To The Moon

This week, the Hong Kong stock market underperformed, with the $HSI(HSI)$ falling by 1.52%.

Economic Data: Mixed Signals

The National Bureau of Statistics released May's economic data. Retail sales for May totaled 4.1326 trillion yuan, growing 6.4% year-on-year, which was 1.3% higher than last month’s growth rate and exceeded market expectations.

However, the growth was mainly driven by government subsidies. Retail sales of household appliances and audiovisual equipment jumped by 53% year-on-year, reaching 116.6 billion yuan.

But this boost may be short-lived, as there are reports that the government is suspending or adjusting its "trade-in" subsidies, raising concerns about the sustainability of the retail rebound.

Meanwhile, real estate data showed that housing prices in 70 major cities continued to decline on a month-on-month basis, with first-tier cities seeing a 0.2% decrease in new home prices.

Geopolitical Tensions and Fed's Caution

In international news, tensions in the Middle East escalated, with the U.S. President Donald Trump stating that while the U.S. is not currently involved in Israel’s military action against Iran, future involvement remains possible. Trump is expected to decide within two weeks whether to order military strikes on Iran.

With rising geopolitical risks, the Federal Reserve expressed concerns over the U.S. economy's uncertainty. Increased tariffs could pressure economic activity, and inflation is expected to rise in the coming months. As a result, the Fed kept interest rates unchanged at 4.25%–4.50%.

Amidst these negative developments, most sectors in Hong Kong stocks were down, except for energy and utilities which saw gains.

Southbound Funds continued to flow into Hong Kong, with a net purchase of HK$16.3 billion this week.

Major Events in Hong Kong Stocks This Week

1.Trump hinted at possible U.S. intervention in the Israel-Iran conflict, which led to fluctuations in gold and oil prices.

2.China’s May retail sales grew 6.4%, exceeding expectations.

3.The price decline in new homes continues, signaling weakness in the real estate market.

4. $HAITIAN FLAV(03288)$ , a Chinese food giant, had a successful Hong Kong IPO, with 695 times oversubscription, raising nearly HK$400 billion.

5.New stocks like $CAOCAO INC(02643)$ , $ZHOU LIU FU(06168)$ , and $SAINT BELLA(02508)$ are preparing for listing.

6.LuJiazui Financial Forum held this week, releasing key policies.

7. $JD-SW(09618)$ plans to apply for stablecoin licenses in major currencies globally to lower cross-border payment costs by 90%.

8.The Federal Reserve keeps interest rates unchanged, citing inflation concerns from tariffs.

9.China’s state-run media called for tighter regulation on blind boxes and blind cards.

10.The European Commission is restricting Chinese companies from participating in medical device tenders.

Four Stocks Worth Attention Among Top Trading HK Stocks This Week

Top1： $HAITIAN FLAV(03288)$ : The IPO was a major hit, with 695 times oversubscription. However, its first-day performance was flat, rising just 0.55%, and even dipped below the offering price during the day.

Top2： $POP MART(09992)$ : The stock of this trendy blind box company took a major hit after state-run media criticized the blind box industry, calling for regulation.

Top7： $JD-SW(09618)$ : JD announced a new focus on the hotel and travel sector, increasing competition with $MEITUAN-W(03690)$ . In addition, JD is working towards obtaining stablecoin licenses worldwide to streamline cross-border payments.

Top9： $MIXUE GROUP(02097)$ : The stock of this popular beverage company dropped along with $LAOPU GOLD(06181)$ 、 $POP MART(09992)$ 、 $MIXUE GROUP(02097)$ , sparking debate in the market.

Next Week's Hong Kong Stock Market Events

1.Next Monday, the U.S. will release its June Markit Manufacturing PMI data. Watch for how tariffs may affect the manufacturing sector.

2.Next Wednesday, $Micron Technology(MU)$ will release its earnings, which could impact the semiconductor sector.

3.Next Friday, China will report May industrial profits. Pay attention to the year-on-year growth rate.