Hong Kong Stock Market Performance: The Hong Kong bourse had a strong start to the new year, with the HSI rising 559 points (2.2%) to close at 26,189, driven by the AI chip boom and a new high for CNH since May 2023.

BIREN TECH Debut: Domestic GPU manufacturer BIREN TECH debuted on the Hong Kong stock market, closing at HK$33.8, a 72.4% increase from its listing price of HK$19.6, with a peak of HK$42.88 and a turnover of HK$4.655 billion.

Tech Stocks Rally: Several tech stocks saw significant gains, including HUA HONG SEMI (+9.9%), SMIC (+4.9%), and BIDU-SW (+7.5%), alongside other robotics and major tech companies like TENCENT and BABA-W, which also experienced increases.

Short Selling Activity: The report highlighted notable short selling activities across various stocks, with significant ratios observed in companies like BIDU-SW (33.006%) and NTES-S (28.988%), indicating market volatility and investor sentiment.

Southbound Trading Inflows: SMIC (00981.HK) saw significant net inflows of HKD391.9 million, while CM BANK (03968.HK) was the most active stock with a net inflow of HKD724.1 million.

Southbound Trading Outflows: ZIJIN MINING (02899.HK) and TENCENT (00700.HK) experienced notable net outflows of HKD682.6 million and HKD646.5 million, respectively, with TENCENT being the most active stock in outflows.

Short Selling Activity: Short selling figures indicated substantial activity, with BABA-W (09988.HK) leading at $788.77 million and a ratio of 15.498%, while CM BANK had the highest short selling ratio at 53.217%.

Overall Trading Summary: The total Southbound Trading net outflow was HKD0, accounting for 45.44% of the total transaction amount of HKD54.06 billion.

CICC 2026 Outlook: CICC has released its stock picks for Hong Kong in 2026, highlighting companies like Tencent, Alibaba, and China Mobile, along with their short selling data and ratios.

Everbright Securities Report: Everbright Securities International also published a report in December focusing on key stocks for 2026, including Tencent, Alibaba, and Jiangxi Copper, with detailed short selling statistics.

Market Trends: Both reports indicate a significant amount of short selling activity across various stocks, suggesting cautious investor sentiment in the Hong Kong market.

Trade-in Policy Impact: Citi anticipates that a new trade-in policy will positively affect Chinese e-commerce platforms, potentially mitigating the high base impact expected in the first half of 2026.

CCBI's Top Ten Focus Stocks for 2026: CCBI has identified ten key stocks for 2026, including BABA-W, TENCENT, and INNOVENT BIO, with varying short selling ratios indicating market sentiment.

SPDBI's 2026 Outlook Report: SPDBI also released a report highlighting a stock portfolio to monitor, featuring TENCENT and BABA-W, alongside other stocks like HENGRUI PHARMA and POP MART, with significant short selling activity.

Market Trends: Both reports reflect a cautious market environment, with notable short selling ratios for several stocks, suggesting investor skepticism about their performance.

Stock Performance Overview: The reports detail stock price changes and short selling data, indicating a mix of declines and slight gains among the highlighted companies, with some stocks experiencing high short selling ratios.

Market Overview: The DJIA fell by 94 points (0.2%) following the Fed's meeting minutes indicating potential interest rate cuts, while Hong Kong's HSI and HSCEI opened lower on the last trading day of 2025.

Tech Sector Performance: Major tech stocks like TENCENT, BABA-W, and MEITUAN-W opened lower, with significant short selling ratios, while BILIBILI-W saw a slight increase.

Chip Manufacturing Policy: Mainland China mandated that chip manufacturers use at least 50% domestically produced equipment for new production capacity, positively impacting SMIC's stock.

Robotics and Automotive Stocks: Robotics stocks like SANHUA and UBTECH opened higher, and the mainland's support for "Two New" policies in 2026 led to mixed performances among automakers, with NIO-SW showing a notable increase.