To The Moon

This week, the Hong Kong stock market continued its surge. The $HSI(HSI)$ rose 3.79%, surpassing its highest point from October 7th last year, hitting a three-year high!

Key News Driving the Rally

On Monday, February 17th, President Xi attended a symposium with private business leaders and delivered an important speech. He emphasized that the government's policies on private economic development are now firmly embedded in China's socialist system. These policies will remain consistent and unchanged. The future of the private economy is full of potential, and now is the perfect time for private entrepreneurs to shine.

Attendees included major figures like Robin Zeng (Chairman of CATL), Jack Ma (Founder of $BABA-W(09988)$ ), Lei Jun (Chairman of $XIAOMI-W(01810)$ ), Ren Zhengfei (Founder of Huawei), and Wang Chuanfu (Chairman of $BYD COMPANY(01211)$ ), among others.

This symposium holds special significance, especially with the presence of key leaders from some of the hottest tech companies today, providing a huge boost to tech stocks!

DeepSeek's Ongoing Impact on the Market

Meanwhile, DeepSeek continues to stir up the capital markets. $TENCENT(00700)$ announced that WeChat will integrate the "full-power" version of DeepSeek, sending stock prices soaring!

After the market closed on Thursday, Alibaba released its Q3 report for FY2025. Core businesses like Taotian Group and Alibaba Cloud exceeded expectations. The company revealed plans to invest more in cloud and AI infrastructure over the next three years than in the past decade combined. The goal is to achieve AGI, which sparked a rally in Alibaba's stock and fueled a broader surge in tech stocks!

Also reporting earnings were $BILIBILI-W(09626)$ and $Luckin Coffee Inc.(LKNCY)$ , both surpassing expectations, driving their stock prices up and attracting global attention to Chinese stocks!

Notably, Ryan Cohen, CEO of $GameStop(GME)$ (dubbed "The King of Meme Stocks"), increased his personal holdings in Alibaba to around $1 billion.

Policy Support for Growth

On the policy front, PBOC Governor Pan Gongsheng stated that China will implement more proactive fiscal policies and moderate monetary easing to strengthen economic growth.

Additionally, the State Council has endorsed a new action plan to encourage foreign investment, while financial regulators allowed Hong Kong and Macau banks to expand their services on the mainland.

With these policies supporting growth, southbound funds have been flooding into the Hong Kong stock market. This week, net inflows hit a record HKD 51.2 billion!

This week, IT sector led the charge, while the Utilities sector performed poorly.

Next Wednesday, $NVIDIA(NVDA)$ will release its earnings report, which could trigger major movements in global stock markets!

Major Events in Hong Kong Stocks This Week

1. $TENCENT(00700)$ starts its smart platform strategy, with WeChat integrating the “DeepSeek Full Version,” sparking a surge in stock prices.

2. President Xi attends a forum for private companies and delivers an important speech, signaling policy shifts that could impact the market.

3. $BIDU-SW(09888)$ reports Q4 revenue of 34.1 billion yuan, surpassing expectations, further boosting investor confidence.

4. The four major Chinese banks reach new historical highs, reflecting strong financial performance.

5. PBOC Governor announces China’s commitment to active fiscal policies and loosening monetary measures, providing economic support.

6. $MEITUAN-W(03690)$ and $JD-SW(09618)$ join forces to offer social security benefits for full-time and stable part-time riders, raising concerns about financial pressures.

7. The government pushes forward with its 2025 plan to stabilize foreign investment, aiming to boost stock market sentiment.

8. $XIAOMI-W(01810)$ ’s stock price reaches HKD50, setting a new all-time high, with a market cap of HKD1.3 trillion.

9. $BILIBILI-W(09626)$ reports Q4 revenue of 7.73 billion yuan, a 22% YoY increase, exceeding expectations, driving a strong stock performance.

10. Financial Supervisory Authority permits Hong Kong banks to offer RMB services to non-Chinese clients and foreign currency card services.

11. $BABA-W(09988)$ ’s Q3 revenue hits 280.15 billion yuan, a solid 8% growth, with core businesses like Taobao and Alibaba Cloud outperforming expectations.

12. $MIXUEGROUP(02097)$ kicks off its IPO with an entry fee of HKD20,454.22, planning to list on March 3.

13. $GameStop(GME)$ ’s CEO, Ryan Cohen, buys an additional $1 billion worth of Alibaba stock, adding fuel to the buzz around the stock.

Six Stocks Worth Attention Among Top Trading HK Stocks This Week

Top 1: $XIAOMI-W(01810)$ . The company hits a new record of HKD50 per share, making it a hot topic. Its market cap rises to a staggering HKD1.3 trillion.

Top 2: $BABA-W(09988)$ . The company shares soar after their strong Q3 earnings. The company’s aggressive future investment in AI and cloud services sends the stock flying.

Top 3: $TENCENT(00700)$ . Tencent’s announcement of WeChat integrating DeepSeek’s full version sparks a significant jump in stock prices.

Top 4: $SMIC(00981)$ . The buzz around Alibaba’s investment in data centers benefits semiconductor stocks. SMIC hits a new record high.

Top 5: $MEITUAN-W(03690)$ . After JD announced they would offer social insurance to delivery riders, Meituan follows suit, but investors worry about increased costs, leading to a drop in share price.

Top 8 : $BILIBILI-W(09626)$ . Its earnings report beats expectations, causing a big spike in its stock price.

Next Week's Hong Kong Stock Market Events

Next week, $NVIDIA(NVDA)$ is set to report its earnings. A surprise performance could spark major moves in US stocks, particularly tech.