To The Moon

This week, Hong Kong stocks saw a strong rebound, with the $HSI(HSI)$ rising 2.73% over the week.Key Data and Market Reactions On Friday, the U.S. Labor Department reported that 256,000 jobs were added in December, far exceeding the market's expectation of 165,000. The unemployment rate dropped from 4.2% in November to 4.1%. This led to speculation that the Fed may delay interest rate cuts, which caused a drop in U.S. stocks and negatively impacted the Hong Kong market.On Wednesday, the U.S. December CPI showed a 2.9% year-on-year increase, matching expectations. Core CPI, which had been rising for months, showed signs of slowing down. The market now anticipates the Fed might cut rates by July, earlier than the previous forecast of September.Positi

This week, Hong Kong stocks took a hit, with the $HSI(HSI)$ falling 3.52%, reaching its lowest point since September 25 last year.Sector Performance and Upcoming Big EventsOn Tuesday, the U.S. Department of Defense added $TENCENT(00700)$ to its list of Chinese military companies (1260H list). Despite Tencent’s statement saying it’s not a military firm and will resolve the misunderstanding, its stock kept dropping, dragging down the entire Hong Kong market.On Thursday, China’s National Bureau of Statistics released December CPI and PPI data. CPI rose 0.1%, the lowest growth in 9 months. PPI fell 2.3%, marking its 27th consecutive month of contraction, though the decline was the smallest in four months.This

This week, the Hong Kong stock market wrapped up 2024 with a strong finish. The $HSI(HSI)$ rose over 17% for the year, breaking a four-year streak of losses. However, 2025 kicked off on a sour note. On the first trading day, the HSI plummeted by 2.18%, marking the worst start in five years.Economic News: Manufacturing PMI Slips Data from China’s National Bureau of Statistics revealed that the manufacturing PMI for December stood at 50.1%, down 0.2 percentage points from the previous month. While still indicating expansion, it fell short of expectations. Additionally, the Caixin PMI for December, released on Thursday, came in at 50.5, dropping 1.0 percentage point from November and significantly below analysts' forecasts of 51.7.With China’s annual

This week, despite a shortened trading week due to the Christmas holidays, Hong Kong stocks saw solid gains. The $HSI(HSI)$ rose by 1.87%, reclaiming the 20,000-point mark, driven largely by strong performance in high-dividend stocks.Market OverviewThe global market was relatively quiet this week, with many overseas markets also closed for Christmas. However, the release of China’s industrial profit data for January-November 2024 showed a 4.7% year-on-year decline, with November's drop at 7.3%. Bloomberg's economic forecast was a 6% decline, so the figures came in worse than expected.In the face of weaker macroeconomic conditions, high-dividend stocks continued to attract investor interest. Agricultural Bank of China, for example, surged 5.5%, hitt

This week, the Hong Kong stock market faced a tough time, with the $HSI(HSI)$ dropping 1.25%.Economic Data Misses ExpectationsThe latest economic data released by the National Bureau of Statistics showed weaker-than-expected results. In November, retail sales of consumer goods totaled RMB 43,763 billion, growing by 3.0%, well below the 5% expected and down from the 4.8% growth in October. On the other hand, industrial production rose 5.4%, in line with forecasts.U.S. Fed’s Rate Cut Overseas, the U.S. Federal Reserve cut rates by 25 basis points as expected. However, their updated forecast suggests only two rate cuts next year, far fewer than the market had anticipated. Fed Chairman Jerome Powell indicated that the central bank is nearing the end of

This week, Hong Kong stocks saw huge swings. The $HSI(HSI)$ rose 0.53% for the week, dipping below the 20,000-point mark.On Monday, the Political Bureau of the Central Committee held a meeting to discuss China's 2025 economic plans. The key takeaways were clear: stabilize the housing and stock markets, manage risks in key sectors, and guard against external shocks. The meeting also called for more aggressive fiscal policies and moderately loose monetary measures to boost consumption and investment. There was a push to expand domestic demand.Some of the comments surprised the market, like the unprecedented mention of "strengthening extraordinary counter-cyclical adjustments" and the first shift in monetary policy since 2011, aiming for "moderately l

This week, Hong Kong stocks made a steady rebound. The $HSI(HSI)$ rose 2.28%, closing near the 20,000-point mark.Positive Economic Data Drives Market Optimism On Monday, Caixin released China’s November manufacturing PMI, which came in at 51.5, the highest in seven months and far exceeding analysts' expectations. This indicates that the manufacturing sector is continuing to expand, driven by economic stimulus policies.With improving economic data, China plans to hold its annual closed-door Central Economic Work Conference next Wednesday to set economic targets and stimulus plans for 2025. The news sparked market speculation around more policy support, pushing stocks higher.Additionally, many major Wall Street firms expect China’s central bank to ma

This week, the Hong Kong stock market showed signs of stabilizing and rebounding, with the $HSI(HSI)$ rising 1% over the week.Market Buzz and RumorsWith the Central Economic Work Conference set for mid-December, rumors have been flying. On Wednesday, a rumor suggested that the meeting would be moved up and that the fiscal deficit target for next year would be increased, which sparked a rally in both Hong Kong and A-shares. However, soon after, international investment banks weighed in, predicting that the economic policies discussed at the December meeting would likely not exceed expectations. By Thursday, both Hong Kong and A-shares saw a noticeable drop.Friday’s trading was even more dramatic. After a sluggish start, major indices shot up in the

This week, the Hong Kong stock market continued to slide, with the $HSI(HSI)$ dropping 1%, hitting its lowest level since September 26th.Weak Earnings A number of internet companies released their third-quarter results this week, and the market reaction was far from positive. Stocks of $XPENG-W(09868)$ fell 3%, $KUAISHOU-W(01024)$ dropped 11.7%, $BIDU-SW(09888)$ slid 8.6%, and $PDD Holdings Inc(PDD)$ lost 10.6%.These internet giants are a key weight in the Hang Seng Index, making up over 30% of its total market cap. Their poor performance has significantly dampened market senti

This week, the Hong Kong stock market had a rough time, with the $HSI(HSI)$ falling for the fourth consecutive day, down by 6.28%. The index has broken out of its sideways range since October.Domestic News Last Friday after the market closed, China announced a fiscal stimulus plan, with 6 trillion yuan in new funds for debt reduction. However, there was no mention of any policy support for the real estate or consumption sectors.On Wednesday, the Ministry of Finance rolled out a "big gift" with tax cuts, including reduced deed tax, land value-added tax, and VAT. For example, the deed tax for the purchase of a family's first or second home (under 140 square meters) has been cut to 1%, down from 1-1.5% for regular homes and 3% for non-standard homes.O