【Today's Headlines】
Hong Kong Securities and Futures Commission Proposes to Relax Position Limits for Derivative Instruments Traded on Major Exchanges
To keep pace with market developments, the Securities and Futures Commission has proposed to increase the position limits for derivative instruments traded on exchanges based on Hong Kong's three major stock indices, and consultations will be conducted on this proposal. To facilitate market participants in hedging risks, the proposal will raise the existing position limits for futures and options contracts of the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng TECH Index by 50%, 108%, and 43% respectively, to 15,000, 25,000, and 30,000 contracts for hedging designated asset price change risks.
【Market Outlook】
Chip Stocks Hit Hard, NVIDIA (NVDA.US) Closes Down 8.4%
Overnight, U.S. stocks closed sharply lower, with the three major indices plummeting, erasing gains since the U.S. elections. The Dow Jones Industrial Average fell 193.62 points, or 0.45%, to close at 43,239.50; the Nasdaq Composite dropped 530.84 points, or 2.78%, to 18,544.42; and the S&amp;P 500 index fell 94.49 points, or 1.59%, to 5,861.57.
Chip stocks were hit hard, with NVIDIA (NVDA.US) closing down 8.4% and Broadcom (AVGO.US) down 7%. Tesla (TSLA.US) fell 3%, and MicroStrategy (MSTR.US) dropped over 8%. The Nasdaq Golden Dragon China Index fell 0.9%, with Alibaba (BABA.US) down 1.7%. The Hang Seng Index ADR declined, closing at 23,619.76, down 98.53 points or 0.42% from the Hong Kong close.
Trump posted on Truth Social that the proposed 25% tariffs on Mexico and Canada will take effect on March 4, as these two countries have not fully curbed the flow of drugs across the border. Oil prices recorded their largest increase in six weeks, with WTI rising about 2.5% to close above $70 per barrel.
【Hot Topics Ahead】
Fifth Largest ETF Listed in Hong Kong
On February 26, the Invesco QQQ ETF was successfully listed on the Hong Kong Stock Exchange. The QQQ ETF tracks the Nasdaq-100 Index and had an asset management scale of $341.6 billion as of February 22, making it the fifth largest ETF globally. This is also the first time this ETF product has ventured out of the North American market in over 20 years.
Two Departments: Encourage Conditional Banking and Insurance Institutions to Explore Transformation Plans
The General Office of the National Financial Supervision Administration and the General Office of the People's Bank of China issued the &#34;Implementation Plan for High-Quality Development of Green Finance in the Banking and Insurance Industries.&#34; It mentions strengthening information disclosure. Banking and insurance institutions should gradually establish and improve information disclosure mechanisms, publicly disclose green finance strategies and policies, and fully disclose the status of green finance development, as well as environmental, social, and governance risk management. They should report and disclose high-carbon asset risk exposure, carbon accounting of their own operations and asset portfolios, etc., in accordance with legal regulations or regulatory requirements. They should continuously enhance the level of information disclosure by drawing on international practices, standards, or good practices. Conditional banking and insurance institutions are encouraged to explore transformation plans
In 2024, China's mobile phone exports will see growth for the first time in eight years
According to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, the General Administration of Customs statistics show that in 2024, China's mobile phone exports will reach 814 million units, a year-on-year increase of 1.5%. This marks the first positive growth after eight consecutive years of decline since the peak export of 1.343 billion units in 2015, and it has remained above 800 million units for the third consecutive year.
Macau's inbound group travelers in January increased by 79.2% year-on-year to 239,000
According to data from the Statistics and Census Service of Macau, the number of inbound group travelers in January 2025 increased by 79.2% year-on-year to 239,000. The number of available hotel rooms decreased by 7% year-on-year to 43,000, while the average occupancy rate of rooms increased by 3.9 percentage points to 89.8%. The average length of stay for guests remained at 1.6 nights.
Lei Jun: Xiaomi Auto has accumulated 248,000 locked orders and delivered 135,000 units in 2024
At the launch event for the Xiaomi 15 Ultra and Xiaomi SU7 Ultra, Xiaomi Group CEO Lei Jun delivered a speech. He stated that in just nine months of 2024, Xiaomi Auto has accumulated 248,000 locked orders and delivered 135,000 units. He emphasized that Xiaomi is committed to technology-driven development, with an expected R&amp;D investment of 105 billion yuan over five years from 2021 to 2025, and an anticipated 30 billion yuan in 2025, with AI and related businesses accounting for one-quarter.
China Biologic Products Holdings (01177) signs exclusive strategic cooperation agreement with Xianweida Biotech for IL-29 project
According to a report from Zhito Finance APP, China Biologic Products Holdings (01177) announced that CPX102 is an aerosol inhalation solution optimized through protein engineering based on IL-29, which is a type of interferon. The group is currently conducting a Phase IIb clinical trial for this project in China to treat respiratory syncytial virus (RSV) infections in children. CPX102 does not directly kill or inhibit the virus but induces cell surface receptors to promote the production of antiviral proteins, thereby inhibiting viral replication. Additionally, CPX102 can activate the body's natural immunity by regulating immune cells such as cytotoxic T lymphocytes (CTLs), natural killer (NK) cells, and macrophages, thus exerting antiviral effects.
Accordingly, the group has reached an exclusive licensing and cooperation agreement with Xianweida Biotech for its research and development of human interleukin-29 (IL-29, also known as interferon 1) project (internally coded as CPX102) in 19 countries including China, Brazil, Saudi Arabia, Thailand, and Singapore.
Maoyan Entertainment (01896) issues profit warning: expects annual profit attributable to shareholders to be approximately 150 million to 200 million yuan, a year-on-year decrease of about 78.0% to 83.5%
According to a report from Zhito Finance APP, Maoyan Entertainment (01896) announced that the group expects its revenue for the fiscal year 2024 to be approximately 4.05 billion to 4.15 billion yuan, a decrease of about 12.8% to 14.9% compared to the revenue of 4.757 billion yuan for the year ended December 31, 2023; the group expects the profit attributable to shareholders for the fiscal year 2024 to be approximately 150 million to 200 million yuan, a decrease of about 78.0% to 83.5% compared to the profit attributable to shareholders of 908 million yuan for the fiscal year 2023
Nine Dragons Paper (02689) Releases Interim Results: Shareholders' Profit Approximately RMB 470 Million, Up 60.6% Year-on-Year
According to Zhitong Finance APP, Nine Dragons Paper (02689) released its interim results for the six months ending December 31, 2024, with revenue of RMB 33.465 billion, a year-on-year increase of 9.32%; profit for the period was RMB 680 million, a year-on-year increase of 124.85%; profit attributable to equity holders was approximately RMB 470 million, an increase of 60.6% year-on-year; basic earnings per share were RMB 0.1.
Kingsoft Software (03888) Releases Kingsoft Office (688111.SH) 2024 Annual Performance Report: Net Profit Attributable to Parent Company RMB 1.645 Billion, Up 24.84% Year-on-Year
According to Zhitong Finance APP, Kingsoft Software (03888) released the annual performance report for Kingsoft Office (688111.SH) for the year ending December 31, 2024, with total operating revenue of RMB 5.121 billion, a year-on-year increase of 12.4%; net profit attributable to the parent company was RMB 1.645 billion, a year-on-year increase of 24.84%; basic earnings per share were RMB 3.56.
Ping An Life Continues to Increase Holdings in Agricultural Bank H Shares, Spending Over HKD 1.6 Billion in Six Trading Days
According to information disclosed by the Hong Kong Stock Exchange, Ping An Life increased its holdings of 37.463 million Agricultural Bank H shares on February 24, involving approximately HKD 173.4 million. After the increase, the number of Agricultural Bank H shares held by Ping An Life rose to 1.8516 billion shares, accounting for over 6% of the total H shares of the bank. Previously, on February 17, Ping An Life had already increased its holdings in Agricultural Bank H shares, with the number of shares held exceeding 5% of the total H shares of the bank. This means that from February 17 to 24, in just six trading days, Ping An Life cumulatively increased its holdings by over 360 million Agricultural Bank H shares, with a total expenditure of approximately HKD 1.645 billion based on the average transaction price during the period.
Times Electric (03898) Releases 2024 Annual Performance Report: Net Profit Attributable to Parent Company RMB 3.703 Billion, Up 21.77% Year-on-Year
According to Zhitong Finance APP, Times Electric (03898) released its 2024 annual performance report, with total operating revenue of RMB 24.909 billion, a year-on-year increase of 13.42%; net profit attributable to the parent company was RMB 3.703 billion, a year-on-year increase of 21.77%; basic earnings per share were RMB 2.62.
BeiGene (06160): 2025 Revenue Expected to Be Between RMB 35.2 Billion and RMB 38.1 Billion
BeiGene announced that its revenue for 2025 is expected to be between RMB 35.2 billion and RMB 38.1 billion, with strong revenue growth primarily benefiting from the leading position of BeiYueZe® in the United States and continued expansion in Europe and other key global markets; at the same time, based on the company's product portfolio and improved production efficiency, the gross profit margin for 2025 is expected to be in the mid-range of 80% to 90%. It is expected that the total R&amp;D expenses, sales, and management expenses for 2025 will be between RMB 29.5 billion and RMB 31.9 billion
[Stock Highlights]
Kingboard Laminates (01888) Issues Earnings Upgrade, Expected Annual Net Profit to Increase by Over 43% to Over HKD 1.3 Billion
According to the Zhitong Finance APP, Kingboard Laminates (01888) announced that the group expects to achieve a net profit exceeding HKD 1.3 billion for the year ending December 31, 2024, representing an increase of over 43% compared to the same period in 2023.
CITIC Securities previously stated that the PCB/CCL industry has both cyclical and growth attributes, and innovations such as computing power and AI at the edge are expected to drive the industry into a new growth phase, which remains worthy of active attention.
KYG Securities previously pointed out that Kingboard Laminates is a leader in the copper-clad laminate industry. With copper prices expected to rise in 2024 and downstream demand gradually recovering, copper-clad laminates have flexible pricing space. Coupled with cost advantages from vertical integration of the supply chain and economies of scale, the company is expected to return to a growth trajectory in revenue and profit in 2024.
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Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. 

