Hong Kong stocks closed (02.12) | Hang Seng Index rose 2.64%, domestic property stocks surged in the afternoon, Alibaba-W soared over 8%

According to Zhitong Finance APP, the Hong Kong stock market rebounded from yesterday's sluggish performance, with the three major indices making strong gains today, further expanding their increases in the afternoon and reaching new highs for the period. By the close, the Hang Seng Index rose by 2.64% or 563.06 points, closing at 21,857.92 points, with a total turnover of HKD 287.163 billion; the Hang Seng China Enterprises Index rose by 2.75%, closing at 8,058.08 points; the Hang Seng Tech Index rose by 2.7%, closing at 5,281.18 points.

Galaxy Securities pointed out that in the short term, the DeepSeek craze and better-than-expected consumption data for the Spring Festival have made investor sentiment more optimistic, driving up Hong Kong stock valuations. However, the U.S. tariff increases may lower investors' risk appetite, and under the backdrop of a slowdown in the Federal Reserve's interest rate cuts, liquidity in the Hong Kong stock market is under pressure. In the medium to long term, the Hong Kong stock market's performance will still depend on the fundamentals. With the development of new productive forces and the implementation of domestic consumption promotion policies, the earnings of Hong Kong stock companies are expected to remain stable with an increase. Overall, the Hong Kong stock market is expected to fluctuate upward.

Blue Chip Performance

Alibaba-W (09988) was strong throughout the day. By the close, it rose by 8.48%, closing at HKD 113.8, with a turnover of HKD 24.162 billion, contributing 166.57 points to the Hang Seng Index. According to reports, Apple will collaborate with Alibaba to launch artificial intelligence features in China. Insiders revealed that this move is part of Apple's strategy to address declining sales in China, aiming to provide more attractive software features. Notably, on the afternoon of February 11, Alibaba founder Jack Ma appeared at Alibaba's Hangzhou campus, wearing an Alibaba black cultural jacket, smiling throughout and waving to employees.

Blue chip stocks generally rose, with Alibaba Health (00241) up 10.83%, closing at HKD 4.4, contributing 4.38 points to the Hang Seng Index; BYD Electronics (00285) up 9.98%, closing at HKD 60.6, contributing 6.8 points; Longfor Group (00960) up 8.02%, closing at HKD 10.5, contributing 2.56 points; BYD Company (01211) up 7.38%, closing at HKD 352, contributing 41.97 points.

Popular Sectors

On the market, large technology stocks generally rose, with Alibaba soaring over 8% and Tencent rising nearly 4%. Domestic property stocks surged in the afternoon, with Sunac China rising over 20% and Vanke Enterprises rising over 16%; reports suggested that Apple is collaborating with Alibaba to develop AI features, continuing the upward trend in the mobile phone supply chain; the semiconductor sector generally rose, with Shanghai Fudan up over 11%; the favorable conditions for the Spring Festival release continued, with Maoyan Entertainment soaring 12%, leading the film and television stocks; automotive stocks, lithium stocks, intelligent driving concept stocks, and Chinese brokerage stocks also saw significant gains. On the other hand, after reaching a new high, gold prices fell back, with the market focusing on U.S. inflation data, leading gold stocks to decline against the trend.

1. Domestic property stocks surged in the afternoon. By the close, Sunac China (01918) rose by 20.83%, closing at HKD 2.03; Ronshine China (03301) rose by 20%, closing at HKD 0.36; Vanke Enterprises (02202) rose by 16.73%, closing at HKD 6.35; CIFI Holdings Group (00884) rose by 16%, closing at HKD 0.29 According to data from the Shenzhen Real Estate Brokerage Association, with the end of the Spring Festival holiday, the Shenzhen second-hand housing market is also showing a rapid recovery, with weekly transactions of second-hand houses recorded at 824 units (including self-service), a month-on-month increase of 3069.2%. Additionally, on the evening of February 10, Vanke released an announcement regarding the shareholder loan provided by Shenzhen Metro Group, its largest shareholder, which plans to provide a loan of 2.8 billion yuan to Vanke. This shareholder loan will be used for Vanke to repay the company's maturing public debt, reflecting the support of the major shareholder for the company.

Keen Insight Securities stated that since September 2024, central policies have continued to intensify, with a package of macro policies being introduced to actively boost the real estate market. The adjustment of real estate policies has been positive and rapid, showing a path for housing prices to "stop falling and stabilize." It is expected that policy adjustments in first-tier cities will provide strong support for the demand side and gradually improve housing price expectations, which will in turn radiate to second- and third-tier cities, gradually achieving "stopping the decline and stabilizing" of housing prices, leading to improvements in the fundamentals of the real estate sector and maintaining an "optimistic" rating for the industry.

2. Film stocks were strong throughout the day. By the close, Maoyan Entertainment (01896) rose 12.42% to HKD 9.14; Alibaba Pictures (01060) rose 8.33% to HKD 0.52; Orange Sky Golden Harvest (01132) rose 7.69% to HKD 0.042.

According to the Lighthouse Professional Edition global box office ranking, as of February 12, the film "Ne Zha" has surpassed USD 1.266 billion in total box office (including pre-sales), exceeding "Iron Man 3" and "Beauty and the Beast," entering the top 24 of the global box office history. It is about to surpass "Frozen." Minsheng Securities pointed out that the film industry is driven by quality supply determining demand, with the Spring Festival box office hitting new highs and the word-of-mouth effect of "Ne Zha 2" triggering a viewing boom, validating the strength of the demand side. The firm is optimistic about the continued recovery of the film industry throughout 2025.

