JPM Research: Anti-Involution Campaign Transforms China's Express and Logistics Industry; Recommended Stocks Include ZTO EXPRESS-W and SF HOLDING
Industry Changes: China's express and logistics sector is undergoing significant transformations due to regulatory interventions, impacting pricing rules, parcel volume growth, and the competitive landscape, as highlighted in a JPMorgan report.
Investor Interest: There is a renewed interest from investors in the logistics industry, particularly in companies like ZTO EXPRESS-W, SF HOLDING, and JD LOGISTICS, which are regaining attention after a period of underperformance.
Broker Recommendations: JPMorgan has rated ZTO EXPRESS-W and SF HOLDING as Overweight, with target prices set at $187 for ZTO EXPRESS-W and $48 for SF HOLDING's H-shares, indicating strong potential for growth.
JD LOGISTICS Rating: JD LOGISTICS is also rated Overweight by JPMorgan, with a target price of $15, reflecting a positive outlook for the company amidst the changing market dynamics.
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HSI Ends at 27,266, Gaining 83 Points; HSTI Finishes at 5,499, Up 48 Points; XIAOMI Surges Over 4%; TECHTRONIC IND, CHINA RES MIXC, ZTO EXPRESS-W, WH GROUP, CLP HOLDINGS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 83 points (0.3%) to close at 27,266, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, with market turnover reaching $217.22 billion.
Active Heavyweights: Notable movements included Xiaomi (+4.3%), Ping An (-1.3%), Tencent (-0.5%), and Alibaba (-0.2%), with significant short selling activity across these stocks.
HSI & HSCEI Constituents: Key performers included Pop Mart (-5.5%), Techtronic Industries (+4.9%), and BYD Company (+3.5%), with several stocks hitting new highs despite some declines.
HSMI & HSSI Constituents: Synagistics surged by 38.7%, while KB Laminates and CNBM both rose by over 11%, indicating strong performance in certain sectors despite some stocks experiencing declines.
<Daily Summary> HSI Ends at 27,183, Gaining 155 Points; HSTI Finishes at 5,451, Up 33 Points; CSPC PHARMA Surges Over 5%; ZTO EXPRESS-W, WH GROUP, BOC HONG KONG, WHARF REIC, and HANG LUNG PPT Reach New Peaks; Market Activity Increases
Market Performance: The Hang Seng Index (HSI) rose by 155 points (0.6%) to close at 27,183, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, with market turnover reaching $234.04 billion.
Active Heavyweights: Notable movements included Meituan down 2.5%, Alibaba up 1.6%, Tencent down 1.6%, and Xiaomi up 1.1%, with significant short selling activity across these stocks.
Top Gainers: CSPC Pharma, Innovent Bio, and Pop Mart were among the top gainers, with CSPC Pharma increasing by 5.5% and Pop Mart by 4.9%, while New Oriental saw a decline of 4.4%.
High Performers in HSMI & HSSI: China Literature surged by 15.4%, Vobile Group by 14.4%, and GeekPlus by 11%, indicating strong performance in smaller stocks within the market.
Chinese Government Provides Employment Administration Guidance for Meituan and 15 Additional Platforms
Employment Guidance in China: China's Ministry of Human Resources and Social Security, along with other regulatory bodies, provided administrative guidance to 16 companies to protect workers' rights in new employment dynamics.
Companies Involved: The guidance specifically targeted companies such as MEITUAN-W, Taobao Instant Commerce, Jingdong Miaosong, and others in the logistics and delivery sectors.
Responsibilities of Companies: The meeting emphasized that these companies must fulfill their responsibilities as employers, enhance labor management, and ensure the protection of workers' rights.
Market Context: The article also mentions short selling data for various companies, indicating market activity and investor sentiment related to these firms.
