<Research>Citi Favors Stocks Capitalizing on Foldable iPhone as Apple Supply Chain Sentiment Recovers
US Tariffs on Semiconductors: President Trump plans to impose a 100% tariff on imported semiconductor chips, with exemptions for companies expanding their operations in the US, such as Apple, which is investing an additional $100 billion domestically.
Impact on Tech Supply Chain: The sentiment in Apple's supply chain has improved due to the tariffs, leading to positive reactions in related stocks ahead of the new iPhone launch, with Citi favoring companies involved in the foldable iPhone and those increasing market share in components.
Trade with 70% Backtested Accuracy
Analyst Views on 01415
About the author
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 Declines 39 Points at Noon; ANTA SPORTS Falls Over 5%; SMIC and HUA HONG SEMI Rise
Market Overview: The HSI closed down 39 points (0.2%) at 26,447, while the HSCEI fell 24 points (0.3%) to 9,070. The HSTECH saw a slight increase of 8 points (0.15%) to 5,691, with a total half-day turnover of HKD127.653 billion.
AI-Related Stocks Performance: Stocks like GDS-SW and UNISOUND experienced declines of 3.2% and 5.2%, respectively, while INSILICO and MINIMAX-WP surged by 5.5% and 6.6%.
Chip Sector Movements: SMIC, ASMPT, and HUA HONG SEMI saw gains of 3-4%, while INNOSCIENCE and BIREN TECH faced declines of 5.6% and 3.6%.
Tech Stocks Activity: BIDU-SW rose by 3.3% following a target price increase from Morgan Stanley and Citi, while other notable movements included a decline in LENOVO GROUP and a slight increase in KUAISHOU-W.
HSI Closes Up 239 Points; BABA-W Jumps Over 3%; DONGFENG GROUP Soars Approximately 7%
Market Performance: The HSI rose by 239 points (0.9%) to close at 26,848, with the HSCEI and HSTECH also showing gains, while total market turnover reached HKD315.192 billion.
Technology Sector Highlights: Notable gains were seen in BABA-W (+3.6%) and ALI HEALTH (+2.8%), while some AI stocks like SENSETIME-W and WEIMOB INC experienced declines of 4.9% and 4.5%, respectively.
Chip Stocks Movement: Chip stocks faced losses, with BIREN TECH and ILUVATAR COREX dropping 7.7% and 8.9%, while ASMPT and COWELL saw gains of 3.6% and 8.1%.
Automotive Sector Developments: Supported by a new tariff deal between China and the EU, BYD COMPANY and other car manufacturers like GWMOTOR and XPENG-W saw increases, while XIAOMI-W declined by 2%.
HSI Rises by 29 Points, While XIAOMI-W and Handset Stocks Decline; Airlines See Gains
Market Performance: The HSI closed up 0.1% at 25,498, while the HSCEI and HSTECH saw slight declines, with total market turnover reaching $162.377 billion.
Xiaomi Downgrade: Xiaomi's stock fell 2.5% after Jefferies downgraded its rating to Hold, citing concerns over profit margins due to rising memory costs.
Airline Stocks Surge: Bookings for outbound flights during China's New Year's Day holiday increased by over 40%, leading to significant gains for airline stocks like China Eastern Airlines, which rose 8.1%.
Regulatory Impact on E-commerce: China's SAMR indicated that requiring merchants to offer the lowest prices across platforms may be monopolistic, negatively affecting Alibaba and JD.com stocks.
HSI Drops 111 Points at Midday; XIAOMI-W Falls Over 3%; CICC Performs Well
Market Performance: The Hang Seng Index (HSI) fell by 111 points (0.4%) to 25,357, with the HSCEI and HSTECH also experiencing declines of 0.6% and 1.3%, respectively, amid a total turnover of HK$79.066 billion.
Xiaomi's Downgrade: Xiaomi's shares dropped 3.1% to HK$39.94 after Jefferies downgraded the stock from Buy to Hold, citing profit margin pressures due to rising memory costs.
Share Placements and Partnerships: SenseTime proposed a share placement at a discount, causing its shares to fall nearly 3.6%, while Minth Group partnered with a robotics company, resulting in a slight drop in its share price.
Financial Sector Movements: HSBC and HKEX saw minor gains of 0.3% and 0.25%, respectively, while AIA lost 0.2%. CICC's shares surged 3.6% following the announcement of a merger plan, while China Cinda's shares declined by 2.2%.
HSI Rises by 233 Points as LI NING Jumps Over 4%; YOFC Surges 21%
Hong Kong Stock Market Performance: Hong Kong stocks rose, with the HSI gaining 233 points (0.9%) to close at 25,468, driven by China's equity market, while total market turnover fell to $183.141 billion.
Key Stock Movements: YOFC surged 21.2% amid significant turnover, while LENS and COWELL also saw gains of 4.2% and 2.6%, respectively, due to Apple's plans to expand iPhone production.
Industrial Production in China: China's industrial production year-on-year for November was reported at 4.8%, slightly below the previous value of 4.9% and below the forecast of 5%.
Gains in Various Sectors: Notable increases were seen in sportswear (LI NING +4.3%), airlines (CHINA SOUTH AIR +5.9%), luggage (SAMSONITE +3.7%), and travel platforms (TONGCHENGTRAVEL +3.4%).
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 Declines 39 Points at Noon; ANTA SPORTS Falls Over 5%; SMIC and HUA HONG SEMI Rise
Market Overview: The HSI closed down 39 points (0.2%) at 26,447, while the HSCEI fell 24 points (0.3%) to 9,070. The HSTECH saw a slight increase of 8 points (0.15%) to 5,691, with a total half-day turnover of HKD127.653 billion.
AI-Related Stocks Performance: Stocks like GDS-SW and UNISOUND experienced declines of 3.2% and 5.2%, respectively, while INSILICO and MINIMAX-WP surged by 5.5% and 6.6%.
Chip Sector Movements: SMIC, ASMPT, and HUA HONG SEMI saw gains of 3-4%, while INNOSCIENCE and BIREN TECH faced declines of 5.6% and 3.6%.
Tech Stocks Activity: BIDU-SW rose by 3.3% following a target price increase from Morgan Stanley and Citi, while other notable movements included a decline in LENOVO GROUP and a slight increase in KUAISHOU-W.
HSI Closes Up 239 Points; BABA-W Jumps Over 3%; DONGFENG GROUP Soars Approximately 7%
Market Performance: The HSI rose by 239 points (0.9%) to close at 26,848, with the HSCEI and HSTECH also showing gains, while total market turnover reached HKD315.192 billion.
Technology Sector Highlights: Notable gains were seen in BABA-W (+3.6%) and ALI HEALTH (+2.8%), while some AI stocks like SENSETIME-W and WEIMOB INC experienced declines of 4.9% and 4.5%, respectively.
Chip Stocks Movement: Chip stocks faced losses, with BIREN TECH and ILUVATAR COREX dropping 7.7% and 8.9%, while ASMPT and COWELL saw gains of 3.6% and 8.1%.
Automotive Sector Developments: Supported by a new tariff deal between China and the EU, BYD COMPANY and other car manufacturers like GWMOTOR and XPENG-W saw increases, while XIAOMI-W declined by 2%.
HSI Rises by 29 Points, While XIAOMI-W and Handset Stocks Decline; Airlines See Gains
Market Performance: The HSI closed up 0.1% at 25,498, while the HSCEI and HSTECH saw slight declines, with total market turnover reaching $162.377 billion.
Xiaomi Downgrade: Xiaomi's stock fell 2.5% after Jefferies downgraded its rating to Hold, citing concerns over profit margins due to rising memory costs.
Airline Stocks Surge: Bookings for outbound flights during China's New Year's Day holiday increased by over 40%, leading to significant gains for airline stocks like China Eastern Airlines, which rose 8.1%.
Regulatory Impact on E-commerce: China's SAMR indicated that requiring merchants to offer the lowest prices across platforms may be monopolistic, negatively affecting Alibaba and JD.com stocks.
HSI Drops 111 Points at Midday; XIAOMI-W Falls Over 3%; CICC Performs Well
Market Performance: The Hang Seng Index (HSI) fell by 111 points (0.4%) to 25,357, with the HSCEI and HSTECH also experiencing declines of 0.6% and 1.3%, respectively, amid a total turnover of HK$79.066 billion.
Xiaomi's Downgrade: Xiaomi's shares dropped 3.1% to HK$39.94 after Jefferies downgraded the stock from Buy to Hold, citing profit margin pressures due to rising memory costs.
Share Placements and Partnerships: SenseTime proposed a share placement at a discount, causing its shares to fall nearly 3.6%, while Minth Group partnered with a robotics company, resulting in a slight drop in its share price.
Financial Sector Movements: HSBC and HKEX saw minor gains of 0.3% and 0.25%, respectively, while AIA lost 0.2%. CICC's shares surged 3.6% following the announcement of a merger plan, while China Cinda's shares declined by 2.2%.
HSI Rises by 233 Points as LI NING Jumps Over 4%; YOFC Surges 21%
Hong Kong Stock Market Performance: Hong Kong stocks rose, with the HSI gaining 233 points (0.9%) to close at 25,468, driven by China's equity market, while total market turnover fell to $183.141 billion.
Key Stock Movements: YOFC surged 21.2% amid significant turnover, while LENS and COWELL also saw gains of 4.2% and 2.6%, respectively, due to Apple's plans to expand iPhone production.
Industrial Production in China: China's industrial production year-on-year for November was reported at 4.8%, slightly below the previous value of 4.9% and below the forecast of 5%.
Gains in Various Sectors: Notable increases were seen in sportswear (LI NING +4.3%), airlines (CHINA SOUTH AIR +5.9%), luggage (SAMSONITE +3.7%), and travel platforms (TONGCHENGTRAVEL +3.4%).
