To The Moon

Hong Kong stocks were relatively calm last week, with the $HSI(HSI)$ down 0.82% on the week.

In terms of market sentiment, we welcomed the earnings season last week, with companies like $LI AUTO-W(02015)$ and $BIDU-SW(09888)$ released their financial reports. Li Auto's fourth-quarter results were well above expectations, sparking a surge in its share price. However, Baidu's performance was lackluster, and its share price tanked after the earnings release.

This week, companies like $NIO-SW(09866)$ $JD-SW(09618)$ $BILIBILI-W(09626)$ are set to release their earnings reports, which are expected to have a significant impact on individual stocks.

By sectors, the semiconductor sector of Hong Kong stocks rose sharply, with $SMIC(00981)$ up nearly 14% week-on-week, driven by strong gains in US semiconductor stocks and positive industry news. However, the real estate sector continued to suffer, with $COUNTRY GARDEN(02007)$ being petitioned for winding up by creditors, and February real estate sales plunging, dragging down the sector.

Southbound funds continued to maintain a net inflow status:

Concerningly, the February manufacturing PMI data missed market expectations slightly, but with the upcoming Two Sessions, there is hope for economic stimulus policies, and the negative impact of the economic data is currently manageable.

Key Events in Hong Kong Stocks Last Week

1. $LI AUTO-W(02015)$ reported revenue of 41.7 billion yuan in the fourth quarter, up 136% year on year, exceeding market expectations;

2. Dong Yuhui liquidated $WB-SW(09898)$ account, $EAST BUY(01797)$ stock price fell;

3. The National Press and Publication Administration released the approval information of domestic online games in February, a total of 111 games were approved;

4. Hong Kong will abolish some stamp duty on house purchases and raise tobacco taxes;

5. The SFC and HKEx are exploring a series of measures, including improving the listing mechanism, exploring ways to optimize the price discovery process for IPO, and reviewing the public shareholding requirements for listed companies to enhance market efficiency;

6. $COUNTRY GARDEN(02007)$ was filed against the company by EVER CREDIT for winding up;

7. $BIDU-SW(09888)$ reported revenue of 34.95 billion yuan in the fourth quarter, up 5.7% year on year;

8. $XPENG-W(09868)$ and Volkswagen Group signed a strategic technical cooperation joint development agreement and concluded a joint procurement plan;

9. The average official website of more than 100 cloud products of $Alibaba(09988)$ Cloud fell by 20%;

10. $HKEX(00388)$ recorded the second highest total revenue and net profit in 2023;

11. Fujian Jinhua won a lawsuit against US Department of Justice;

12. In February, the sales performance of top 100 real estate developers decreased by 20.9% month-on-month and 60% year-on-year;

13. $NTES-S(09999)$ released quarterly results, which missed expectations;

14. The manufacturing PMI in February was 49.1%, down 0.1% from the previous month.

Four Stocks Worth Attention Among Top Trading HK Stocks Last Week

Top3: $SMIC(00981)$ : Semiconductor stocks were in the spotlight last week, with rumors swirling that China will achieve 28-nanometer self-sufficiency this year. SMIC saw a surge of 13.8% last week;

Top5: $LI AUTO-W(02015)$ : the company released four seasons report last week, revenue and net profit exceeded market expectations, the stock price rose 28.8%;

Top7: $COUNTRY GARDEN(02007)$ : the property developer saw its shares tumble last week after creditor EVER CREDIT filed a liquidation petition;

Top8: $BIDU-SW(09888)$ : Despite missing market expectations in its earnings report, the company remains optimistic about continued growth in AI revenue.

This week's Hong Kong stock market events

1. $NIO-SW(09866)$ $JD-SW(09618)$ $BILIBILI-W(09626)$ and other companies will report earnings this week, pay attention to whether they meet expectations;

2. The Second session of the 14th National People's Congress and the Second session of the 14th CPPCC National Committee will open in Beijing on March 4 and 5, respectively. Market participants will be paying close attention to any economic stimulus policies announced during the Two Sessions.

3. On Thursday, China's import and export data for February will be released, and dollar-denominated exports are expected to grow by 2.5%.