Rising US-Iran talks boost markets; SEC halts tokenized stocks; Huawei announces "Tao Law"; Xiaomi earnings report.

Trump Optimistic About Iran Negotiations

Trump stated that negotiations with Iran are progressing well, emphasizing that he will not sign any agreement that paves the way for Iran to acquire nuclear weapons. He warned of potentially larger-scale conflicts if talks fail. Reports indicate that the U.S. and Iran are discussing terms related to nuclear programs and sanctions, with U.S. officials expressing optimism about resolving disputes soon. The Iranian delegation's recent appearance in Qatar is seen as a positive sign.

SEC Halts Tokenized Stock Plan

The U.S. SEC has suspended a plan to allow third parties to issue digital tokens tracking stock prices without company authorization. This plan, which would have enabled trading on decentralized platforms, could have led to multiple tokens for the same stock, severely fragmenting market liquidity.

Goldman Sachs Sees Shift in Market Focus

Goldman Sachs traders note that as AI investments cool, the market is shifting towards "post-war trades." Momentum trading has faced its largest drawdown since 2022, signaling a diversification window. Assets in healthcare, European defense, and Asian financials are gaining attention, while low-quality stocks face over 20% downside risk if U.S. Treasury yields remain high.

Hong Kong Real Estate Booms

The Hong Kong property market is experiencing a surge, with mainland buyers driving record transaction volumes. Some buyers are flying in just to purchase properties, with reports of billion-dollar deals being finalized in just three days. This influx is attributed to favorable policies, with buyers primarily from northern and Jiangsu-Zhejiang regions.

U.S. Market Performance

The S&P 500 rose 0.37% to 7473.47 points, with a weekly gain of 0.88%. The Dow Jones increased by 0.58% to 50579.70 points, up 2.13% for the week. The Nasdaq saw a slight rise of 0.19% to 26343.97 points, with a weekly increase of 0.45%.

Russell Index Adjustments

The Russell Index has been recalibrated, with Google and AMD removed from the Russell 1000 Value Index, reflecting their growth attributes. Walmart has replaced Eli Lilly as the only new entrant among the top ten companies.

Samsung Labor Disputes Intensify

Samsung Electronics faces internal strife as the union in its non-chip division seeks to block a vote on a wage agreement. The disparity in bonuses between chip and consumer electronics employees has led to significant tensions.

New Leveraged ETFs in South Korea

South Korea is set to launch leveraged ETFs linked to Samsung Electronics and SK Hynix, offering investors greater potential returns. However, the daily loss potential could reach 60%, given the country's stock price fluctuation limits.

Eli Lilly's Weight Loss Drug Breakthrough

Eli Lilly's new weight loss drug, RETA, has shown promising results in clinical trials, with participants losing an average of 28%. The drug's mechanism surpasses existing GLP-1 medications, potentially transforming the obesity treatment landscape.

Upcoming Major IPOs and Market Impact

The largest IPO in U.S. history is on the horizon, with companies like SpaceX and OpenAI preparing to go public. This could lead to significant fund reallocations, with estimates suggesting passive funds may need to sell around $95 billion in existing tech stocks.

Joyy Reports Strong Q1 Earnings

Joyy reported Q1 revenue of $555.7 million, a 12.4% year-over-year increase, marking its highest growth rate in recent years. The company plans to return $1.5 billion to shareholders over the next three years.

Hong Kong Stock Market Activity

On May 22, net sales of Hong Kong stocks reached HKD 6.493 billion. Notable net purchases included SMIC and Hua Hong Semiconductor, while Alibaba and Tencent faced significant net sales.

Huawei's New Semiconductor Principles

Huawei has introduced the "Tao Law" in the semiconductor sector, aiming to guide industry development. The upcoming Kirin smartphone chip is expected to significantly enhance performance.

Hang Seng Index Adjustments

The Hang Seng Index has added J&T Express and BeiGene, while the Hang Seng Tech Index has included MINIMAX-W and Zhizhu, removing Kingdee International and Kingsoft.

Economic Data Releases

Upcoming economic data includes the U.S. Conference Board Consumer Confidence Index and the Dallas Fed Business Activity Index for May.