Weekly | HSI Surges, Bull Market Returning?
This week, after a strong rally, Hong Kong stocks saw a pullback, with the $HSI(HSI)$ falling 2.11% over the week.
Recently, multiple ministries, including the Ministry of Finance and Ministry of Housing and Urban-Rural Development, held press conferences to introduce growth-stabilizing policies. However, market expectations were not fully met, leading to consecutive declines in Hong Kong stocks.
On Friday, the Governor of the People's Bank of China announced at the 2024 Financial Street Forum that, depending on market liquidity, there could be an additional 0.25-0.5 percentage point cut in the reserve requirement ratio (RRR) before year-end. It’s also anticipated that the Loan Prime Rate (LPR), to be announced on the 21st, will decrease by 0.2-0.25 percentage points.
On the same day, during a visit to Binhu Science City in Hefei, Anhui, President Xi emphasized that technological innovation is key to Chinese modernization, urging further efforts in technology and innovation. He stressed the importance of talent in this endeavor and encouraged a spirit of perseverance: “One should seize the moment and keep pushing forward.”
These announcements sparked a sharp rise in Hong Kong stocks on Friday, rekindling bull market expectations!
Despite the Friday surge, most sectors pulled back throughout the week. Healthcare and Energy led the declines:
Southbound funds saw a net inflow of HK$24.4 billion this week.
Key Events in Hong Kong Stocks This Week
1. $BABA-W(09988)$ will be included in the Hang Seng Stock Connect Index starting October 28.
2.IPO launches for popular projects like $CR BEVERAGE(02460)$ $地平线机器人－Ｗ(09660)$ .
3.Chief Executive Lee Ka Chiu John delivered his policy address, announcing multiple reform measures.
4.Ministry of Housing and four other departments held a press conference discussing the real estate market.
5.SoftBank continued to reduce its $BABA-W(09988)$ stake, now down to 10.93%.
6. $SUNAC(01918)$ announced a HK$1.205 billion new share placement.
7.Spot gold and COMEX gold futures hit record highs.
8.Major state-owned banks lowered their deposit rates by up to 25 basis points.
9.China’s Q3 GDP grew 4.6% year-on-year, exceeding expectations.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $SMIC(00981)$ : After TSMC’s strong Q3 earnings, the semiconductor sector rebounded. On Friday, President Xi’s support for technology development further boosted SMIC shares.
Top 4: $SUNAC(01918)$ : Despite the real estate policy updates this week, Sunac announced a discounted share placement, leading to a sharp drop in its stock.
Top 6: $CMSC(06099)$ : Benefiting from the rally in both Hong Kong and A-shares, brokerage stocks rebounded.
Next Week's Hong Kong Stock Market Events
1. Next Monday, PBoC will announce the October LPR, which may include a rate cut.
2. Next Wednesday: $Tesla Motors(TSLA)$ is set to release its Q3 earnings after U.S. market close, potentially impacting the new energy sector.
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