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.

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 Pullback: China healthcare stocks have seen a significant decline since early October, with the Hang Seng Healthcare Index down 12% and the CSI 300 Healthcare Index down 9%, contrasting with a minor drop in the HSI and a rise in the CSI 300 Index.

Contributing Factors: The pullback is attributed to increased US-China tensions, geopolitical risks leading to profit-taking by investors, and uncertainties surrounding the US Biosecure Act affecting pharmaceutical outsourcing.

JPMorgan's Outlook: Despite the current pullback, JPMorgan believes it will create favorable conditions for next year's performance, highlighting several top stock picks in the healthcare sector.

Highlighted Stocks: JPMorgan's recommended stocks include AKESO, HANSOH PHARMA, WUXI APPTEC, INNOVENT BIO, and HENGRUI PHARMA, with varying short selling ratios indicating market sentiment.

Southbound Trading Inflows and Outflows: XIAOMI-W saw significant net inflows of HKD1.1 billion, while SMIC and GIANT BIOGENE experienced net outflows of HKD294.6 million and HKD237.7 million, respectively.

Short Selling Activity: Notable short selling figures included BABA-W at $2.04 billion and POP MART at $1.27 billion, with short selling ratios of 17.320% and 18.600%, respectively.

Stock Ratings and Target Prices: Various companies have received buy ratings with specific target prices, including Qfin Holdings at US$58, Alibaba at US$200, and Kuaishou-W at HK$90.

Short Selling Activity: Significant short selling activity is noted for several stocks, with Alibaba and Kuaishou-W experiencing high short selling ratios of 15.084% and 16.078%, respectively.

Market Trends: Hong Kong stocks showed an uptrend in September, supported by improved market risk appetite, resumption of China-US trade talks, and expectations of overseas interest rate cuts, particularly benefiting the tech sector.

Investment Insights: BOCOM International reported tightening liquidity in late August, but noted significant inflows from southbound funds in September, with a historical high of over HKD1.1 trillion YTD, indicating strong demand for quality stocks like AI-related companies.