{Economic Information Daily, October 16} Despite the acceleration in the U.S. September Producer Price Index (PPI) on a monthly basis, adding pressure on the Federal Reserve to raise interest rates, European and U.S. stock markets rebounded, and Asia-Pacific markets followed suit. The Hang Seng Index rose nearly 300 points in the morning session, with gains narrowing in the afternoon. Support was seen at the 10-day moving average (around 24,162). The HSI closed the day at 24,186, up 124 points or 0.5%. The Hang Seng China Enterprises Index closed at 8,128, up 24 points or 0.3%. The Hang Seng Tech Index closed at 4,108, up 47 points or 1.2%. Hong Kong stocks will be closed next Monday (19th). Main board turnover shrank to below HK$200 billion, recording HK$178.2 billion. Notably, northbound funds recorded net outflows for the fourth consecutive day, with today’s net outflow reaching HK$3.5 billion.
Reviewing the week, early optimism over a potential shift in the Russia-Ukraine situation led the HSI to open over 200 points higher on Monday (12th). However, Russia and Ukraine quickly broke the energy ceasefire agreement, while Saudi Arabia suffered attacks by Houthi militants for two consecutive days. On Tuesday (13th), the HSI briefly fell below the 24,000 level before recovering. By Wednesday (14th) U.S. time, global markets were shaken by fears of an AI funding bubble, causing volatility. On Thursday, Hong Kong stocks struggled again to hold the 24,000 level. Today, the market rose again with improved sentiment, though the range remained narrow. Overall, the HSI ended the week down 24 points, stuck around the 24,000 level.
Credit default swaps for AI cloud service provider CoreWeave (US.CRWV) rose to a record intraday high, reflecting market expectations of a 60% chance of debt default within five years. However, NVIDIA (US.NVDA) CEO Jensen Huang reassured the market, stating CoreWeave’s financial strength continues to improve and that NVIDIA does not need to provide financial backing. After yesterday’s volatility, tech stocks recovered somewhat: Alibaba (09988) rose 2.26% to HK$108.80, Baidu (09888) rose 1.4% to HK$79.45, Meituan (03690) rose 0.33% to HK$75.70, and Kuaishou (01024) rose 2.52% to HK$29.30. Xiaomi (01810) moved independently, rising yesterday against the market trend but falling 1.55% today to HK$26.66.
Individual AI hardware stocks also rebounded: Lenovo Group (00992) surged 8.01% to HK$28.06, Kingboard Laminates (01888) rose 3.13% to HK$39.48, Yangtze Optical Fibre and Cable (06869) rose 1.14% to HK$124, while SMIC (00981) rose only 0.48% to HK$52.40, and Hua Hong Semiconductor (01347) fell 2.09% to HK$74.95.
Mainland China will release third-quarter economic growth data and multiple September economic indicators next Monday. As Hong Kong stocks will be closed that day, Chinese financial stocks declined early: China Life (02628) fell 2.88% to HK$23.62, Ping An Insurance (02318) fell 0.69% to HK$50.05, Bank of China (03988) fell 0.32% to HK$6.14, ICBC (01398) fell 1.36% to HK$7.59, Agricultural Bank of China (01288) fell 0.88% to HK$6.74, and China Construction Bank (00939) fell 1.1% to HK$9.865.
Property stocks rose: Longfor (00960) gained 6.21% to HK$5.045, China Resources Land (01109) rose 3.33% to HK$31.06, and Vanke (02202) rose 2.1% to HK$2.43. Domestic demand stocks showed mixed performance: Li-Ning (02331) rose 3.91% to HK$13.28, Anta Sports (02020) rose 3.31% to HK$77.95, Lao Pu Gold (06181) rose 2.25% to HK$318.60, WH Group (00288) fell 2.57% to HK$6.455, and Pop Mart (09992) dropped 2.27% to HK$142.20.
The top three most actively traded stocks in the HSI, H-share Index, and Tech Index were Tencent, Alibaba, and Lenovo Group. (ey)
Reviewing the week, early optimism over a potential shift in the Russia-Ukraine situation led the HSI to open over 200 points higher on Monday (12th). However, Russia and Ukraine quickly broke the energy ceasefire agreement, while Saudi Arabia suffered attacks by Houthi militants for two consecutive days. On Tuesday (13th), the HSI briefly fell below the 24,000 level before recovering. By Wednesday (14th) U.S. time, global markets were shaken by fears of an AI funding bubble, causing volatility. On Thursday, Hong Kong stocks struggled again to hold the 24,000 level. Today, the market rose again with improved sentiment, though the range remained narrow. Overall, the HSI ended the week down 24 points, stuck around the 24,000 level.
Credit default swaps for AI cloud service provider CoreWeave (US.CRWV) rose to a record intraday high, reflecting market expectations of a 60% chance of debt default within five years. However, NVIDIA (US.NVDA) CEO Jensen Huang reassured the market, stating CoreWeave’s financial strength continues to improve and that NVIDIA does not need to provide financial backing. After yesterday’s volatility, tech stocks recovered somewhat: Alibaba (09988) rose 2.26% to HK$108.80, Baidu (09888) rose 1.4% to HK$79.45, Meituan (03690) rose 0.33% to HK$75.70, and Kuaishou (01024) rose 2.52% to HK$29.30. Xiaomi (01810) moved independently, rising yesterday against the market trend but falling 1.55% today to HK$26.66.
Individual AI hardware stocks also rebounded: Lenovo Group (00992) surged 8.01% to HK$28.06, Kingboard Laminates (01888) rose 3.13% to HK$39.48, Yangtze Optical Fibre and Cable (06869) rose 1.14% to HK$124, while SMIC (00981) rose only 0.48% to HK$52.40, and Hua Hong Semiconductor (01347) fell 2.09% to HK$74.95.
Mainland China will release third-quarter economic growth data and multiple September economic indicators next Monday. As Hong Kong stocks will be closed that day, Chinese financial stocks declined early: China Life (02628) fell 2.88% to HK$23.62, Ping An Insurance (02318) fell 0.69% to HK$50.05, Bank of China (03988) fell 0.32% to HK$6.14, ICBC (01398) fell 1.36% to HK$7.59, Agricultural Bank of China (01288) fell 0.88% to HK$6.74, and China Construction Bank (00939) fell 1.1% to HK$9.865.
Property stocks rose: Longfor (00960) gained 6.21% to HK$5.045, China Resources Land (01109) rose 3.33% to HK$31.06, and Vanke (02202) rose 2.1% to HK$2.43. Domestic demand stocks showed mixed performance: Li-Ning (02331) rose 3.91% to HK$13.28, Anta Sports (02020) rose 3.31% to HK$77.95, Lao Pu Gold (06181) rose 2.25% to HK$318.60, WH Group (00288) fell 2.57% to HK$6.455, and Pop Mart (09992) dropped 2.27% to HK$142.20.
The top three most actively traded stocks in the HSI, H-share Index, and Tech Index were Tencent, Alibaba, and Lenovo Group. (ey)