01072 Overview

UBS Report Findings: UBS identified JD-SW and BIDU-SW as preferred stocks for Chinese investors, both rated as Buy, while Alibaba was removed from the list.

Stock Performance: JD-SW saw a gain of +0.900 (+0.829%) with significant short selling, while BIDU-SW experienced a decline of -1.400 (-1.149%).

Short Selling Data: Notable short selling figures include Tencent at $1.77B and JD-SW at $277.62M, indicating high investor caution.

Market Overview: The report includes various stocks with their respective performance and target prices, highlighting a mix of gains and losses across different companies.

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.

Demand for Power Equipment: The demand for power equipment is increasing due to US AI data centers, leading to extended delivery times for overseas gas turbine manufacturers, which presents opportunities for emerging market producers.

DONGFANG ELEC's Market Position: DONGFANG ELEC, the only Chinese gas turbine manufacturer capable of exporting F-class products, is experiencing a rise in inquiries from various countries, benefiting from competitive pricing and shorter delivery times.

BofA Securities Forecast: BofA Securities has raised its net profit forecasts for DONGFANG ELEC for 2026 and 2027 by 13% and 30%, respectively, and has updated its valuation method to a sum-of-the-parts (SOTP) approach based on the price-to-earnings (PE) ratio.

Target Price Increase: Following the updated forecasts, BofA Securities has increased the target prices for DONGFANG ELEC's H-/A-shares from $33/RMB32 to $55/RMB54, maintaining a "Buy" rating.

US Stock Market Reaction: The US stock indices saw a rebound due to positive developments in the Middle East geopolitical situation, while major Asia-Pacific markets also experienced significant gains, with the Nikkei rising 2.7% and South Korea's market jumping nearly 10%.

Chinese Government Report: The Fourth Session of the 14th National People's Congress commenced, featuring a government work report delivered by Chinese Premier Li Qiang, indicating ongoing economic strategies.

Hong Kong Stock Market Performance: After three days of decline, the Hong Kong stock market opened higher, with the Hang Seng Index gaining 1.7%, driven by strong performances in power equipment stocks.

Power Equipment Sector Outlook: A report from CICC highlighted that power equipment companies are poised to benefit from power shortages in Europe and the US, alongside the global expansion of domestically produced computing power tokens, suggesting a forthcoming investment cycle in the power sector.

Top Short Selling Stocks: S&P Global Market Intelligence identified the top ten Hong Kong stocks with the highest short selling ratios, highlighting significant borrowing activity relative to total shares issued.

CATL Performance: CATL (03750.HK) showed a short selling ratio of 16.502% with a total of $138.71 million borrowed, reflecting a slight price increase of 1.280% over the past week.

Jiangsu Express and Ping An: Jiangsu Express (00177.HK) had the highest short selling ratio at 48.169%, while Ping An (02318.HK) followed with a ratio of 29.427%, indicating substantial investor skepticism.

Overall Market Trends: The report includes various stocks with their respective short selling ratios and price changes, indicating mixed performance across the board, with some stocks experiencing significant declines.

XIAOMI-W Trading Activity: There was a net inflow of HKD18.4 million in Southbound Trading for XIAOMI-W (01810.HK), despite a decrease in its stock price by 1.180%.

CNOOC and BABA-W Outflows: CNOOC (00883.HK) and BABA-W (09988.HK) experienced significant net outflows of HKD893.8 million and HKD888 million respectively, with BABA-W seeing a stock price drop of 3.574%.

Most Active Stocks: In the Shanghai-Hong Kong Stock Connect, DONGFANG ELEC (01072.HK) had the highest net inflow of HKD125.1 million, while CNOOC had the highest net outflow of HKD625.5 million.

Overall Southbound Trading Summary: The total Southbound Trading net outflow was HKD0, accounting for 38.54% of the total transaction amount of HKD99.93 billion.