3. Semiconductor stocks generally rose. By the close, Shanghai Fudan (01385) rose 11.56% to HKD 18.92; Hua Hong Semiconductor (01347) rose 6.94% to HKD 27.75; SMIC (00981) rose 5.85% to HKD 47.95; Jingmen Semiconductor (02878) rose 5.66% to HKD 0.56.

Data from the SIA Semiconductor Industry Association shows that global semiconductor sales are expected to reach USD 627.6 billion in 2024, an increase of 19.1% compared to 2023, marking the first time it has surpassed the USD 600 billion mark. The SIA believes that global semiconductor sales will again record double-digit percentage growth this year. Additionally, SMIC recently released its performance for the fourth quarter of 2024. Lyon believes that SMIC's last quarter performance far exceeded expectations, with revenue at the upper limit of guidance and gross margin better than the guidance target. SMIC's first-quarter guidance is for a quarter-on-quarter revenue growth of 6-8%, with gross margin expected to be between 19%-21%.

Tianfeng Securities stated that in the long term, uncertainties brought about by external geopolitical influences are expected to accelerate the pace of domestic substitution in China's semiconductor industry chain. Guoxin Securities believes that through adaptation with domestic large models like DeepSeek, the support capabilities of domestic full-function GPUs for complex AI tasks will be validated and optimized, contributing to the development of the entire domestic AI industry chain, continuing to recommend related semiconductor companies such as SMIC 4. The upward trend of intelligent driving concept stocks continues. As of the close, BYD Electronic (00285) rose 9.98% to HKD 60.6; Youjia Innovation (02431) rose 7.97% to HKD 25.75; Sutech Juchuang (02498) rose 7.55% to HKD 39.9; BYD Company (01211) rose 7.38% to HKD 352.

On the evening of February 10, the BYD "Eye of God" intelligent driving launch conference was held, where Wang Chuanfu announced that all BYD models will be equipped with the "Eye of God" advanced intelligent driving system, with the first batch of 21 models to be launched shortly. Among them, models priced above 100,000 will be standard across the range, while most models below 100,000 will be equipped. CITIC Construction Investment believes that 2025 will be a key node for a leap in intelligent driving development, as global automakers accelerate their layout in the advanced intelligent driving sector. Minsheng Securities pointed out that intelligent capabilities will become an important factor in competition among automakers; the mid-term growth of components continues to strengthen, and they are optimistic about the new forces in the industry chain + intelligent electric increment.

5. Gold stocks decline against the trend. As of the close, Lingbao Gold (03330) fell 4.03% to HKD 5; China Gold International (02099) fell 3% to HKD 46.9; Shandong Gold (01787) fell 1.87% to HKD 15.78; Zijin Mining (02899) fell 0.85% to HKD 16.24.

Gold prices have retreated after continuously reaching new highs. Previously, stimulated by safe-haven demand, spot gold briefly broke through USD 2,942 during trading on Tuesday. Federal Reserve Chairman Jerome Powell reiterated in a congressional hearing that there is "no rush to cut interest rates," emphasizing that the economy is strong and inflation is above target. The current market is focused on U.S. inflation data and sales data for January. Huatai Securities pointed out that although gold may face fluctuations after a strong appreciation driven by multiple short-term factors, the turning point for the appreciation trend of gold is far from coming. As the short squeeze in gold comes to an end, short-term gold prices may face volatility.

Popular Active Stocks

1. Nocoda Technology (00519) surges on increased volume. As of the close, it rose 223.86% to HKD 0.285.

Formerly known as Shili Jianye, Nocoda Technology announced its official name change to Nocoda Technology Group Limited, marking the company's comprehensive transformation and upgrade, officially embarking on a new journey of globalization driven by technological innovation. The group focuses on cutting-edge fields such as artificial intelligence (AI) technology, autonomous driving, AI robotics applications, and research and development, aiming to deeply integrate cutting-edge technology with global market demands.

2. GDS Holdings Limited-SW (09698) continues to rise. As of the close, it rose 8.83% to HKD 32.65.

Daiwa pointed out that the launch of DeepSeek is a turning point for GDS Holdings, as pricing has now stabilized, and they believe GDS's monthly service revenue may rebound within one to two years. Announcements regarding the IPO of its international business GDSI, further international expansion, the listing of real estate investment trusts (REITs), and inclusion in the Hong Kong Stock Connect program are all catalysts for the stock price. The firm upgraded GDS Holdings from "Hold" to "Buy," raising the target price for H-shares from HKD 20 to HKD 39 3. Jitu Express-W (01519) significantly increased. As of the close, it rose 6.25%, reported HKD 6.63.

MSCI announced the results of the February index review. Among them, Jitu Express and 8 other stocks were newly included in the MSCI China Index, while 20 stocks were removed. The adjustment will take effect after the close on February 28. Analysts say that since the MSCI China Index is nested within the MSCI Emerging Markets Index, entering the MSCI China Index means entering the MSCI Global Standard Index series, thus attracting a large amount of passive fund tracking.

4. Guming (01364) broke below issue price on its first day of listing. As of the close, it fell 6.44%, reported HKD 9.3.

Public information shows that Guming is an industry-leading, fast-growing Chinese ready-to-drink beverage company dedicated to providing consumers with fresh, delicious, consistently produced, and affordable high-quality products. Based on the gross merchandise volume (GMV) for 2023 and the number of stores as of December 31, 2023, "Guming" is the largest mass-market ready-to-drink tea brand in China and the second-largest ready-to-drink tea brand across all price ranges in China.

Guming mainly operates through a franchise model, opening stores and operating the "Guming" brand. As of December 31, 2023, Guming's store network covers 9,001 stores, an increase of 35.0% compared to December 31, 2022, and is expected to expand to 9,778 stores by September 30, 2024. For the nine months ending September 30, 2024, Guming's GMV was RMB 16.6 billion, an increase of 20.4% compared to the same period in 2023