HK Market Morning Report | International Gold Price Hits Record High, Emerging Market ETF Sees Fifth Consecutive Week of Inflows
①International gold prices hit a record high. ②Emerging market ETFs recorded inflows for the fifth consecutive week, with China maintaining the largest inflow scale. ③Bullard expressed interest in leading the Federal Reserve, stating that a 75-basis-point rate cut this year is reasonable. ④NVIDIA violated antitrust laws, and the State Administration for Market Regulation has decided to conduct further investigations.
Hot Topics
1. As both the international economic situation and geopolitical environment are conducive to pushing the Federal Reserve towards rate cuts, traders have increased their bets on gold and commodities. As of press time, London spot gold rose nearly $40 intraday, hitting $3,680 per ounce for the first time in history; COMEX gold also surged nearly 1%, reaching a new all-time high of $3,720 per ounce.
2. Last week, investors continued to buy emerging market stock and bond exchange-traded funds (ETFs), marking the fifth consecutive week of inflows into such ETFs. Data shows that as of September 12, U.S.-listed emerging market ETFs investing in developing countries and specific nations saw combined inflows of $2.17 billion, compared to $1.02 billion the previous week. Total inflows so far this year have reached $19.8 billion. Equity ETFs attracted $1.45 billion, while bond ETFs brought in $716.3 million; total assets increased from $422.3 billion to $437.5 billion. The MSCI Emerging Markets Index rose 3.9% last week to close at 1,325.73 points, its highest level since July 22, 2021. By market, China had the largest inflows at $653.9 million, led by iShares Core MSCI Emerging Markets. Argentina saw the largest outflows at $6.99 million.
3. Former St. Louis Fed President Bullard said on Monday that he discussed taking over as Federal Reserve Chair with U.S. Treasury Secretary Bessent last week and expressed strong interest in the position if conditions were suitable. He also noted that he expects the FOMC to cut rates by 25 basis points and signal further easing, deeming it reasonable for markets to anticipate cumulative rate cuts of 75 basis points by the end of the year.
4. Following preliminary investigations, NVIDIA Corporation was found to have violated the Anti-Monopoly Law of the People’s Republic of China and the announcement regarding the conditional approval of its acquisition of Mellanox Technologies issued by the State Administration for Market Regulation. The regulator has decided to carry out further investigations against NVIDIA.
Global Indices
In U.S. markets, at the close, the Dow Jones Industrial Average rose 50.03 points, or 0.11%, to 45,884.25 points; the Nasdaq Composite Index climbed 207.65 points, or 0.94%, to 22,348.75 points; and the S&P 500 Index gained 31.02 points, or 0.47%, to 6,615.31 points.
Most large-cap technology stocks performed well, with Amazon rising 1.44%, Meta up 1.21%, Apple gaining 1.12%, Microsoft increasing 1.07%, while NVIDIA edged down 0.04%.
The majority of popular Chinese stocks listed in the U.S. moved higher, with the Nasdaq China Golden Dragon Index closing up 0.87%. Li Auto surged over 6%, Bilibili jumped more than 5%, Nio rose over 4%, XPeng Motors climbed more than 2%, and Alibaba, PDD Holdings, and NetEase each gained over 1%.
In the Hong Kong stock market, as of Monday’s close, the Hang Seng Index rose by 0.22% to 26,446.56 points; the Technology Index increased by 0.91% to 6,043.61 points; and the China Enterprises Index climbed by 0.21% to 9,384.76 points.
In terms of market performance, automobile, lithium battery, pharmaceutical, and gaming stocks led the gains, while gold, banking, and semiconductor shares weakened.
Company News
Geely Auto (00175.HK): The proposal to privatize Zeekr has received formal approval from Zeekr shareholders.
Yanzhou Energy (01171.HK): Terminates the acquisition of Highfield Resources.
Kaisa Group Holdings (06968.HK): Achieved contract sales of RMB 3.602 billion in the first eight months.
China Southern Airlines (01055.HK): Passenger traffic turnover increased by 5.97% year-on-year in August; cargo and mail turnover increased by 5.48% year-on-year.
China Eastern Airlines (00670.HK): Passenger traffic turnover increased by 8.72% year-on-year in August; cargo and mail turnover increased by 16.39% year-on-year.
Cosco Shipping Holdings (01919.HK): Jointly established a smart supply chain joint venture with multiple parties. The registered capital of the joint venture is RMB 1 billion.
