To The Moon

The Hong Kong stock market continued to rally last week. The Hang Seng Index rose 6.27% week-on-week, hitting a new high since the rally.

Last week's rally was driven by three main sources.

1. The Securities and Futures Commission resumed equity financing for real estate companies

2.  Pandemic prevention and control policies continue to be optimized, such as the cancellation of temporary control measures in Guangzhou city.

3. Employment data released last week was significantly less than expected, highlighting the economic slowdown.

Fed Chairman Powell's speech indicated that it is reasonable to slow down interest rate hikes in the future. The following surge of U.S. stocks also create a good external environment for Hong Kong stocks to rebound.

Performance by sectors

All major sectors on HKEX rose this week, led by essential sector - up 4.2%

Southbound funds ended net buying

Southbound funds bought a net HK$9.1 billion this week.

Key Events in Hong Kong Stocks Last Week:

1. The Central Bank decided to lower the reserve requirement ratio for financial institutions by 0.25 percentage points on Dec. 5.

2. The Macau government announced the results of a new round of gambling license bidding on the 26th. All six operators previously licensed got gambling licenses again, and casino stocks soared.

3. Five initiatives are issued by the China Securities Regulatory Commission to support equity financing of real estate enterprises.

4. Q3 reports of companies such as $Bilibili Inc.(BILI)$ and $Alibaba Health Information Technology(00241)$ exceeded expectations.

5. Fed said to slow the pace of interest rate hikes at its December meeting.

6. Guangzhou's pandemic prevention measures relaxed. Tourism, catering and other post-pandemic recovery concept stocks soared.

7. New energy vehicles makers announce November sales - $NIO Inc.(NIO)$ , $XPeng Inc.(XPEV)$ , $Li Auto(LI)$ improve on YoY data.

8. $HAICHANG H-NEW(02255)$ plunged 54% in the day, and was called a "fraud stock" by the market.

9. The IPO of Hong Kong stock market rebounded, with five new shares including $SUNSHINE INS(06963)$ opening on the same day.

4 Stocks Worth Attention Among Top Trading HK Stocks Last Week

TOP5：$XPeng Inc.(XPEV)$

After continious declines, $XPeng Inc.(XPEV)$ shares jumped 42% last week.

Although the revenue was less-than-expected, deliveries will pick up significantly in December according to Q4 guidance.

TOP6: $BILIBILI-W(09626)$

$BILIBILI-W(09626)$ rose 35% last week.

Third-quarter revenue exceeded expectations and losses narrowed significantly

TOP9: $360 DIGITECH-S(03660)$

$360 DIGITECH-S(03660)$ rose 3.44% on the first day of listing and jumped 17.1% the next day.

TOP10: $HAICHANG H-NEW(02255)$

$HAICHANG H-NEW(02255)$ plunged 54% on the first day after being included in the MSCI, before the plunge the stock price soared 103% against the trend.

As a theme park stock, its revenue fell 80.5% year-over-year in the first half of this year.

The company was called as a fraudulent stock as its share price has been out of line with fundamentals for a long time.

Key Events This Week

1. On Friday, China's CPI data for November will be released.

2. On Friday, $Li Auto(LI)$ will announce its third quarterly report.

Bloomberg analysts unanimously expect revenue of RMB 10 billion, up 28.7% year-on-year, and gross margin is expected to be 21.48%.