To The Moon

This week, a barrage of monumental boosts shook up the Hong Kong stock market, with the $HSI(HSI)$ rocketing 13% and soaring past the 20,000-point milestone!

On the news front, Tuesday witnessed a press conference hosted by the State Council Information Office, where Governor of the People's Bank of China unveiled three game-changing policies:

1.Cuts in both the required reserve ratio and policy interest rates, driving down market benchmark rates.

2.Reductions in existing mortgage rates and lowering the minimum down payment for second homes.

3.Establishment of a ¥500 billion swap facility for securities, funds, and insurance companies, alongside a ¥300 billion special re-lending program for share repurchases and increased holdings.

Thursday then brought a surprise economic focus from the Politburo Meeting, emphasizing enhanced countercyclical fiscal and monetary policy adjustments to meet annual economic and social development targets, especially propping up the stagnant real estate market!

These robust measures ignited a rallying call for economic stimulus, boosting investor sentiment as both domestic and foreign funds scrambled to refill their portfolios, sending Hong Kong and mainland A-shares soaring!

Sector-wise, real estate led the charge, while the previously buoyant telecom sector lagged behind.

Southbound funds saw net inflows of HK $2.39 billion this week, underscoring the dominant role of foreign investors in fueling the Hong Kong stock rally.

Key Events in Hong Kong Stocks This Week

1. $NIO-SW(09866)$ 's new model, the ONVO L60, racked up orders, aiming for 20,000 units monthly by next March.

2. $CHINA AOYUAN(03883)$ gained a Middle Eastern investor takeover, triggering a share price surge.

3. $MNSO(09896)$ invested ¥6.3 billion to acquire a 29.4% stake in $Yonghui Superstores Co.,Ltd.(601933)$ , becoming its largest shareholder, though the move initially sparked a stock plunge.

4.The PBOC announced cuts to existing mortgage rates and standardized minimum down payments.

5. $WUXI BIO(02269)$ was dropped from the revised U.S. Biosecurity Act.

6.The Politburo Meeting vowed to stabilize the slumping real estate market.

7.Taobao officially embraced WeChat Pay.

8.Hong Kong stock market turnover hit a record high.

9.Seven ministries jointly issued a notice to promote stable growth in beef and dairy cattle production.

10.Shanghai launched ¥500 million in consumption vouchers covering dining, lodging, movies, and sports.

Four Stocks Worth Attention Among Top Trading HK Stocks This Week

Top2: $TENCENT(00700)$ soared to a new high since early 2022, buoyed by the Fed's rate cut and China's robust policy stimuli.

Top6: $WUXI BIO(02269)$ got a boost as it was excluded from the latest amendment to the U.S. Biosecurity Act.

Top8: $CHINA VANKE(02202)$ skyrocketed after the Politburo Meeting's pledge to stabilize the real estate market.

Top10: $MNSO(09896)$ 's mega deal to control $Yonghui Superstores Co.,Ltd.(601933)$ sparked investor jitters, plunging its shares nearly 40% intraday.

Next Week's Hong Kong Stock Market Events

1.Hong Kong stocks will be closed on October 1st (Tuesday) for the National Day holiday but resume trading on October 2ed (Wednesday).

2.China will release September's Purchasing Managers' Index (PMI) data next Monday.