02313 Overview

Market Performance: The Hang Seng Index (HSI) fell by 61 points (0.2%) to close at 25,898, with a total market turnover of $254.48 billion.

Active Heavyweights: Major stocks like Meituan, CCB, and Xiaomi experienced declines, with Meituan down 2.1% and CCB down 1.6%, while Tencent and Alibaba also saw minor drops.

Top Gainers: CATL and Geely Auto were notable gainers, rising by 9% and 8.2% respectively, while other stocks like China Shenhua and XPeng also posted significant increases.

Notable Movements: 160 Health and 51World saw substantial gains of 28.5% and 28.2%, respectively, while Breton experienced a significant drop of 16.6%.

Market Performance: The Hang Seng Index (HSI) rose by 21 points (0.1%) to 25,981, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw slight increases.

Active Heavyweights: Notable movements included Meituan down 2.7%, Tencent up 0.5%, and Alibaba up 0.3%, with significant short selling activity across these stocks.

Top Gainers: Geely Auto and CATL experienced substantial gains, rising 8.6% and 8.4% respectively, while several other stocks like XPeng and Xinyi Solar also saw notable increases.

Significant Movers: Stocks such as 51World and Seyond surged over 20%, while Breton faced a significant decline of 12.5%, highlighting a mix of strong performers and underperformers in the market.

Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with notable gains for ANTA SPORTS (+2.365%) and HAIDILAO (+5.822%), while LI NING (-1.875%) and SANDS CHINA LTD (-1.271%) experienced declines.

Short Selling Data: Short selling activity varied across stocks, with LI NING having the highest ratio at 23.224%, while TSINGTAO BREW reported the lowest at 1.075%.

Investment Ratings: Most stocks listed received a "Buy" rating, except for LI NING, which is rated as "Hold," indicating a generally positive outlook for the majority of the stocks.

Market Insights: Citi's estimate for Macau's February gross gaming revenue (GGR) is projected at MOP20 billion, reflecting a 1% year-over-year increase, suggesting a stable gaming market.

GDP Target Insights: Daiwa estimates an implied national GDP target of 5% for China in 2026, suggesting a more conservative official target of 4.5-4.7%, with potential economic stimulus measures expected following the "Two Sessions" on March 5.

Market Outlook: Despite recent market turmoil, Daiwa maintains an optimistic outlook for the Chinese stock market in the first half of 2026, anticipating that gradual stimulus measures could enhance investment sentiment.

Top Stock Picks: Daiwa has updated its top stock picks to include LAOPU GOLD and KINGSOFT CLOUD, driven by strong downstream demand and price increase expectations, replacing previous picks SHENZHOU INTL and TRIP.COM.

Short Selling Data: The report includes short selling data for various stocks, indicating significant short selling activity in LAOPU GOLD and KINGSOFT CLOUD, reflecting market sentiment and trading strategies.

Stock Performance Overview: Various stocks showed mixed performance with notable gains for SHENZHOU INTL (+2.953%) and SMIC (+2.061%), while others like UNIVERSAL SCIENTIFIC (-2.412%) and COWELL (-0.682%) experienced declines.

Short Selling Data: Significant short selling activity was observed, particularly in SMIC ($217.14M) and WUXI BIO ($160.63M), indicating market skepticism towards these stocks.

Estimated Impact of RMB Appreciation: The estimated impact of a 5% appreciation of the RMB against the USD on net profit varies, with some companies projected to face high single-digit impacts while others may see declines around 10-15%.

Market Outlook: UOB Kay Hian maintains a constructive medium-term view on markets, adding stocks like BABA and GANFENGLITHIUM to their buy list, while placing MEITUAN on the sell list.

Stock Performance: TENCENT saw a notable increase of 2.306%, while SHENZHOU INTL and BABA-W also experienced gains of 1.536% and 1.530%, respectively.

Short Selling Data: TENCENT had a short selling amount of $529.35M with a ratio of 8.541%, while SHENZHOU INTL had a significantly higher short selling ratio of 35.574% at $62.89M.

Declines in Other Stocks: WEICHAI POWER, MIDEA GP, and HENGRUI PHARMA experienced slight declines, with MIDEA GP dropping by 0.775%.

Market Overview: The report includes delayed quotes for HK stocks and mentions that the short selling data is as of January 28, 2026, indicating a focus on real-time market analysis.