CMBI Maintains Equalweight Rating for CN Discretionary Consumption Sector with a Cautious Perspective
CMBI's Rating and Outlook: CMBI has assigned an Equalweight rating to China's discretionary consumption sector for 2026, predicting retail sales growth of about 3.5%, influenced by various economic headwinds and a cautious outlook.
Positive Factors and Stock Performance: Despite challenges, factors like the delayed Spring Festival and a recovering real estate sector may support stock prices, with expectations of pressure in the first half of 2026 and potential rebounds in the second half.
Investment Preferences: CMBI categorizes investments into survival, compensatory, and hedging/defensive consumption, recommending companies in these areas, such as LEPU BIO-B and YUM CHINA, all rated as Buy.
Large-Scale Consumption Outlook: The broker is less optimistic about large-scale consumption sectors, although favorable market conditions could enhance their performance, with companies like HAIER SMARTHOME and MIDEA GROUP also rated as Buy.
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HSBC Research Projects 6.7% Shareholder Return for MIDEA GROUP (00300.HK) This Year, Raises Target Price to $110
Air Conditioner Sales Decline: There was a 24% year-over-year decline in air conditioner sales in mainland China for Q4 2025, attributed to a high base and ongoing demand pressures, according to HSBC Global Research.
MIDEA GROUP Performance: Despite the industry downturn, MIDEA GROUP is expected to report slightly better-than-expected revenue due to successful merger and acquisition strategies.
Future Demand Predictions: HSBC anticipates that domestic demand for home appliances will be impacted by the gradual withdrawal of subsidies and high base effects, projecting mid-single-digit growth for MIDEA GROUP in 2026.
Target Price Adjustments: HSBC raised its target prices for MIDEA GROUP's H-/A-shares to $110/RMB97, maintaining a "Buy" rating, with estimated shareholder returns increasing to 6.7% in 2026 and 7% in 2027.
Citi Research: Chinese Consumption Sector Prioritizes Sustainable Profit Growth; Recommended Stocks Include ANTA SPORTS, HAIDILAO, POP MART, and More
Citi Research Forecast: Citi Research predicts a shift in investor portfolios between 'value' and 'growth' in China's consumption sector, emphasizing a cautious outlook on immediate government consumption stimulation in a low-inflation environment.
Top Stock Picks: In the consumer discretionary sector, Citi's top picks include ANTA SPORTS, POP MART, HAIDILAO, Atour Lifestyle, and MIDEA GROUP, while in consumer staples, they favor CHINA RES BEER, EASTROC BEVERAGE, and MAO GEPING.
Potential Outperformance: If China's consumption recovery surpasses expectations, stocks like LI NING, CTG DUTY-FREE, and HAITIAN FLAV are anticipated to outperform the market.
Short Selling Data: The report includes short selling data for various stocks, indicating market sentiment and potential risks associated with these investments.
G Sachs Publishes EPS CAGR Projections for Top 10 Private Companies in China (Table)
Stock Performance: Various stocks including Tencent, Alibaba, and BYD experienced declines, with Tencent down 1.976% and Alibaba down 4.045%.
Short Selling Data: Significant short selling activity was noted, with Alibaba leading at $3.68B and a ratio of 21.669%, indicating bearish sentiment among investors.
Earnings Forecasts: The forecasted EPS CAGR for 2025-2027 varies across companies, with BYD projected at 30% and Meituan at 188%, while PE ratios range from 12x to 46x.
Market Overview: The report includes delayed stock quotes and short selling data as of January 6, 2026, highlighting the current market conditions for Chinese stocks.
Sinolink Securities Predicts Record Profits for Electrolytic Aluminum Sector, Anticipates Aluminum Sector to Emerge as a High-Quality Asset
LME Futures Performance: LME aluminum futures rose by 2.3% to $3,085.5 per ton, while LME copper futures increased by 4.2% to $12,991.5 per ton.
