good sign for the start of 2024:

 Southbound funds bought a net HK $1.16 billion last week:

Key Events in Hong Kong Stocks Last Week

1. The National Press and Publication Administration responded to public concerns, said that the draft was aimed at promoting the prosperity and healthy development of the industry and helping market confidence and stability;

2. The National Development and Reform Commission will study to further cancel or relax restrictions on qualification requirements, shareholding ratio and industry access for investors from Hong Kong and Macao;

3. Rumors circulated that $NetEase(NTES)$ $NTES-S(09999)$ and $Activision Blizzard(ATVI)$ were going to "get back together," and NetEase's game forums began updating content for World of Warcraft;

4. $Li Auto(LI)$ $LI AUTO-W(02015)$ sold 12,100 units last week, and it is expected to hit the 50,000 mark in December;

5. $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$ held a Xiaomi Auto technology conference;

6. $Best Buy(BBY)$ plans to sell its education business;

7. The central bank will implement prudent monetary policy accurately and effectively, increase the implementation of policies already introduced, and cut the reserve requirement ratio in the first quarter of next year;

8. $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ raised the buyback amount to 1 billion yuan in consecutive days.

Four Stocks Worth Attention Among Top Trading HK Stocks Last Week

Top 1: $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ : After last Friday's sell-off due to new game regulations, regulators responded to public concerns by saying that the draft was aimed at promoting the healthy development of the industry. At the same time, Tencent significantly increased its daily share repurchase amount, pushing the stock back above HK$300;

Top 2: $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$ : Xiaomi held a Xiaomi Auto Technology conference last week, released a number of black technologies, and expected to be mass produced in the first half of next year;

Top 5: $NetEase(NTES)$ $NTES-S(09999)$ : Besides positive regulatory news, rumors circulated that NetEase and Blizzard would "get back together," giving a boost to NetEase's share price;

Top 9: $GOME RETAIL(00493)$ $GOME Retail Holdings Limited(GMELF)$ : Gome Retail said it had reached an agreement with the buyer and bondholders on the settlement of some bonds last week, and would transfer nearly 21.65% of Shenzhen Shifen Daojia Service Technology Co.,Ltd., to $JD-SW(09618)$ $JD.com(JD)$ for 105 million yuan. The price would be used to settle equivalent bonds, sparking a surge in the stock price.

This week's Hong Kong stock market events

1. Global markets will be closed on Monday for New Year's Day.

2. The Caixin China General Manufacturing PMI for December will be released next Tuesday.