UBS: Successful Reflation in China Could Lead to 20% Stock Market Increase; Advise Lowering Investment in Internet Sector
Global Commodity Prices and Chinese Companies: Commodity prices rose 9% last year and continue to increase, leading Chinese companies to face the choice of raising prices or accepting lower margins, with many opting for price increases this year.
Potential Market Outcomes: The Chinese stock market may experience a pivotal moment in the second half of the year, with the possibility of reflation due to rising inflation expectations or deflation if company earnings expectations decline.
UBS Investment Portfolio Adjustments: UBS downgraded several sectors, including software and consumer electronics, due to concerns over AI disruption and high input costs, while maintaining a neutral stance on real estate.
Focus on AI Monetization: Despite the downgrades, UBS sees Tencent and Alibaba as key players for capitalizing on China's AI and large language model monetization opportunities.
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Short Selling Activity Reaches $65.9B, Representing 22.6% of Total Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $65.9 billion, accounting for 22.6% of the eligible securities turnover, slightly down from 22.7% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include TRACKER FUND (02800.HK) at $10.15 billion, HSCEI ETF (02828.HK) at $4.45 billion, XIAOMI-W (01810.HK) at $3.24 billion, BABA-W (09988.HK) at $2.72 billion, and TENCENT (00700.HK) at $2.39 billion.
Short Selling Ratios: TRACKER FUND has the highest short selling ratio at 59.3%, followed closely by HSCEI ETF at 58.9%, while XIAOMI-W, BABA-W, and TENCENT have ratios of 33.2%, 16.4%, and 16.3% respectively.
Market Performance: The reported changes in share prices for the top shorted stocks include declines for TRACKER FUND, HSCEI ETF, XIAOMI-W, BABA-W, and TENCENT, indicating a bearish sentiment in the market.
<Full-day Summary> HSI Falls 570 Points; HSTI Declines 148 Points; XIAOMI Drops More Than 5%; MEITUAN Decreases Over 4%; BABA Falls Over 4%; XINYI GLASS, CNOOC, PETROCHINA, OOIL, and CHINA SHENHUA Reach New Highs; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 570 points (2.1%) to 26,059, while the Hang Seng Tech Index (HSTI) dropped 148 points (2.9%) to 4,989, with a total market turnover of $357.68 billion.
Declining Heavyweights: Major stocks like Xiaomi, Meituan, and Alibaba experienced significant declines, with Xiaomi down 5% and Alibaba down 4.5%, amidst high short selling ratios.
Gainers in the Market: Xinyi Glass and CNOOC were notable gainers, with Xinyi Glass rising 12.4% to a new high, while CNOOC increased by 5.6%.
Volatile Stocks: Several stocks faced sharp declines, including Guofuhee, which plummeted 19.2%, and Dmall, which fell 13.1%, indicating a volatile trading environment.
Short Selling Activity Reaches $37.9B, Representing 23.7% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $37.9 billion at midday, accounting for 23.7% of the turnover of securities eligible for short selling, an increase from 22.7% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include CSOP HS TECH, TRACKER FUND, XIAOMI-W, BABA-W, and TENCENT, with CSOP HS TECH leading at $7.8 billion and a short selling ratio of 75.6%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decline of 2.068%, with a significant short selling turnover of $7.8 billion.
Other Notable Stocks: TRACKER FUND (02800.HK) and XIAOMI-W (01810.HK) also saw considerable short selling, with ratios of 47.9% and 31.5%, respectively, while BABA-W and TENCENT had lower ratios of 14.7% and 13.2%.
M Stanley's Updated Focus List for Hong Kong and China Stocks (Table)
Morgan Stanley's Market Strategy: The report highlights new additions to the focus list for Hong Kong and Chinese markets, including GIGADEVICE and SINOPEC CORP, while removing SUNNY OPTICAL and ESPRESSIF.
Stock Performance: Notable stock movements include SINOPEC CORP and CHALCO showing gains, while GIGADEVICE and SUNNY OPTICAL experienced declines, with significant short selling activity reported across various stocks.
<Midday Update> HSI Falls 420 Points; HSTI Declines 107 Points; XIAOMI Drops More Than 4%; XINYI GLASS, CNOOC, OOIL, CHINA SHENHUA, and CHINA COAL Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 420 points (1.6%) to 26,209, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 2.1% and 1.4%, respectively.
Active Heavyweights: Major stocks like Xiaomi, Meituan, and Alibaba saw significant drops, with Xiaomi down 4.6% and Alibaba down 2.7%, amidst high short selling activity.
Notable Movers: Xinyi Glass and CNOOC were standout performers, with Xinyi Glass rising 11.4% to a new high, while several other stocks, including Sunny Optical and HSBC Holdings, faced declines.
Short Selling Trends: The short selling ratios for various stocks were notable, with JD Health and HSBC Holdings showing high short selling activity, indicating bearish sentiment among investors.
