Weekly | Big Talks Ahead – Will There Be Good News?
Hong Kong stocks continued their rebound this week. $HSI(HSI)$ rose 1.6%, reclaiming levels not seen since the China-U.S trade war began.
Markets are watching closely: a heavyweight meeting is set for this weekend between China’s top economic officials and U.S. Treasury Secretary Scott Bessent. It's the first formal trade dialogue since Trump hiked tariffs on Chinese goods to 145% last month.
Holiday Spending Blows Past Expectations
According to the Ministry of Culture and Tourism, the May Day holiday saw 314 million domestic trips, up 6.4% year-on-year.
Tourism spending totaled 180.3 billion yuan, an 8% jump — beating market forecasts.
Policy Boosts: RRR Cut and Rate Drop
In a surprise mid-week move, China’s central bank rolled out a set of monetary easing policies.
At a press conference hosted by the State Council Information Office, the PBOC announced a 50 basis point cut to the reserve requirement ratio and lowered key policy rates by 10 basis points.
The aim: stabilize financial markets and support growth.
Trade Deal Buzz Lifts Global Sentiment
On Thursday, the U.S. and U.K. signed a trade deal. U.S. tariffs on British car imports will fall from 27.5% to 10%.
Trump, hyping the agreement, told the public: “If the deal and tax cuts go through, you better buy stocks now.” The $NASDAQ(.IXIC)$ jumped 2% on the news.
Southbound Money Flows In
Southbound Funds was net positive this week, with HK$7.27 billion flowing into the Hong Kong market.
Financial and consumer sectors led the rally, driven by optimism over easing trade tensions and supportive domestic policy.
Major Events in Hong Kong Stocks This Week
1. Tourism boom: May Day travel and spending surged past expectations.
2. IPO pipeline: CATL and $Jiangsu Hengrui Pharmaceuticals Co.,Ltd.(600276)$ received hearing approval from HKEX.
3. Currency alert: USD/HKD touched the strong-side convertibility guarantee of 7.75 — first time since 2020.
4. HKEX and SFC jointly launched “Tech Express,” allowing biotech and specialized tech firms to file confidential IPO applications.
5. $SHANDONG MOLONG(00568)$ added to Stock Connect, triggering a rally.
6. SCIO to hold a press briefing on financial policies to stabilize markets; PBOC announces RRR and rate cuts.
7. Private equity play: $GEELY AUTO(00175)$ proposed taking $ZEEKR(ZK)$ private.
8. China and the U.S. will hold trade talks in Switzerland.
9. Fed steady: U.S. interest rates remain unchanged at 4.25–4.50%.
10. $LAOPU GOLD(06181)$ raised HK$2.7 billion via an 8% discount placement.
11. Hot IPO: $AUNTEA JENNY(02589)$ soared 40% on debut, oversubscribed 3400x.
12. $POP MART(09992)$ ’s founder cashed out at the top, selling over HK$2.2 billion worth of shares.
13.Bitcoin breakout: BTC surged back above $100K.
14.The UK and US reached a tariff deal — Trump rally call: “Buy stocks!”
15.Export data: April exports beat forecasts, up 8.1% YoY — but U.S.-bound shipments tumbled over 20%.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $AUNTEA JENNY(02589)$ . Listed on the Hong Kong Stock Exchange this Thursday. Margin orders oversubscribed by over 3,400 times, with total bids exceeding HK$94 billion. Stock soared 40% on debut.
Top 3: $SMIC(00981)$ . Q1 results missed expectations due to production line upgrades. Management flagged weakening downstream demand. China's national chip fund dumped 65.98 million shares, triggering a sell-off.
Top 6: $SHANDONG MOLONG(00568)$ . Added to the Southbound Stock Connect list this week, sending the stock surging. But soon after, a major shareholder offloaded 107 million H-shares — 13.39% of total equity — causing a sharp drop.
Next Week's Hong Kong Stock Market Events
1. Next Tuesday: The U.S. will release April CPI data — economists expect a 2.4% year-over-year increase.
2. Next Wednesday: China will announce April financial data, including M2, new loans, and total social financing.
3. Earnings reports coming from $JD-SW(09618)$ $TENCENT(00700)$ $BABA-W(09988)$, and more next week.
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