To The Moon

This week, the Hong Kong stock market saw sharp swings, with the $HSI(HSI)$ rising 1.08% by the end of the week, following a series of significant events.

Positive Economic Data from China

Domestically, there was some good news. On Tuesday, Caixin’s PMI for October came in at 52, the highest in three months, well above analysts’ expectations of 50.5.

On Thursday, China’s customs data showed a 12.7% year-on-year increase in exports in October, far outpacing the expected 5% growth.

Overseas Events and Market Reactions

Overseas, the US election result added to market volatility. Trump’s victory raised concerns about escalating trade tensions, causing a sharp drop in both Hong Kong and mainland stocks.

However, the market rebounded on Thursday as expectations grew for more stimulus measures following the NPC meeting, pushing Hong Kong stocks back up.

Later that day, the Fed announced a 25-basis point rate cut, which matched market expectations. On Friday after the market closed, the NPC unveiled a massive 10 trillion yuan debt swap plan for local governments—seen as the largest debt-relief measure in recent years, alleviating pressure on local government debt.

Sector Performance and Capital Flow

This week, healthcare stocks led the rally, while telecom services and utilities underperformed.

Southbound funds saw a net inflow of HK$32.3 billion, showing strong investor confidence in Hong Kong stocks.

Major Events in Hong Kong Stocks This Week

1. $UBOX ONLINE(02429)$ Shares plummeted 53% on Monday.

2. NPC Debates Local Government Debt: A proposal to swap hidden debt for official debt under review.

3. $SUNAC(01918)$ Debt Restructuring: The final plan for the second restructuring expected by the end of November, with potential debt reductions over 50%.

4. $BABA-W(09988)$ Repurchase Program: The company announced a share buyback worth $19.97 million.

5. China Stock Buybacks: For the first time this year, stock repurchase value surpassed equity financing.

6. $GUOTAI JUNAN I(01788)$ and $HAITONG SEC(06837)$ Merger: Shanghai government approves stock swap deal.

7. Trump wins U.S. election

8. Southbound Funds Surge: A record high net inflow of HK$21.5 billion on Wednesday.

9. Bitcoin hits record

10. Fed lowers interest rates by 25 basis points.

11. NPC approves largest debt relief measure

Five Stocks Worth Attention Among Top Trading HK Stocks This Week

Top2: $SEMICONDUCTOR MFG INT ADR(SMICY)$ ’s Q3 results beat expectations, with a 26.5% YoY revenue growth, driving the stock up 11%.

Top3: Positive October sales figures and news of a debt restructuring plan sent $SUNAC(01918)$ up 16%.

Top 5: $SH ELECTRIC(02727)$ surged after announcing a $3.08 billion acquisition of a stake in Ningsheng Industrial, which includes key assets like FANUC Robotics

Top 6: $CMSC(06099)$ stocks gained amid a market recovery and growing bull market expectations.

Top 9: $APT ELECTRONICS(02551)$ IPO in Hong Kong was 5000x oversubscribed, marking the second-highest demand in history. Shares jumped 48% on the first day.

Next Week's Hong Kong Stock Market Events

1. Next Wednesday, China will release October M2, new loans, and social financing data.

2. Next Wednesday, the U.S. will release October CPI data, expected at 2.6%, showing a slight increase from September’s 2.6%.

3. Next Friday, China will announce industrial output and retail sales figures for October. Investors will watch for signs of continued economic recovery fueled by stimulus measures.

4. $TENCENT(00700)$ $BABA-W(09988)$ $NetEase(NTES)$ $JD-SW(09618)$ are set to release earnings next week. The market will be closely watching whether these results meet expectations.