02423 Overview

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.

Hong Kong Stock Performance: On February 16, Hong Kong stocks saw a positive half-day session, with the HSI closing up 138 points (0.5%) at 26,705, marking a strong overall performance in the Year of the Snake with a 32% gain.

HSI Quarterly Review Changes: The quarterly review of the HSI included the addition of CATL, CMOC, and LAOPU GOLD, which saw significant gains, while ZHONGSHENG HLDG was removed from the index.

Individual Stock Movements: Notable stock movements included SANDS CHINA LTD rising 2.7% despite a slight decline in property EBITDA, while ANTA SPORTS experienced a minor drop after shareholder approval for a significant acquisition.

US Department of War Update: The US Department of War's withdrawal of the "List of Chinese Military Companies" impacted stock prices, with BABA-W declining 0.5% and BIDU-SW increasing by 1.3%.

Index Review Announcement: Hang Seng Indexes Company announced the results of its quarterly review for the Hang Seng Family of Indexes, effective from March 9, 2026.

Additions and Deletions: BEKE-W and HORIZONROBOT-W will be added to the HSCEI, while CHINA RES BEER and MENGNIU DAIRY will be removed, keeping the total number of constituents at 50.

Short Selling Data: The short selling data indicates significant activity for the stocks involved, with BEKE-W showing a short selling ratio of 34.793%.

Market Impact: Changes will take effect after market close on March 6, 2026, potentially influencing trading strategies and market dynamics.

Market Reaction: Chinese developers saw an average increase of 8% due to reports of a potential relaxation of the "Three Red Lines" policy and a recovery in second-hand home transactions, alongside stable home prices in major cities.

Caution on Stability: UBS cautioned that it is premature to declare the market stabilized, emphasizing the need for further observation of actual trading data post-Chinese New Year.

Sentiment vs. Reality: The recent uptick in second-hand property transactions is viewed as a reaction to policy shifts rather than a sign of genuine market recovery, supported by the People's Bank of China and the Ministry of Finance.

Weak New Home Sales: Despite the positive sentiment, new home sales remain weak, indicating ongoing challenges in the Chinese property market.

Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.

Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.

Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.

Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.

Stock Performance: Several stocks showed positive movements, with BABA-W increasing by 3.5% and ALI HEALTH by 3.3%, while BIDU-SW and JD HEALTH experienced declines of 1.4% and 1.2%, respectively.

Short Selling Data: Notable short selling activity was observed, particularly in BIDU-SW with a ratio of 28.7% and ALI HEALTH at 25.4%, indicating significant market interest in these stocks.