The Hang Seng Index opened down 0.43%, while the Hang Seng Tech Index fell 0.33%. In market movements, lithium mining stocks demonstrated strength, with Tianqi Lithium Corporation rising over 2% and Ganfeng Lithium Group gaining more than 1%. Technology and internet stocks were weak, with Alibaba declining over 1%. Contemporary Amperex Technology Co. Limited dropped more than 6% as the company plans a placement of approximately 62.385 million shares at a discount of about 7.00%, aiming to raise net proceeds of around HK$39.11 billion.
Regarding the outlook for the Hong Kong stock market, the Everbright Securities research team stated that the recent irrational adjustment in the Hang Seng Tech Index has sufficiently released short-term sentiment risks. It currently exhibits four bottom characteristics: being oversold with a valuation gap, funds accumulating against the trend, positive fundamentals in the AI industry, and imminent increases in share buybacks by companies. The team indicated that sector support is clear, the attractiveness for allocation has significantly improved, and a golden window for medium to long-term strategic positioning has formed. They view this adjustment as merely sentiment-driven volatility that has not reversed the fundamental trend. Subsequently, as market sentiment recovers, incremental funds create resonance, and leading companies implement buybacks, the index is expected to see a phased rebound. Investors are advised to disregard short-term panic, rationally allocate to quality assets undervalued due to mispricing, and adopt a strategy of building positions in batches for the long term, focusing on core stocks.
A CITIC Securities research report noted that the Hong Kong market experienced a pullback due to rising geopolitical risk aversion and capital diversion effects from the South Korean market, with noticeable short-term outflows by foreign capital. With the release of the preview version of the domestic large model DeepSeek-V4 and the advancement of Alibaba's automotive AI ecosystem, the domestic AI industry is expected to see sustained catalysts. Currently, the pace of downward revisions to earnings expectations for the Hang Seng Tech Index is slowing, suggesting the fundamental adjustment may be nearing its end. At the same time, as southbound capital resumes inflows, passive funds continue to support the market, and a recovery in active foreign capital is anticipated, liquidity in the Hong Kong market is expected to improve. The report recommends paying attention to investment opportunities in the Hong Kong technology sector.
A Huatai Securities research report pointed out that market sentiment in Hong Kong has recovered to a neutral level. Factors such as反复ing tensions in the Middle East have led to some retreat in expectations for overseas liquidity easing. Coupled with the approaching holiday, the upside potential for Hong Kong stocks is currently constrained, making structural positioning key. Huatai Securities suggests continuing to allocate based on cash flow certainty and industry certainty. The former corresponds to holding cyclical products with stable cash flows and manageable capital expenditure pressures, such as coal and aluminum, as well as some dividend low-volatility品种, like certain Hong Kong local stocks and state-owned banks. The latter corresponds to AI supply chains where景气 is still in an upward trend. Using the earnings reports of US stocks (entering a super week) as an anchor, it is recommended to focus on semiconductors (including memory), and investors with higher risk tolerance can moderately position themselves in cloud computing and large model leaders.
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