Weekly | Easing Trade Tensions Spark Strong Sector Rally!
This week, Hong Kong stocks experienced a pullback, with $HSI(HSI)$ dropping 1.52%.
Positive Trade News: China-US Relations Improve
In a major development, the Chinese Ministry of Commerce confirmed that the U.S. has lifted a series of restrictions on China. The U.S. will resume exports of products such as software, ethane, and aircraft engines to China.
Meanwhile, Vietnam and the U.S. announced a preliminary trade agreement, imposing a 20% tariff on Vietnam's exports to the U.S. and a 40% tariff on re-exported goods.
This news sparked a rally in trade-related stocks.
Optimistic Domestic Policies & Market Boosts
On the domestic, the National Medical Insurance Administration and the National Health Commission issued measures to support high-quality development of innovative drugs. They specifically mentioned using medical insurance data for drug R&D.
Additionally, the National Medical Products Administration introduced ten measures to support high-end medical equipment innovation.
On Thursday, the Ministry of Industry and Information Technology held its 15th manufacturing enterprise forum, focusing on accelerating the high-quality development of the photovoltaic (PV) industry. It emphasized regulation of low-price, chaotic competition and the need for better product quality and sustainable development.
These factors contributed to strong performance in the healthcare sector this week.
Southbound Funds (mainland investors buying Hong Kong stocks) saw a net inflow of HK$13.9 billion this week.
Major Events in Hong Kong Stocks This Week
1. $IFBH(06603)$ launched its IPO with an overwhelming 2682.35x oversubscription. Shares surged 42% on the first day of trading.
2.New Energy Vehicles (NEVs) reported strong June sales, with $LI AUTO-W(02015)$ delivering 48,006 vehicles, a year-on-year increase of over 138%.
3.The National Medical Insurance Administration and the National Health Commission released supportive measures for the development of innovative drugs.
4.The Hong Kong Stock Exchange raised HK$106.7 billion in IPOs in the first half of the year, the highest globally.
5.Trump stated that he would not extend the tariff negotiation deadline.
6.Southbound Funds saw a net inflow exceeding HK$730 billion in the first half of 2023, reaching 90% of the expected full-year amount.
7.The U.S. lifted restrictions on Chinese chip design software exports.
8. $BABA-W(09988)$ announced a zero-coupon convertible bond issuance totaling HK$12 billion, maturing in 2032.
9.The National Medical Products Administration introduced 10 measures to promote high-end medical device innovation.
10.The Ministry of Industry and Information Technology pushed for healthy competition in the PV sector, which led to a surge in PV-related stocks.
Four Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1： $IFBH(06603)$ : The company debuted on the Hong Kong Stock Exchange, soaring 42% on its first day and gaining another 20% the next day. The IPO saw a 2682.35x oversubscription, and the success boosted investor sentiment.
Top2： $BABA-W(09988)$ : Alibaba’s announcement of issuing HK$12 billion zero-coupon convertible bonds led to a drop in its stock price.
Top9： $UNISOUND(09678)$ : This stock was down after its dark market debut last week, but it made a strong recovery this week, soaring 44.6%, even outperforming IFBH.
Top10： $GCL TECH(03800)$ : Following the government’s push for the development of the PV sector, GCL-Poly and other PV-related stocks surged.
Next Week's Hong Kong Stock Market Events
1.Next Wednesday, China will release its June CPI data, with economists forecasting a 0.1% decrease.
2.The U.S.-China tariff negotiation deadline is on July 9th. Market participants will be watching closely for any developments.
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