Hang Seng Rose 0.3%
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Hang Seng Index rose 0.3%, while the Hang Seng Tech Index surged 1.9%. Markets remained cautious ahead of the global central bankers’ meeting, but enthusiasm for tech stocks stayed strong. This was mainly driven by DeepSeek’s V3.1b model announcement featuring UE8M0 FP8 Scale parameter precision, designed specifically for next-gen domestic chips. Additionally, reports that Nvidia asked suppliers to halt H20 chip production spurred a significant rebound in domestic chipmakers. In the A-share market, several leading semiconductor companies broke out to new patterns or hit record highs, lifting the Hong Kong market. Separately, the People’s Bank of China kept the 1-year and 5-year Loan Prime Rates (LPR) unchanged for July.
In US markets, the S&P 500 and Dow Jones Industrial Average rose significantly (with the Dow hitting a record high), while the Nasdaq underperformed. US-listed Chinese stocks (ADRs) gained support from China’s market rally. Overall caution prevailed before the Jackson Hole symposium, but markets rebounded sharply on Friday after Fed Chair Powell’s dovish remarks significantly boosted expectations for a September rate cut. Sentiment turned optimistic. Macro data showed the August Manufacturing PMI flash reading at 53.3, far exceeding expectations of 49.7 and hitting a 39-month high, adding to inflation concerns. Initial jobless claims came in at 235K, higher than the 225K forecast. With many companies reporting Q2 earnings, investors are advised to monitor results closely.
The CSI 300 Index jumped 4.2% on significantly higher trading volume, maintaining its uptrend. The index continued advancing along its 21-day moving average, hitting a new year-to-date high near its 2024 peak of 4450. The Shanghai Composite Index reached a 10-year high, while the Shenzhen Composite Index hit a 3-year high. The ChiNext Index broke through its 2024 high to set a new 3-year peak. Total market turnover exceeded 2 trillion yuan for 8 consecutive sessions. The AI sector continued leading gains.
Leading stocks advanced this week. The average stock in the MarketSmith Hong Kong 33 dropped by 0.1% for this week. Our Hong Kong Model Portfolio rose by 1.3% for this week (see details in the Model Portfolio section). Since June 20, 2013, the Hong Kong 33 is up 1002.1% vs. a 26.2% up for the Hang Seng.
The best performer in our Hong Kong 33 was Alphamab Oncology(09966), it’s a leading developer of oncology drugs. The stock gained 20% this week. EPS rating stands at 80, RS rating of 93, and A/D rating of A-.
Our Hong Kong Market Status are in an Confirmed Uptrend.
The Hang Seng Index, after an early-week pullback, recovered above its 21-day moving average, though overall volume decreased. Resistance sits near the previous high of 25,766.6, with support at the 21-day MA followed by the 50-day MA. The market uptrend remains intact despite three distribution days. Southbound capital inflows totaled RMB 16.51 billion, down significantly from last week but still positive. With many companies reporting earnings this week, investors should focus on stocks exceeding expectations, following breakout patterns or rebounding strongly on heavy volume from support levels.
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Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on August 22, 2025