To The Moon

Hong Kong stocks had another stellar week, with the $HSI(HSI)$ surging 3.11%. Looks like it's aiming for the 20,000-point milestone next week!

Internet giants earnings

The news was full of goodies last week. First, rumors flew that the government plans to buy up real estate from developers for social housing, helping with inventory reduction.

And then, last Friday, the People's Bank of China dropped a bombshell, announced the scrapping of the lending rate floor for first and second homes nationwide. Plus, they lowered the personal housing provident fund interest rate by 0.25 percentage points. Now, the minimum down payment for first-time homebuyers is adjusted to not less than 15%, and for second-timers, it's 25%.

These massive real estate policies completely ignited the enthusiasm of real estate stocks, and the sector jumped 15.3% last week!

And not to forget, the internet giants like $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ $Alibaba(BABA)$ $Alibaba(09988)$ $Alibaba(BABA)$ $Baidu(BIDU)$ $BIDU-SW(09888)$ $JD.com(JD)$ all reported first-quarter earnings, all of which exceeded expectations. Tencent's net profit soared 62%, and its share price even hit a new high since February 2023!

Globally, we've got good news too. The US Consumer Price Index (CPI) for April grew at 3.4%, meeting expectations and slightly down from the previous 3.5%. Markets are betting on a Fed rate cut this year, and US stock indices are scaling new heights!

With all these good vibes, southbound funds have been going crazy, investing a net of HK $18.6 billion despite a one-day holiday for Buddha's Birthday.

The Chinese concept stock bull market is back!

Key Events in Hong Kong Stocks Last Week

1. Sea freight skyrocketing, one compartment difficult to obtain. Foreign trade cargo is piling up;

2. The Ministry of Finance plans to issue RMB40 billion of 30-year special treasury bonds;

3. $XIAOMI-W(01810)$ $Xiaomi Corp.(XIACY)$ plans to start producing and selling an SUV similar to $Tesla Motors(TSLA)$ 's Model Y as soon as 2025;

4. $Tencent Music(TME)$ released a quarterly report exceeding expectations and hit a new high since its Hong Kong listing;

5. $AGILE GROUP(03383)$ announced that it can't meet all its offshore debt payments;

6. $Alibaba(BABA)$ $Alibaba(09988)$ beat expectations in the first quarter and announced a dividend of nearly RMB30 billion;

7. $TENCENT(00700)$ $Tencent Holding Ltd.(TCEHY)$ 's first-quarter results beat expectations, with net profit surging;

8. MSCI Index removes 15 Hong Kong stocks in quarterly review;

9. The US House of Representatives committee passed the draft of the new Biosecurity Act;

10. The US CPI for April met expectations, and the market's betting on a rate cut;

11. Rumors said $Li Auto(LI)$ $LI AUTO-W(02015)$ laid off more than 5,000 people;

12. $JD.com(JD)$ 's revenue in the first quarter of 2024 was RMB260 billion, with a net profit of RMB8.9 billion, surpassing market expectations;

13. National Bureau of Statistics: The sales price of commercial housing in all cities continued to decline in April;

14. The PBOC unleashed some major goodies for the real estate market!

Four Stocks Worth Attention Among Top Trading HK Stocks Last Week

Top 2: $Alibaba(BABA)$ $Alibaba(09988)$ . With revenues of RMB221.874 billion, up 7% year-on-year, beating market expectations, and adjusted net profit of RMB24.418 billion, down 11%;

Top 5: $CHINA VANKE(02202)$ . With all those real estate goodies, the sector boomed, and Vanke was right in the thick of it.

Top 8: $WUXI APPTEC(02359)$ . With the US House Committee passing a new Biosafety Act draft, WuXi AppTec and $WUXI BIO(02269)$ might see new orders.

Top 9: $Li Auto(LI)$ $LI AUTO-W(02015)$ . After missing sales expectations, rumors of cutting over 5,000 jobs didn't help either.

This week's Hong Kong stock market events

1. This Monday, the PBOC will announce the Loan Prime Rate (LPR). Will there be a rate cut? Stay tuned!

2. This week, $Li Auto(LI)$ $LI AUTO-W(02015)$ , $XPeng Inc.(XPEV)$ $XPENG-W(09868)$ $KUAISHOU-W(01024)$ $KUAISHOU TECHNOLOGY(KUASF)$ $XIAOMI-WR(81810)$ $Xiaomi Corp.(XIACF)$ and others will be releasing earnings. it is expected that the stock price will change, pay attention to whether it meets expectations: