{Economic Information Bulletin 16th exclusive} Overnight U.S. market sentiment warmed up, as market concerns were immediately eased by NVIDIA CEO Jensen Huang's remark that "CoreWeave does not need a bailout," leading U.S. stocks to rise. Benefiting from the improved sentiment, Hong Kong stocks followed suit with a rebound. The Hang Seng Index opened 258 points higher this morning, with tech and internet stocks collectively rising. However, resistance emerged near the 20-day moving average around 24,400, and profit-taking pressure intensified in the afternoon. Nevertheless, the Hang Seng Index managed to maintain its gains, closing at 24,186, up 124 points or 0.5%, with main board turnover exceeding HK$178.2 billion. The Hang Seng China Enterprises Index closed at 8,128, up 24 points or 0.3%. The Hang Seng Tech Index closed at 4,108, up 47 points or 1.2%.
Hong Kong stocks rebounded on the back of improved U.S. market sentiment, but overall market turnover remained thin, falling short of HK$180 billion and decreasing by about HK$46 billion from the previous day, indicating that further market recovery still requires additional momentum. Northbound funds were similarly unhelpful, taking advantage of the slight return of foreign capital confidence into Hong Kong stocks to lock in profits. Northbound funds recorded net outflows exceeding HK$3.5 billion for the day, marking the fourth consecutive trading session of net outflows. This is likely due to investors maintaining caution ahead of next Monday's release of China's three major economic indicators. If the data fails to show positive signs, Hong Kong stocks are more likely to remain range-bound at lower levels, fluctuating roughly between 23,800 and 24,500.
*Tech and internet rebound stalls; property stocks see speculative interest*
Tech and internet stocks rose collectively in early trading, but profit-taking pressure expanded during the session, causing most tech and internet stocks to narrow their gains; Alibaba (09988) rose 2.3%, closing at HK$108.80; Tencent (00700) closed flat at HK$417.80; Baidu (09888) rose 1.4%, closing at HK$79.45; NetEase (09999) rose 0.8%, closing at HK$197.70; JD.com (09618) rose 1.1%, closing at HK$106.10; Meituan (03690) rose 0.3%, closing at HK$75.70.
AI hardware stocks rebounded; Lenovo Group (00992) rose 8%, closing at HK$28.06; Yangtze Optical Fiber (06869) rose 1.1%, closing at HK$124.00; Kingboard PCB (01888) rose 3.1%, closing at HK$39.48; Montage Technology (06809) rose 4.6%, closing at HK$211.20; Hua Hong Semiconductor (01347) fell 2.1%, closing at HK$74.95.
Shenzhen and Hangzhou released details of reforms to commercial housing sales systems yesterday. Two more cities have implemented local versions of the national policy, covering strengthened pre-sale management, promotion of ready-to-move-in home sales, implementation of lead bank systems, and optimization of land supply. Property stocks generally performed well; Longfor (00960) rose 6.2%, closing at HK$5.045; Sunac (01918) rose 1.8%, closing at HK$0.565; Vanke (02202) rose 2.1%, closing at HK$2.43; China Overseas Land (00688) rose 0.9%, closing at HK$13.17; China Resources Land (01109) rose 3.3%, closing at HK$31.06.
*Pengcheng sales drive Xiaomi's valuation recovery*
Xiaomi (01810) has been pressured by rising memory chip prices this year, but the company has made every effort to increase revenue and cut costs, reducing capital expenditure while maintaining moderate AI development and launching new vehicles. Recently, the launch of the "Pengcheng" model has received a positive market response, clearly driving funds to start accumulating Xiaomi shares. Trading volume has noticeably increased over the past week, averaging above HK$4 billion per day. Investors interested in following the momentum may consider entering near the strong support level of HK$25.50, with short- to medium-term target at HK$32.40, while monitoring whether further sales of the Pengcheng vehicle can catalyze a breakout and push the stock price toward higher targets.
