Hang Seng Index slightly down, US stocks rise for the fourth consecutive week [Ping An Asset Management (Hong Kong) Market Weekly]

As of last Friday, the Hang Seng Index closed at 25,978.07 points, falling 0.70% for the week; southbound capital continued to flow in with a net inflow of approximately HKD 16.8 billion for the week. The CSI 300 Index closed at 4,769.37 points, slightly rising 0.86% for the week; the CSI 500 Index closed at 8,247.88 points, increasing by 0.41%, while the CSI 1000 Index closed at 8,304.14 points, dropping by 0.04%.

US large-cap tech stocks are approaching earnings season, with the Nasdaq Composite closing at 27,303.67 points, continuing its rise by 2.37%. The S&P 500 Index closed at 7,165.08 points, slightly rising 0.55% for the week, both indices achieving four consecutive weeks of gains. The Hang Seng Tech Index closed at 4,902.20 points, falling 2.79% for the week, while the Wind Technology Select HKD Net Return Index closed at 4,026.91 points, declining 1.93% for the week.

In terms of high-dividend themed market reference index performance, the CSI Hong Kong Dividend Index closed at 4,174.03 points, rising 2.10% for the week, and the Solactive Global Pacific Equity Select HKD Net Return Index closed at 2,083.19 points, increasing by 0.64% for the week.

The money market fund performance remains stable, with the latest quote for the US Secured Overnight Financing Rate (SOFR) at 3.65%.

Key market events:

Following the collapse of a new round of peace talks between the US and Iran, both sides maintained a blockade of the Strait of Hormuz as a negotiating chip. Trump also ordered firing on any vessels laying mines in this strategic waterway. Amid the deadlock in peace talks, Trump announced an indefinite extension of the ceasefire with Iran, and the ceasefire between Israel and Lebanon will also be extended for three weeks. Washington is reportedly eager to find alternative solutions to avoid reigniting conflict, and the new nuclear agreement reached by both sides may have weaker enforceability compared to the 2015 version. Informed US officials revealed that Trump's aggressive rhetoric weakened Tehran’s willingness to negotiate.

Crude oil futures are heading towards a fifth consecutive gain, poised to record the largest weekly increase since the first week of the Iran war. As oil-related input costs rise, Chinese exporters have raised prices across more than a dozen consumer product categories. S&P PMI shows a key price indicator for US businesses rising to a near four-year high, while Japan's core CPI accelerated for the first time in five months in March.

Facing potential upside risks to inflation, Fed chair candidate Bessent remained vague about the interest rate path during his nomination confirmation hearing but countered concerns that he would become a 'puppet' of the president. If Bessent's nomination fails to secure Senate confirmation in time, White House economic advisor Hassett supports Powell's 'temporary continuation' as Fed chair. The US is reportedly considering tightening regulations on car imports to accelerate manufacturing reshoring, and Commerce Secretary Lutnick ruled out the possibility of Chinese investment in the US auto industry.

More than a year after the 'DeepSeek moment,' this Chinese AI startup released a preview version of its latest V4 model. Meanwhile, Washington plans to announce a series of measures aimed at preventing Chinese developers from 'leveraging' American AI models to build a new generation of chatbots.

Germany’s economy minister is reportedly planning his first visit to China in late May, where he will discuss issues including Sino-German trade. Japan’s cabinet approved revisions to defense export regulations, lifting most restrictions on arms exports for the first time since World War II.

For the week, the Hang Seng Index fell 0.70%. In terms of sectors, the financial sector made the largest contribution to the index, while the discretionary consumption sector weighed most heavily on it. Southbound capital inflows amounted to approximately HKD 16.8 billion this week.

Key economic data:

On Thursday, the preliminary reading of the US S&P Global Services PMI for April came in at 51.3, above the expected 50.3; the preliminary reading of the S&P Global Manufacturing PMI for April was 54, surpassing the expected 52.5.

On Thursday, the number of Americans filing first-time claims for unemployment benefits last week totaled 214,000, higher than the estimated 210,000 and up from the previous figure of 207,000.

On Tuesday, US business inventories increased by 0.4% in February, exceeding the forecast of 0.3%.

On Tuesday, pending home sales in the US rose 1.5% month-over-month in March, surpassing the forecast of 0.5%.

On Tuesday, US retail sales increased by 1.7% month-over-month in March, exceeding the estimated growth of 1.4%.

On Tuesday, ADP data showed that over the four weeks ending April 4, private sector employment in the US averaged a weekly increase of 54,750 people.

Key market news:

On Friday, the CSRC announced a special operation for 2026 to combat and prevent financial fraud by listed companies, strengthening capital market supervision, enforcement, and long-term governance.

On Friday, the CSRC announced that qualified foreign investors will be allowed to participate in treasury bond futures trading starting April 24, 2026, with trading purposes limited to hedging.

On Friday, the Foreign Ministry responded to US accusations of 'intellectual property theft' in China's artificial intelligence industry, urging the US to stop suppressing China’s technological development.

On Friday, the State Administration for Market Regulation stated that penalties for 'ghost takeout' cases signal a stronger focus on regulating online transactions and ensuring food safety governance.

