This week, the Hong Kong stock market showed resilience, with the Hang Seng Index rising 0.27% over the week. $ Hang Seng Index (HSI) $
In terms of news, several companies released their earnings reports this week. Among them, Leapmotor turned a profit in the first half of the year, becoming the second emerging Chinese automaker to achieve semi-annual profitability. As a result, Leapmotor's stock surged over 8% this week, hitting a record high! Pop Mart's net profit skyrocketed 396.5% in the first half, and the company stated it is confident of easily achieving its full-year revenue target of 30 billion yuan. Its stock soared 18%, reaching a record high, with its market capitalization exceeding 430 billion HKD. XPeng's Q2 revenue increased by 125%, setting a new record, and its founder He Xiaopeng unexpectedly increased his holdings by 3.1 million Hong Kong shares, driving the stock price up 18.7%! Miniso's Q2 revenue grew 23.1% year-over-year, with performance expected to accelerate in the second half of the year, leading to a 21% surge in its stock price! $ Leapmotor (09863) $ $ Pop Mart (09992) $ $ XPeng Inc. - W (09868) $
In addition, companies such as Xiaomi Corporation, Lao Feng Xiang Gold, and Hong Kong Exchanges and Clearing also reported better-than-expected earnings. Although their stock performance was not as strong as the aforementioned companies, they largely avoided negative surprises and successfully passed the Q2 earnings test. $ Xiaomi Corporation - W (01810) $ $ Lao Feng Xiang Gold (06181) $ $ Hong Kong Exchanges and Clearing (00388) $
On the mainland stock front, the Shanghai Composite Index continued to rise this week, breaking through the 3,800-point mark and repeatedly hitting 10-year highs! The ChiNext Index surged 5.85% over the week, with the market brimming with bull market optimism, positively impacting Hong Kong stocks as well.
For example, on Friday, semiconductor sectors in both Hong Kong and mainland markets collectively surged. Cambricon hit a 20% daily limit increase, while the Semiconductor ETF soared 9.16%, nearing the daily limit. In Hong Kong, SMIC surged 10%, and Hua Hong Semiconductor jumped nearly 18%! $ Cambricon (688256) $ $ SMIC (00981) $ $ Hua Hong Semiconductor (01347) $
In related news, reports indicated that NVIDIA has asked some component suppliers to halt production of the H20 chip. On the 21st, domestic large-model company DeepSeek released the DeepSeek V3.1 version, which for the first time supports FP8 precision and next-generation domestic chip architectures, marking the initial formation of a "domestic model-domestic chip" technological closed loop.
However, U.S. stocks performed poorly this week, with AI stars like NVIDIA, TSMC, and Palantir collectively declining, leading to consecutive drops in the Nasdaq index.
On the economic data front, the U.S. Labor Department reported that initial jobless claims for the previous week were 235,000, higher than the market expectation of 226,000 and an increase of 11,000 from the prior week. Continuing claims for the previous week were 1.972 million, above the market expectation of 1.96 million and an increase of 30,000 from the prior week, hitting the highest level since November 2021.
Although the data suggests a slowing U.S. labor market, some Federal Reserve officials emphasized that inflation remains the primary concern, even suggesting that a rate cut next month is unnecessary, taking a more hawkish stance than market expectations.
In terms of sectors, the information technology sector led gains this week, while energy and telecommunications sectors underperformed.