Market Activity in Precious Metals: CHINAHONGQIAO saw a significant rise of 6.4% to $35.32, with a turnover of $1.541 billion, while other companies like CHALCO and JIANGXI COPPER also experienced notable gains.
Geopolitical Impact on Commodities: CLSA reported that Venezuela's situation is raising geopolitical risks, which supports gold prices and intensifies oil oversupply.
Future Trends in Aluminum and Copper: Analysts predict a moderate rise in aluminum prices and a shift towards aluminum in sectors like air conditioning due to rising copper prices, while domestic aluminum companies are expected to see declining capital expenditures but expanding profits.
HSI Rises 707 Points on First Trading Day of 2026; BIDU-SW Jumps 9% During Tech Surge
Market Performance: The HSI rose by 707 points (2.8%) to close at 26,338, while the HSCEI and HSTECH also saw significant gains, with total market turnover reaching HKD140.864 billion.
BIREN TECH Debut: Chinese GPU maker BIREN TECH surged 75.8% on its debut, closing at HKD34.46 after peaking at HKD42.88, with a turnover of HKD5.521 billion.
Tech Stocks Surge: Major tech stocks like BIDU-SW, TENCENT, and BABA-W experienced notable increases, with BIDU-SW rising 9.4% and TENCENT gaining 4%.
Automotive Sector Growth: Automotive stocks such as LI AUTO-W and BYD COMPANY also saw gains, with LI AUTO-W increasing by 4.9% and BYD COMPANY rising by 3.6%.
<Daily Summary> HSI Gains 707 Points; HSTI Rises 220 Points; BABA and TENCENT Each Increase by Over 4%; BIDU-SW, BOC HONG KONG, SKYWORTH, and CHALCO Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 707 points (2.8%) to close at 26,338, with significant gains also seen in the HSTI and HSCEI, which increased by 220 points (4.0%) and 255 points (2.9%) respectively, and a market turnover of $140.86 billion.
Top Gainers: Notable heavyweights included Alibaba (BABA) and Tencent (TENCENT), which rose by 4.3% and 4.0% respectively, while other significant movers like Baidu (BIDU-SW) surged by 9.4%, reaching a new high.
Short Selling Activity: The short selling ratios for several stocks were high, with Xiaomi and Ping An showing ratios of 26.85% and 21.29% respectively, indicating significant market speculation.
Sector Highlights: Stocks like DL Holdings GP and Skyworth saw substantial increases of 11.8% and 10.4%, while 361 Degrees experienced a notable decline of 11.2%, reflecting varied performance across sectors.
HSBC Research Projects 6.7% Shareholder Return for MIDEA GROUP (00300.HK) This Year, Raises Target Price to $110
Air Conditioner Sales Decline: There was a 24% year-over-year decline in air conditioner sales in mainland China for Q4 2025, attributed to a high base and ongoing demand pressures, according to HSBC Global Research.
MIDEA GROUP Performance: Despite the industry downturn, MIDEA GROUP is expected to report slightly better-than-expected revenue due to successful merger and acquisition strategies.
Future Demand Predictions: HSBC anticipates that domestic demand for home appliances will be impacted by the gradual withdrawal of subsidies and high base effects, projecting mid-single-digit growth for MIDEA GROUP in 2026.
Target Price Adjustments: HSBC raised its target prices for MIDEA GROUP's H-/A-shares to $110/RMB97, maintaining a "Buy" rating, with estimated shareholder returns increasing to 6.7% in 2026 and 7% in 2027.
Citi Research: Chinese Consumption Sector Prioritizes Sustainable Profit Growth; Recommended Stocks Include ANTA SPORTS, HAIDILAO, POP MART, and More
Citi Research Forecast: Citi Research predicts a shift in investor portfolios between 'value' and 'growth' in China's consumption sector, emphasizing a cautious outlook on immediate government consumption stimulation in a low-inflation environment.
Top Stock Picks: In the consumer discretionary sector, Citi's top picks include ANTA SPORTS, POP MART, HAIDILAO, Atour Lifestyle, and MIDEA GROUP, while in consumer staples, they favor CHINA RES BEER, EASTROC BEVERAGE, and MAO GEPING.
