HSI Rises 598 Points at Midday, Reaching Over 4.5-Year High; Financials, Developers, and Commodities Flourishing
Market Performance: The HSI rose by 598 points (2.2%) to 27,725, with significant gains in the HSCEI and HSTECH, while total market turnover reached HKD196.327 billion.
Financial Stocks Surge: Major financial stocks like HSBC, BOC Hong Kong, and Standard Chartered saw increases of 2.1% to 2.9%, contributing to a positive trend in the financial sector.
Property and Resource Stocks Rally: Hong Kong developers and Chinese developers experienced substantial gains, with some stocks like China Jinmao and Greentown China rising by over 6%, while resource stocks also saw significant increases.
Tech and AI Stocks Growth: Tech stocks such as Tencent and JD-SW gained between 1.5% and 2.4%, while AI-related stocks like SenseTime and Unisound saw notable increases, with Unisound jumping by 38.2%.
Trade with 70% Backtested Accuracy
Analyst Views on 00005
About the author
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.
HSI Closes 465 Points Lower; AIA and Stanchart Drop 4%; Commodity Stocks Decline
Market Overview: The DJIA fell 1.3% as tech stocks were sold off, leading to a similar decline in the Hong Kong stock market, where the HSI ended down 1.7% at 26,567.
Financial Sector Performance: Major financial stocks like HSBC and HKEX dropped by 2.7% and 2.1%, respectively, while Bank of East Asia plunged 11% after reporting a significant profit drop and dividend cut.
Commodity and Gold Prices: Gold prices fell below USD 5,000/oz, impacting gold mining stocks, which saw declines of 5.9-7.6%. Oil prices also dropped nearly 3%, affecting major oil companies.
Tech Sector Decline: The tech sector experienced minor declines, with Tencent and Alibaba seeing drops of around 0.7% to 2.0%, while other tech stocks like Meituan and Baidu fell over 3%.
M Stanley and Barclays Project HSBC HOLDINGS' 2025 Performance (Table)
Morgan Stanley's 2025 Earnings Forecast for HSBC: The report predicts a flat net interest income of $32.7 billion, an 11.5% decrease in reported profit before tax to $28.583 billion, and a 10.9% drop in profit attributable to ordinary shareholders to $20.4 billion.
Barclays' Forecast for HSBC's Performance: Barclays anticipates a 1.6% increase in operating expenses to $33.324 billion, a 9.5% decline in reported profit before tax to $29.235 billion, and a 14.9% reduction in annual dividends per share to $0.74.
Key Financial Metrics: Both reports highlight changes in core return on tangible equity (ROTE), with Morgan Stanley forecasting a 17.2% ROTE (+154 bps) and Barclays estimating a 12.8% ROTE (-1.8%).
Short Selling and Market Activity: HSBC's stock is experiencing significant short selling, with a ratio of 23.750% and a short selling value of $157.76 million, indicating market skepticism about its future performance.
Brokers Anticipate HSBC HOLDINGS' 2025 Profit Before Tax to Decrease by Approximately 11%; Emphasis on RoTE and Shareholder Return Projections
HSBC Holdings 2025 Results Announcement: HSBC Holdings will announce its 2025 results on February 25, with expectations of non-recurring items and potential impairment losses affecting the outcomes.
Profit Forecasts: Analysts predict HSBC's reported profit before tax for 2025 will range from $28.466 billion to $30.135 billion, reflecting a year-over-year decline of 6.7% to 11.9% from 2024.
Investor Focus on Return Metrics: Investors are particularly interested in whether HSBC can achieve an average return on tangible equity (RoTE) of approximately 15% or higher for 2025, excluding items requiring attention.
Market Conditions and Guidance: The market is awaiting guidance from HSBC's management on mid-term net interest margins and RoTE, especially in light of potential interest rate cuts by the Federal Reserve in the second half of 2026.
HSI Drops 484 Points at Midday Amid Weakness in Chinese Insurers and Commodity Stocks; AI Large Model Stocks Surge
Market Performance: The HSI dropped 484 points (1.8%) to 26,547, with significant declines in financial stocks like HSBC and HKEX, while total half-day turnover reached $128.406 billion.
Chinese Inflation: China's inflation rate for January was reported at 0.2%, lower than the previous 0.8% and below the forecast of 0.4%.
Gold Prices Decline: Gold prices fell below $5,000 per ounce, negatively impacting several gold-related stocks, which saw declines ranging from 3.6% to 5.2%.
AI Stocks Surge: AI-related stocks experienced significant gains, with MINIMAX-WP rising 9.4% and KNOWLEDGE ATLAS surging 11.9% following the launch of new programming models.
