Weekly | Black Swan Event Hits Global Markets!
This week, the Hong Kong stock market saw an initial rise, but then a dip, with $HSI(HSI)$ ending up just 0.42%.
CPI and PPI Data: A Mixed Bag
On Monday, China’s National Bureau of Statistics released May’s CPI and PPI data.
The Consumer Price Index (CPI) dropped by 0.1% year-on-year, while the core CPI, excluding food and energy, rose 0.6%—a slight uptick from the previous month.
The Producer Price Index (PPI) fell by 0.4% month-on-month and saw a larger year-on-year drop of 3.3%.
Despite weak data, the market remains hopeful.
Positive News: US-China Trade Talks
Good news came from the US-China trade talks earlier this week in London. Both sides reached a consensus on a framework to implement key agreements from the June 5th phone call between leaders.
China approved some rare earth export licenses, while the US eased certain export controls. This fueled optimism, pushing the global markets higher.
The US also released CPI data for May, showing a 2.4% increase year-on-year, with core CPI up just 0.1% month-on-month—below expectations. However, Friday’s unexpected news caused a sharp market decline.
Israel-Iran Tensions Spark Global Fears
The situation escalated on Friday when Israel launched airstrikes on Iran, targeting nuclear sites and military facilities. Several Iranian military leaders were reportedly killed.
The resulting fear sent gold and oil prices soaring, and global stocks plunged.
Energy and healthcare stocks led the charge this week, while telecom stocks underperformed.
Southbound funds continued to flow into Hong Kong, with a net inflow of HK$ 15.46 billion.
Major Events in Hong Kong Stocks This Week
1. $HSI(HSI)$ added $MIDEA GROUP(00300)$ and $ZTO EXPRESS-W(02057)$ to its components, raising the total number of constituents from 83 to 85.
2. $POP MART(09992)$ ‘s founder became the new wealthiest person in Henan with a net worth of $20.3 billion.
3.Several Chinese companies, including $BLOKS(00325)$ $GUMING(01364)$ and $MIXUE GROUP(02097)$ , were added to the Stock Connect.
4.The first US-China trade talks took place, and both parties reached an agreement on key issues.
5.China’s May CPI fell 0.1%, and PPI dropped 3.3% YoY.
6.China’s Ministry of Industry and Information Technology is tackling “overheating” issues in the EV sector.
7.The central government has announced that businesses in the Guangdong-Hong Kong-Macao Greater Bay Area can list in Shenzhen.
8. $HAITIAN FLAV(03288)$ launched its IPO with investments from Hillhouse Capital and Singapore’s sovereign wealth fund.
9.The AH Premium Index reached a 5-year low.
10. $Ant Group Co., Ltd.(06688)$ plans to apply for stablecoin licenses in Hong Kong and Singapore.
11.The Hong Kong Securities and Futures Commission is considering optimizing the Stock Connect.
12.Israel’s attack on Iran caused a spike in gold and oil prices, dragging global markets down.
13.China’s May exports increased 6.3% YoY, totaling RMB 2.28 trillion.
14.US CPI data for May showed a 2.4% YoY increase, with a 0.1% MoM rise—both lower than expected.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top 2: $POP MART(09992)$ : This week, a one-of-a-kind mint-colored LABUBU figurine at an auction fetched HK$ 1.08 million, sparking massive market excitement. Pop Mart’s stock hit a new high, and its founder became the new wealthiest person in Henan.
Top 6: $CHINA RAREEARTH(00769)$ : Following the US-China trade talks, China approved rare earth export licenses, which caused rare earth stocks to surge.
Top 9: $CHIFENG GOLD(06693)$ : On June 13th, Israel launched airstrikes on Iran, sending gold and oil prices soaring and lifting stocks like Chifeng Gold.
Next Week's Hong Kong Stock Market Events
1.Next Monday, China will release data on May’s retail sales, industrial production, and urban housing prices.
2.Next Wednesday, $HAITIAN FLAV(03288)$ ’s shares will begin trading.
3.Next Thursday, the Fed will announce its interest rate decision, and investors will closely watch for hints on future monetary policy.
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