<Midday Update> HSI Rises by 385 Points; HSTI Gains 55 Points; PING AN Surges Over 4%; YUM CHINA, LI NING, SHK PPT, BOC HONG KONG, and ZTO EXPRESS-W Reach New Peaks
Market Performance: The HSI rose by 385 points (1.5%) to 26,945, while the HSTI and HSCEI also saw gains of 55 points (1.0%) and 111 points (1.2%) respectively.
Active Heavyweights: Notable stocks included PING AN (+4.1%), HKEX (+2.8%), and BABA (+1.9%), with significant short selling activity reported for each.
Top Gainers: INNOVENT BIO and POP MART led the gains among HSI & HSCEI constituents, rising by 5.9% and 5.8% respectively, while KUAISHOU-W experienced a notable decline of 4.3%.
Significant Movements: CHINA EAST EDU and CHINA LIT saw substantial increases of 11.9% and 10.1%, while REALORD GROUP faced a significant drop of 10%.
<Full-day Summary> HSI Falls 325 Points; HSTI Declines 59 Points; AIA Drops More Than 5%; ZTO EXPRESS-W, BOC HONG KONG, SHK PPT, REALORD GROUP, SANY INT'L Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 325 points (1.2%) to 26,559, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $247.87 billion.
Active Heavyweights: Major stocks like Alibaba, Meituan, and Tencent saw significant drops, with Alibaba closing down 2.9% at $155, while Xiaomi and CCB managed slight gains.
Notable Movers: AIA experienced a sharp decline of 5.5%, while Li Auto and Mengniu Dairy saw increases of 3.6% and 3%, respectively, with several stocks hitting new highs.
Short Selling Trends: High short selling ratios were noted for several companies, including Ping An and CCB, indicating increased market speculation and potential bearish sentiment.
ZTO EXPRESS-W Forecasts Yearly Revenue Growth of Approximately 9.5-12.9% for 2025
Stock Performance: ZTO Express-W (02057.HK) saw an increase of 4.100 (+2.343%) in its stock price, with short selling amounting to $137.70 million and a ratio of 29.867%.
Revenue Forecast: The company projects total revenues for 2025 to be between RMB48.5 billion and RMB50 billion, reflecting a growth of approximately 9.5% to 12.9% compared to RMB44.281 billion in 2024.
Gross Profit Projection: ZTO Express-W anticipates its gross profit for 2025 to range from RMB12.15 billion to RMB12.55 billion, indicating a decline of about 8.5% to 11.4% from RMB13.717 billion in 2024.
Market Data Note: The stock quote for HK stocks is delayed by at least 15 minutes, and the short selling data is as of February 4, 2026, at 16:25.
HSI Ends at 27,266, Gaining 83 Points; HSTI Finishes at 5,499, Up 48 Points; XIAOMI Surges Over 4%; TECHTRONIC IND, CHINA RES MIXC, ZTO EXPRESS-W, WH GROUP, CLP HOLDINGS Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 83 points (0.3%) to close at 27,266, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, with market turnover reaching $217.22 billion.
Active Heavyweights: Notable movements included Xiaomi (+4.3%), Ping An (-1.3%), Tencent (-0.5%), and Alibaba (-0.2%), with significant short selling activity across these stocks.
HSI & HSCEI Constituents: Key performers included Pop Mart (-5.5%), Techtronic Industries (+4.9%), and BYD Company (+3.5%), with several stocks hitting new highs despite some declines.
HSMI & HSSI Constituents: Synagistics surged by 38.7%, while KB Laminates and CNBM both rose by over 11%, indicating strong performance in certain sectors despite some stocks experiencing declines.
<Daily Summary> HSI Ends at 27,183, Gaining 155 Points; HSTI Finishes at 5,451, Up 33 Points; CSPC PHARMA Surges Over 5%; ZTO EXPRESS-W, WH GROUP, BOC HONG KONG, WHARF REIC, and HANG LUNG PPT Reach New Peaks; Market Activity Increases
Market Performance: The Hang Seng Index (HSI) rose by 155 points (0.6%) to close at 27,183, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains, with market turnover reaching $234.04 billion.
