Market Outlook for 2026: BofA Securities predicts that the "Year of the Fire Horse" will favor electrification and AI power infrastructure in the Chinese basic metals market, with a focus on aluminum, gold, copper, lithium, and cobalt stocks.

Stock Recommendations: The broker recommends buying aluminum stocks and has a positive outlook on gold, copper, lithium, and cobalt, while being neutral on coal and bearish on solar energy and building materials due to weak demand and declining profit margins.

Top Stock Picks: Key stock picks include CHALCO, ZIJIN MINING, CHINAHONGQIAO, SD GOLD, and GANFENGLITHIUM, with varying short selling ratios indicating market sentiment.

Underperforming Stocks: Notable underperformers include TONGWEI, XINYI SOLAR, ANGANG STEEL, and CR BLDG MAT TEC, which are facing significant short selling pressures.

Market Performance: The HSI rose slightly by 8 points to 26,158, while the HSTI and HSCEI experienced minor declines and gains, closing at 5,674 and 9,042 respectively.

Active Heavyweights: BABA saw a notable increase of 2.8% to close at $146.6, while Meituan, Tencent, Ping An, and Xiaomi all experienced declines in their stock prices.

Constituents on the Move: Xinyi Solar and CKI Holdings had contrasting performances, with Xinyi Solar down 3.1% and CKI Holdings up 2.2%, reaching a new high.

HSMI & HSSI Highlights: Zhaojin Mining and CIMC Enric both achieved significant gains, with Zhaojin Mining up 3.9% and CIMC Enric up 3.1%, both hitting new highs.

Market Performance: The Hang Seng Index (HSI) rose by 363 points (1.4%) to close at 26,710, with significant gains also seen in the HSTI and HSCEI, while market turnover reached $291.76 billion.

Active Heavyweights: Notable stock movements included PING AN (+5%), HKEX (+2.9%), and TENCENT (+1.3%), while XIAOMI and BABA saw declines of 1.5% and 1.3%, respectively.

Top Gainers: Among HSI and HSCEI constituents, CHINAHONGQIAO surged by 6.1%, JD HEALTH by 5.4%, and ZIJIN MINING by 4.5%, with several stocks hitting new highs.

Significant Movers: In the HSMI & HSSI, JF SMARTINVEST jumped by 18.8%, CMSC by 12%, and NANSHAN AL INTL by 10.8%, indicating strong performance in smaller stocks.

Market Performance: The Hang Seng Index (HSI) rose by 707 points (2.8%) to close at 26,338, with significant gains also seen in the HSTI and HSCEI, which increased by 220 points (4.0%) and 255 points (2.9%) respectively, and a market turnover of $140.86 billion.

Top Gainers: Notable heavyweights included Alibaba (BABA) and Tencent (TENCENT), which rose by 4.3% and 4.0% respectively, while other significant movers like Baidu (BIDU-SW) surged by 9.4%, reaching a new high.

Short Selling Activity: The short selling ratios for several stocks were high, with Xiaomi and Ping An showing ratios of 26.85% and 21.29% respectively, indicating significant market speculation.

Sector Highlights: Stocks like DL Holdings GP and Skyworth saw substantial increases of 11.8% and 10.4%, while 361 Degrees experienced a notable decline of 11.2%, reflecting varied performance across sectors.

Industry Outlook: The photovoltaic industry is expected to see improvements in supply-demand dynamics by 2026, with potential profitability for key players, driven by regulatory advancements and energy storage developments.

Market Recovery: A report suggests that the main photovoltaic industry chain may begin to recover in the second half of 2025, despite a temporary weakening in demand anticipated for 2026.

Investment Recommendations: CICC recommends focusing on high-quality storage, commercial storage, high-power component companies, and silicon material firms as potential investment opportunities.

Company Performance: Specific companies like XINYI SOLAR, JINKO SOLAR, and GCL TECH are highlighted for their strong market positions and potential for profitability amidst ongoing market changes.