Weekly | HSI Slumped As Multiple Headwinds Hit!
This week, the Hong Kong stock market faced a tough time, with the $HSI(HSI)$ dropping 1.25%.
Economic Data Misses Expectations
The latest economic data released by the National Bureau of Statistics showed weaker-than-expected results. In November, retail sales of consumer goods totaled RMB 43,763 billion, growing by 3.0%, well below the 5% expected and down from the 4.8% growth in October.
On the other hand, industrial production rose 5.4%, in line with forecasts.
U.S. Fed’s Rate Cut
Overseas, the U.S. Federal Reserve cut rates by 25 basis points as expected. However, their updated forecast suggests only two rate cuts next year, far fewer than the market had anticipated.
Fed Chairman Jerome Powell indicated that the central bank is nearing the end of rate cuts and will adjust future decisions based on incoming data.
This news triggered a sharp sell-off in U.S. stocks, dragging global markets down.
Sector Performance
The market saw broad declines across most sectors this week, except for information technology. Real estate and healthcare were the hardest hit.
Despite the market downturn, southbound funds continued to flood into Hong Kong stocks, with a net inflow of HK $25.9 billion.
Next week, both Hong Kong and U.S. stock markets will be closed for Christmas holidays, and with little news expected, market activity may slow down.
Major Events in Hong Kong Stocks This Week
1. In November, the total retail sales of consumer goods were RMB 4,376.3 billion, an increase of 3.0%, less than 5% expected.
2. In November, prices of residential properties in first, second, and third-tier cities saw a narrowing of year-on-year declines.
3. Industrial output rose 5.4% as expected in November.
4. The People’s Bank of China signals potential interest rate cuts and reserve requirement ratio (RRR) adjustments.
5. $MINIEYE(02431)$ 、 $INNOSCIENCE(02577)$ 、 $HEALTHYWAY INC(02587)$ and $XUNFEIHEALTH(02506)$ launched their IPOs this week.
6. $BABA-W(09988)$ sold 100% of its shares in Intime to a consortium led by Youngor Group.
7. HKEX lowered the minimum tick size for stocks.
8. The Fed cut rates by 25 basis points, but the market was disappointed by the lower-than-expected future cuts, leading to a drop in U.S. stocks.
9. $HERBS GROUP(02593)$ ’s IPO saw an incredible 6083x oversubscription, marking the second-largest in history. The stock rose 10.4% on its debut.
10. Sources revealed $Apple(AAPL)$ is in talks with $TENCENT(00700)$ and ByteDance to integrate their AI models into iPhones sold in China.
11. WeChat is testing a "gift-giving" feature in its mini-stores, boosting the stock of $WEIMOB INC(02013)$.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 2: $HERBS GROUP(02593)$. The company ’s IPO attracted a massive 6083x oversubscription, making it the top IPO of the year. Its debut saw a jump of more than 30%.
Top 4: $TENCENT(00700)$. Reports suggest that $Apple(AAPL)$ is in talks with Tencent and ByteDance to integrate their AI models into Chinese iPhones, sparking market excitement.
Top 7: $WEIMOB INC(02013)$. Shares surged after $TENCENT(00700)$ ’s WeChat tested its “gift-giving” feature, which raised expectations for the company.
Top 10: $XIAOCAIYUAN(00999)$. The stock of the company jumped 14% on its debut, as Hong Kong’s IPO market remains hot.
Next Week's Hong Kong Stock Market Events
The Hong Kong market will be open for half a day on December 24th (Tuesday) and closed on December 25th (Wednesday) and 26th (Thursday) for Christmas. Expect low market activity during this period.
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