Active Heavyweights: Notable movements included Meituan down 2.5%, Alibaba up 1.6%, Tencent down 1.6%, and Xiaomi up 1.1%, with significant short selling activity across these stocks.
Top Gainers: CSPC Pharma, Innovent Bio, and Pop Mart were among the top gainers, with CSPC Pharma increasing by 5.5% and Pop Mart by 4.9%, while New Oriental saw a decline of 4.4%.
High Performers in HSMI & HSSI: China Literature surged by 15.4%, Vobile Group by 14.4%, and GeekPlus by 11%, indicating strong performance in smaller stocks within the market.
Chinese Government Provides Employment Administration Guidance for Meituan and 15 Additional Platforms
Employment Guidance in China: China's Ministry of Human Resources and Social Security, along with other regulatory bodies, provided administrative guidance to 16 companies to protect workers' rights in new employment dynamics.
Companies Involved: The guidance specifically targeted companies such as MEITUAN-W, Taobao Instant Commerce, Jingdong Miaosong, and others in the logistics and delivery sectors.
Responsibilities of Companies: The meeting emphasized that these companies must fulfill their responsibilities as employers, enhance labor management, and ensure the protection of workers' rights.
Market Context: The article also mentions short selling data for various companies, indicating market activity and investor sentiment related to these firms.
<Midday Update> HSI Rises by 385 Points; HSTI Gains 55 Points; PING AN Surges Over 4%; YUM CHINA, LI NING, SHK PPT, BOC HONG KONG, and ZTO EXPRESS-W Reach New Peaks
Market Performance: The HSI rose by 385 points (1.5%) to 26,945, while the HSTI and HSCEI also saw gains of 55 points (1.0%) and 111 points (1.2%) respectively.
Active Heavyweights: Notable stocks included PING AN (+4.1%), HKEX (+2.8%), and BABA (+1.9%), with significant short selling activity reported for each.
Top Gainers: INNOVENT BIO and POP MART led the gains among HSI & HSCEI constituents, rising by 5.9% and 5.8% respectively, while KUAISHOU-W experienced a notable decline of 4.3%.
Significant Movements: CHINA EAST EDU and CHINA LIT saw substantial increases of 11.9% and 10.1%, while REALORD GROUP faced a significant drop of 10%.
<Full-day Summary> HSI Falls 325 Points; HSTI Declines 59 Points; AIA Drops More Than 5%; ZTO EXPRESS-W, BOC HONG KONG, SHK PPT, REALORD GROUP, SANY INT'L Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 325 points (1.2%) to 26,559, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $247.87 billion.
Active Heavyweights: Major stocks like Alibaba, Meituan, and Tencent saw significant drops, with Alibaba closing down 2.9% at $155, while Xiaomi and CCB managed slight gains.
Notable Movers: AIA experienced a sharp decline of 5.5%, while Li Auto and Mengniu Dairy saw increases of 3.6% and 3%, respectively, with several stocks hitting new highs.
Short Selling Trends: High short selling ratios were noted for several companies, including Ping An and CCB, indicating increased market speculation and potential bearish sentiment.
ZTO EXPRESS-W Forecasts Yearly Revenue Growth of Approximately 9.5-12.9% for 2025
Stock Performance: ZTO Express-W (02057.HK) saw an increase of 4.100 (+2.343%) in its stock price, with short selling amounting to $137.70 million and a ratio of 29.867%.
Revenue Forecast: The company projects total revenues for 2025 to be between RMB48.5 billion and RMB50 billion, reflecting a growth of approximately 9.5% to 12.9% compared to RMB44.281 billion in 2024.
Gross Profit Projection: ZTO Express-W anticipates its gross profit for 2025 to range from RMB12.15 billion to RMB12.55 billion, indicating a decline of about 8.5% to 11.4% from RMB13.717 billion in 2024.
Market Data Note: The stock quote for HK stocks is delayed by at least 15 minutes, and the short selling data is as of February 4, 2026, at 16:25.
