Daiwa Maintains Positive Perspective on Chinese Market, Names LAOPU GOLD and KINGSOFT CLOUD as Preferred Selections
GDP Target Insights: Daiwa estimates an implied national GDP target of 5% for China in 2026, suggesting a more conservative official target of 4.5-4.7%, with potential economic stimulus measures expected following the "Two Sessions" on March 5.
Market Outlook: Despite recent market turmoil, Daiwa maintains an optimistic outlook for the Chinese stock market in the first half of 2026, anticipating that gradual stimulus measures could enhance investment sentiment.
Top Stock Picks: Daiwa has updated its top stock picks to include LAOPU GOLD and KINGSOFT CLOUD, driven by strong downstream demand and price increase expectations, replacing previous picks SHENZHOU INTL and TRIP.COM.
Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity in LAOPU GOLD and KINGSOFT CLOUD, reflecting market sentiment and trading strategies.
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<Research>BOCOMI: Indian Summer Expected; CHINA RES LAND/YUEXIU PROPERTY Remain Favorable for Mid-to-Long Term Investment
Sales Decline: BOCOMI's report indicates a significant drop in sales for China's top 100 developers, with a 46.5% month-over-month decrease in January 2026, totaling RMB182.2 billion, and a 53.1% decline for 20 major listed developers.
Market Outlook: Despite the sales decline, BOCOMI expects favorable policies in 2026 aimed at stabilizing the market and improving demand, particularly in the secondary market, which is anticipated to outperform the primary market.
Top Developers: Among the top 10 developers in January, nine were state-owned enterprises (SOEs), with Poly Developments leading in sales.
Investment Recommendations: BOCOMI maintains a positive outlook on CHINA RES LAND and YUEXIU PROPERTY, rating them as 'Buy' due to their strong sales performance and execution capabilities.
HSI Declines by 48 Points as BABA-W and BIDU-SW Fall; COSCO SHIP ENGY Rises Over 6%
Market Opening: The Hong Kong equity market opened lower after the Lunar New Year holiday, with the HSI down 0.2% at 26,657, the HSCEI down 0.2% at 9,052, and the HSTECH down 0.7% at 5,330.
Stock Performances: CNOOC and COSCO SHIP ENGY saw gains of 2.2% and 6.1% respectively, while tech stocks like BABA-W and BIDU-SW experienced declines of 3.7% and 5.2%.
Sector Movements: Commodities stocks generally rose, with notable increases from MMG and CMOC, while several automakers and financial stocks showed mixed results, with HSBC and HKEX slightly up.
Short Selling Trends: Significant short selling was observed across various sectors, particularly in tech stocks, with BILIBILI-W and KINGDEE INT'L experiencing notable declines alongside high short selling ratios.
Daiwa Reveals Top A/H Stock Selections (Table)
Daiwa Report on Stock Picks: Daiwa released a report highlighting top picks in the H- and A-share markets, including notable companies like Tencent, Alibaba, and Kweichow Moutai, with varying short selling ratios.
Stock Performance Overview: The report details the performance of several stocks, with Tencent and Alibaba experiencing declines, while Naura and Kweichow Moutai showed gains.
Daiwa Maintains Positive Perspective on Chinese Market, Names LAOPU GOLD and KINGSOFT CLOUD as Preferred Selections
GDP Target Insights: Daiwa estimates an implied national GDP target of 5% for China in 2026, suggesting a more conservative official target of 4.5-4.7%, with potential economic stimulus measures expected following the "Two Sessions" on March 5.
Market Outlook: Despite recent market turmoil, Daiwa maintains an optimistic outlook for the Chinese stock market in the first half of 2026, anticipating that gradual stimulus measures could enhance investment sentiment.
Top Stock Picks: Daiwa has updated its top stock picks to include LAOPU GOLD and KINGSOFT CLOUD, driven by strong downstream demand and price increase expectations, replacing previous picks SHENZHOU INTL and TRIP.COM.
Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity in LAOPU GOLD and KINGSOFT CLOUD, reflecting market sentiment and trading strategies.
China Real Estate Land January Contract Sales Steady Year-on-Year at RMB 11.65 Billion, Rental Income Rises 13.7%
Sales Performance: In January 2026, CHINA RES LAND reported gross contracted sales of approximately RMB11.65 billion, reflecting a slight increase of 0.4% year-on-year, despite a significant drop of 24.6% in contracted gross floor area (GFA) to around 368,000 square meters.
Recurring Revenue Growth: The group's recurring revenue reached around RMB4.51 billion, marking an 8.7% increase year-on-year, with rental income from investment properties contributing RMB3.11 billion, up 13.7% year-on-year.
<Daily Summary> HSI Ends at 26,847, Gaining 12 Points; HSTI Finishes at 5,366, Dropping 100 Points; TENCENT Falls More Than 3%; XINYI GLASS, TECHTRONIC IND, CHINA RES MIXC, WHARF REIC, MTR CORPORATION Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose slightly by 12 points to close at 26,847, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) fell by 100 points and 4 points, respectively, with a total market turnover of $285.43 billion.
Active Heavyweights: Major stocks like Tencent, Xiaomi, and Meituan experienced declines, with Tencent dropping 4% to close at $558, while other heavyweights also saw significant short selling activity.