TENCENT Announces April Release Date for Honor of Kings: World; Pre-registration Open on Apple iOS
Tencent's Game Release: Tencent's multiplayer adventure game, Honor of Kings: World, is set to launch in April, with pre-registration available on Apple iOS.
Game Features: The game is an open-world RPG that supports ray tracing and Nvidia's DLSS 3 technology, with pioneer testing having started on July 24, 2025.
Short Selling Activity Reaches $65.9B, Representing 22.6% of Total Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $65.9 billion, accounting for 22.6% of the eligible securities turnover, slightly down from 22.7% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include TRACKER FUND (02800.HK) at $10.15 billion, HSCEI ETF (02828.HK) at $4.45 billion, XIAOMI-W (01810.HK) at $3.24 billion, BABA-W (09988.HK) at $2.72 billion, and TENCENT (00700.HK) at $2.39 billion.
Short Selling Ratios: TRACKER FUND has the highest short selling ratio at 59.3%, followed closely by HSCEI ETF at 58.9%, while XIAOMI-W, BABA-W, and TENCENT have ratios of 33.2%, 16.4%, and 16.3% respectively.
Market Performance: The reported changes in share prices for the top shorted stocks include declines for TRACKER FUND, HSCEI ETF, XIAOMI-W, BABA-W, and TENCENT, indicating a bearish sentiment in the market.
<Full-day Summary> HSI Falls 570 Points; HSTI Declines 148 Points; XIAOMI Drops More Than 5%; MEITUAN Decreases Over 4%; BABA Falls Over 4%; XINYI GLASS, CNOOC, PETROCHINA, OOIL, and CHINA SHENHUA Reach New Highs; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 570 points (2.1%) to 26,059, while the Hang Seng Tech Index (HSTI) dropped 148 points (2.9%) to 4,989, with a total market turnover of $357.68 billion.
Declining Heavyweights: Major stocks like Xiaomi, Meituan, and Alibaba experienced significant declines, with Xiaomi down 5% and Alibaba down 4.5%, amidst high short selling ratios.
Gainers in the Market: Xinyi Glass and CNOOC were notable gainers, with Xinyi Glass rising 12.4% to a new high, while CNOOC increased by 5.6%.
Volatile Stocks: Several stocks faced sharp declines, including Guofuhee, which plummeted 19.2%, and Dmall, which fell 13.1%, indicating a volatile trading environment.
Short Selling Activity Reaches $37.9B, Representing 23.7% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $37.9 billion at midday, accounting for 23.7% of the turnover of securities eligible for short selling, an increase from 22.7% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include CSOP HS TECH, TRACKER FUND, XIAOMI-W, BABA-W, and TENCENT, with CSOP HS TECH leading at $7.8 billion and a short selling ratio of 75.6%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decline of 2.068%, with a significant short selling turnover of $7.8 billion.
Other Notable Stocks: TRACKER FUND (02800.HK) and XIAOMI-W (01810.HK) also saw considerable short selling, with ratios of 47.9% and 31.5%, respectively, while BABA-W and TENCENT had lower ratios of 14.7% and 13.2%.
M Stanley's Updated Focus List for Hong Kong and China Stocks (Table)
Morgan Stanley's Market Strategy: The report highlights new additions to the focus list for Hong Kong and Chinese markets, including GIGADEVICE and SINOPEC CORP, while removing SUNNY OPTICAL and ESPRESSIF.
Stock Performance: Notable stock movements include SINOPEC CORP and CHALCO showing gains, while GIGADEVICE and SUNNY OPTICAL experienced declines, with significant short selling activity reported across various stocks.
<Midday Update> HSI Falls 420 Points; HSTI Declines 107 Points; XIAOMI Drops More Than 4%; XINYI GLASS, CNOOC, OOIL, CHINA SHENHUA, and CHINA COAL Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 420 points (1.6%) to 26,209, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 2.1% and 1.4%, respectively.
Active Heavyweights: Major stocks like Xiaomi, Meituan, and Alibaba saw significant drops, with Xiaomi down 4.6% and Alibaba down 2.7%, amidst high short selling activity.
Notable Movers: Xinyi Glass and CNOOC were standout performers, with Xinyi Glass rising 11.4% to a new high, while several other stocks, including Sunny Optical and HSBC Holdings, faced declines.
Short Selling Trends: The short selling ratios for various stocks were notable, with JD Health and HSBC Holdings showing high short selling activity, indicating bearish sentiment among investors.
TENCENT Announces April Release Date for Honor of Kings: World; Pre-registration Open on Apple iOS
Tencent's Game Release: Tencent's multiplayer adventure game, Honor of Kings: World, is set to launch in April, with pre-registration available on Apple iOS.
Game Features: The game is an open-world RPG that supports ray tracing and Nvidia's DLSS 3 technology, with pioneer testing having started on July 24, 2025.
