To The Moon

This week, Hong Kong stocks continued to rise, with the $HSI(HSI)$ gaining 5.6%, reclaiming the 24,000-point mark, and hitting a three-year high.

Positive Economic Data Sparks Optimism

Last weekend, China’s National Bureau of Statistics released its February manufacturing PMI data, showing a rise to 50.2%, back in the expansion zone and surpassing analysts’ forecast of 49.9%.

At the same time, Caixin published its own February manufacturing PMI at 50.8%, up 0.7 percentage points and beating expectations, marking the highest in three months.

With China’s highly anticipated Two Sessions meetings this week, the government announced key economic targets.

The 2025 GDP growth target is set at around 5%, with a budget deficit rate around 4%. A moderately relaxed monetary policy is planned, with stronger efforts to support the real estate and stock markets, and promote AI applications. This new momentum is fueling the already booming stock market.

Global Markets Contrast

Meanwhile, global markets weren’t so calm. The US stock market saw a major dip, with the $NASDAQ(.IXIC)$ dropping over 4% due to Trump’s tariffs and tech stock sell-offs.

In contrast, Chinese tech stocks soared. $BABA-W(09988)$ launched its QwQ-32B model, with just 32B parameters, outperforming the DeepSeek-R1with 671B parameters.

$TENCENT(00700)$ 's "Yuanbao App" shot to the top of the free app download rankings on the Chinese App Store, surpassing DeepSeek. This sent capital flooding into Hong Kong’s tech sector.

Morgan Asset Management remarked, “The revaluation of Chinese assets is just beginning.”

Southbound funds surged this week, with net inflows reaching HKD35.55 billion.

The IT sector led the gains.

China will release February CPI data this weekend, while the US will publish its February CPI data next Wednesday. These reports are expected to have a major impact on the market.

Major Events in Hong Kong Stocks This Week

1.US President Trump and Ukrainian President Zelensky clashed in public, while the US-Ukraine mineral agreement was not signed.

2. $XIAOMI-W(01810)$ 's SU7 Ultra received more than 19,000 pre-orders.

3.Trump announced five types of cryptocurrencies to be included in the Strategic Reserve.

4.Caixin’s February PMI rose to 50.8, surpassing analyst expectations.

5. $MIXUE GROUP(02097)$ saw a 43.2% surge on its debut, breaking the “post-IPO slump” curse.

6.Trump announced a 25% tariff on imports from Canada and Mexico.

7. $BYD COMPANY(01211)$ plans to raise HKD43.5 billion by issuing new H-shares, with a 7.8% discount.

8. $TENCENT(00700)$ ’s Yuanbao App overtook DeepSeek to become the top free download on the App Store in China.

9.The US imposed a 10% tariff on Chinese imports starting March 4.

10.China’s Two Sessions highlighted a 4% deficit ratio target for 2025.

11. $BABA-W(09988)$ launched the QwQ-32B model, rivaling DeepSeek R1’s performance.

12. $JD-SW(09618)$ ’s Q4 revenue reached 347 billion yuan, up 13.4%, exceeding expectations.

13.China’s securities regulator said DeepSeek led to the revaluation of Chinese assets.

14.China’s exports in the first two months grew 2.3% year-on-year in USD terms, missing the forecast of 5.9%.

Six Stocks Worth Attention Among Top Trading HK Stocks This Week

Top1: $XIAOMI-W(01810)$ . SU7 Ultra saw explosive demand with over 19,000 pre-orders.

Top2: $MIXUE GROUP(02097)$ . The stock soared 43.2% on its debut, continuing to rise, hitting a 75.3% gain and a market cap over HKD133.8 billion.

Top3: $BABA-W(09988)$ . The company launched the QwQ-32B large language model, competing with DeepSeek-R1.

Top4: $TENCENT(00700)$ . Yuanbao App overtook DeepSeek to become the top free download in China.

Top7: $KUAISHOU-W(01024)$ . AI user growth surged 113% month-over-month, highlighting its unique content ecosystem.

Top9: $JD-SW(09618)$ . Q4 revenue grew 13.4%, surpassing market expectations.

Next Week's Hong Kong Stock Market Events

1.This weekends, China will release February CPI data, with economists predicting a 0.4% year-on-year drop.

2.Next wednesday, the US will publish February CPI data, with a 2.9% year-on-year increase forecasted.

3.Next Friday, China will release financial data, including social financing and M2 money supply.

4.Key earnings reports are expected from companies like $XPENG-W(09868)$ $NIO-SW(09866)$ $PDD Holdings Inc(PDD)$ $LI AUTO-W(02015)$ next week.