Weekly | A Sudden Shock Sends Global Stocks Tumbling!
Hong Kong stocks tried to break higher this week, but momentum faded. The $HSI(HSI)$ still gained 1.26%, yet slipped back below the 27,000 mark.
From U.S. Optimism to Fed-Induced Panic
The week started upbeat. U.S. lawmakers reached a deal to avert a government shutdown, sending Wall Street sharply higher.
Then came Thursday—the mood flipped. Multiple Fed officials turned hawkish.
San Francisco Fed President Mary Daly said it’s too early to decide on a December rate cut.
Cleveland Fed President Loretta Mester called for steady rates to keep pressure on inflation.
St. Louis Fed President Musalem urged caution on further easing.
At the same time, “Big Short” investor Michael Burry accused major AI infrastructure players of “inflating profits” by extending chip depreciation schedules.
Panic spread. AI stocks plunged.
Global markets followed: Hong Kong dropped 1.85% Friday, Shanghai broke below 4,000, ChiNext fell more than 2.8%, and Korea’s KOSPI slid over 3.8%.
China Macro: Slowing Signals
China reported a batch of October data:
Retail sales up 2.9%, slower than September
New-home prices down 0.45% m/m
Industrial output up 4.9%, the weakest so far this year
Earnings: Mixed Reactions for Tech Giants
Big names delivered results this week:
$TENCENT(00700)$ beat on both revenue and profit, but tech’s broad selloff dragged the stock lower anyway.
$JD-SW(09618)$ reported strong revenue growth, but losses in new businesses spooked investors. Shares tanked post-earnings.
$SMIC(00981)$ guided Q4 revenue to grow 0–2% q/q—better than seasonal norms—yet warned that memory shortages are hurting smartphone demand. The stock slipped after results.
Southbound Flows Stay Strong
With tech under pressure, money rotated into defense plays—consumer, banks, biopharma, and staples led the week.
Southbound investors bought a net HK$247.7B this week.
Next week, $NVIDIA(NVDA)$ reports earnings—likely a major catalyst for global markets.
Major Events in Hong Kong Stocks This Week
1. U.S. Senate reached a deal to end the government shutdown threat
2. Lithium hexafluorophosphate prices doubled in a month
3. $SanDisk Corp.(SNDK)$ flash prices surged 50%
4. Michael Burry accused U.S. tech giants of profit inflation
5. Reports say $BABA-W(09988)$ quietly launched “Qwen” to rival ChatGPT
6. $JD-SW(09618)$ Q3 revenue was ¥299.1B, +14.9%
7. $TENCENT(00700)$ Q3 revenue reached ¥192.9B, +15%
8. Fed officials turned hawkish; December cut odds dropped
9. $SMIC(00981)$ sees full-year sales above $9B but warned of memory shortages
10. China retail sales +2.9% in October
11. China new-home prices fell 0.45% m/m
Five Stocks Worth Attention Among Top Trading HK Stocks This Week
1.Top 2 – $BABA-W(09988)$. Buzz around Alibaba’s secret “Qwen” AI assistant project—built on its strongest Qwen model—lifted shares.
2.Top 3 – $XPENG-W(09868)$. Major firms like Morgan Stanley and Citi turned bullish. Citi says XPeng is entering an early stage of profitability improvement, potentially lifting valuations from traditional EV levels to a higher “AI + Robotaxi” premium. Shares surged.
3.Top 4 – $SMIC(00981)$. Posted Q3 results and soft Q4 guidance due to memory tightness. Stock fell after earnings.
4.Top 8 – $TENCENT(00700)$. Beat estimates handily: ¥192.9B in revenue, ¥63.1B in net profit. But global tech weakness overshadowed results.
5.Top 10 – $GANFENGLITHIUM(01772)$. Lithium chemical prices nearly doubled in a month, fueled by booming energy-storage demand. Lithium stocks jumped.
Next Week's Hong Kong Stock Market Events
Next week, companies including $XPENG-W(09868)$ $LEAPMOTOR(09863)$ $XIAOMI-W(01810)$ $NVIDIA(NVDA)$ $KUAISHOU-W(01024)$ will release their earnings reports.
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