On March 12, the Hang Seng Index opened down 0.69%, while the Hang Seng Tech Index fell 0.6%. In market movements, the oil and gas sector showed strength, with Shandong Molong Petroleum rising over 14% and Zhonggang Petroleum climbing more than 8%. Technology and internet stocks weakened collectively, with Alibaba dropping nearly 2%. Regarding the outlook for Hong Kong stocks, Guoxin Securities stated that the current economic cycle is at an intersection of recovery and geopolitical disturbances, suggesting that liquidity and earnings fundamentals should be the focus for Hong Kong equities. The Hang Seng Index has seen continuous upward revisions in earnings, and the valuation of the Hang Seng Tech Index has reached a low point. With share buybacks resuming after annual reports and major tech companies accelerating their AI efforts, a rebound driven by both liquidity and earnings fundamentals is anticipated. Industrial Securities noted that the AI sector is experiencing a "lobster farming" boom, with several major tech companies launching one-click deployment capabilities and releasing similar products. The emergence of hit products is effectively boosting the AI industry's momentum. Domestic large models continue to gain traction due to their higher cost-effectiveness, which is expected to drive demand for computing power and further promote the widespread adoption of AI. The firm recommends increasing investment allocation in the sector. Aijian Securities highlighted that foldable screen smartphones are a key innovation category in the smartphone market, with hinges and flexible display modules as core components that effectively balance large-screen experience and device portability. Under optimistic projections, Apple's foldable phone sales could reach 14 million units by 2026. The premium positioning and massive sales volume of iPhones are expected to drive the entire supply chain toward a high-growth inflection point.
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