Weekly | US-China Tech War Escalates, HSI Dips Slightly!
The Hong Kong stock market pulled back this week, with the $HSI(HSI)$ falling 1.32%, ending a six-week winning streak.
Economic Data and External Risks
On Tuesday, China’s National Bureau of Statistics released April industrial profits for large-scale enterprises, showing a 3% year-on-year increase—higher than March’s 2.6%.
This boosted January-April profits growth to 1.4%, reaching 2.1 trillion yuan, exceeding analysts’ expectations. Although China’s economy remains stable, external risks have intensified.
On Thursday, a US international trade court blocked President Trump’s “Liberation Day” tariffs, ruling that imposing broad tariffs under the International Emergency Economic Powers Act exceeded his authority.
This initially sent global markets higher. However, the Federal Appeals Court later ruled Trump can continue the tariffs, cooling investor enthusiasm.
In addition, the US Commerce Department ordered electronic design automation (EDA) companies— $Cadence Design(CDNS)$ $Synopsys(SNPS)$ $Siemens AG(SMAWF)$—to stop supplying technology to China, marking a further escalation in the US-China tech conflict.
Capital Flows and Sector Performance
Despite rising external risks, Southbound Funds inflow surged with a net purchase of HK$28.1 billion this week.
Among sectors, healthcare performed strongly, while IT sector lagged.
Major Events in Hong Kong Stocks This Week
1.Hong Kong’s Legislative Council passed the “Stablecoin Bill,” establishing licensing for legal tender stablecoin issuers and improving virtual asset regulation.
2. $MINISO Group Holding Limited(MNSO)$ ’s Q1 operating profit fell 4.51% to 710 million yuan, causing its share price to drop.
3. $MEITUAN-W(03690)$ reported Q1 revenue of 86.56 billion yuan, up 18.1%, beating expectations.
4.China’s “Soy Sauce King” $Foshan Haitian Flavouring And Food Company Ltd.(603288)$ filed for listing on the Hong Kong Stock Exchange.
5.April industrial profits rose 3%, above March’s 2.6%.
6. $XIAOMI-W(01810)$ posted Q1 revenue of 111.29 billion yuan, up 47.4%, with operating profit surging 256.4% to 13.13 billion yuan.
7. $KUAISHOU-W(01024)$ ’s Q1 revenue grew 10.9%, with operating profit rising 6.6% to 4.26 billion yuan.
8.US trade court halted Trump’s “Liberation Day” tariffs.
9.China’s National Medical Products Administration approved 11 new drugs.
10. $LI AUTO-W(02015)$ ’s Q1 revenue reached 25.93 billion yuan, up 1.1%, exceeding market expectations.
11.Trump ordered US EDA firms to stop sales to China.
Five Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1： $XIAOMI-W(01810)$ . Q1 revenue 111.29 billion yuan, up 47.4%; adjusted net profit 10.68 billion yuan, up 64.5%, beating expectations.
Top2： $MEITUAN-W(03690)$ . Q1 revenue 86.6 billion yuan, up 18.1% YOY; operating profit more than doubled, surpassing forecasts.
Top5： $HENGRUI PHARMA(01276)$ . Continued strong momentum with 11 new drug approvals by NMPA.
Top7： $ZA ONLINE(06060)$ . Benefited from stablecoin regulation progress, share price surged.
Top9： $LI AUTO-W(02015)$ . Q1 revenue 25.93 billion yuan, up 1.1%; new model launch boosted weekly sales over 10,000 units, lifting investor confidence.
Next Week's Hong Kong Stock Market Events
1.A-shares will be closed Monday for the Dragon Boat Festival next Monday; Hong Kong stock connect trading will also pause.
2.China will release May manufacturing PMI next Tuesday.
3. $NIO-SW(09866)$ will report Q1 earnings before US market open next Tuesday.
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