To The Moon

The Hong Kong stock market, once again, fell into a panic sell-off last week. The $HSI(HSI)$ is now close to the lowest point in October 2022, with a weekly decline of 2.42% to 15533.56 points. The $HSTECH(HSTECH)$ also fell 3.78% to 2032.9 points.

In terms of market indicators, whether it's technical indicators, valuation, risk premium, or investor sentiment, the current Hong Kong stock market can be called the "worst ever" without exaggeration. Although there have been several rounds of market bottoms with extreme levels in the past, the liquidity and investor sentiment have never been so bad.

Due to the domestic bailout funds, the A-share market also hit a new low, but it's still slightly better than Hong Kong stocks. The AH Spread Index widened by 1.13% last week.

In the current macro environment, significant fiscal stimulus is still important for reversing the credit cycle, but monetary policy has struggled to reach Hong Kong stocks. However, no matter what form it takes, having policies is better than none, and the policy needs to be strong and resolute to achieve its goals.

The market is on edge, extremely sensitive to negative news. Last week, $WUXI BIO(02269)$ continued to plunge, and investor sentiment turned pessimistic after the fermentation of the Biosafety Law draft.

At the same time, cross-border ETF speculation was also dragged into the spotlight.

There is no clear signal of a reversal yet. The official interest rate cut this week may bring new liquidity. Whether interest rates will continue to fall further remains to be observed. Technology and small-cap growth stocks will only experience significant rebounds and repairs with liquidity driving.

Southbound funds saw substantial net outflows of HK $9.417 billion last week:

Key Events in Hong Kong Stocks Last Week

1. Hong Kong court issued a winding up order against China Evergrande;

2. Wang Yilin, the former chairman of $China Petroleum & Chemical Corporation(600028)$ , is under investigation;

3. $WUXI APPTEC(02359)$ announced that the daily operation of the company has not changed significantly, and production and operation activities are normal. The draft version of the Biosafety Law was mentioned on January 25, and the company believes that the content of the company contained in the draft is neither appropriate nor accurate;

4. $MEITUAN-W(03690)$ announced the organization upgrade, Senior Vice President Wang Puzhong will be in charge of Meituan platform, store and home business;

5. $Alibaba(09988)$ is considering selling its department store and shopping mall operator Intime Commerce, with neither side responding;

6. $KINTOR PHARMA-B(09939)$ received approval from the National Medical Products Administration for its phase III clinical trial of a drug to treat hair loss;

7. $BYD COMPANY(01211)$ rose by more than 1%, and the sales volume of new energy vehicles in January increased by 33.14% year-on-year. A number of new energy vehicle companies in January sales rose, $Seres Group Co.,Ltd.(601127)$ for the first time among the new force monthly sales champion. Other companies include $LI AUTO-W(02015)$ $XPENG-W(09868)$ $NIO-SW(09866)$;

8. Yamafen Sports, a subsidiary of $ANTA SPORTS(02020)$ , listed on the US stock market and closed up 3.08% on its first day of trading;

9. $SUNNY OPTICAL(02382)$ issued a 2023 performance forecast, which showed that profits decreased by about 50% to 55% due to industry weakness.

Two Stocks Worth Attention Among Top Trading HK Stocks Last Week

Top1: $TENCENT(00700)$ : "League of Legends" will be fully available on Douyin live streaming platform this week, while the National Press and Publication Administration released a list of imported online games in 2024.

Top2: $WUXI BIO(02269)$ : The company held a teleconference on the "industry rumors" about the US proposal, but investors were not confident. On February 2nd, shares continued to fall by double digits in the afternoon session.