China's GDP Growth Outlook: KGI estimates that external pressures will slow China's GDP growth to 4.6% this year, despite reduced risks from recent trade agreements.

HSI Forecast: KGI maintains a bullish outlook for the Hang Seng Index (HSI), predicting that Fed rate cuts will attract capital back into H- and A-shares, with a year-end target of 30,000, indicating a potential 14% increase.

Stock Recommendations: KGI has recommended 12 major stocks, including XPENG-W, UBTECH ROBOTICS, TENCENT, and BABA-W, highlighting their performance and short selling ratios.

Market Sentiment: The report reflects a positive sentiment towards the Chinese A-share market, driven by anticipated earnings growth, as noted by Jefferies.

Stock Performance: Various Hong Kong stocks showed mixed performance, with some companies like Henderson Land and Hysan Development experiencing gains, while others like Wharf REIC and Champion REIT saw declines.

Short Selling Data: Significant short selling activity was noted across multiple stocks, with SHK PPT and Wharf Holdings having the highest short selling ratios, indicating bearish sentiment among investors.

Investment Ratings: Analysts provided investment ratings, recommending buys for several stocks including Hysan Development and Sino Land, while suggesting sells for Wharf Holdings and New World Development.

Discount to NAV: Many stocks are trading at substantial discounts to their net asset values (NAV), with Kerry Properties and Hang Lung Properties showing the largest discounts at 74% and 68%, respectively.

Citi Research Forecast Revision: Citi Research has revised its forecast for Hong Kong residential property prices in 2026 from a 3% increase to an 8% increase, following a 4.7% rise in 2025 and a 1% increase since the start of 2026.

Optimism for Homebuilders: The report indicates a more optimistic outlook for Hong Kong homebuilders in 2026, driven by a home price upcycle, improving profit margins, and a six-year high in new home sales volume.

Recommended Stocks: Citi Research has recommended several stocks, including SHK PPT, SINO LAND, and HENDERSON LAND, highlighting their potential for growth amid the recovering market.

Short Selling Data: The report includes short selling data for the recommended stocks, indicating varying levels of short selling activity and ratios for each company as of January 9, 2026.

Sales Performance: KERRY PPT's Southside Phase 2 La Marina project in Wong Chuk Hang has sold 584 units, representing approximately 97% of the project, generating around HKD14.5 billion. Remaining units will be sold through tender.

Future Developments: KERRY PPT plans to launch three new projects this year, including Phase 4B of LA MONTAGNE, which will offer 368 units and is expected to be launched as completed units in the first half of 2026.

Collaborations: The upcoming projects involve collaborations with SINO LAND, SWIRE PROPERTIES, and MTR CORPORATION, indicating a strategic partnership approach in development.

Market Insights: Short selling data indicates varying levels of activity among the involved companies, with MTR CORPORATION showing the highest short selling ratio at 31.294%.

Acquisition Details: GREAT EAGLE H, in partnership with SINO LAND, acquired a residential site in Jordan Valley for $1.61 billion, marking their first residential site acquisition of the year.

Strategic Importance: The site is located in East Kowloon, an area with strong transportation links and community facilities, which is expected to enhance the Group's land reserves and future development potential.

Commitment to Development: GREAT EAGLE H expressed confidence in Hong Kong's long-term development prospects and plans to continue forming strategic partnerships to identify future development opportunities.

Market Context: The short selling data indicates a significant interest in both GREAT EAGLE H and SINO LAND, with respective short selling ratios of 6.021% and 13.954%.