Weekly | Markets Rally as Risks Ease Ahead of Key Datas!
This week, Hong Kong stocks regained momentum, with the $HSI(HSI)$ rising 2.16%, hitting a new high since mid-March.
Mixed Economic Data
The latest economic data is a mix of good and bad. For example, the Ministry of Culture and Tourism reported that 119 million people traveled domestically during the Dragon Boat Festival, up 5.7% YoY.
Total spending reached 42.73 billion yuan, a 5.9% increase. But, per capita spending dropped 2.2%, averaging 359 yuan.
Meanwhile, the May Caixin Manufacturing PMI came in at 48.3, a 2.1 percentage point drop from April, marking the first time since October 2024 it fell below the neutral 50 mark.
On the bright side, the Services PMI for May rose to 51.1, showing expansion in the sector.
Hot New Consumption Stocks
The Hong Kong stock market saw significant interest in new consumption stocks.
$LAOPU GOLD(06181)$ surged past HK$1000, becoming the highest-priced stock in the market.
$POP MART(09992)$ briefly saw its market cap surpass HK$330 billion, joining the top 40 of Hong Kong-listed companies.
$MIXUE GROUP(02097)$ also reached an all-time high.
These stocks have earned the nickname "Hong Kong’s Three Sisters" for their scorching hot performance.
Global Events Impacting Market
On the global front, the leaders of China and the U.S. spoke by phone this week, agreeing to continue implementing the Geneva consensus and to hold new talks soon. This reduced tariff risks and eased market concerns.
Sector Performance & Cash Flow
This week, only the Comprehensive sector underperformed. The financials, consumer, and healthcare sectors performed well.
Southbound funds (mainland investment into Hong Kong stocks) saw a net inflow of HK$14.9 billion this week.
China’s May CPI will be released on Monday, with economists expecting a 0.2% YoY decline. China’s May Exports data is also due, and will give insight into the post-trade war export situation.
On Wednesday, U.S. May CPI data will be released, with an expected 2.5% YoY increase.
Major Events in Hong Kong Stocks This Week
1.U.S. president announced a 50% tariff on imported steel and aluminum starting June 4.
2.China’s May Caixin Manufacturing PMI at 48.3, below expectations of 50.7.
3. $NIO-SW(09866)$ reported revenue of over 12 billion yuan, beating analyst expectations.
4. The Hong Kong Securities and Futures Commission is considering virtual asset derivatives trading for professional investors.
5.U.S. May ADP jobs increased by 37,000, much lower than the expected 114,000.
6. $POP MART(09992)$ , $LAOPU GOLD(06181)$ , and $MIXUE GROUP(02097)$ saw dramatic stock price surges, with Pop Mart’s market cap hitting HK$330 billion.
7.Presidents of China and the U.S. agreed to continue their trade discussions and cooperate further.
8. $Circle Internet Corp.(CRCL)$ , a stablecoin company, debuted with a 168% gain; Hong Kong's new stablecoin regulations come into effect in August 2025.
9. A Harvard report indicates China’s biotechnology industry may surpass the U.S.
10. China’s Services PMI increased to 51.1, indicating accelerating expansion.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 4: $POP MART(09992)$ . The Labubu 3.0 series launch sent Pop Mart's stock soaring. New HACIPUPU figures sold out instantly, and many analysts raised their price targets.
Top 9: $MIXUE GROUP(02097)$ . The "Hong Kong Three Sisters" have garnered huge attention. Miexue hit a record high but saw a significant pullback after.
Top 10: $CATL(03750)$ . CATL’s H-shares were added to the MSCI China Index, further boosting its visibility and stock price.
Next Week's Hong Kong Stock Market Events
1.Next Monday, China will release the CPI data for May. Economists expect a year-on-year decline of 0.2%.
2. Next Monday, China will release its import and export data for May. Pay attention to the export situation after the trade dispute.
3. Next Wednesday, the United States will release the CPI data for May. Economists expect a year-on-year increase of 2.5%, compared with the previous of 2.3%.
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