Weekly | More Stock Placement Forces HK Stock Declining! Bull Market Over?-To The Moon - Tiger Brokers Online Investing Community

Weekly | More Stock Placement Forces HK Stock Declining! Bull Market Over?

This week, the Hong Kong stock market saw a slight pullback, with the $HSI(HSI)$ down by 1.11% on the week.

Xiaomi’s $3.3 Billion Stock Placement

The big news that rattled investors came on Tuesday before market open, when $XIAOMI-W(01810)$ announced an equity placement of 800 million shares at HK$53.25 each, raising HK$42.5 billion. This is a 6.6% discount to the closing price the day before. The funds will be used for business expansion and R&D.

The announcement caused Xiaomi’s stock to plummet by 6.3% on Tuesday, with trading volume hitting a record high of HK$71.8 billion.

After $BYD COMPANY(01211)$ recently completed a massive equity placement raising HK$43.5 billion, Xiaomi followed suit. This raised concerns that other tech companies might also use the market highs to raise funds through equity placements.

In fact, right after Xiaomi's announcement, $NIO-SW(09866)$ revealed plans to issue up to 118.8 million shares to raise over HK$4 billion.

Will other tech stocks follow this trend?

These continuous equity placements have shaken market confidence. Despite strong earnings reports from Chinese companies, their stocks have underperformed, likely due to their previous strong rallies. This, combined with the pressure from equity placements, has led to a broader market pullback.

Sector Performance

This week, the Tech sector led the declines, Industrials and Healthcare sectors performed better.

Southbound funds flow remained positive this week, with HK$37.18 billion net inflows.

Next Monday, China will release the March Manufacturing PMI data. If the data beats expectations, it could spark a market rally.

Major Events in Hong Kong Stocks This Week

1. $AstraZeneca PLC(AZN)$ acquires 9.15% stake in $HBM HOLDINGS-B(02142)$ at 37.2% premium in $105M deal.

2. $Ant Group Co., Ltd.(06688)$ launched two MoE AI models using domestic GPUs, matching the performance of $NVIDIA(NVDA)$ chips.

3. $JD LOGISTICS(02618)$ saw daily orders surpass 1 million.

4. $BYD COMPANY(01211)$ ’s 2024 net profit increased by 34%.

5. $XIAOMI-W(01810)$ proposes placement of 800M shares to raise ~HK$42.5B for business expansion.

6. $BABA-W(09988)$ ’s Chairman sees potential bubbles forming in AI data center construction.

7. $NONGFU SPRING(09633)$ 's 2024 net profit rises 0.4% to RMB 12.12B, misses estimates.

8. $KUAISHOU-W(01024)$ ’s 4Q profit grew by 10%, but missed analysts’ forecast.

9. $BYD COMPANY(01211)$ set a 2025 sales target of 5.5 million vehicles.

10. $POP MART(09992)$ set a 2025 revenue target of 20 billion RMB, a 50% increase.

11. $MIXUE GROUP(02097)$ 's 2024 net profit jumps 39.8% to RMB4.45B.

12. $NIO-SW(09866)$ plans to raise HK$4 billion through an equity placement.

Five Stocks Worth Attention Among Top Trading HK Stocks This Week

Top1: $XIAOMI-W(01810)$ . Xiaomi Group announced the placement of 800 million new shares at a price of HK$53.25 per share, raising HK$42.5 billion, compared with the closing price of the day before the announcement, a discount of about 6.6%, mainly used for business expansion and R&D. Xiaomi's share price fell sharply this week as a result.

Top6: $POP MART(09992)$ . The company achieved revenue of RMB 13.04 billion in 2024, an increase of 106.9%; Profit attributable to shareholders reached RMB 3.125 billion, an increase of 188.8%; It is expected that sales in 2025 will increase by more than 50% year-on-year, overseas sales will increase by more than 100% year-on-year, and the stock price will rise sharply.

Top7: $KUAISHOU-W(01024)$ . Kuaishou Q4 revenue was RMB 35.38 billion, an increase of 8.7%, the growth rate hit a new low since the listing, less than analysts expected RMB 35.7 billion, the stock price fell sharply.

Top8: $MIXUE GROUP(02097)$ . The revenue of Mixue 2024 was RMB 24.83 billion, an increase of 22.3%; The profit for the year was RMB 44.54 billion, an increase of 39.8%.

Top9: $NIO-SW(09866)$ . On March 27, NIO announced that it planned to issue no more than 118,793,300 Class A ordinary shares, raising more than HK$4 billion, and its share price fell sharply.

Next Week's Hong Kong Stock Market Events

1. Next Monday, China will release March Manufacturing PMI. Pay attention to whether it exceeds expectations.

2. Next Friday, Both Hong Kong and A-shares will be closed for Qingming Festival.

Mao Geping Earnings Coming! Are You Bullish on HK Stocks?

This week, many Hong Kong companies are releasing earnings reports, with Pop Mart and Mixue both posting strong results yesterday. Today, new consumer stock Mao Geping will also release its earnings. Which Hong Kong company do you favor?

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