00763 Overview

Top Hong Kong Stocks by Short Selling Ratios: S&P Global Market Intelligence reported the top ten Hong Kong stocks with the highest short selling ratios, highlighting CATL as the leader with a ratio of 27.016%.

Short Selling Data Overview: The report includes details on the number of shares borrowed, price changes, and short selling ratios for each stock, indicating significant short selling activity in the market.

Market Reactions: Stocks like COSCO SHIP HOLD and PING AN showed varying price changes, with PING AN having a notable short selling amount of $966.61M and a ratio of 18.980%.

Sector Impacts: The report also notes that external factors, such as the US-Iran conflict, are influencing market dynamics, particularly in sectors like oil and electric vehicles.

Financial Performance: ZTE reported FY2025/4Q25 revenues of RMB133.9 billion, with net profit falling short at RMB5.6 billion due to a decline in gross margins.

Business Outlook: The carrier business is expected to continue declining in 2026, influenced by reduced capital expenditure from domestic operators, while international carrier business growth and overseas smartphone sales may provide some offset.

Analyst Ratings: Citi Research has adjusted its target price for ZTE from $29.2 to $25.4, maintaining a Neutral rating.

Market Activity: ZTE's stock experienced a decline of 4.957%, with significant short selling activity reported at $77.59 million.

ZTE's Financial Performance: ZTE reported a 43% year-on-year decline in net profit for 4Q25, totaling RMB296 million, significantly below expectations due to reduced carrier business scale and increased year-end expenses. Quarterly sales also fell short, being 8% and 22% below broker and market forecasts, respectively.

Growth in Government/Enterprise Sector: The company's government and enterprise business saw a remarkable 100% year-on-year revenue growth, largely driven by a significant expansion in its server business, which now constitutes 20% of total revenue for 2025.

Profit Forecast Adjustments: BofA Securities has reduced its profit forecasts for ZTE by approximately 6% for the current and next year, citing ongoing pressures in the telecom operator sector.

Target Price and Rating: Despite the profit forecast cuts, the target price for ZTE's H-shares remains unchanged at HKD28, with a Buy rating maintained, reflecting the impact of RMB appreciation.

Stock Performance: ZTE's stock opened 3.93% lower and fell to $23.28, closing at $23.34, a decline of 8.18%, with significant trading volume of 9.0336 million shares.

A-Shares Decline: ZTE's A-shares dropped 6.6% to RMB34.93, with a turnover of RMB2.47 billion.

Annual Results: For the year ending December 2025, ZTE reported operating revenue of RMB133.896 billion (up 10.4% YoY) but a net profit decrease of 33.3% to RMB5.618 billion, with an EPS of RMB1.17.

Profit Forecast Revision: Due to industry cycle transitions and changes in business structure, ZTE's gross margin faced pressure, prompting a downward revision of its profit forecast by China Merchants Securities.

Market Performance: The HSI opened significantly lower by 2.65%, with the HSCEI and HSTECH also experiencing declines of 2.2% and 3.8%, respectively.

Sector Movements: Oil stocks like PETROCHINA and CNOOC saw gains of 4.3% and 5.5%, while gold and commodity stocks faced substantial losses, with Jiangxi Copper dropping 7.2%.

Tech Stock Trends: Major tech companies such as Tencent and Alibaba experienced declines of 2.6% and 3.7%, respectively, with significant short selling activity noted.

Economic Indicators: China's inflation rate for February rose to 1.0%, while the Producer Price Index (PPI) showed a year-on-year decrease of 0.9%, indicating economic pressures.

FTSE China Index Series Review: FTSE Russell has released the results of the FTSE China Index Series quarterly review for 1Q26, highlighting its significance as a benchmark for the Chinese equity market, with nearly 60% of globally issued ETFs tracking a FTSE China index.

Index Additions and Removals: The FTSE China A50 Index will include new stocks such as CHINA CSSC, TFC, and WANHUA CHEM, while removing EVERBRIGHT BANK, CRRC, and SHANXI FEN WINE.

FTSE China 50 Index Changes: The FTSE China 50 Index will add NCI and WEICHAI POWER, and remove MINSHENG BANK and ZTE, with details on short selling ratios provided for each stock.

Market Data Notes: The article includes a note that Hong Kong stock quotes are delayed by at least 15 minutes, and short selling data is current as of March 4, 2026.