HSBC Research: China's Energy Market Confronts Oversupply; GOLDWIND, HARBIN ELECTRIC, PETROCHINA, and Others Recommended
China's Energy Market Oversupply: China's energy market is experiencing an oversupply, with power output increasing by 70% since 2020, while demand has only risen by approximately 45% as of October 2025.
AI Data Centers Demand Growth: The energy supply is expected to meet the long-term growth of AI data centers, which are projected to have a compound annual growth rate (CAGR) of 32% by 2030, increasing their share of power demand from 2% in 2024 to 9%.
HSBC's Stock Recommendations: HSBC Global Research has recommended several stocks in the energy sector, including GOLDWIND for wind energy, HARBIN ELECTRIC for nuclear and hydropower, PINGGAO ELEC for grid equipment, and PETROCHINA for oil and natural gas, all rated as Buy.
Target Prices for Recommended Stocks: Target prices set by HSBC include $16.7/RMB20.4 for GOLDWIND, $22 for HARBIN ELECTRIC, RMB25.6 for PINGGAO ELEC, and $10.1/RMB11.7 for PETROCHINA.
Trade with 70% Backtested Accuracy
Analyst Views on 00857
About the author
Venezuela Allegedly Guarantees CN That Oil Prices Will Remain Uninfluenced by the US
Venezuela's Assurance to China: Venezuela has assured China that its oil pricing will not be influenced by the US, emphasizing the security of Chinese investments in the country.
Rejection of US Influence: Venezuelan Ambassador to China, Remigio Ceballo, dismissed claims that the US would affect the pricing of Venezuelan crude oil sold to China, asserting Venezuela's independence from US arrangements.
US Plans for Venezuela's Oil Industry: Reports indicate that US President Donald Trump and his advisors are strategizing to dominate Venezuela's oil industry in the future.
Impact on Chinese Purchases: Following US control over Venezuela's oil exports, Chinese state-owned enterprise PETROCHINA has reportedly instructed its traders to stop purchasing or trading Venezuelan crude oil.
HSI Drops 109 Points at Midday as Software and Tech Stocks Weaken; Kingdee Falls Over 14%
Market Reaction to AI Threat: The software industry faced pressure from AI models by Alphabet and Anthropic, leading to declines in US software stocks and a drop in the Hong Kong bourse, with the HSI down 0.4% in the morning session.
Significant Stock Declines: Major tech companies like Tencent, Bilibili, and Meitu experienced substantial losses, with short selling ratios indicating increased market skepticism.
Broader Tech Sector Impact: Other tech stocks, including Alibaba and JD.com, also saw declines, while semiconductor stocks like SMIC and Hua Hong Semi faced significant drops, reflecting a broader downturn in the tech sector.
Resource Stocks Performance: Gold and silver prices rebounded, and oil stocks gained due to rising refined oil prices in mainland China and geopolitical events, with companies like Sinopec and PetroChina seeing modest increases.
HSI Ends Day with a 611-Point Drop; Declines in Commodities, Telecoms, Chips, and Autos
Market Decline: Hong Kong stocks experienced significant losses, with the HSI dropping 611 points (2.2%) to close at 26,775, influenced by a volatile commodity market and declining resource stocks.
Precious Metals and Resource Stocks: Gold and silver prices fell sharply, with major companies like SD GOLD and ZHAOJIN MINING seeing declines of over 8%, while resource stocks like JIANGXI COPPER and CHALCO also reported significant losses.
Telecom Sector Impact: Telecom companies faced declines due to an increase in VAT from 6% to 9%, with CHINA UNICOM and CHINA TELECOM dropping over 6%, and CHINA MOBILE falling by 2.3%.
Automotive and Chip Sector Struggles: Automakers reported substantial sales declines, with BYD COMPANY and XPENG-W experiencing drops of 30% YoY and 34% YoY respectively, while the chip sector also faced losses, particularly for SMIC and HUA HONG SEMI.
