Weekly | Volatile HK Stocks and Next Week's Events in Focus!
This week, Hong Kong stocks saw huge swings. The $HSI(HSI)$ rose 0.53% for the week, dipping below the 20,000-point mark.
On Monday, the Political Bureau of the Central Committee held a meeting to discuss China's 2025 economic plans. The key takeaways were clear: stabilize the housing and stock markets, manage risks in key sectors, and guard against external shocks.
The meeting also called for more aggressive fiscal policies and moderately loose monetary measures to boost consumption and investment. There was a push to expand domestic demand.
Some of the comments surprised the market, like the unprecedented mention of "strengthening extraordinary counter-cyclical adjustments" and the first shift in monetary policy since 2011, aiming for "moderately loose" policies.
This sparked a brief rally in Hong Kong stocks, with Chinese assets surging.
Market Reaction
But, similar to the post-National Day trend, A-shares opened high on Tuesday but quickly slid down. Hong Kong stocks followed suit, and market sentiment took a hit.
On Thursday, the Central Economic Work Conference wrapped up, emphasizing proactive macro policies, expanding domestic demand, and integrating tech and industrial innovation. The message was clear: stabilize the housing and stock markets, and deal with key risks.
However, the lack of detailed policy measures in the announcement led to a sharp drop in Chinese assets on Friday.
Economic Data
This week, China released its CPI and PPI data for November. CPI rose 0.2% YoY, with a slight decline on a monthly basis. PPI’s YoY decline narrowed to 2.5%, indicating persistent deflation risks.
In the U.S., November CPI came in as expected, boosting expectations for a rate cut in December. U.S. stocks hit new all-time highs!
Most sectors saw gains this week, but real estate lagged behind.
Southbound funds saw a net inflow of HK$21.1 billion this week.
Looking ahead, China will release November retail sales and other economic data. The U.S. will announce its interest rate decision, with a potential rate cut on the cards. This could have a major impact on the markets. Will the data surprise us? Stay tuned!
Major Events in Hong Kong Stocks This Week
1. Jack Ma appeared at Ant Group's 20th anniversary event.
2. "China's top domestic makeup brand" $MAO GEPING(01318)$ went public, soaring 76.5% on its debut.
3. China's November CPI rose 0.2% YoY, while PPI dropped 2.5% YoY.
4. U.S. November CPI accelerated to 2.7% YoY and 0.3% MoM, hitting a 7-month high, in line with expectations.
5. Domestic retail sales of new energy passenger cars hit 1.268 million units in November, up 50.5% YoY.
6. The Political Bureau of the Central Committee held a meeting on December 9, stressing the need to stabilize the housing and stock markets next year.
7. $XIAOMI-W(01810)$ officially launched its first SUV model, YU7, expected to be released in over six months.
8. $Jiangsu Hengrui Pharmaceuticals Co.,Ltd.(600276)$ plans to list on the Hong Kong Stock Exchange.
9. $TENCENT(00700)$ ’s major shareholder sold 474,000 Tencent H-shares, reducing its stake from 24.01% to 23.99%.
10. $SENSETIME-W(00020)$ plans to discount its shares by 6.3%, raising HK$2.787 billion.
11. The Hong Kong Legislative Council passed a bill to exempt REITs from stamp duty on transactions and securities dealers' options.
12. The personal pension system was fully opened.
13. The Central Economic Work Conference announced more proactive macro policies, including stabilizing the housing and stock markets.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $MAO GEPING(01318)$ . The "first domestic makeup brand" had a blockbuster IPO, jumping 76.5% on its first day. It became a hot pick in the new shares market, with a 100% subscription rate.
Top 2: $XIAOMI-W(01810)$ . The official launch of Xiaomi’s first SUV, the YU7, drove the stock to a new high this year.
Top 7: $SUNAC(01918)$ . Following the Politburo’s announcement to stabilize the housing market, and news of progress in Sunac's domestic debt restructuring, its stock surged.
Next Week's Hong Kong Stock Market Events
1. Next Monday, China will release November retail sales (expected +5%) and industrial production data (expected +5.3%). Will the data surprise on the upside?
2. Next Thursday, the Fed will announce its rate decision. Watch for any interest rate cuts and indications of future monetary policy.
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