The global markets suffered heavy losses last week, though U.S. equities showed resilience with stimulus measures. Hong Kong's market responded positively today, opening higher and gaining 1.97%.
Key developments driving the rally: 1. **Geopolitical Optimism**: Reports indicate progress in U.S.-Ukraine peace talks regarding a 28-point plan to end the Russia-Ukraine conflict. Former U.S. President Trump emphasized the urgency for resolution, while Zelensky faces diminishing leverage. Though A-shares priced in reconstruction themes, HK markets await concrete progress.
2. **Tech Sector Boost**: - Nvidia may receive approval to export upgraded H200 chips to China, lifting semiconductor sentiment. However, Hua Hong Semiconductor (01347) fell nearly 5% amid short-selling pressure. - Alibaba (09988) surged over 5% as its AI app "Qianwen" surpassed 10M downloads in its first week, integrating e-commerce and mapping services. Ant Group’s new app also topped download charts. The company’s upcoming earnings on Nov 25 could further re-rate tech valuations, benefiting peers like Tencent (00700), Kuaishou-W (01024), and Bilibili-W (09626).
3. **EV Breakthroughs**: GAC Group (02238) jumped 12% after launching China’s first mass-production line for solid-state batteries, doubling energy density to enable 1,000km range. Its European expansion via Magna’s Austrian plant mirrors XPeng’s (09868) localization strategy. Consultancy forecasts suggest Chinese automakers may capture 10% of Europe’s market by 2030.
4. **Defense Stocks Rally**: Rising Sino-Japan tensions over missile deployments near Taiwan propelled defense shares, with CSSC Offshore (00317) up 13% and AVIC (02357) gaining 7%. Flight cancellations between China and Japan hit 21.6% for late December.
5. **Property & Green Energy**: - Property developers like China Overseas Land (01109) rose on policy easing signals. - Guofu Hydrogen (02582) climbed 11% after securing a major green hydrogen project in Malaysia, marking its transition to scaled operations.
**Sector Spotlight**: China’s "artificial sun" nuclear fusion project (BEST) advanced, with contracts worth RMB2B+ awarded. Related stocks include Shanghai Electric (02727) and Dongfang Electric (01072).
**Stock Pick - Bilibili-W (09626)**: Q3 revenue grew 5% YoY to RMB7.69B, with net profit skyrocketing 691%. Its self-developed game *Escape from Yakovo* sold 3M copies, while ad revenue jumped 23% driven by AI-generated content (30% of ad covers). Upcoming game *Three Kingdoms: Generals* and 90% growth in AI-related ads signal continued momentum.
Comments