CNOOC Falls Over 5% as Global Oil Prices Decline 5% Due to Reduced US-Iran Tensions
US-Iran Negotiations: President Donald Trump announced that Iran is actively participating in negotiations, indicating a potential easing of US-Iran tensions.
Oil Price Decline: Oil prices have decreased, with Brent oil futures dropping 5.22% to USD65.7 and New York oil futures falling 5.38% to USD61.68, as investor concerns over Middle East tensions lessen.
Pressure on Chinese Oil Majors: China's three major oil companies, CNOOC, PetroChina, and Sinopec, experienced significant stock declines, with CNOOC down 5.58%, PetroChina down 4.85%, and Sinopec down 3.16%.
Short Selling Activity: There was notable short selling activity in the stocks of these Chinese oil majors, with CNOOC, PetroChina, and Sinopec seeing short selling ratios of 2.944%, 13.627%, and 23.993%, respectively.
HSI Declines 656 Points at Midday; Commodities, Chinese Telecoms, and Auto Sector Face Pressure
Market Performance: The HSI dropped 656 points (2.4%) to 26,730, with significant declines in the HSCEI and HSTECH, while total market turnover reached HKD178.124 billion.
Decline in Precious Metals: Gold and silver prices fell, with notable drops in CHI SILVER GP and SD GOLD, both experiencing declines of over 10%.
Resource and Telecom Stocks: Resource stocks like JIANGXI COPPER and CHALCO saw significant losses, while telecom companies such as CHINA TELECOM and CHINA UNICOM plummeted due to a VAT increase on telecom services.
Automotive and Tech Sector Struggles: BYD reported a 30.1% YoY drop in new energy vehicle sales, while major tech stocks like TENCENT and JD-SW also experienced declines, reflecting broader market challenges.
HSI Declines by 289 Points as Gold and Silver Miners, Resource Stocks, and Chinese Telecoms Weigh Down Market
Hong Kong Stock Market Performance: Hong Kong stocks opened lower, with the HSI down 1.1% at 27,097, the HSCEI down 1.3% at 9,191, and the HSTECH down 1.3% at 5,644.
Decline in Precious Metals: Gold and silver prices saw significant drops, with CHINAGOLDINTL plunging 12.3% and other mining stocks like ZIJIN MINING and SD GOLD also experiencing declines of over 10%.
Resource Stocks Slump: Resource stocks, including JIANGXI COPPER and CHALCO, faced declines between 5.5% and 7.2%, with substantial short selling activity reported.
Telecom Sector Adjustments: Telecom service VAT for major companies like CHINA MOBILE and CHINA UNICOM was adjusted from 6% to 9%, leading to significant stock price drops of up to 9.9% for CHINA UNICOM.
Venezuela Allegedly Guarantees CN That Oil Prices Will Remain Uninfluenced by the US
Venezuela's Assurance to China: Venezuela has assured China that its oil pricing will not be influenced by the US, emphasizing the security of Chinese investments in the country.
Rejection of US Influence: Venezuelan Ambassador to China, Remigio Ceballo, dismissed claims that the US would affect the pricing of Venezuelan crude oil sold to China, asserting Venezuela's independence from US arrangements.
US Plans for Venezuela's Oil Industry: Reports indicate that US President Donald Trump and his advisors are strategizing to dominate Venezuela's oil industry in the future.
Impact on Chinese Purchases: Following US control over Venezuela's oil exports, Chinese state-owned enterprise PETROCHINA has reportedly instructed its traders to stop purchasing or trading Venezuelan crude oil.
HSI Drops 109 Points at Midday as Software and Tech Stocks Weaken; Kingdee Falls Over 14%
Market Reaction to AI Threat: The software industry faced pressure from AI models by Alphabet and Anthropic, leading to declines in US software stocks and a drop in the Hong Kong bourse, with the HSI down 0.4% in the morning session.
Significant Stock Declines: Major tech companies like Tencent, Bilibili, and Meitu experienced substantial losses, with short selling ratios indicating increased market skepticism.
Broader Tech Sector Impact: Other tech stocks, including Alibaba and JD.com, also saw declines, while semiconductor stocks like SMIC and Hua Hong Semi faced significant drops, reflecting a broader downturn in the tech sector.
