To The Moon

The Hong Kong stock market was on a roll with bullish news last week, and $HSI(HSI)$ rose 2.36%, marking its third consecutive weekly rebound.

During the Spring Festival, domestic consumption data was impressive. A total of 474 million domestic tourists traveled across the country, a 19% increase compared to 2019. Tourism revenue also increased by 7.7% over the same period in 2019. And the box office for Spring Festival films set a new record for the holiday week.

On February 20th, the People's Bank of China announced the latest Loan Prime Rate (LPR) quotes. The 1-year LPR remained unchanged at 3.45%, while the 5-year or longer LPR dropped by 25 basis points from 4.20% to 3.95%, marking the largest historical decline.

Wu Qing, the new chairman of the Securities Regulatory Commission, has been busy conducting research and soliciting advice from investors since the holiday, promising to severely punish financial fraud and other illegal activities. This has helped restore investor confidence.

As a result, Southbound Funds bought a net of HK$20 billion worth of stocks last week, a recent record!

By sectors, financial and energy and other traditional industries stocks saw significant gains, mainly due to their high dividend yields. Earlier, the State Asset Regulatory Commission indicated that it would study including market capitalization management in the performance evaluation of central enterprise leaders and encourage greater cash dividends.

This immediately attracted funds to flow into state-owned enterprise stocks, and high-dividend concept stocks like energy companies became favorites of investors.

This week, Chinese concept stocks will be intensive earnings release, while February manufacturing PMI data will be released. If it meets or exceeds expectations, the HK stock market may continue its rebound trend.

Key Events in Hong Kong Stocks Last Week

1. $WUXI APPTEC(02359)$ further clarified that it does not pose a national security risk to the United States;

2. The box office for Spring Festival films set a new record;

3. OpenAI released the first text-to-video large model, Sora, which sparking market interest;

4. Shanghai Auntie, a new tea brand, submitted a prospectus to $HKEX(00388)$ ;

5. Several $BYD COMPANY(01211)$ models entered the 70,000 yuan level, reigniting the auto market price war;

6. The Financial Supervisory Authority will actively introduce policy measures to boost market confidence and expectations;

7. $HAIDILAO(06862)$ expects net profit of not less than 4.4 billion yuan last year;

8. The drafting of the Private Economy Promotion Law has been started;

9. $NVIDIA Corp(NVDA)$ Q4 results exceeded expectations, leading to a surge in AI-related stocks;

10. $XIAOMI-W(01810)$ releases 14 Ultra large model;

Two Stocks Worth Attention Among Top Trading HK Stocks Last Week

Top 6: $WUXI BIO(02269)$ . Amidst proposals by US senators to investigate $WUXI APPTEC(02359)$ and WuXi Biologics for alleged ties with the Chinese military, shares of the WuXi group plummeted. However, as the impact of these events faded last week, the stocks rebounded.

Top 9: $XPENG-W(09868)$ . After $BYD COMPANY(01211)$ announced the launch of its low-cost Qin PLUS Glory Edition and Destroyer 05 Glory Edition priced at just 79,800 yuan, sparking a new round of price wars in the auto industry, XPENG' shares bucked the trend and fell.

This week's Hong Kong stock market events

1.On Monday, $LI AUTO-W(02015)$ will release its financial report. Analysts expect revenue to reach 39.928 billion yuan. Stay tuned to see if it meets expectations and what the sales guidance is.

2.On Wednesday, companies like $NetEase(NTES)$ , $BIDU-SW(09888)$ , and $MNSO(09896)$ are expected to release their financial reports.

3.On Thursday, the $HKEX(00388)$ , $BILIBILI-W(09626)$ , and other companies will announce their financial results.

4.On Friday, China will release the February PMI data, which indicates the domestic economic recovery. Economists predict the manufacturing PMI to be 49.1.