On Friday, the State Taxation Administration released a positive and negative list for taxpayers’ compliant issuance of invoices, aiming to strengthen regulations against behaviors such as 'invoice-based economies' and fraudulent invoicing.

On Friday, the draft Medical Security Law entered its second review, proposing to expand maternity insurance coverage and clarify that the maternity insurance fund will merge with the employee basic medical insurance fund for unified accounting.

On Friday, the Ministry of Finance launched the issuance of ultra-long special government bonds, including 20-year and 30-year maturities, which will be auctioned and listed for trading according to procedure.

On Friday, the US White House is reviewing a proposal by the SEC to relax stock issuance disclosure requirements and expedite the registration process, potentially lowering the threshold for corporate IPOs and secondary offerings.

On Thursday, the General Office of the CPC Central Committee and the General Office of the State Council issued the 'Comprehensive Evaluation and Assessment Measures for Carbon Peak and Carbon Neutrality,' promoting the establishment of a dual-control system for total carbon emissions and intensity while strengthening local assessments.

On Thursday, the Ministry of Commerce stated that if Chinese companies face discriminatory treatment due to the EU's revision of the 'Cybersecurity Law,' China will take measures in accordance with relevant laws and regulations to protect its rights.

On Thursday, the US Senate once again rejected a resolution to limit Trump's authority to take military action on Iran-related issues. Similar resolutions have failed to pass multiple times.

On Wednesday, US Treasury Secretary Bessent noted that several allies have requested to establish currency swap agreements with the US, potentially advancing liquidity cooperation arrangements with certain economies.

On Wednesday, prosecutors in Florida initiated a criminal investigation into OpenAI and ChatGPT, marking the first time artificial intelligence has been included in a criminal probe in the US.

On Wednesday, regulators issued the 'Interim Measures for the Administration of Asset Service Trusts (Draft for Comments)' to trust companies, emphasizing that asset service trusts should not be used as a guise for conducting asset management activities.

Weekly Market Brief:

Investors are closely watching the subsequent developments of the Middle Eastern conflict, advancements in AI-related sectors, China’s macroeconomic situation, and the recovery of certain segments of the real estate industry. Both domestic and international enterprises are investing heavily in fields such as artificial intelligence, innovative pharmaceuticals, and semiconductors, driving an investment boom. However, unlimited capital expenditures have raised some concerns. The government has proposed 'anti-involution' policies, but specific measures need to be implemented to stabilize economic development and market expectations.

In addition, negative factors such as geopolitical tensions and the global economic slowdown are affecting markets, and investors should remain vigilant. The implementation and actual effectiveness of policies introduced in China still require further observation. Domestic demand remains weak, with significant divergence among industries, and overall economic performance is not robust. We will closely monitor consumption growth trends.

We are particularly focused on the financial conditions of real estate companies and whether they may further impact the macro environment and investment sentiment. In the US, recent economic data indicates signs of slowing growth, with an unfavorable employment outlook. Coupled with the ongoing effects of the Middle Eastern conflict, there is considerable uncertainty regarding the Federal Reserve's interest rate trajectory.

Looking ahead to the coming week, China will release industrial profit data for March and the PMI index for April. The US will announce the house price index, consumer confidence index, wholesale inventories, new housing starts, durable goods orders, building permits, personal income and expenditures, and PCE inflation data. The Federal Reserve will also hold a rate-setting meeting.

In addition, it is necessary to continuously monitor the impact of the energy crisis and US tariffs on economies, commodities, and supply chains across countries. Although Sino-US relations have somewhat eased, the US continues to impose sanctions on certain state-owned enterprises, technology firms, and internet companies. It is expected that uncertainties in Sino-US relations will persist. Investors need to closely track policies from the US and Western nations towards China and Hong Kong, assess their impacts, and stay updated on geopolitical developments and industry-related policies.

(Source: Bloomberg, Ping An Asset Management (Hong Kong) Co., Ltd.)

Disclaimer and Important Notice

The products described in this document are authorized by the Securities and Futures Commission (SFC) of Hong Kong. Such authorization does not imply official endorsement by the SFC.

This document is for general reference only and does not constitute investment advice or any other form of recommendation, nor should it be considered an offer or solicitation to invest in any investment product. For investment advice, please consult your professional legal, tax, and financial advisors.

Investment involves risks. Past performance data is not indicative of future performance. Investors should carefully read the fund's sales documents and product key facts statement to obtain further information, including the features and all risk factors contained therein. Investors should not make investment decisions based solely on this document. This document is not intended for distribution or transmission in jurisdictions where such distribution or transmission is prohibited.

This document is not legally binding. Ping An Asset Management (Hong Kong) Co., Ltd. (“Ping An Asset Management (Hong Kong)”) assumes no responsibility for this document and expressly disclaims any liability for any loss arising from or in reliance on the whole or any part of this document. This document does not confer on the recipient any copyright or intellectual property rights to use the information contained herein (whether directly, indirectly, or by implication). No part of this document may be photocopied, distributed, or reproduced without the prior written consent of Ping An Asset Management (Hong Kong).

The products described in this document may face geographic, market, industry, or investment tool concentration risks. Compared with funds that have a more diversified portfolio, the value fluctuations of the products described in this document may be greater.larger.

67K Views