This week, the Hong Kong stock market experienced a steady rise. The $HSI(HSI)$ climbed 2.5%, reclaiming the 20,000-point mark and closing at 20,066.19.
Key Data and Market Performance
On Monday, Trump took the oath of office as the 47th President of the United States. Right from the start, he avoided tough rhetoric on China, expressing his willingness to visit China within his first 100 days in office and stating he would prefer not to impose more tariffs. This gives hope for improved China-US relations.
On Thursday, six Chinese government departments jointly released a plan to encourage long-term capital inflows into the stock market. The policy targets large state-owned insurance companies, aiming for them to invest 30% of their new premiums in A-shares from 2025. The plan also sets a target of 10% annual growth in A-share holdings by public funds for the next three years.
Also on Thursday, President Trump gave a speech at the World Economic Forum in Davos, urging the Federal Reserve to immediately cut interest rates. This fueled a rally in the US stock market, with the $.SPX(.SPX)$ reaching a new all-time high.
Thanks to a combination of favorable factors, the Hong Kong market performed well this week, with most sectors seeing gains. The IT sector led the way.
Southbound funds saw a net inflow of HK$ 9.1 billion this week.
Next week, as the Chinese New Year holiday begins, investors may shift to a more relaxed mode, but there are still significant events to watch. China will release its January PMI data, and the earnings season for tech giants in the US will kick off, which could impact both US and Hong Kong markets.
Major Events in Hong Kong Stocks This Week
1. $COUNTRY GARDEN(02007)$ resumed trading, surging nearly 30% on its first day back.
2. The national subsidy policy for smartphones, tablets, smart bands, and watches launched on January 20.
3. $JD-SW(09618)$ ’s sales of subsidized phones jumped 200% month-over-month.
4. $NEW ORIENTAL-S(09901)$ 's Q2 FY2025 earnings report showed a 19.4% year-on-year revenue increase, but a 9.8% drop in operating profit. The stock plunged after its Q3 revenue guidance fell short.
5. Trump plans to impose new tariffs on Chinese goods.
6. Six government departments issued a major plan to boost long-term capital inflows into the stock market.
7. The Ministry of Commerce announced it will gradually expand the opening-up of the service sector, including telecom, healthcare, and education.
8. $XIAOMI-W(01810)$ ’s stock hit a new all-time high.
9. Trump called for immediate rate cuts by the Federal Reserve.
10. The CEO of the world’s largest sovereign wealth fund advised selling US tech stocks and buying Chinese assets.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1: $XIAOMI-W(01810)$ : The stock hit a new high this week after a Goldman Sachs report suggested Xiaomi would benefit greatly from the new national subsidy policy for electronic products.
Top6: $COUNTRY GARDEN(02007)$ : The stock surged nearly 30% on its first day back after resuming trading.
Top8: $JD-SW(09618)$ : The stock rose after the national subsidy policy for electronics boosted JD's phone sales by 200%.
Top9: $UBTECH ROBOTICS(09880)$ : The company’s major shareholder QM25 LIMITED made a pledge not to sell its shares for 12 months, leading to a surge in stock price.
Next Week's Hong Kong Stock Market Events
1. Next Monday, China will release its January Manufacturing PMI data.
2. Next Tuesday, the Chinese New Year holiday begins, and both A-shares and Hong Kong stocks will be closed for 8 days from January 28.
3. Next Thursday, the Federal Reserve will announce its interest rate decision.
4. Next week, major tech companies like $ASML Holding NV(ASML)$ $Tesla Motors(TSLA)$ $Microsoft(MSFT)$ $Apple(AAPL)$ will release earnings reports, which could significantly impact both Hong Kong and US stock markets.
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