HSBC Research recently published a new research report on Xiaomi, expecting Xiaomi's smartphone business to see a broader recovery next year, with optimism on the reset of smartphone business profitability, and the growth momentum of its electric vehicle business also expected to expand. HSBC highlighted that the intensive new product launches in the fourth quarter of this year are expected to pass on more costs, paving the way for profit recovery next year. The brokerage also expressed confidence in Pengcheng's sales, forecasting "full-year volume ramp-up" next year, with annual vehicle deliveries expected to rise to 540,000 units. (hc)
Hong Kong stocks rebounded on the back of improved U.S. market sentiment, but overall market turnover remained thin, falling short of HK$180 billion and decreasing by about HK$46 billion from the previous day, indicating that further market recovery still requires additional momentum. Northbound funds were similarly unhelpful, taking advantage of the slight return of foreign capital confidence into Hong Kong stocks to lock in profits. Northbound funds recorded net outflows exceeding HK$3.5 billion for the day, marking the fourth consecutive trading session of net outflows. This is likely due to investors maintaining caution ahead of next Monday's release of China's three major economic indicators. If the data fails to show positive signs, Hong Kong stocks are more likely to remain range-bound at lower levels, fluctuating roughly between 23,800 and 24,500.
*Tech and internet rebound stalls; property stocks see speculative interest*
Tech and internet stocks rose collectively in early trading, but profit-taking pressure expanded during the session, causing most tech and internet stocks to narrow their gains; Alibaba (09988) rose 2.3%, closing at HK$108.80; Tencent (00700) closed flat at HK$417.80; Baidu (09888) rose 1.4%, closing at HK$79.45; NetEase (09999) rose 0.8%, closing at HK$197.70; JD.com (09618) rose 1.1%, closing at HK$106.10; Meituan (03690) rose 0.3%, closing at HK$75.70.
AI hardware stocks rebounded; Lenovo Group (00992) rose 8%, closing at HK$28.06; Yangtze Optical Fiber (06869) rose 1.1%, closing at HK$124.00; Kingboard PCB (01888) rose 3.1%, closing at HK$39.48; Montage Technology (06809) rose 4.6%, closing at HK$211.20; Hua Hong Semiconductor (01347) fell 2.1%, closing at HK$74.95.
Shenzhen and Hangzhou released details of reforms to commercial housing sales systems yesterday. Two more cities have implemented local versions of the national policy, covering strengthened pre-sale management, promotion of ready-to-move-in home sales, implementation of lead bank systems, and optimization of land supply. Property stocks generally performed well; Longfor (00960) rose 6.2%, closing at HK$5.045; Sunac (01918) rose 1.8%, closing at HK$0.565; Vanke (02202) rose 2.1%, closing at HK$2.43; China Overseas Land (00688) rose 0.9%, closing at HK$13.17; China Resources Land (01109) rose 3.3%, closing at HK$31.06.
*Pengcheng sales drive Xiaomi's valuation recovery*
Xiaomi (01810) has been pressured by rising memory chip prices this year, but the company has made every effort to increase revenue and cut costs, reducing capital expenditure while maintaining moderate AI development and launching new vehicles. Recently, the launch of the "Pengcheng" model has received a positive market response, clearly driving funds to start accumulating Xiaomi shares. Trading volume has noticeably increased over the past week, averaging above HK$4 billion per day. Investors interested in following the momentum may consider entering near the strong support level of HK$25.50, with short- to medium-term target at HK$32.40, while monitoring whether further sales of the Pengcheng vehicle can catalyze a breakout and push the stock price toward higher targets.
HSBC Research recently published a new research report on Xiaomi, expecting Xiaomi's smartphone business to see a broader recovery next year, with optimism on the reset of smartphone business profitability, and the growth momentum of its electric vehicle business also expected to expand. HSBC highlighted that the intensive new product launches in the fourth quarter of this year are expected to pass on more costs, paving the way for profit recovery next year. The brokerage also expressed confidence in Pengcheng's sales, forecasting "full-year volume ramp-up" next year, with annual vehicle deliveries expected to rise to 540,000 units. (hc)
