To The Moon

This week, Hong Kong stocks rode a wave of Fed rate cuts and AI euphoria. $HSI(HSI)$ closed Friday at 26,533.04, up 0.55% for the week. The real star was $HSTECH(HSTECH)$ , surging 4.97% to 6,287.02.

Turnover was heavy. Weekly trading hit HK$1.67 trillion, with Sept 18 alone topping HK$413.3 billion — the busiest day since April.

Tech and Consumer Lead the Charge

Optional consumption and tech stocks were the bright spots. HSTECH swung an impressive 8.15% range through the week. The China Enterprises Index gained 1.10% to 9,468.15, while the Red Chip Index slumped 6.23%.

On Monday, the HSI touched a four-year high as markets cheered China stimulus hopes and Fed easing. Midweek, investors rotated, chasing high-growth tech stocks but also eyeing risks around valuations, foreign inflows, and geopolitics.

Stock-picking is the name of the game — across Hong Kong, China, and the U.S.

The Fed Cuts, HK Follows

The global driver? The Fed. On Sept 17, it cut rates by 25 bps, moving the target to 4.00%–4.25%. Hong Kong’s Monetary Authority quickly followed, lowering its base rate to 4.50%.

That’s a tailwind for property, consumer, and leverage-heavy sectors — and feeds hopes for a gentler rate path ahead.

AI Buzz Everywhere

AI kept the heat on. Chief Executive Lee Ka Chiu John announced a new AI Task Force to drive “AI+” development. Mainland internet giants signed big strategic cooperation deals with state firms, aligning AI with industrial upgrades.

Southbound flows poured in. Mainland investors bought HK$144.7B in a single day (Sept 15) and HK$368B across the week.

Hot money chased the majors:

• $BABA-W(09988)$ led inflows.

• $MEITUAN-W(03690)$ saw three straight days of net Southbound buying worth HK$34.9B.

• $POP MART(09992)$ and Horizon Robotics (09660) also attracted attention.

AI and healthcare soared. $BIDU-SW(09888)$ and $SENSETIME-W(00020)$ hit record highs. $TENCENT(00700)$ and Alibaba clocked fresh 2025 peaks.

IPO Fever Returns

Big listings made waves:

• $ZIJIN MINING(02899)$ kicked off a US$3.2B IPO of overseas gold assets under $ZIJIN GOLD INTL(02259)$ — the largest Hong Kong float this year.

• $CHERY AUTO(09973)$ opened books for a US$1.2B raise, putting autos and EVs back in focus.

• $Shenzhen Hipine Precision Technology(02583)$ also joined the pipeline.

Major Events in Hong Kong Stocks This Week

1. $HKEX(00388)$ signed an MoU with Abu Dhabi’s bourse to explore cross-market ties.

2. $DONGFANG ELEC(01072)$ placed new H-shares, raising HK$1.1B.

3. $WEIMOB INC(02013)$ tapped the market for HK$1.5B, eyeing AI-SaaS integration.

4. $POP MART(09992)$ tumbled on falling LABUBU resale prices and rising shorts, but bargain hunters stepped in.

5. $CATL(03750)$ held a restart meeting at its Jinxiawo lithium mine.

6. $XUANZHUBIO-B(02575)$ cleared HKEX hearings, boasting a pipeline of 10+ drugs.

7. $NVIDIA(NVDA)$ invested US$5B in $Intel(INTC)$ and announced joint AI chips.

8.Huawei rolled out a three-year roadmap for its Ascend AI chips.

9. $TRANSTHERA-B(02617)$ officially entered Stock Connect, sparking wild swings due to tiny free float.

10. $KUAISHOU-W(01024)$ unveiled its new AI avatar tool: turn one picture + text/audio into a 1080p, 48FPS, one-minute digital human video.

Next Week's Hong Kong Stock Market Events

1.Economic Data Watch: Keep a close eye on China’s key data, especially consumption, investment, and employment indicators (early-September manufacturing and services flash PMI, retail sales, housing sales, and industrial production).

2.IPO Debuts: Pay particular attention to the first-day performance of major listings such as $ZIJIN GOLD INTL(02259)$ and $CHERY AUTO(09973)$ .