Weekly | HSI Nears 22,000 Amid Positive Market Signals！

This week, Hong Kong stocks continued their upward trend, with the $HSI(HSI)$ rising 2.74%.

Trade War Easing Sparks Global Rally

President Trump hinted at a potential major shift in the trade war with China, stating that high tariffs on Chinese goods would be "significantly reduced, though not to zero."

U.S. Treasury Secretary Bessent also publicly stated that the trade war with China is unsustainable, telling investors that the Trump administration's goal is to achieve trade rebalancing rather than a complete rupture or decoupling in U.S.-China relations.

China's Economic Policy Shift

Meanwhile, China has exempted certain U.S. semiconductor imports from tariffs, reducing the tax from 125% to 0%, with a 13% VAT applied instead. Memory chips are temporarily excluded from the exemption list. Additionally, taxes previously paid on imported semiconductor products can now be refunded.

Following these signs of easing in the U.S.-China tariff conflict, global stock markets rebounded. The $NASDAQ(.IXIC)$ has surged 5.4% this week, while the Hang Seng Index is approaching the key 22,000-point threshold.

On Friday, the Chinese government is implementing more proactive macroeconomic policies, including increased fiscal spending and potential interest rate cuts. These measures aim to stabilize the real estate market and support the capital markets.

The healthcare sector saw significant gains this week, driven by positive earnings reports and policy support.

Southbound funds had a net inflow of HK$6.64 billion this week, despite a record net outflow of over HK$18.1 billion on Wednesday.

Major Events in Hong Kong Stocks This Week

1.The 1-year and 5-year Loan Prime Rates (LPR) remained unchanged at 3.1% and 3.6%, respectively.

2. $JD-SW(09618)$ announced that all food delivery orders delayed by more than 20 minutes will be free, intensifying competition in the delivery market.

3. President Trump criticized Fed Chairman Powell, calling for interest rate cuts.

4.Spot gold $Gold - main 2506(GCmain)$ prices briefly surpassed $3,500 per ounce, setting a new record.

5. $POP MART(09992)$ reported a 165%-170% year-over-year revenue increase in Q1.

6.E-commerce platforms have eliminated the "refund only" policy.

7. $TENCENT(00700)$ became the top holding in public mutual funds for the first time.

8. $TIANQI LITHIUM(09696)$ reported a turnaround, expecting Q1 profits between RMB 82 million and 123 million.

9.The U.S. is considering significant tariff reductions on Chinese imports.

10.Southbound funds experienced a record net outflow on Wednesday.

11.Finance Minister stated that China advocates for resolving trade and tariff disputes through equal dialogue.

12.The Political Bureau of the Central Committee held a meeting to analyze the current economic situation and work.

Four Stocks Worth Attention Among Top Trading HK Stocks This Week

Top 2: $CHIFENG GOLD(06693)$ – spot gold hit a new high of $3500 per ounce, then dropped sharply. On Wednesday, COMEX gold futures fell 3.7%, the biggest drop since June 2021, and gold stocks followed with big swings.

Top 3: $HORIZONROBOT-W(09660)$ – The company saw 428 million shares unlocked this week, causing the stock price to fall. However, some investors said they’re not rushing to sell, which helped stabilize the stock.

Top 4: $MEITUAN-W(03690)$ – The food delivery battle between JD and Meituan heated up this week. JD’s founder, Liu Qiangdong, delivered orders himself and promised free meals for orders delayed by over 20 minutes, causing both companies’ stock prices to drop.

Top 9: $POP MART(09992)$ – The company reported strong earnings this week, with Q1 revenue up 165%-170% year-over-year. Revenue in China grew by 95%-100%, and overseas sales jumped by 475%-480%.

Next Week's Hong Kong Stock Market Events

1.China's April PMI data will be released next Wednesday.

2.The Labor Day holiday will affect trading schedules for Hong Kong and A-shares.

3.Major U.S. tech companies, including $Microsoft(MSFT)$ $Meta Platforms, Inc.(META)$ $Apple(AAPL)$ $Amazon.com(AMZN)$, will report earnings, potentially impacting U.S. stock movements.