Potential Outperformance: If China's consumption recovery surpasses expectations, stocks like LI NING, CTG DUTY-FREE, and HAITIAN FLAV are anticipated to outperform the market.
Short Selling Data: The report includes short selling data for various stocks, indicating market sentiment and potential risks associated with these investments.
G Sachs Publishes EPS CAGR Projections for Top 10 Private Companies in China (Table)
Stock Performance: Various stocks including Tencent, Alibaba, and BYD experienced declines, with Tencent down 1.976% and Alibaba down 4.045%.
Short Selling Data: Significant short selling activity was noted, with Alibaba leading at $3.68B and a ratio of 21.669%, indicating bearish sentiment among investors.
Earnings Forecasts: The forecasted EPS CAGR for 2025-2027 varies across companies, with BYD projected at 30% and Meituan at 188%, while PE ratios range from 12x to 46x.
Market Overview: The report includes delayed stock quotes and short selling data as of January 6, 2026, highlighting the current market conditions for Chinese stocks.
Sinolink Securities Predicts Record Profits for Electrolytic Aluminum Sector, Anticipates Aluminum Sector to Emerge as a High-Quality Asset
LME Futures Performance: LME aluminum futures rose by 2.3% to $3,085.5 per ton, while LME copper futures increased by 4.2% to $12,991.5 per ton.
Market Activity in Precious Metals: CHINAHONGQIAO saw a significant rise of 6.4% to $35.32, with a turnover of $1.541 billion, while other companies like CHALCO and JIANGXI COPPER also experienced notable gains.
Geopolitical Impact on Commodities: CLSA reported that Venezuela's situation is raising geopolitical risks, which supports gold prices and intensifies oil oversupply.
Future Trends in Aluminum and Copper: Analysts predict a moderate rise in aluminum prices and a shift towards aluminum in sectors like air conditioning due to rising copper prices, while domestic aluminum companies are expected to see declining capital expenditures but expanding profits.
HSI Rises 707 Points on First Trading Day of 2026; BIDU-SW Jumps 9% During Tech Surge
Market Performance: The HSI rose by 707 points (2.8%) to close at 26,338, while the HSCEI and HSTECH also saw significant gains, with total market turnover reaching HKD140.864 billion.
BIREN TECH Debut: Chinese GPU maker BIREN TECH surged 75.8% on its debut, closing at HKD34.46 after peaking at HKD42.88, with a turnover of HKD5.521 billion.
Tech Stocks Surge: Major tech stocks like BIDU-SW, TENCENT, and BABA-W experienced notable increases, with BIDU-SW rising 9.4% and TENCENT gaining 4%.
Automotive Sector Growth: Automotive stocks such as LI AUTO-W and BYD COMPANY also saw gains, with LI AUTO-W increasing by 4.9% and BYD COMPANY rising by 3.6%.
<Daily Summary> HSI Gains 707 Points; HSTI Rises 220 Points; BABA and TENCENT Each Increase by Over 4%; BIDU-SW, BOC HONG KONG, SKYWORTH, and CHALCO Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 707 points (2.8%) to close at 26,338, with significant gains also seen in the HSTI and HSCEI, which increased by 220 points (4.0%) and 255 points (2.9%) respectively, and a market turnover of $140.86 billion.
Top Gainers: Notable heavyweights included Alibaba (BABA) and Tencent (TENCENT), which rose by 4.3% and 4.0% respectively, while other significant movers like Baidu (BIDU-SW) surged by 9.4%, reaching a new high.
Short Selling Activity: The short selling ratios for several stocks were high, with Xiaomi and Ping An showing ratios of 26.85% and 21.29% respectively, indicating significant market speculation.
Sector Highlights: Stocks like DL Holdings GP and Skyworth saw substantial increases of 11.8% and 10.4%, while 361 Degrees experienced a notable decline of 11.2%, reflecting varied performance across sectors.
