HSI Declines 53 Points at Market Open; Auto Sector Thrives with XPENG-W Rising 2%
Market Overview: The DJIA fell by 94 points (0.2%) following the Fed's meeting minutes indicating potential interest rate cuts, while Hong Kong's HSI and HSCEI opened lower on the last trading day of 2025.
Tech Sector Performance: Major tech stocks like TENCENT, BABA-W, and MEITUAN-W opened lower, with significant short selling ratios, while BILIBILI-W saw a slight increase.
Chip Manufacturing Policy: Mainland China mandated that chip manufacturers use at least 50% domestically produced equipment for new production capacity, positively impacting SMIC's stock.
Robotics and Automotive Stocks: Robotics stocks like SANHUA and UBTECH opened higher, and the mainland's support for "Two New" policies in 2026 led to mixed performances among automakers, with NIO-SW showing a notable increase.
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HKD2.2 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows of HKD2.2 billion, while SMIC (00981.HK) experienced a net outflow of HKD706.8 million.
Short Selling Activity: TENCENT had a short selling amount of $2.71 billion with a ratio of 7.959%, while SMIC's short selling was $181.86 million with a ratio of 3.819%.
Market Performance: At market close, Southbound Trading net outflow totaled HKD0, accounting for 39.97% of the total transaction amount of HKD114.07 billion.
Future Projections: Analysts from Citi and CLSA predict limited impact from Google's Project Genie on TENCENT, with expectations of double-digit growth in its gaming and advertising sectors this year.
Short Selling Activity Reaches $44.4B, Representing 17.6% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $44.4 billion, accounting for 17.6% of the eligible securities turnover, a slight decrease from 18.8% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include CSOP HS TECH, HSCEI ETF, TENCENT, TRACKER FUND, and XL2CSOPHSTECH, with CSOP HS TECH leading at $5.28 billion and a short selling ratio of 56.1%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decline of 1.777%, with a significant short selling turnover of $5.28 billion and a high short selling ratio of 56.1%.
Other Notable Stocks: HSCEI ETF and TENCENT also saw considerable short selling, with ratios of 45.1% and 8% respectively, while TRACKER FUND and XL2CSOPHSTECH had lower ratios of 6.5% and 59.9%.
HSI Gains 12 Points, Yet Software Stocks and Dotcoms Decline; Coal and Chinese Developers Surge
Market Performance: The HSI closed slightly up at 26,847, while the HSCEI and HSTECH saw minor declines, with total market turnover dropping to $285.433 billion.
Sector Struggles: Software and dotcom sectors faced significant losses, with major companies like TENCENT and MEITU experiencing declines of 3.96% and 11.4%, respectively.
Resource Stocks Rise: Gold and silver prices rebounded, with companies like CHINAGOLDINTL and ZHAOJIN MINING seeing gains, while coal stocks like YANKUANG ENERGY surged by over 10%.
Financial Sector Movements: HSBC and AIA saw slight increases, while HKEX experienced a minor decline; Chinese property developers generally performed well, with several stocks rising between 5% and 10%.
<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.
M Stanley's H Shares Focus List (Table)
Morgan Stanley's Strategy Report: The report highlights a focus on Hong Kong and Chinese stocks, removing YANGTZE POWER and adding CHALCO to the list.
Stock Performance Insights: Notable potential upside percentages are reported for various stocks, including Alibaba (3.3%) and CATL (43.3%), while some stocks like ESPRESSIF show a decline (-2.498%).
Short Selling Trends: Significant short selling activity is noted across several stocks, with Tencent experiencing the highest short selling amount at $1.59 billion and a ratio of 9.036%.
Market Outlook: Daiwa anticipates a structural recovery in Chinese stocks by 2025, despite a majority of consumers expecting profit deterioration.
Short Selling Activity Reaches $22.6B, Representing 17.8% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $22.6 billion at midday, accounting for 17.8% of the eligible securities turnover, slightly down from 18.8% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, HSCEI ETF, TENCENT, TRACKER FUND, and XL2CSOPHSTECH, with CSOP HS TECH leading at $2.83 billion and a short selling ratio of 56.3%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 1.497%, with a significant short selling turnover of $2.83 billion and a high short selling ratio of 56.3%.
