This week, Hong Kong stocks underperformed, with the $HSI(HSI)$ falling 2.46%.
Several negative news events contributed to this slump:
1.Robot Investment Pullback
Famous investor Zhu Xiaohu announced he is exiting investments in humanoid robots due to unclear commercialization, shaking up the industry and cooling tech stock hype.
2.Xiaomi’s Tragic Incident
On Tuesday, a deadly crash involving the $XIAOMI-W(01810)$ SU7 raised doubts about the company’s autonomous driving features. Three people died, and Xiaomi faced public backlash, resulting in two consecutive days of sharp stock price declines.
3.Trump’s Tariff Orders
On Thursday, President Trump signed two executive orders imposing "reciprocal tariffs" on 40+ trade partners, with China’s tariff at a whopping 54%. Southeast Asian countries face significant hikes as well. This triggered a global market selloff.
Sector Performance
Due to multiple negative factors, most sectors declined, with Information Technology leading the losses.
Despite the downturn, Southbound funds from mainland investors surged, with a net purchase of HK$ 63.28 billion, showing strong appetite for bargains.
Both the US and China will release March CPI next week—key for market direction.
Major Events in Hong Kong Stocks This Week
1.Famous venture investor Zhu Xiaohu announced he’s pulling out of humanoid robot investments, sparking industry concerns.
2.Spot gold $Gold - main 2506(GCmain)$ broke through $3,160 per ounce, setting a new all-time high.
3. $XIAOMI-W(01810)$ completed a placement of shares, raising HK$42.5 billion.
4.China probes $CKH HOLDINGS(00001)$ ’s port sale, regulatory scrutiny heats up.
5. $EVERG VEHICLE(00708)$ delayed the release of its 2024 earnings report, leading to stock suspension.
6.March sales for electric vehicles exceeded expectations, with $XPENG-W(09868)$ and $LEAPMOTOR(09863)$ reporting higher-than-expected delivery figures.
7.A deadly crash involving $XIAOMI-W(01810)$ ’s SU7 raised serious concerns, pushing the stock down.
8.Hong Kong is considering creating an over-the-counter market for stocks of companies that are delisted.
9.Trump's new tariff measures caused a global market slump, sending stocks lower.
10.The March Caixin China Services PMI rose to 51.9, signaling faster expansion in the services sector.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1: $XIAOMI-W(01810)$ . After a tragic crash involving the Xiaomi SU7, the stock took a hit, with public backlash impacting its price.
Top6: $XPENG-W(09868)$ . XPeng’s March delivery numbers of 33,205 units, up 268% YoY, led to a boost in its stock price.
Top9: $POP MART(09992)$ . Following strong earnings, Pop Mart’s stock continued to surge, surpassing HK$200 billion in market value.
Top10: $LAOPU GOLD(06181)$ . The stock spiked 19% after a strong earnings report but later fell due to approval of H-share full circulation.
Next Week's Hong Kong Stock Market Events
1.Next Thursday, China will release its March CPI data, expected to rise by just 0.1% YoY, indicating deflationary pressure that could impact consumption and market sentiment.
2.Next Thursday, the U.S. will release its March CPI, with an expected 2.6% YoY increase, slightly down from 2.8% the previous month.
3.Next Friday, major banks like $JPMorgan Chase(JPM)$ and $Wells Fargo(WFC)$ will release their Q1 earnings. Watch for their outlook on the economy and future growth.
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