Weekly | Is the Bull Market Over as HK Stocks Plunge?
This week, the Hong Kong stock market surged before pulling back, with the $HSI(HSI)$ dropping 2.29%.
Negative News Floods In
There are more signs of the US economy cooling off, increasing the risk of stagflation. First-time unemployment claims reached 242,000 last week, the highest since early December last year.
The housing market is also struggling due to high prices, high interest rates, and natural disasters. In January, the number of unsold homes dropped by 4.6%, reaching a historic low. Additionally, PCE inflation was revised up to 2.7%, fueling inflation concerns once again.
On Thursday, President Trump announced a 10% tariff on Chinese imports starting March 4. With a previous 10% tariff already in place, this new measure brings the total to 20%.
$NVIDIA(NVDA)$ the king of AI, reported better-than-expected earnings, but its stock plunged 8.5%, dragging down AI-related stocks and US markets.
Under these multiple negative pressures, Hong Kong stocks took a dive, especially in sectors that had previously surged, like IT. Real estate and consumer stocks saw some rebound.
Despite the volatility in Hong Kong stocks, southbound funds kept pouring in, with net inflows hitting a whopping HK$75 billion this week.
Next week, China's annual Two Sessions will take place, and market attention will be on potential economic stimulus policies.
Major Events in Hong Kong Stocks This Week
1.Hong Kong considers legalizing basketball betting to boost tax revenue.
2. $LAOPU GOLD(06181)$ announces price adjustments and purchase limits.
3. $JD-SW(09618)$ will cover all costs for its delivery drivers' social insurance and housing fund.
4. $LI AUTO-W(02015)$ releases official images of its first bettery electric SUV, the Li Auto i8.
5. $MIXUEGROUP(02097)$ 's IPO saw a subscription ratio of 5125 times, raising a record-breaking HK$1.77 trillion, far exceeding the HK$1.26 trillion record set by $KUAISHOU-W(01024)$ in 2021.
6.Hong Kong plans to optimize dual primary listings and second listing requirements.
7.Hong Kong Stock Exchange posts a 10% increase in shareholder profit, reaching HK$13.05 billion.
8.Hong Kong Securities and Futures Commission proposes easing the position limit for derivative trading on major exchanges.
9. $XIAOMI-W(01810)$ unveils the Xiaomi 15 Ultra, priced from HK$6499, and the Xiaomi SU7 Ultra, priced at a surprising HK$529,900.
10. $XIAOMI-W(01810)$ shares hit a historic high, making Lei Jun China's new richest person, surpassing Zhong Shanshan of $NONGFU SPRING(09633)$ .
11. $BEIGENE(06160)$ predicts it will achieve positive operating profit by 2025.
12.Bitcoin drops below US$80,000.
13.The Politburo of the Communist Party of China announces more proactive macro policies to stabilize the real estate and stock markets.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $XIAOMI-W(01810)$ . Following its product launch event, Xiaomi saw its stock price hit new highs. The Xiaomi 15 Ultra and SU7 Ultra garnered massive attention, with the SU7 Ultra’s price exceeding expectations. Lei Jun overtook Zhong Shanshan as China’s new richest person.
Top 4: $SMIC(00981)$ . $NVIDIA(NVDA)$ s disappointing stock price drop led to a wider slump in AI-related stocks, including SMIC.
Top 8: $LI AUTO-W(02015)$ . Li Auto's release of the official images of its new SUV sparked market excitement, pushing the stock price up.
Top 10: $NAYUKI(02150)$ . With $MIXUEGROUP(02097)$ ’s IPO subscription record breaking, funds flowed into consumption stocks, driving Nayuki's price up.
Next Week's Hong Kong Stock Market Events
1. Next Monday, China will release the February PMI for manufacturing, with expectations at 49.9.
2.Next Wednesday, The third session of the 14th National People’s Congress will open in Beijing.
3.Next Thursday, $JD-SW(09618)$ will report its earnings.
4.Next Friday, China will announce January-February trade data, which will show how much the trade war has impacted exports.
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