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: Several stocks showed positive movements, with BABA-W increasing by 3.5% and ALI HEALTH by 3.3%, while BIDU-SW and JD HEALTH experienced declines of 1.4% and 1.2%, respectively.

Short Selling Data: Notable short selling activity was observed, particularly in BIDU-SW with a ratio of 28.7% and ALI HEALTH at 25.4%, indicating significant market interest in these stocks.

Stock Performance Predictions: BofA Securities forecasts divergent stock performance in China's internet sector for the year, with AI expected to lead growth while macroeconomic conditions pressure consumer and corporate spending.

Investment Preferences: The report favors AI and online gaming stocks over e-commerce, highlighting TENCENT as the top pick for its AI-driven growth and stable market position, while BABA-W is recommended for its potential in AI and e-commerce.

Digital Entertainment Focus: In the digital entertainment space, BofA Securities recommends BILIBILI-W and TME-SW for their online gaming prospects, while also favoring JD HEALTH and TRIP.COM-S in their respective sectors.

Neutral Stance on Certain Stocks: The broker maintains a neutral outlook on Pinduoduo and Meituan, indicating a cautious approach towards these stocks amidst the current market conditions.

Market Performance: The HSI rose by 82 points (0.3%) to 26,231, with total market turnover reaching HKD245.13 billion. The HSCEI and HSTECH also saw slight increases, closing at 9,048 and 5,687 respectively.

Stock Highlights: Hang Seng Bank and HSBC Holdings both increased by 0.4%, while CKH Holdings surged 3.7% after appointing Goldman Sachs and UBS for a listing. Notable tech stocks like Alibaba and JD-SW experienced gains, while Tencent and Meituan saw declines.

AI-Related Stocks: Stocks related to AI showed significant growth, with Knowledge Atlas jumping 20.6% and XTALPI rising 10.5%. However, Unisound faced a sharp decline of 11.3%.

New Listings: MINIMAX-WP debuted at HKD345, marking a 109% increase from its listing price of HKD165, indicating strong investor interest in new offerings.

TME-SW Rating Upgrade: Daiwa has upgraded TME-SW's rating from Outperform to Buy, indicating confidence in its monetization capabilities despite short-term competition concerns.

Target Price Adjustment: The target price for TME-SW has been lowered from HKD91 to HKD82 to align with the trend of valuation downgrades among its peers.