Today was the final day for capital withdrawals before the holiday, leading to increased selling pressure. Hong Kong stocks opened lower with a gap down and fluctuated in negative territory throughout the session, with the Hang Seng Index closing down 0.86%. The current dynamic between major powers involves competition without escalation. While the Panama port issue remains unresolved, the US has turned its attention to the Chancay Port. On February 11, a Trump administration agency publicly claimed that Peru is losing sovereignty over the Chinese-controlled Chancay Port. The port operator refuted this, stating Peru's sovereignty remains unaffected. This highlights ongoing regional frictions. Shipping stocks rallied, supported by strong fundamentals, with VLCC rates remaining high. According to Clarksons data, for the week of February 8, 2026, VLCC TD3C rates increased 43% week-over-week to $125,027 per day, a significant 165% increase year-over-year. The seizure of tankers by the US and India, alongside the EU's plan to suspend Russian crude oil maritime services, further emphasizes the importance of security and stability, increasing the scarcity of compliant vessels. COSCO SHIPPING Energy Transportation (01138) rose over 8%, and China Shipbuilding Leasing (03877) also advanced steadily.
ByteDance's release of Seedance 2.0, hailed as the "world's most powerful video generation tool," has sparked high demand overseas, described as "hard to get." Even Elon Musk, the world's richest person, commented on the rapid development of AI models when sharing a user's post about Seedance. Hollywood director Charles Curran posted on X that he created a live-action movie trailer using Seedance 2.0 in 20 minutes for $60, suggesting it could disrupt Hollywood. Swiss consultancy CTOL called Seedance 2.0 the most advanced AI video generation model, outperforming OpenAI's Sora 2 and Google's Veo 3.1 in tests. This impressive outcome could significantly benefit companies with extensive IP libraries. China Literature (00772) is expected to find opportunities after adjustments, and gaming efficiency should improve substantially. Copyright protection firm Vobile Group (03738) stands to gain more opportunities: The Walt Disney Company and OpenAI announced a three-year strategic partnership and content licensing agreement. This collaboration sets a new "IP + AI" paradigm, encouraging other global and domestic IP holders (such as film studios, streaming platforms, and gaming companies) to accelerate the development of similar AI licensing and content management systems. Vobile Group (03738) surged nearly 13% today.
Major AI model releases continue. On February 11, reports indicated DeepSeek updated its model, supporting up to 1 million tokens of context length. Zhipu AI officially open-sourced its new foundation model GLM-5, with Zhipu AI (02513) soaring nearly 29%. MiniMax launched its latest programming model M2.5, claiming it is the world's first production-grade model natively designed for Agent scenarios. MINIMAX-WP (00100) jumped over 14%. SenseTime-W (00020), recently added to the MSCI China Index, also benefited from the robust AI model development, rising over 6% today.
Computing power leasing prices are rising: UCloud announced that starting March 1, 2026, it will increase prices for all renewed and new contracts for its full range of cloud products and services. This signals that computing power will become increasingly scarce. Computing power stocks Sunevision (01686) and HuiJu Tech (01729) both gained over 8%. Cloud services are also expected to see price hikes. Kingsoft Cloud (03896), mentioned yesterday, rose nearly 8%.
Overnight, US memory stocks surged, with SanDisk up 10.65% and Micron Technology up 9.94%. Samsung's CTO stated the company expects strong demand for memory chips to persist throughout this year and into next, driven by AI. GigaDevice (03986) and Iluvatar CoreX (09903), part of the "domestic GPU four dragons," both surged over 21%, while Biren Technology (06082) rose nearly 10%. AI computing infrastructure also advanced. Leading firm Yangtze Optical Fibre and Cable (06869) performed exceptionally strongly, rising over 12% again today. AI server connector maker Foxconn Interconnect Technology (06088) gained nearly 10%.
The North American AI narrative continues to highlight power shortages. Currently, grid power and gas turbines are the main power sources for data centers, accounting for 70%-80% of supply, but overall capacity is limited. Recent verification of domestic medium-speed natural gas generator sets by major North American manufacturers has begun. Weichai Power's (02338) important North American partner, Generac, has doubled its data center capacity ahead of schedule. The company reported accumulated data center orders of $400 million and is continuously expanding production. Weichai Power's (02338) AIDC power generation business is estimated to account for about 10% of its forecasted 2025 net profit, projected to grow 3.3 times by 2030, with profit contribution potentially exceeding one-third of total profit, surpassing that of domestic heavy-duty truck engines. The stock rose nearly 6% today. Ningbo Tuopu Group (01286), a core supplier to Caterpillar/Cummins, gained over 7%. Dongfang Electric (01072), a rare integrated equipment provider, is expected to potentially sell gas turbines to overseas data centers. Compared to US clients, Dongfang Electric has a higher likelihood of securing new orders from Southeast Asian data center or utility customers. The stock surged over 12%.
