Dongzhu Ecological Environment Protection Co.,Ltd. may terminate a major asset restructuring. On the afternoon of January 9, Dongzhu Ecological (603359) issued an announcement stating that the company had previously planned to acquire control of Kairui Xintong Information Technology (Nanjing) Co., Ltd. by issuing shares and paying cash, while also intending to raise supporting funds. Due to factors including changes in the market environment, the transacting parties have failed to reach a preliminary agreement on relevant commercial terms such as the valuation for this transaction, and are currently negotiating the termination of the deal. There is a significant risk that this major asset restructuring may be terminated; investors are advised to pay attention to subsequent company announcements and be aware of investment risks. According to a previously released plan by the company, the target company is a high-tech enterprise primarily engaged in the R&D, design, and production of satellite communication technologies and systems. Its main products include satellite communication baseband products, satellite communication terminal products, satellite communication network management systems, and satellite application systems. If the transaction were completed, the listed company would achieve a strategic transformation, entering the satellite communication and spatial information technology sector to create a second growth curve. After the plan was released, Dongzhu Ecological's stock price hit the daily limit-up for three consecutive trading days, and subsequently entered a volatile phase. As of the close on January 9, the stock price had accumulated a gain of 16.35% compared to before the plan's release. It is noteworthy that Dongzhu Ecological also released an announcement regarding involvement in litigation and arbitration. The company has filed a lawsuit with the Jinhu County People's Court due to a construction project contract dispute with Huaian Baima Lake Investment Development Co., Ltd. and the Huaian Baima Lake Planning and Construction Management Office. The company is requesting a judgment ordering the defendants to pay the project payment and bear relevant reasonable case expenses. The amount involved in this litigation is 320 million yuan. As the case has not yet been heard in court, the impact on the company's current or future profits cannot be determined.
Southbound funds recorded a net inflow of over HK$30 billion in the first week of the new year. Major Hong Kong stock indices collectively fell this week (January 5 to January 9). The Hang Seng Index fell 0.41% cumulatively, the Hang Seng Tech Index dropped 0.86%, and the Hang Seng China Enterprises Index declined 1.31%. According to statistics, southbound funds recorded a total net inflow of HK$32.694 billion this week, showing significant net inflows right at the start of the year. Looking at the list of stocks that were actively traded this week, 16 individual stocks made the list. Alibaba-W had the highest total Stock Connect turnover this week, reaching HK$53.514 billion. SMIC followed closely with a weekly Stock Connect turnover of HK$31.296 billion. Tencent Holdings, Xiaomi Group-W, and Meituan-W all had weekly Stock Connect turnovers exceeding HK$10 billion. In terms of net purchase value, southbound funds noticeably increased their positions in large tech stocks. Xiaomi Group-W received the highest net purchase amount from southbound funds this week, reaching HK$5.089 billion. Tencent Holdings received net purchases of HK$2.509 billion, while Meituan-W saw net purchases of HK$159 million. China Mobile was reduced by southbound funds, with net sales amounting to HK$3.45 billion. Southbound funds' holdings of Xiaomi Group-W have increased for 15 consecutive weeks, with the latest holding quantity reaching 4.716 billion shares, representing a market value of HK$178.375 billion. On the news front, Xiaomi Auto recently stated that the Xiaomi YU7 has ranked first in sales for mid-to-large SUVs for four consecutive months. Despite Xiaomi Auto's stock falling 6.11% this week, southbound funds remained steadfast in adding to their positions. China Mobile has seen its southbound funds holding quantity decline for 6 consecutive weeks. Its Hong Kong stock price has fallen 7.27% cumulatively since December 2025. Recently, according to the latest data disclosed by the International Telecommunication Union (ITU), relevant Chinese institutions have initiated an ultra-large-scale satellite constellation plan, with a total declared number of satellites approaching 20,000. Among these, China Mobile declared two constellations, totaling 2,664 satellites.
In terms of market performance this week, most of the actively traded stocks gained. Jingtai Holdings led the gains, rising 25.53% for the week. Nanjing Panda Electronics Co., Ltd., Kuaishou-W, and Huahong Semiconductor followed, rising 20.7%, 12.75%, and 12.24% respectively for the week. Xiaomi Group-W, Meituan-W, CNOOC, and China Mobile all fell by more than 3%. Jingtai Holdings has accumulated a gain of 32.56% year-to-date, starting the year with a strong rally. On the news front, the company recently announced the signing of a strategic cooperation agreement with a subsidiary of Jinko Solar Co., Ltd. for AI + automated high-throughput tandem solar cell R&D. The two parties will jointly establish a joint venture to build the world's first fully closed-loop tandem cell intelligent manufacturing line based on "AI decision-making — robot execution data feedback," aiming to develop high-efficiency, high-stability solar cell products for different application scenarios. Southbound funds increased holdings in multiple autonomous driving stocks. In terms of changes in shareholding quantities, 16 stocks saw their southbound funds holdings increase by more than 10% week-on-week. Zhongwei New Materials led with a 98.99% week-on-week increase. Others, including Youjia Innovation, Chery Automobile, and Nanshan Aluminum International, also saw significant week-on-week increases in holdings of 84.07%, 50.8%, and 47.36% respectively. Zhongwei New Materials has risen over 30% in the past month. The company is associated with the solid-state battery theme. During investor research activities, it stated that it has established business cooperation with leading domestic and international solid-state battery customers and has successfully developed and mass-produced several precursor products compatible with solid-state battery systems. These include "9-series single-crystal cathode material precursors" and "ultra-small particle size lithium-rich manganese-based material precursors." Related products have passed customer certification and achieved batch supply on a scale of over fifty tons.
Looking at the proportion of Hong Kong Stock Connect holdings relative to the total H-shares, among the stocks with a week-on-week increase exceeding 10% in Hong Kong Stock Connect holdings this week, Nanjing Panda Electronics Co., Ltd., Joyson Electronics, and Biocytogen Pharmaceuticals (Beijing) Co., Ltd.-B had the highest latest holding ratios, reaching 8.79%, 7.79%, and 7.44% respectively. It is noteworthy that among the Hong Kong stocks with the largest week-on-week increases in southbound funds holdings this week, several are associated with the autonomous driving theme, including Joyson Electronics, Seres, Boretun, and Youjia Innovation. On the policy front, Guangzhou recently released measures supporting the exploration of autonomous driving demonstration applications in the public transport sector first, aiming to create world-class influential demonstration cases. It supports the planning and construction of closed testing areas for intelligent connected vehicles, as well as several semi-open and fully open testing grounds, to accelerate road testing for intelligent connected vehicles. A research report from Aijian Securities suggests that 2026 is expected to be a window for breakthroughs in the maturity of high-level intelligent driving technology, regulations, user acceptance, and business models. It is optimistic that leading automakers with full-stack in-house capabilities in algorithms, chips, and data closed-loop systems will benefit most directly from the increase in intelligent driving value.
