Weekly | Rare Scene Unfolds: IPO Market Explodes!
This week, Hong Kong stocks extended their winning streak to six consecutive weeks. The $HSI(HSI)$ rose 1.1% over the week.
On Monday, China’s National Bureau of Statistics released key economic data for April:
Industrial output (above designated size) grew 6.1% year-on-year.
Retail sales hit 3.7174 trillion yuan, up 5.1%.
New home prices in first-tier cities fell 2.1% year-on-year — but the drop narrowed by 0.7 percentage points from March.
On Tuesday, the People’s Bank of China authorized the release of the latest Loan Prime Rates (LPR):
1-year LPR cut by 10 basis points to 3.00%.
5-year-plus LPR also cut by 10 basis points to 3.50%.
Against a backdrop of stable economic growth and steady global markets, something rare happened in the Hong Kong market this week!
CATL’s IPO Sparks Frenzy
On Tuesday, $CATL(03750)$ debuted on the HKEX with a bang — surging 16.4% on Day One, then jumping another 10% the next day. Even more impressive, its H-share price traded at an 11% premium over its A-share price — a very unusual occurrence.
CATL’s IPO was massively oversubscribed: 151x in the public offering, and 15x in the international tranche. This shows how much top-tier companies still attract capital in Hong Kong.
Hengrui Follows Suit
Following CATL’s lead, $HENGRUI PHARMA(01276)$ went public on Friday and soared 25.2% on its debut. The H-share discount shrank to just 7%, making it the A-share with the narrowest discount in the innovative pharma sector.
With CATL and Hengrui setting the tone, more A-share industry leaders are expected to list in Hong Kong. The future looks bright for the HKEX.
Sector Spotlight: Healthcare
Healthcare led this week’s gains, driven mainly by $3SBIO(01530)$ ’s blockbuster licensing deal that lit up investor enthusiasm for domestic innovative drugs.
Southbound Funds inflow hit HK$ 18.96 billion this week, showing strong investor confidence.
Major Events in Hong Kong Stocks This Week
1.April industrial output up 6.1% YoY
2.April retail sales rose 5.1% YoY
3.First-tier city home prices fell 2.1% in April, but the decline slowed
4. $3SBIO(01530)$ signed a record $1.25 billion upfront licensing deal with Pfizer
5. $CATL(03750)$ ’s IPO was the world’s largest so far this year, with massive oversubscription
6.LPR rates cut for the first time this year, easing borrowing costs
7. $XPENG-W(09868)$ Q1 revenue surged 141.5% YoY to RMB 15.81 billion
8. $POP MART(09992)$ shares hit record highs, market cap topped HK$ 300 billion
9. $XIAOMI-W(01810)$ ’s 15th anniversary: launched self-developed SoC chip and new electric YU7 SUV
10. $BYD COMPANY(01211)$ ’s April EV sales in Europe surpassed $Tesla Motors(TSLA)$ ’s for the first time
11. $HENGRUI PHARMA(01276)$ IPO popped 25% on debut
Five Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $CATL(03750)$ — IPO frenzy with 16.4% and 10% gains on first two days, huge oversubscription
Top 2: $XIAOMI-W(01810)$ — Unveiled 3nm chip and electric SUV at anniversary event
Top 5: $HENGRUI PHARMA(01276)$ — IPO surged 25%, oversubscribed 455 times in public offering
Top 7: $XPENG-W(09868)$ — Q1 revenue up 141.5%, forecast to turn profitable by Q4
Top 10: $3SBIO(01530)$ — Signed landmark licensing deal with Pfizer, igniting biotech rally
Next Week's Hong Kong Stock Market Events
1.Next Tuesday, China will release the April industrial profits of large-scale enterprises.
2.Next Saturday, China will publish the April PMI index, with the manufacturing PMI expected to be 49.6.
3.Next week, companies including $MEITUAN-W(03690)$ $XIAOMI-W(01810)$ $LI AUTO-W(02015)$ $NVIDIA(NVDA)$ will report their earnings.
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