Notable Movers: Trip.com saw a significant drop of 6.1%, while Xinyi Glass and China Shenhua recorded gains of 5.9% and 5.7%, respectively, with several stocks hitting new highs.
Short Selling Trends: Various stocks experienced notable short selling, with Techtronic Industries and China Resources Mixc among those hitting new highs, while others like Kingdee International and Meitu faced substantial declines.
<Research>BOCOMI: Indian Summer Expected; CHINA RES LAND/YUEXIU PROPERTY Remain Favorable for Mid-to-Long Term Investment
Sales Decline: BOCOMI's report indicates a significant drop in sales for China's top 100 developers, with a 46.5% month-over-month decrease in January 2026, totaling RMB182.2 billion, and a 53.1% decline for 20 major listed developers.
Market Outlook: Despite the sales decline, BOCOMI expects favorable policies in 2026 aimed at stabilizing the market and improving demand, particularly in the secondary market, which is anticipated to outperform the primary market.
Top Developers: Among the top 10 developers in January, nine were state-owned enterprises (SOEs), with Poly Developments leading in sales.
Investment Recommendations: BOCOMI maintains a positive outlook on CHINA RES LAND and YUEXIU PROPERTY, rating them as 'Buy' due to their strong sales performance and execution capabilities.
HSI Declines by 48 Points as BABA-W and BIDU-SW Fall; COSCO SHIP ENGY Rises Over 6%
Market Opening: The Hong Kong equity market opened lower after the Lunar New Year holiday, with the HSI down 0.2% at 26,657, the HSCEI down 0.2% at 9,052, and the HSTECH down 0.7% at 5,330.
Stock Performances: CNOOC and COSCO SHIP ENGY saw gains of 2.2% and 6.1% respectively, while tech stocks like BABA-W and BIDU-SW experienced declines of 3.7% and 5.2%.
Sector Movements: Commodities stocks generally rose, with notable increases from MMG and CMOC, while several automakers and financial stocks showed mixed results, with HSBC and HKEX slightly up.
Short Selling Trends: Significant short selling was observed across various sectors, particularly in tech stocks, with BILIBILI-W and KINGDEE INT'L experiencing notable declines alongside high short selling ratios.
Daiwa Reveals Top A/H Stock Selections (Table)
Daiwa Report on Stock Picks: Daiwa released a report highlighting top picks in the H- and A-share markets, including notable companies like Tencent, Alibaba, and Kweichow Moutai, with varying short selling ratios.
Stock Performance Overview: The report details the performance of several stocks, with Tencent and Alibaba experiencing declines, while Naura and Kweichow Moutai showed gains.
Daiwa Maintains Positive Perspective on Chinese Market, Names LAOPU GOLD and KINGSOFT CLOUD as Preferred Selections
GDP Target Insights: Daiwa estimates an implied national GDP target of 5% for China in 2026, suggesting a more conservative official target of 4.5-4.7%, with potential economic stimulus measures expected following the "Two Sessions" on March 5.
Market Outlook: Despite recent market turmoil, Daiwa maintains an optimistic outlook for the Chinese stock market in the first half of 2026, anticipating that gradual stimulus measures could enhance investment sentiment.
Top Stock Picks: Daiwa has updated its top stock picks to include LAOPU GOLD and KINGSOFT CLOUD, driven by strong downstream demand and price increase expectations, replacing previous picks SHENZHOU INTL and TRIP.COM.
Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity in LAOPU GOLD and KINGSOFT CLOUD, reflecting market sentiment and trading strategies.
China Real Estate Land January Contract Sales Steady Year-on-Year at RMB 11.65 Billion, Rental Income Rises 13.7%
Sales Performance: In January 2026, CHINA RES LAND reported gross contracted sales of approximately RMB11.65 billion, reflecting a slight increase of 0.4% year-on-year, despite a significant drop of 24.6% in contracted gross floor area (GFA) to around 368,000 square meters.
Recurring Revenue Growth: The group's recurring revenue reached around RMB4.51 billion, marking an 8.7% increase year-on-year, with rental income from investment properties contributing RMB3.11 billion, up 13.7% year-on-year.
<Daily Summary> HSI Ends at 26,847, Gaining 12 Points; HSTI Finishes at 5,366, Dropping 100 Points; TENCENT Falls More Than 3%; XINYI GLASS, TECHTRONIC IND, CHINA RES MIXC, WHARF REIC, MTR CORPORATION Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose slightly by 12 points to close at 26,847, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) fell by 100 points and 4 points, respectively, with a total market turnover of $285.43 billion.
Active Heavyweights: Major stocks like Tencent, Xiaomi, and Meituan experienced declines, with Tencent dropping 4% to close at $558, while other heavyweights also saw significant short selling activity.
Notable Movers: Trip.com saw a significant drop of 6.1%, while Xinyi Glass and China Shenhua recorded gains of 5.9% and 5.7%, respectively, with several stocks hitting new highs.
Short Selling Trends: Various stocks experienced notable short selling, with Techtronic Industries and China Resources Mixc among those hitting new highs, while others like Kingdee International and Meitu faced substantial declines.
