Weekly | HSI Fell Below 26,000 Amid Market Pressure
Hong Kong stocks pulled back this week. $HSI(HSI)$ lost 1.57%, closing right on the psychological 26,000 mark.
Policy Expectations Fizzle
On Monday, China held a high-profile press conference on “achievements in finance during the 14th Five-Year Plan.” Top regulators, including PBOC Governor Pan Gongsheng and CSRC Chairman Wu Qing, took questions.
But investors were left disappointed. The event highlighted long-term progress, not short-term policy tweaks. Hopes for immediate stimulus faded when Pan stressed that China’s monetary policy would “follow its own course” while balancing internal and external needs.
Overseas, Fed Chair Jerome Powell bluntly said on Tuesday that U.S. equities look “quite high” by historical standards. He noted many valuation metrics now show stocks are overpriced.
That remark spooked Wall Street. U.S. stocks struggled all week, dragging on Hong Kong sentiment.
Tech Sparks, Then Fades
On Wednesday, $BABA-W(09988)$ lit up the market at its Yunqi Conference. The company unveiled a massive 380 billion yuan AI infrastructure push and a new Physical AI partnership with $NVIDIA(NVDA)$ . Internet and semiconductor stocks roared, lifting the Hang Seng more than 1.3% in a single session.
But the momentum didn’t last.
On Thursday, Lei Jun delivered his annual speech, unveiling $XIAOMI-W(01810)$ ’s 17 series smartphones starting at RMB 4,499 — directly targeting $Apple(AAPL)$ ’s new iPhone. Instead of cheers, the stock got hammered, plunging 8% post-event. Investors weren’t buying the hype.
Southbound Flows Stay Strong
Friday brought a heavy blow. The Trump administration announced 100% tariffs on branded and patented drugs, unless manufacturers set up plants in the U.S. Biotech and pharma names collapsed after their recent rally. Risk appetite soured across the board.
Despite the selloff, mainland investors kept buying. Southbound funds inflows hit HK$43.96 billion for the week — proof of bottom-fishing.
But a pause is coming. Next week, mainland markets shut for the National Day holiday. With A-shares closed for six trading days, that powerful southbound bid will be absent.
Major Events in Hong Kong Stocks This Week
1. $Pateo Connect Technology (Shanghai)(02889)$ launched its IPO, drawing cornerstone investors like Horizon Robotics.
2. $ANTA SPORTS(02020)$ was hit after backlash over Arc’teryx’s Himalayan fireworks show.
3. $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ fully exited $BYD COMPANY-100(01211)$ .
4. Chinese press conference on financial sector progress under the 14th Five-Year Plan.
5. $BABA-W(09988)$ Yunqi Conference, major AI infrastructure spending + Nvidia tie-up.
6.Powell warned U.S. stock valuations are stretched.
7.China said it will not seek new “special treatment” at WTO talks.
8. $CHERY AUTO(09973)$ listed in Hong Kong, marking the city’s biggest carmaker IPO this year.
9.The world’s second-largest copper mine halted output, sending copper prices surging.
10. $CATL(03750)$ ’s market cap briefly overtook Kweichow Moutai.
11. $XIAOMI-W(01810)$ CEO Lei Jun unveiled Xiaomi 17 series, stock slumped 8%.
12.Trump rolled out sweeping tariffs on drugs and imported furniture.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 1: $BABA-W(09988)$ . AI infrastructure boom and Nvidia partnership sent the stock soaring midweek.
Top 2: $XIAOMI-W(01810)$ . Lei Jun’s big reveal flopped, wiping out 8% in a day.
Top 4: $SMIC(00981)$ . Semiconductor rally fueled by Alibaba’s AI optimism and $Taiwan Semiconductor Manufacturing(TSM)$ ’s 2nm price hike chatter.
Next Week's Hong Kong Stock Market Events
1. Next Tuesday, China will lunch September PMI, economists expect 49.6 (vs. 49.4 prior). A crucial early read on the economy.
2. Next Wednesday,National Day holiday begins. Both Hong Kong and mainland markets will be closed.
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