Weekly Recap | The HSI tumbled amidst a never-ending Black Swan!
The Hong Kong stock market performed poorly with $HSI(HSI)$ down 2.98% last week, hovering dangerously close to the 16,000-point mark.
On the news, it's a mix of internal and external troubles:
On April 16th, the National Bureau of Statistics released data showing that GDP for the first quarter hit 29.6 trillion yuan, a whopping 5.3% growth that surpassed analysts' expectations. But the real estate sector continues to deteriorate. Newly constructed commercial housing sales area fell 19.4% year-on-year, and sales value dropped 27.6%.
Overseas, Fed Chairman Powell said that the US economy is strong in most respects, except that inflation hasn't yet reached the central bank's target. He also pointed out that the world's most important central bank is unlikely to cut interest rates anytime soon.
Meanwhile, the Middle East situation worsened again. Last Friday, Israel launched a strike on Iran in response to earlier missile launches. This shook global stock markets, and safe-haven assets like crude oil soared.
By sectors, real estate and healthcare, which is sensitive to interest rates, were the worst performers last week.
Despite the market slump, southbound funds still net-bought HK $32.15 billion last week.
Key Events in Hong Kong Stocks Last Week
1. $CHABAIDAO(02555)$ , $TJCD(02515)$ and other new shares kicked off their IPOs;
2. $Goldman Sachs(GS)$ predicts an 8% potential upside for H-shares in the next 12 months;
3. Subsidiaries of China Asset Management (Hong Kong), Bosera Asset Management (International) , Harvest International received approval from the Hong Kong Securities and Futures Commission to provide virtual asset management services to investors;
4. Hong Kong stock buybacks rose 211% year-on-year to HK $51.1 billion in the first quarter;
5. $TIMES CHINA(01233)$ announced that it had received a liquidation petition from creditors;
6. The National Bureau of Statistics said that the month-on-month decline in residential sales prices narrowed across all tiers of cities in March;
7. China's GDP grew by 5.3% year-on-year in the first quarter, exceeding market expectations;
8. Fed Chairman dashed hopes of interest rate cuts;
9. Bonnie Y CHAN, Chief Executive Officer of HKEX Group, posted a blog to promote liquidity and vitality of the Hong Kong market;
10. Brent crude oil prices topped $90 per barrel;
11. Israel launched a strike on Iran.
Two Stocks Worth Attention Among Top Trading HK Stocks Last Week
Top 5: $Li Auto(LI)$ $LI AUTO-W(02015)$ . On Thursday night, Li Auto unveiled its new model, the Li L6, priced from 249,800 yuan. But despite the new launch, the stock didn't perform as expected, falling 9.92% for the week.
Top 8: $CNOOC(00883)$ . Amidst the deteriorating situation in the Middle East, Brent crude oil prices hit $90 per barrel, boosting oil stocks.
This week's Hong Kong stock market events
1.The PBOC will announce the LPR rate on Monday. Will there be a rate cut?
2.Tech giants like $Tesla Motors(TSLA)$ $Meta Platforms, Inc.(META)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Microsoft(MSFT)$ will release their earnings reports this week, which may have an impact on the US stock market and Hong Kong stocks in the same sector.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
