This week, the Hong Kong stock market faced heavy losses, with $HSI(HSI)$ dropping 8.47%.
Trade War Intensifies
Last Wednesday, the U.S. government announced "reciprocal tariffs" on Chinese imports. In response, China imposed a 34% tariff increase on all U.S. imports.
This escalated trade tensions caused a global market sell-off. The HSI plummeted 13.22% on Monday, marking its biggest one-day drop since 1997.
In mainland China, the ChiNext Index dropped 12.5%, the largest single-day fall in history.
Government Support
Amid growing panic, the Central Huijin Investment Co. reaffirmed its confidence in China's capital markets, announcing further ETF purchases.
The People's Bank of China also expressed support, stating it would provide sufficient re-lending support if necessary.
Several listed companies also issued buyback and shareholding increase announcements to stabilize stock prices.
Market Rebounds
Following U.S. President Trump’s announcement on April 9 to delay the implementation of high tariffs, the global stock market rebounded sharply.
The $NASDAQ(.IXIC)$ surged by over 12%, as worries about the trade dispute eased.
Although Hong Kong stocks dropped earlier in the week, southbound funds were quick to step in, with a net purchase of HK$82.25 billion, becoming a major stabilizing force for the market.
Sector Performance
Telecom and consumer staples were more resilient, while healthcare and tech stocks were the biggest losers this week.
Major Events in Hong Kong Stocks This Week
1.The U.S. imposed "reciprocal tariffs" on Chinese goods, and China retaliated with higher tariffs on U.S. imports.
2.The $HSI(HSI)$ suffered a 13.22% drop on Monday, the biggest daily fall since 1997.
3.Central Huijin increased ETF holdings.
4. $BYD COMPANY(01211)$ forecasted net profits of ¥8.5–10 billion for Q1, up 86.04%-118.88% YoY.
5.The People's Bank of China expressed its support for the stock market.
6.The offshore RMB briefly fell below 7.4.
7.The Chinese government released a white paper on Sino-U.S. trade relations.
8.Southbound funds recorded a single-day net purchase of HK$35.59 billion on Wednesday.
9.The State Council held a meeting regarding market stability.
10.Trump announced a 90-day tariff pause for countries not taking retaliatory action.
11.China’s CPI for March fell 0.1% YoY, PPI dropped 2.5%.
12.Spot gold $Gold - main 2506(GCmain)$ reached a new high of $3,200/ounce.
13.U.S. CPI for March rose 2.4% YoY, lower than February's 2.8%.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1: $XIAOMI-W(01810)$ . A car accident involving a Xiaomi vehicle triggered concerns over insurance premiums and tariffs, causing the stock to drop 20.6%.
Top4: $SMIC(00981)$ . Amid escalating trade tensions, funds sought safe-haven assets. Semiconductor stocks like SMIC benefitted from increased investment in domestic alternatives, resulting in a rebound.
Top9: $CHIFENG GOLD(06693)$ . With rising fears of a global recession, investors flocked to gold. Spot gold surged past $3,200, boosting gold stocks like ChiFeng.
Top10: $JD-SW(09618)$ : Trade dispute concerns heavily impacted foreign trade stocks, but domestic consumption stocks, like JD, performed relatively well as investors shifted toward safer assets.
Next Week's Hong Kong Stock Market Events
1. Next Wednesday, China will release Q1 GDP and March retail sales data.
2. Next Friday, U.S. markets will be closed for Good Friday.
3.Next week, earnings reports from $ASML Holding NV(ASML)$ $Taiwan Semiconductor Manufacturing(TSM)$ $Netflix(NFLX)$ will likely impact related sectors.
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