Market Insights: May 6th, 2024

Stock Market:

• A-share Market: On May 6th, the three major A-share indexes collectively opened higher. The Shanghai Stock Exchange Index rose by 0.89%, the Shenzhen Component Index by 1.55%, and the ChiNext Index by 2.07%. In terms of sector performance, synthetic biology, graphite electrodes, and real estate led the gains, while precious metals, oil and gas, and gold sectors saw declines.
• U.S. Stock Market: In the U.S. stock market session, the index of Chinese concept stocks rose by 1.7%, marking three consecutive days of gains to a six-month high. NetEase shares surged over 4%, but Xpeng Motors and Li Auto fell more than 3%.
• Berkshire Hathaway: Berkshire Hathaway's operating profits increased by 39% in the first quarter, cash reserves reached a new historical high, and the company spent $2.6 billion on share repurchases.
• Hong Kong Stock Market: The Hong Kong stock market rose for nine consecutive trading days, marking its longest winning streak in six years, with a total weekly gain of 824 points (4.7%).

Commodity Market:

• Gold Market: After a rally, gold prices retreated nearly 2%, marking two consecutive weeks of declines.
• Crude Oil Market: Crude oil prices hit a seven-week low and the biggest weekly fall in three months, with U.S. oil prices falling for five consecutive trading days, stepping down nearly 7% within a week.
• Bitcoin Market: Bitcoin prices surged over $3,000 during the session, breaking back through the $62,000 mark.
• Renminbi Exchange Rate: The Renminbi exchange rate gained over 400 points during the session, breaking through the 7.17 mark and reaching a two-month high.

Economic Data:

• Global Economic Data: The S&P Global Hong Kong Special Administrative Region Purchasing Managers' Index (PMI) for April, after seasonal adjustment, was 50.6, indicating improvement for two consecutive months, although the pace was slightly slower than in March.
• Domestic Economic Data: According to data released by the National Bureau of Statistics, the Manufacturing Purchasing Managers' Index (PMI) for April was 50.4%, a decrease of 0.4 percentage points from the previous month, but still in the expansion zone for two consecutive months.

Financial Policy:

• Hong Kong Financial Regulatory Policy: Recently, the Hong Kong Monetary Authority announced it will rename "virtual banks" as "licensed digital banks" and has initiated a one-month consultation with the Hong Kong Association of Banks, the Association of Restricted License Banks and Deposit-taking Companies, and the eight virtual banks regarding this change.

Corporate Movements:

• Bank of China Hong Kong: Bank of China Hong Kong announced its salary adjustment plan for this year while disbursing April salaries, indicating that pay increases for employees who meet performance standards are generally lower than last year's levels.

Economic Situation:

• Hong Kong's Economy: Hong Kong's GDP grew by 2.7% year-on-year in the first quarter, marking five consecutive quarters of growth. The main growth driver was tourism, especially during the "May Day" holiday period, when the number of inbound tourists increased by 25% year-on-year.