Hong Kong stocks maintained their upward trajectory, with various indices opening higher. At the morning opening, the Hang Seng Index was reported at 26,502.40 points, up 155.16 points or 0.59%. By the time of writing, the index's gains had at one point exceeded 1%.
The Hang Seng Tech Index opened at 5,787.01 points, rising by 45.38 points or 0.79%. At the time of reporting, its increase had briefly surpassed 1.70%.
In terms of market hotspots, new consumption concept stocks experienced a rebound. Among them, POP MART (HK:09992) led the gains, surging over 5% during the morning session and accumulating an increase of more than 9% since the start of the new year. Additionally, Buluke rose over 3%, while Laopu Gold and Naixue's Tea advanced more than 1%.
Puyin International believes that as a global leader in the trendy toys industry, POP MART possesses a solid fundamental foundation and a highly certain long-term growth logic. However, the company's current stock price has retreated to a P/E ratio of 15, offering high valuation attractiveness. From a trading perspective, short-term short-selling volume has already declined, indicating that market sentiment is gradually improving alongside a recovery in short-term sales data and the release of other positive news, such as Sony's plans to produce a Labubu movie. Puyin International judges that POP MART's stock price has essentially bottomed out. With growth certainty for 2026 continuously strengthening, future stock price and valuation are both expected to demonstrate significant rebound momentum. Puyin International maintains a "Buy" rating on POP MART, designating it as a top pick for 2026, with a latest target price of HK$286.9.
In other sectors, technology and internet stocks were mostly higher: NetEase and Kuaishou rose over 3%, Bilibili gained more than 2%, while Baidu, Tencent, and JD.com advanced over 1%; Alibaba fell over 1%. Power equipment stocks opened higher, with Yihuatong up over 4%. Lithium battery stocks were active, Tianqi Lithium rose over 3%. Insurance stocks continued their upward trend, AIA increased over 2%. Automobile stocks mostly rose, with Li Auto up over 1%.
Outlook: Dongwu Securities released a research report stating that Hong Kong stocks have been a standout performer globally at the start of the year. From a medium-to-long-term allocation perspective, the current position is attractive. The bank expects southbound capital to continue increasing its allocation to Hong Kong stocks, with marginal increments primarily coming from insurance and fixed-income plus funds. Whether foreign capital will significantly return depends on any changes in the fundamental narrative. As Hong Kong stocks enter a period of volatile upward movement from now on, it remains necessary to hold dividend-yielding stocks as a core position while capturing the technology growth trend in the first half of the year. Considering valuation from an A-H share comparison perspective, southbound capital overall is expected to increase allocations to Hong Kong's tech growth stocks, but the performance of the Hong Kong tech sector will still be influenced by the pace of overseas interest rate cuts and the performance of US tech stocks, requiring dynamic observation.
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