According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

NVIDIA Financial Results for Q4 Fiscal 2025

Alibaba  earnings 

STECH

XIACY

01810

00HSI

The Hong Kong Securities and Futures Commission has proposed to relax the position limits for trading derivatives on major exchanges to adapt to market developments. It is suggested to increase the existing position limits for futures and options contracts of the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng TECH Index by 50%, 108%, and 43%, respectively. At the same time, global markets are facing volatility, with the three major U.S. stock indices experiencing significant declines and poor performance in chip stocks. Oil prices have seen the largest increase in six weeks, with WTI rising by approximately 2.5%

- The Hong Kong Securities and Futures Commission proposed to increase the position limits for exchange-traded derivatives based on major stock indices to enhance market development.  
- The suggested limits for the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Tech Index futures and options contracts would rise by 50%, 108%, and 43%, respectively.  
- In related market news, U.S. chip stocks faced significant declines, with Nvidia dropping 8.4%, while oil prices saw their largest increase in six weeks, rising approximately 2.5%.

Zhitong

Hang Seng TECH Index

Xiaomi Corporation

XIAOMI-W

Hang Seng Index

HSCEI ETF

ByteDance

Direxion Daily TSLA Bull 2X Shares

CMSC

ISHARESHSI

NVIDIA

CSOP HS TECH

Kingsoft Office

TIMES ELECTRIC

GraniteShares 2x Long NVDA Daily ETF

ND PAPER

Broadcom

SINO BIOPHARM

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

MAOYAN ENT

Strategy

HSTECH ETF

BEONE MEDICINES

Tesla

KB LAMINATES

KINGSOFT

BABA-W

NASDAQ Golden Dragon China Index

YieldMax NVDA Option Income Strategy ETF

Zhitong Hong Kong Stock Early Knowledge | The Hong Kong Securities and Futures Commission recommends raising the position limit for derivative instruments. Xiaomi Automobile has accumulated locked orders of 248,000 units in 2024