On January 29, the three major Hong Kong stock indices showed mixed performance. At the close, the Hang Seng Index rose 0.51% to 27,968.09 points, while the Hang Seng Tech Index fell 1%, and the Hang Seng China Enterprises Index gained 0.42%. Across the market, most technology and internet stocks declined, with NetEase falling over 2%, and both JD.com and Bilibili dropping more than 1%, while Xiaomi saw a gain of nearly 1%. Paper stocks led the gains, with Nine Dragons Paper surging over 9%. Domestic property stocks were strong, with Sunac China soaring more than 29%. The alcohol beverage sector surged, with ZJLD climbing over 12%. Chip stocks weakened, with Hua Hong Semiconductor dropping over 5%.
Paper stocks led the gains, with Nine Dragons Paper surging over 9%. Nine Dragons Paper released an earnings forecast last night, anticipating a profit between approximately RMB 2.15 billion and RMB 2.25 billion for the six months ending December 31, 2025, representing a significant increase of 216% to 230.7% compared to the same period in 2024. The profit growth is primarily attributed to increased product sales volume, higher selling prices, and a substantial improvement in gross profit due to decreased raw material costs.
Domestic property stocks were strong, with Sunac China soaring more than 29%. Some real estate companies have reportedly been informed that they are no longer required by regulatory authorities to submit the "three red lines" indicators monthly. However, certain financially distressed developers are still required to regularly report financial metrics, such as their asset-liability ratio, to special task forces in their headquarters' cities. Additionally, since the beginning of the year, several major developers have made substantial progress in debt resolution.
The alcohol beverage sector surged, with ZJLD climbing over 12%. On January 29, data from a third-party platform indicated that the wholesale price for 53-degree, 500ml Feitian Moutai continued to rise. Specifically, the price for a case of 2025 Feitian Moutai increased by RMB 20 per bottle from the previous day to RMB 1,620 per bottle. Similarly, the price for a case of 2026 Feitian Moutai also rose by RMB 20 per bottle to RMB 1,610 per bottle. Guosheng Securities pointed out that the Spring Festival peak season for baijiu sales is gradually commencing, and feedback on Moutai's sales and wholesale prices is expected to lead the industry towards better-than-expected improvements. They suggest focusing on the essential demand during the Spring Festival in the short term and strategically positioning in leading companies across various price segments for the medium term.
Chip stocks weakened, with Hua Hong Semiconductor dropping over 5%. Nvidia's founder and CEO, Jensen Huang, recently visited China, and market rumors suggest that approval for the H200 chip to enter the Chinese market has been granted. Some analysts note that, in the short term, the arrival of the H200 could address the acute shortage of high-end computing resources in China's AI industry, accelerating the development of large models and fostering iteration in AI applications. In the long term, however, the underlying logic for domestic substitution of AI chips remains unchanged.
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