Resource Stocks Performance: Gold and silver prices rebounded, and oil stocks gained due to rising refined oil prices in mainland China and geopolitical events, with companies like Sinopec and PetroChina seeing modest increases.
HSI Ends Day with a 611-Point Drop; Declines in Commodities, Telecoms, Chips, and Autos
Market Decline: Hong Kong stocks experienced significant losses, with the HSI dropping 611 points (2.2%) to close at 26,775, influenced by a volatile commodity market and declining resource stocks.
Precious Metals and Resource Stocks: Gold and silver prices fell sharply, with major companies like SD GOLD and ZHAOJIN MINING seeing declines of over 8%, while resource stocks like JIANGXI COPPER and CHALCO also reported significant losses.
Telecom Sector Impact: Telecom companies faced declines due to an increase in VAT from 6% to 9%, with CHINA UNICOM and CHINA TELECOM dropping over 6%, and CHINA MOBILE falling by 2.3%.
Automotive and Chip Sector Struggles: Automakers reported substantial sales declines, with BYD COMPANY and XPENG-W experiencing drops of 30% YoY and 34% YoY respectively, while the chip sector also faced losses, particularly for SMIC and HUA HONG SEMI.
CNOOC Falls Over 5% as Global Oil Prices Decline 5% Due to Reduced US-Iran Tensions
US-Iran Negotiations: President Donald Trump announced that Iran is actively participating in negotiations, indicating a potential easing of US-Iran tensions.
Oil Price Decline: Oil prices have decreased, with Brent oil futures dropping 5.22% to USD65.7 and New York oil futures falling 5.38% to USD61.68, as investor concerns over Middle East tensions lessen.
Pressure on Chinese Oil Majors: China's three major oil companies, CNOOC, PetroChina, and Sinopec, experienced significant stock declines, with CNOOC down 5.58%, PetroChina down 4.85%, and Sinopec down 3.16%.
Short Selling Activity: There was notable short selling activity in the stocks of these Chinese oil majors, with CNOOC, PetroChina, and Sinopec seeing short selling ratios of 2.944%, 13.627%, and 23.993%, respectively.
HSI Declines 656 Points at Midday; Commodities, Chinese Telecoms, and Auto Sector Face Pressure
Market Performance: The HSI dropped 656 points (2.4%) to 26,730, with significant declines in the HSCEI and HSTECH, while total market turnover reached HKD178.124 billion.
Decline in Precious Metals: Gold and silver prices fell, with notable drops in CHI SILVER GP and SD GOLD, both experiencing declines of over 10%.
Resource and Telecom Stocks: Resource stocks like JIANGXI COPPER and CHALCO saw significant losses, while telecom companies such as CHINA TELECOM and CHINA UNICOM plummeted due to a VAT increase on telecom services.
Automotive and Tech Sector Struggles: BYD reported a 30.1% YoY drop in new energy vehicle sales, while major tech stocks like TENCENT and JD-SW also experienced declines, reflecting broader market challenges.
HSI Declines by 289 Points as Gold and Silver Miners, Resource Stocks, and Chinese Telecoms Weigh Down Market
Hong Kong Stock Market Performance: Hong Kong stocks opened lower, with the HSI down 1.1% at 27,097, the HSCEI down 1.3% at 9,191, and the HSTECH down 1.3% at 5,644.
Decline in Precious Metals: Gold and silver prices saw significant drops, with CHINAGOLDINTL plunging 12.3% and other mining stocks like ZIJIN MINING and SD GOLD also experiencing declines of over 10%.
Resource Stocks Slump: Resource stocks, including JIANGXI COPPER and CHALCO, faced declines between 5.5% and 7.2%, with substantial short selling activity reported.
Telecom Sector Adjustments: Telecom service VAT for major companies like CHINA MOBILE and CHINA UNICOM was adjusted from 6% to 9%, leading to significant stock price drops of up to 9.9% for CHINA UNICOM.
