To The Moon

Hong Kong stocks took another tumble this week, with $HSI(HSI)$ plunging 2.28%, hit a three-month low!

On the news, overseas tech giants like $Tesla Motors(TSLA)$ and $Alphabet(GOOG)$ $Alphabet(GOOGL)$ posted disappointing earnings, triggering a rout and dragging down $NASDAQ(.IXIC)$ , which in turn pulled Hong Kong's tech stocks down with it.

Domestically, the high-dividend stocks saw a divergence, with bellwethers like $CNOOC(00883)$ and $CHINA MOBILE(00941)$ experiencing notable corrections.

Southbound funds netted HK $7.82 billion for the week, but most of that inflow came on Friday; the first four days saw a net outflow of HK $0.95 billion, hinting at some institutions cashing out their profits.

Since high-dividend and tech stocks are heavyweights in the HSI, their sluggish performance meant little upside for the index.

By sectors, it was a sea of red, with only utilities escaping relatively unscathed. Real estate, healthcare, and consumer sectors performed poorly.

Notably, the People's Bank of China surprised markets with an interest rate cut, and the time node did not choose the LPR announcement date, triggering market expectations for the country to increase economic stimulus policies.

Looking ahead, as the Fed embarks on a rate-cutting cycle, China's central bank may have fewer reservations about easing. Currently, the market pegs the Fed's September rate cut probability above 90%.

Next week, China will release July's Manufacturing PMI, a key indicator of the real economy's health. A miss could fuel market jitters.

In addition, a barrage of earnings reports from US tech giants will rock the US stock market, and we'll be watching to see if Hong Kong stocks get dragged down again.

Key Events in Hong Kong Stocks This Week

1. Biden's withdrawal triggered turmoil in global capital markets;

2. Warren Buffett's $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ reduced its stake in $BYD COMPANY(01211)$ from 5.06% to 4.94%;

3. $Midea Group Co.,Ltd.(000333)$'s H-share listing got the green light from the CSRC;

4. $CHOW TAI FOOK(01929)$ retail sales decreased by 20% year-on-year in the first quarter of FY2025;

5. The Central bank unexpectedly cut interest rates and many banks lowered deposit rates;

6. Dong Yuhui resigned from $EAST BUY(01797)$ ;

7.OPEC+ confirmed the plan to increase production in the fourth quarter, oil prices fell, crude oil stocks tumbled;

8. Copper prices tumbled this week on weak demand;

9. Two ministries announced increased support for large-scale equipment upgrades.

Three Stocks Worth Attention Among Top Trading HK Stocks This Week

Top 3: $MEITUAN-W(03690)$ took a hit from the global tech sell-off, plummeting 8.4% weekly.

Top 4: $EAST BUY(01797)$ shares nosedived after Dong Yuhui's departure and the sale of his stake.

Top 10: $NONGFU SPRING(09633)$ plummeted 9.5%, hitting a new low since September 2020, amid sluggish consumer sentiment.

Next Week's Hong Kong Stock Market Events

1. Next Wednesday, China will release July PMI data, the market is expected to be 49.3 manufacturing PMI, the previous value of 49.5;

2. Next Thursday, the Federal Reserve interest rate resolution, is not expected to lower interest rates, pay attention to the future stance of the Federal Reserve;

3. Next week, $Microsoft(MSFT)$ $Apple(AAPL)$ $Meta Platforms, Inc.(META)$ $Amazon.com(AMZN)$ and other tech giants will release financial results, which is expected to have a greater impact on the global capital market: