<Research>JPM: Companies Accounting for 93% of MSCI Hong Kong Index Market Value Report Over 11% Increase in Interim Profits with 29 Basis Points NPM Growth
Market Performance: As of September 2nd, 93% of companies in the MSCI Hong Kong Index reported their 1H25 results, showing an 11.4% YoY increase in interim EPS and a 9.5% YoY rise in sales per share, with net profit margins expanding by 29 basis points YoY.
Top Stock Adjustments: Futu Holdings, SITC, and HKEX saw significant adjustments in their EPS forecasts, with Futu Holdings leading at a 146% increase, while the financial sector benefited from strong performance in the active capital market, according to JPMorgan.
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Carlson Tong: HKEX Managing Over 400 Listing Applications, Including More Than 100 New Submissions in January Alone
Market Activity: HKEX Chairman Carlson Tong reported an active market sentiment with over 400 listing applications being processed, including 11 from overseas companies, and over 100 new applications submitted in January 2026 alone.
Focus on Market Quality: Tong emphasized that maintaining market quality is essential for Hong Kong's success and that HKEX will collaborate with market participants to enhance market efficiency.
International Interest: During his visit to the World Economic Forum in Davos, Tong noted strong interest from global institutions and investors in participating in the Hong Kong market.
Investment Opportunities: Tong believes that by introducing high-quality and diversified investment products and improving market mechanisms, HKEX can attract more investors and companies to Hong Kong.
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%.
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.
GON TECHNOLOGY Added to Target Securities List for Southbound Stock Connect Trading by SZSE Starting Today
GON Technology Listing: GON Technology (02768.HK) was added to the target securities list for Southbound Trading of Stock Connects effective today, following its listing on HKEX (00388.HK).
Short Selling Details: The stock has experienced short selling amounting to $466.70 million, with a short selling ratio of 18.899%, and is not subject to the price stabilization mechanism due to its A-shares being listed for 10 trading days.
HSI Jumps 54 Points at Midday, Weighed Down by TENCENT and KUAISHOU; Banks and Homebuilders Rise
Market Overview: The HSI rose by 54 points (0.2%) to 26,830, while the HSCEI fell by 19 points (0.2%) to 9,060, and the HSTECH dropped by 72 points (1.3%) to 5,453, with a total half-day turnover of $195.285 billion.
Tech Sector Performance: Major tech stocks like TENCENT and BIDU-SW saw significant declines of 4.1% and 3.8%, respectively, with TENCENT's turnover nearing $26 billion, while other tech companies also experienced losses.
Banking Sector Gains: Banks such as HSBC and BOC HONG KONG reported gains of 2.3% and 2.5%, respectively, contributing to a positive trend in the banking sector, alongside notable increases in Chinese insurers.
Commodity and Real Estate Stocks: Commodity prices rose, with companies like ZIJIN GOLD INTL and CMOC increasing by over 4%, while Hong Kong homebuilders also saw gains, with HENDERSON LAND and SHK PPT rising by 2.1% and 1.7%.
<Midday Update> HSI Ends Midday at 26,830, Gaining 54 Points; HSTI Ends Midday at 5,453, Losing 72 Points; TENCENT Falls More Than 3%; MTR CORPORATION, POWER ASSETS, CIMC, ZOOMLION, FIH Reach New Peaks
Market Performance: The HSI rose by 54 points (0.2%) to 26,830, while the HSTI and HSCEI fell by 72 points (1.3%) and 19 points (0.2%) respectively.
Active Heavyweights: Major stocks like Tencent, Alibaba, and Meituan experienced declines, with Tencent down 4.0% and Alibaba down 2.3%, while Ping An saw a slight increase of 0.9%.
Notable Movers: CSPC Pharma and CKH Holdings saw significant gains, up 3.5% and 3.4% respectively, while Kuaishou-W dropped 5.1%.
High Performers: Stocks like Fangzhou Jianke and CIMC achieved notable increases of 15.3% and 16.1%, reaching new highs in their respective performances.
Carlson Tong: HKEX Managing Over 400 Listing Applications, Including More Than 100 New Submissions in January Alone
Market Activity: HKEX Chairman Carlson Tong reported an active market sentiment with over 400 listing applications being processed, including 11 from overseas companies, and over 100 new applications submitted in January 2026 alone.
Focus on Market Quality: Tong emphasized that maintaining market quality is essential for Hong Kong's success and that HKEX will collaborate with market participants to enhance market efficiency.
International Interest: During his visit to the World Economic Forum in Davos, Tong noted strong interest from global institutions and investors in participating in the Hong Kong market.
Investment Opportunities: Tong believes that by introducing high-quality and diversified investment products and improving market mechanisms, HKEX can attract more investors and companies to Hong Kong.
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%.
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.
GON TECHNOLOGY Added to Target Securities List for Southbound Stock Connect Trading by SZSE Starting Today
GON Technology Listing: GON Technology (02768.HK) was added to the target securities list for Southbound Trading of Stock Connects effective today, following its listing on HKEX (00388.HK).
Short Selling Details: The stock has experienced short selling amounting to $466.70 million, with a short selling ratio of 18.899%, and is not subject to the price stabilization mechanism due to its A-shares being listed for 10 trading days.
HSI Jumps 54 Points at Midday, Weighed Down by TENCENT and KUAISHOU; Banks and Homebuilders Rise
Market Overview: The HSI rose by 54 points (0.2%) to 26,830, while the HSCEI fell by 19 points (0.2%) to 9,060, and the HSTECH dropped by 72 points (1.3%) to 5,453, with a total half-day turnover of $195.285 billion.
Tech Sector Performance: Major tech stocks like TENCENT and BIDU-SW saw significant declines of 4.1% and 3.8%, respectively, with TENCENT's turnover nearing $26 billion, while other tech companies also experienced losses.
Banking Sector Gains: Banks such as HSBC and BOC HONG KONG reported gains of 2.3% and 2.5%, respectively, contributing to a positive trend in the banking sector, alongside notable increases in Chinese insurers.
Commodity and Real Estate Stocks: Commodity prices rose, with companies like ZIJIN GOLD INTL and CMOC increasing by over 4%, while Hong Kong homebuilders also saw gains, with HENDERSON LAND and SHK PPT rising by 2.1% and 1.7%.
<Midday Update> HSI Ends Midday at 26,830, Gaining 54 Points; HSTI Ends Midday at 5,453, Losing 72 Points; TENCENT Falls More Than 3%; MTR CORPORATION, POWER ASSETS, CIMC, ZOOMLION, FIH Reach New Peaks
Market Performance: The HSI rose by 54 points (0.2%) to 26,830, while the HSTI and HSCEI fell by 72 points (1.3%) and 19 points (0.2%) respectively.
Active Heavyweights: Major stocks like Tencent, Alibaba, and Meituan experienced declines, with Tencent down 4.0% and Alibaba down 2.3%, while Ping An saw a slight increase of 0.9%.
Notable Movers: CSPC Pharma and CKH Holdings saw significant gains, up 3.5% and 3.4% respectively, while Kuaishou-W dropped 5.1%.
High Performers: Stocks like Fangzhou Jianke and CIMC achieved notable increases of 15.3% and 16.1%, reaching new highs in their respective performances.