HSBC HOLDINGS Scheduled to Hold Board Meeting on February 25 to Discuss Final Results and Fourth Interim Dividend
Board Meeting Announcement: HSBC Holdings will hold a Board meeting on 25 February to discuss the final results for the year ending 31 December 2025 and the potential payment of a fourth interim dividend for 2025.
Dividend Payment Details: If approved, the dividend will be payable on 30 April to shareholders recorded by 13 March across various registers, including the UK, Hong Kong, Bermuda, and for American Depositary Shares in New York.
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.
HSI Closes 465 Points Lower; AIA and Stanchart Drop 4%; Commodity Stocks Decline
Market Overview: The DJIA fell 1.3% as tech stocks were sold off, leading to a similar decline in the Hong Kong stock market, where the HSI ended down 1.7% at 26,567.
Financial Sector Performance: Major financial stocks like HSBC and HKEX dropped by 2.7% and 2.1%, respectively, while Bank of East Asia plunged 11% after reporting a significant profit drop and dividend cut.
Commodity and Gold Prices: Gold prices fell below USD 5,000/oz, impacting gold mining stocks, which saw declines of 5.9-7.6%. Oil prices also dropped nearly 3%, affecting major oil companies.
Tech Sector Decline: The tech sector experienced minor declines, with Tencent and Alibaba seeing drops of around 0.7% to 2.0%, while other tech stocks like Meituan and Baidu fell over 3%.
M Stanley and Barclays Project HSBC HOLDINGS' 2025 Performance (Table)
Morgan Stanley's 2025 Earnings Forecast for HSBC: The report predicts a flat net interest income of $32.7 billion, an 11.5% decrease in reported profit before tax to $28.583 billion, and a 10.9% drop in profit attributable to ordinary shareholders to $20.4 billion.
Barclays' Forecast for HSBC's Performance: Barclays anticipates a 1.6% increase in operating expenses to $33.324 billion, a 9.5% decline in reported profit before tax to $29.235 billion, and a 14.9% reduction in annual dividends per share to $0.74.
Key Financial Metrics: Both reports highlight changes in core return on tangible equity (ROTE), with Morgan Stanley forecasting a 17.2% ROTE (+154 bps) and Barclays estimating a 12.8% ROTE (-1.8%).
Short Selling and Market Activity: HSBC's stock is experiencing significant short selling, with a ratio of 23.750% and a short selling value of $157.76 million, indicating market skepticism about its future performance.
Brokers Anticipate HSBC HOLDINGS' 2025 Profit Before Tax to Decrease by Approximately 11%; Emphasis on RoTE and Shareholder Return Projections
HSBC Holdings 2025 Results Announcement: HSBC Holdings will announce its 2025 results on February 25, with expectations of non-recurring items and potential impairment losses affecting the outcomes.
Profit Forecasts: Analysts predict HSBC's reported profit before tax for 2025 will range from $28.466 billion to $30.135 billion, reflecting a year-over-year decline of 6.7% to 11.9% from 2024.
Investor Focus on Return Metrics: Investors are particularly interested in whether HSBC can achieve an average return on tangible equity (RoTE) of approximately 15% or higher for 2025, excluding items requiring attention.
Market Conditions and Guidance: The market is awaiting guidance from HSBC's management on mid-term net interest margins and RoTE, especially in light of potential interest rate cuts by the Federal Reserve in the second half of 2026.
HSI Drops 484 Points at Midday Amid Weakness in Chinese Insurers and Commodity Stocks; AI Large Model Stocks Surge
Market Performance: The HSI dropped 484 points (1.8%) to 26,547, with significant declines in financial stocks like HSBC and HKEX, while total half-day turnover reached $128.406 billion.
Chinese Inflation: China's inflation rate for January was reported at 0.2%, lower than the previous 0.8% and below the forecast of 0.4%.
Gold Prices Decline: Gold prices fell below $5,000 per ounce, negatively impacting several gold-related stocks, which saw declines ranging from 3.6% to 5.2%.
AI Stocks Surge: AI-related stocks experienced significant gains, with MINIMAX-WP rising 9.4% and KNOWLEDGE ATLAS surging 11.9% following the launch of new programming models.
HSBC HOLDINGS Scheduled to Hold Board Meeting on February 25 to Discuss Final Results and Fourth Interim Dividend
Board Meeting Announcement: HSBC Holdings will hold a Board meeting on 25 February to discuss the final results for the year ending 31 December 2025 and the potential payment of a fourth interim dividend for 2025.
Dividend Payment Details: If approved, the dividend will be payable on 30 April to shareholders recorded by 13 March across various registers, including the UK, Hong Kong, Bermuda, and for American Depositary Shares in New York.
