01157 Overview

Market Volatility: The market has seen significant fluctuations due to the ongoing Mideast war and changing policies from leaders, prompting caution among investors.

Investment Advice: Daiwa recommends avoiding stocks impacted by Mideast tensions, such as shippers and airlines, and suggests focusing on undervalued stocks instead.

Stock Recommendations: The report highlights specific stocks to consider, including BYD COMPANY, WEICHAI POWER, MINTH GROUP, JD LOGISTICS, and ZOOMLION.

Short Selling Data: The article provides short selling statistics for various stocks, indicating the level of market activity and investor sentiment towards these companies.

Market Growth: In January 2023, the shipment volume of tower cranes in Mainland China experienced a 7% year-on-year growth, ending a 30-month decline, attributed to improved market demand following policy changes in the real estate sector.

Stock Predictions: Citi Research anticipates that the positive market developments will boost stock prices for ZOOMLION and SANY HEAVY IND, with ZOOMLION being the top pick due to its significant crane machinery exposure and a target price set at HKD10.2.

Market Growth: HSBC Global Investment Research predicts that by 2026, China's excavator exports will grow by 15% and domestic sales by 6%, driven by mining and infrastructure demand, particularly in the Middle East and Africa.

Stock Recommendations: The report favors Caterpillar and XCMG for their potential in the mining upcycle, assigning target prices of USD850 and RMB13.5, respectively, along with a Buy rating.

Hydraulic Products and Robotics: JSHL is highlighted for its growing market share in hydraulic products and humanoid robot concepts, with a target price of RMB131 and a Buy rating.

ZOOMLION's Outlook: ZOOMLION is expected to see export growth and has a revised target price of HKD12 for H-shares and RMB12.4 for A-shares, maintaining a Buy rating.

China's Agricultural Modernization: The State Council's 'No. 1 Document' focuses on modernizing the agricultural industry and promoting rural revitalization through innovative technologies like AI, drones, and robots.

Impact on ZOOMLION: Citi Research views the document as a positive catalyst for ZOOMLION, predicting that about 8% of its revenue will come from agricultural machinery by 2026, and has reiterated a Buy rating with a target price of $10.2.

Top Shorted Stocks in Hong Kong: S&P Global Market Intelligence identified the ten most shorted stocks in Hong Kong, with metrics including the number of shares borrowed and short selling ratios.

Notable Stocks: Key stocks include Ping An with a short selling ratio of 39.57%, COSCO Ship Hold at 23.71%, and Hengrui Pharma at 18.79%, reflecting significant investor skepticism.

Market Trends: The report indicates a mixed performance in stock prices over the past week, with some stocks experiencing gains while others faced declines.

Market Insights: Analysts, including those from M Stanley, suggest that the recent uptrend in the Chinese property sector may not be sustainable, predicting potential declines in home sales and prices.

Market Performance: The HSI rose by 54 points (0.2%) to 26,830, while the HSTI and HSCEI fell by 72 points (1.3%) and 19 points (0.2%) respectively.

Active Heavyweights: Major stocks like Tencent, Alibaba, and Meituan experienced declines, with Tencent down 4.0% and Alibaba down 2.3%, while Ping An saw a slight increase of 0.9%.

Notable Movers: CSPC Pharma and CKH Holdings saw significant gains, up 3.5% and 3.4% respectively, while Kuaishou-W dropped 5.1%.

High Performers: Stocks like Fangzhou Jianke and CIMC achieved notable increases of 15.3% and 16.1%, reaching new highs in their respective performances.