The Hong Kong stock market extended its rebound this week, with the $HSI(HSI)$ gaining 2.3%.
U.S. Softens Tariff Stance
Late last Friday, the U.S. Customs and Border Protection quietly updated its tariff rules. Products like computers, data processors, communication gear, displays, modules, and semiconductors are now exempt from retaliatory tariffs.
This surprise move is being seen as a sign that Trump is easing his hardline stance on China. The consumer electronics sector rallied sharply in response.
China’s Economy Surprises to the Upside
On Wednesday, the National Bureau of Statistics released a number of economic data. Among them,
China’s Q1 GDP grew 5.4% year-on-year, beating expectations of 5.2%
Industrial output rose 7.7% in March, the fastest growth rate since June 2021
Retail sales of consumer goods grew 5.9%, the strongest since December 2023
Stimulus measures like the trade-in policy for consumer goods have helped boost domestic demand. While export front-loading may have contributed to the strong GDP, consumption clearly picked up.
The consumer sector is expected to enjoy a series of policy benefits, which will drive consumer stocks such as $WL DELICIOUS(09985)$ and $ZHOU HEI YA(01458)$ to strengthen.
This week, energy and real estate were the top-performing sectors.
Southbound fund inflows totaled HK$23.19 billion, showing continued investor confidence in Hong Kong equities.
Next week marks the start of earnings season for both Hong Kong and U.S. markets. First-quarter reports could drive big moves for individual stocks.
Major Events in Hong Kong Stocks This Week
1.U.S. exempts some Chinese imports from tariffs
2.HK Financial Secretary: Hong Kong should be the top listing choice for overseas Chinese companies
3. $JD-SW(09618)$ ’s Liu says food delivery margins must stay below 5%
4.Premier Li Qiang calls for stronger domestic consumption
5.U.S. restricts $NVIDIA(NVDA)$ H20 chip exports to China
6.March retail sales +5.9% YoY, beats expectations
7.Q1 GDP +5.4% YoY, beating forecasts
8.HongKong Post suspends U.S.-bound parcel services with goods
9.COMEX gold hits $3,330/oz, a new all-time high
10.Fed Chair Powell says no rush to cut, U.S. markets slump
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top2: $CHIFENG GOLD(06693)$ . Gold prices surged past $3,330/oz, lifting gold miners. Chifeng Gold hit an all-time high.
Top3: $DUALITYBIO-B(09606)$ . Massive IPO success. Listed this week with 115x oversubscription, 80% chance of winning a lot. Shares soared 116.7% on debut. Most profitable IPO since $ANGELALIGN(06699)$ in June 2021.
Top7: $MEITUAN-W(03690)$ . Shares dropped after $JD.com(JD)$ ’s Liu Qiangdong sparked fears of a price war in food delivery. He warned JD’s food delivery margins must not exceed 5%. The market is concerned that the fierce competition in the food delivery business will erode Meituan's profits, causing its share price to fall.
Next Week's Hong Kong Stock Market Events
1.Next Monday, HK markets closed for Easter holiday.
2.Next Monday, China’s April LPR rate decision (rate cut possible)
3.Next Tuesday, $Tesla Motors(TSLA)$ will release its first-quarter report.
4.Next Wednesday, the $HKEX(00388)$ will release its first-quarter report.
5.Next Thursday, $Alphabet(GOOG)$ $Alphabet(GOOGL)$ and $Amazon.com(AMZN)$ released their financial reports.
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