To The Moon

Hong Kong stocks continued to soar this week. The Hang Seng index$HSI(HSI)$ rose 3.85% to 17992.54 points, up 23.3% from its October low and entering a technical bull market.

Performanceby sectors

The healthcare sector led the way, rising 7.1% a week, followed by 4.9% in real estate construction. These two sectors were among the biggest losers in previous bear markets, and this natural rebound has been large.

Southbound funds had a net inflow of HK $3.23 billion this week. What is intriguing is that when the Hang Seng Index soared, more southbound funds sold. For example, the Hang Seng Index rose as much as 4% on Monday, and Southbound funds sold a net HK $4.1 billion:

Blockbuster events this week

1. The People's Bank of China and the Banking and Insurance Regulatory Commission jointly issued the Notice on Improving the Current Work of Financial Support for the Steady and Healthy Development of the Real Estate Market, which consists of 16 measures. In order to maintain the stable and order real estate financing, it proposed to support the rational extension of stock financing such as development loans and trust loans, and encourage trust and other asset management products to support the reasonable financing demand of real estate.

2. Ant Group has made new progress in its rectification. Several listed companies have subscribed and state-owned shareholders have joined the board;

3. Tencent$TENCENT(00700)$ 's third-quarter profit exceeded expectations and will declare 958 million shares of Meituan$Meituan(03690)$ as a special dividend, with a total market capitalization of about HK $159.4 billion.

4. Activision Blizzard$Activision Blizzard(ATVI)$ 's current license agreement with NetEase$NetEase(NTES)$ will expire on January 23, 2023, and most Blizzard game services on Chinese mainland will be suspended.

5. The National Press and Publication Administration released the approval information of domestic online games in November 2022, and a total of 70 games were approved, including Tencent and NetEase.

6. Shares of Alibaba$Alibaba(09988)$ surged after the company beat expectations in the second quarter of fiscal 2023.

7. Tencent Holdings spent a total of about HK $352 million on repurchase on November 18.

8. The number of Hang Seng Index stocks will be increased from 73 to 76. Haier Smart Home Co., Ltd.$HAIER SMARTHOME(06690)$ , China Resources Mixc Lifestyle Services Limited$CHINA RES MIXC(01209)$  and Tingyi (Cayman Islands) Holding Corp.$TINGYI(00322)$ will be transferred to Hang Seng Index stocks.

Highlights of Hot TOP 10 stocks

TOP1: Tencent Holdings, which posted a net profit of 39.9 billion yuan in the third quarter on Wednesday, beat expectations of 25.19 billion yuan, the stock continued to rebound;

TOP5: Country Garden$COUNTRY GARDEN(02007)$ , which surged more than 50% on Monday as a result of the 16-point real estate policy.

5 Things to watch for next week

1. Quoted interest rate in China's 5-year loan market: forecast 4.3%, previous 4.3%.

2. Baidu$BIDU-SW(09888)$ and Kuaishou$KUAISHOU-W(01024)$ will release financial results on Tuesday. Bloomberg expected Baidu's revenue in the third quarter to be 31.77 billion yuan, down 0.47% year on year; The revenue of Kuaishou in the third quarter is expected to be 22.58 billion, up 10% year on year:3. Xiaomi$XIAOMI-W(01810)$ will report earnings on Wednesday, and the Bloomberg consensus forecast was for $70.16 billion in revenue, down 10% from a year ago:4. Markets will be closed on Thursday for the U.S. Thanksgiving holiday.

5. Meituan is due to report earnings on Friday. The Bloomberg consensus expects revenue of $62.39 billion, up 27.8% from a year ago.