The stablecoin license concept mentioned yesterday saw divergence today, with only UBOX ONLINE (02429) continuing its strong performance. It remains unclear which company might secure a license, as other related stocks experienced only minor adjustments.
At the start of 2026, South Korean investors have again begun aggressively buying Chinese stocks, including MINIMAX-WP, with purchases exceeding last year's levels. According to SEIbro data from Korea Securities Depository (KSD), as of February 10, the top ten stocks by purchase value on the Hong Kong Exchange by South Korean investors were MINIMAX-WP, Huaxia CSI 300 ETF, Montage Technology, iShares Hang Seng Tech ETF, CSOP Daily Leveraged Samsung ETF, Innoscience, Premia China Innovative ETF, WuXi XDC Cayman, Ascletis Pharma, and Global X China Semiconductor ETF. Purchases of MINIMAX-WP (00100) amounted to $20.6712 million, while Innoscience (02577) saw purchases of $4.1663 million.
Vertiv's better-than-expected earnings drove its stock to a record high. Its Q4 2025 net profit was $446 million, up 203% year-over-year. As a key overseas liquid cooling integrator, Vertiv's strong performance reflects rapidly growing demand in the liquid cooling market. The company forecasts 2026 revenue of $2.8-3.0 billion, up 45-50% year-over-year, with direct chip cooling potentially accounting for 60%. UBS predicts the data center liquid cooling market will grow at a 51% CAGR from 2025 to 2030, reaching $31 billion, far exceeding expectations. The liquid cooling market's vitality is gaining broad recognition. MINTH GROUP (00425) is involved in immersion cooling cabinets, CDUs, cold plates, and manifolds; it has secured orders from a Taiwanese AI server manufacturer, with mass delivery starting end-2025, and has entered NVIDIA's Rubin platform supply chain. TSUGAMI CHINA (01651) is a core supplier of processing equipment for liquid cooling quick connectors, with significant order growth for liquid cooling-related equipment in the first three quarters of 2025, meeting demand for AI server liquid cooling pipelines.
COMEC (00317): Its subsidiary Huangpu Wenchong recently signed a major shipbuilding contract. The company operates on a dual civilian-military model with a strong order book. The company announced that its subsidiary, CSSC Huangpu Wenchong Shipping Co., signed a contract with Evergreen Marine (Asia) to build 16 feeder container ships, with a total contract value between $736 million and $896 million. Delivery is scheduled for 2028-2030. Analysis: This new order significantly improves cash flow and future performance. The company's 2025 earnings saw explosive growth: net profit attributable to shareholders was 940 million to 1.12 billion yuan, up 150%-200% year-over-year; adjusted net profit was 850 million to 1.02 billion yuan, up 153%-204% year-over-year. This was due to increased shipbuilding revenue and production efficiency, improved product margins, significantly better performance from associates, and higher dividends from invested companies leading to a substantial rise in investment income. The company's key strength is its dual civilian-military focus. On the military side, it is a core defense platform under CSSC, with military products accounting for over 30% of revenue; its subsidiary Huangpu Wenchong is a key naval base, building Type 054A/B frigates and amphibious assault ships with over 90% localization. On the civilian side, it ranks first domestically in medium-sized container ships, with a global market share exceeding 10%; it has deep ties with Maersk and CMA CGM, with a repurchase rate over 60%; LNG/methanol/ammonia-fueled ships account for over 30% of its portfolio, commanding a 15%-20% premium. In other areas, deep-sea equipment: the "Mengxiang" deep-sea drilling vessel has been commissioned, showcasing globally leading deep-sea technology; offshore engineering's contribution has increased from 15% to 25%; offshore wind: fourth-generation wind turbine installation platforms, winning bids for UK wind farm monopiles, entering the European new energy supply chain. Investment income is also substantial, with a 41% stake in Guangzhou Shipyard International contributing 530 million yuan in investment income in 2024, expected to maintain high growth in 2025. Order book: Handheld orders exceed 68 billion yuan (140 ships), with production scheduled until 2028; the order-to-revenue ratio is 4.2 times, securing high growth for the next three years.
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