Other Notable Stocks: HSCEI ETF (02828.HK) and TENCENT (00700.HK) also saw considerable short selling, with ratios of 46.1% and 9% respectively, indicating notable investor sentiment against these stocks.
HKD2.2 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows of HKD2.2 billion, while SMIC (00981.HK) experienced a net outflow of HKD706.8 million.
Short Selling Activity: TENCENT had a short selling amount of $2.71 billion with a ratio of 7.959%, while SMIC's short selling was $181.86 million with a ratio of 3.819%.
Market Performance: At market close, Southbound Trading net outflow totaled HKD0, accounting for 39.97% of the total transaction amount of HKD114.07 billion.
Future Projections: Analysts from Citi and CLSA predict limited impact from Google's Project Genie on TENCENT, with expectations of double-digit growth in its gaming and advertising sectors this year.
Short Selling Activity Reaches $44.4B, Representing 17.6% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $44.4 billion, accounting for 17.6% of the eligible securities turnover, a slight decrease from 18.8% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include CSOP HS TECH, HSCEI ETF, TENCENT, TRACKER FUND, and XL2CSOPHSTECH, with CSOP HS TECH leading at $5.28 billion and a short selling ratio of 56.1%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decline of 1.777%, with a significant short selling turnover of $5.28 billion and a high short selling ratio of 56.1%.
Other Notable Stocks: HSCEI ETF and TENCENT also saw considerable short selling, with ratios of 45.1% and 8% respectively, while TRACKER FUND and XL2CSOPHSTECH had lower ratios of 6.5% and 59.9%.
HSI Gains 12 Points, Yet Software Stocks and Dotcoms Decline; Coal and Chinese Developers Surge
Market Performance: The HSI closed slightly up at 26,847, while the HSCEI and HSTECH saw minor declines, with total market turnover dropping to $285.433 billion.
Sector Struggles: Software and dotcom sectors faced significant losses, with major companies like TENCENT and MEITU experiencing declines of 3.96% and 11.4%, respectively.
Resource Stocks Rise: Gold and silver prices rebounded, with companies like CHINAGOLDINTL and ZHAOJIN MINING seeing gains, while coal stocks like YANKUANG ENERGY surged by over 10%.
Financial Sector Movements: HSBC and AIA saw slight increases, while HKEX experienced a minor decline; Chinese property developers generally performed well, with several stocks rising between 5% and 10%.
<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.
M Stanley's H Shares Focus List (Table)
Morgan Stanley's Strategy Report: The report highlights a focus on Hong Kong and Chinese stocks, removing YANGTZE POWER and adding CHALCO to the list.
Stock Performance Insights: Notable potential upside percentages are reported for various stocks, including Alibaba (3.3%) and CATL (43.3%), while some stocks like ESPRESSIF show a decline (-2.498%).
Short Selling Trends: Significant short selling activity is noted across several stocks, with Tencent experiencing the highest short selling amount at $1.59 billion and a ratio of 9.036%.
Market Outlook: Daiwa anticipates a structural recovery in Chinese stocks by 2025, despite a majority of consumers expecting profit deterioration.
Short Selling Activity Reaches $22.6B, Representing 17.8% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $22.6 billion at midday, accounting for 17.8% of the eligible securities turnover, slightly down from 18.8% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, HSCEI ETF, TENCENT, TRACKER FUND, and XL2CSOPHSTECH, with CSOP HS TECH leading at $2.83 billion and a short selling ratio of 56.3%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 1.497%, with a significant short selling turnover of $2.83 billion and a high short selling ratio of 56.3%.
Other Notable Stocks: HSCEI ETF (02828.HK) and TENCENT (00700.HK) also saw considerable short selling, with ratios of 46.1% and 9% respectively, indicating notable investor sentiment against these stocks.
