00861 Overview

Changes to Southbound Stock Connect: The Shenzhen Stock Exchange has updated the list of securities eligible for Southbound Stock Connect, effective today, adding several new stocks including BANK OF E ASIA and GOFINTECH QUANT.

New Additions: Other notable additions to the list include WUXI LEAD, CTF SERVICES, and DEEPEXI TECH, among others, with varying short selling ratios and price changes.

Removals from the List: Several stocks have been removed from the Southbound Stock Connect list, including SHUI ON LAND and PAX GLOBAL, which also show significant short selling activity.

Market Impact: The adjustments reflect ongoing market dynamics, with some stocks experiencing notable price fluctuations and short selling ratios, indicating investor sentiment and trading strategies.

Supreme Court Ruling: The US Supreme Court invalidated several tariffs from the Trump administration, prompting Trump to announce a temporary increase in global tariffs to 15% for 150 days.

Impact on Chinese Exporters: The ruling is seen as beneficial for Chinese exporters, as US customers will face higher equivalent tariffs rather than the additional 15% tariff under Section 122, potentially increasing sales for companies with significant US markets.

Citi's Stock Preferences: Citi has expressed a preference for TECHTRONIC IND (00669.HK) due to its higher dividend yield and lower tariff impact compared to previous years.

Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity for DC HOLDINGS (00861.HK) and STELLA HOLDINGS (01836.HK).

Stock Performance: DC HOLDINGS (00861.HK) experienced a significant increase, peaking at HKD3.95, and closing at HKD3.61, reflecting a 35.71% rise with a trading volume of 38.472 million shares.

Short Selling Activity: The short selling for DC HOLDINGS amounted to $768.25K, with a ratio of 15.890%.

Profit Forecast: DCITS (000555.SZ), a subsidiary of DC HOLDINGS, anticipates a net profit of RMB46-69 million for the previous year, marking a substantial recovery from a loss of approximately RMB524 million in 2024.

Growth Drivers: The expected profit turnaround is attributed to increased operating income due to active market expansion, contributing to DCITS' profit growth.