09926 Overview

Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows totaling HKD4.3 billion, while other stocks like BABA-W (09988.HK) and POP MART (09992.HK) experienced notable short selling activity.

Market Activity Overview: TENCENT was the most active stock in both Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, with substantial net inflows, while stocks like XIAOMI-W and AKESO faced the highest net outflows.

Short Selling Statistics: The short selling ratios for TENCENT, BABA-W, and POP MART were 15.248%, 19.556%, and 27.852% respectively, indicating a high level of market speculation.

Overall Market Sentiment: The total Southbound Trading net outflow was HKD0, accounting for 35.67% of the total transaction amount of HKD88.42 billion, reflecting fragile market sentiment according to JPM.

CICC Report on HSI Adjustments: CICC predicts potential blue chip stocks for inclusion in the HSI based on semi-annual adjustments and quantitative criteria, highlighting companies like ZIJIN GOLD INTL and YUM CHINA.

Short Selling and Inflows: The report details short selling ratios and inflows for various stocks, indicating market activity and investor sentiment towards companies such as BEONE MEDICINES and XPENG-W.

Potential Replacements for HANG SENG BANK: Following the delisting of HANG SENG BANK, companies like STANCHART and SWIREPROPERTIES are identified as potential candidates to fill the vacancy.

Market Performance Overview: The report includes a snapshot of stock performance, with some companies experiencing gains while others face declines, reflecting the mixed market conditions.

Company Listing: Shanghai Duoning Biotechnology has submitted a listing application to the Hong Kong Stock Exchange, with Morgan Stanley and Huatai International as joint sponsors.

Clientele and Services: The company provides bioprocess solutions and laboratory products to pharmaceutical companies, CROs, CDMOs, and research institutions, with major clients including top biopharmaceutical firms in China.

Key Clients: WuXi Biologics is highlighted as one of the largest clients and suppliers, along with other notable shareholders such as CSPC Pharma, Akeso, and Keymed Bio-B.

Market Activity: The article notes short selling activity and stock performance for several companies in the sector, indicating market dynamics and investor interest.

China's GDP Growth Outlook: KGI estimates that external pressures will slow China's GDP growth to 4.6% this year, despite reduced risks from recent trade agreements.

HSI Forecast: KGI maintains a bullish outlook for the Hang Seng Index (HSI), predicting that Fed rate cuts will attract capital back into H- and A-shares, with a year-end target of 30,000, indicating a potential 14% increase.

Stock Recommendations: KGI has recommended 12 major stocks, including XPENG-W, UBTECH ROBOTICS, TENCENT, and BABA-W, highlighting their performance and short selling ratios.

Market Sentiment: The report reflects a positive sentiment towards the Chinese A-share market, driven by anticipated earnings growth, as noted by Jefferies.

New Stock Options Launch: HKEX is set to launch six new stock option classes on January 19, 2026, enhancing choices for investors in the single stock options market.

Included Stocks: The new options will include stocks such as ZIJIN GOLD INTL, WUXI APPTEC, BEONE MEDICINES, LAOPU GOLD, HORIZONROBOT-W, and AKESO, each with varying short selling data and ratios.

Market Overview: In 2025, the Chinese biopharmaceutical sector experienced significant growth, prompting Daiwa to suggest a selective investment strategy for 2026, focusing on quality stocks.

Top Stock Picks: Daiwa's recommended stocks include INNOVENT BIO, with a target price increase from HKD95 to HKD112, and HENGRUI PHARMA, maintaining a target price of RMB80.

Stock Downgrades: AKESO has been downgraded from Buy to Hold, despite an increase in its target price from HKD100 to HKD116, while CSPC PHARMA retains a Sell rating with a target price of HKD6.6.

Short Selling Data: The report includes short selling figures for the mentioned stocks, indicating varying levels of market activity and investor sentiment.