The Market Review: Hang Seng Index closes above 26,000; Sunny Optical, Lens Technology, and ZTE surge

Although the official PMI data for November in mainland China fell short of expectations, the Hang Seng Index closed above the 26,000 level today. After the Thanksgiving holiday, U.S. stocks resumed trading last Friday, with the Dow Jones rising 0.6% and the Nasdaq increasing 0.7%. At the time of writing, the yield on U.S. 2-year bonds rose to 3.502%, and the yield on U.S. 10-year bonds rose to 4.05%. The U.S. dollar index fell to 99.36, and Dow futures were down 164 points or 0.35%, while Nasdaq futures were down 145 points or 0.6%. The National Bureau of Statistics announced that China's official manufacturing PMI for November recorded 49.2 (below market expectations of 49.3), but the new orders index was 49.2, an increase of 0.4 percentage points from the previous month. China's official non-manufacturing PMI for November recorded 49.5 (below market expectations of 50). The Shanghai Composite Index rose 25 points or 0.65% to close at 3,914 points, while the Shenzhen Component Index rose 1.25%. The total trading volume of the Shanghai and Shenzhen stock markets was 1.87 trillion yuan.

After opening 86 points higher, the Hang Seng Index expanded its gains, rising by as much as 320 points to reach a high of 26,179 points, ultimately closing up 174 points or 0.7% at 26,033 points; the Hang Seng China Enterprises Index rose 42 points or 0.5% to close at 9,172 points; the Hang Seng Tech Index rose 45 points or 0.8% to close at 5,644 points. The total trading volume for the day was 200.884 billion yuan. The total trading volume of northbound trading was 85.91 billion yuan, while southbound funds saw a net inflow of 2.148 billion yuan today (compared to a net inflow of 2.727 billion yuan on the previous trading day). Pop Mart (09992.HK) fell nearly 4.3% to close at 215.2 yuan.

【NetEase supports Meituan's post-earnings decline】

Alibaba (09988.HK) saw its stock price rise 2.2% to close at 154.9 yuan, with a trading volume of 14.49 billion yuan. NetEase (09999.HK) rose 3.9% to close at 222.4 yuan, with domestic media reporting that the mobile game version of "Yan Yun Shi Liu Sheng" will launch on December 12 and global reservations will open simultaneously. Tencent (00700.HK) and Baidu (09888.HK) saw their stock prices rise by 1.3% and 1.6%, respectively.

Meituan (03690.HK) reported third-quarter results in line with expectations, but brokers noted that competition in-store may reignite, leading to a 2.9% decline in its stock price to 99.55 yuan, with a trading volume of 8.686 billion yuan. Citigroup released a report stating that key points from Meituan's third-quarter earnings call included that, as intense competition continues, core local commerce (CLC) and operational losses will persist in the fourth quarter of this year; food delivery losses will improve quarter-on-quarter, while retail and in-store businesses will show a quarterly decline; growth in in-store business will further slow, and operating profit margins will continue to decline due to macroeconomic conditions, intensified competition, and business overlap. In the long term, the report indicated that although Meituan's management reiterated a daily order volume of 100 million and a goal to restore reasonable profitability, the actual number of users and the potential for profit margins still highly depend on the actions and strategies of competitors. The rating is maintained at "Neutral," with the target price lowered from 117 yuan to 115 yuan 【Stocks Rise by 1,000, Sunny Optical and Lens Technology Surge】

The Hong Kong stock market showed little change, with a rise-to-fall ratio of 26 to 22 for main board stocks (compared to 24 to 22 the previous day). A total of 1,102 stocks rose (up 3.2%), with 71 Hang Seng Index constituent stocks rising and 17 falling, resulting in a rise-to-fall ratio of 81 to 19 (previous day 27 to 67). The market recorded short selling of HKD 31.331 billion today, accounting for 17.914% of the total turnover of shortable stocks, which was HKD 174.896 billion.

Mobile component stocks rose, with Sunny Optical (02382.HK) and Lens Technology (06613.HK) up 6.2% and 4.9%, respectively, while Q Technology (01478.HK) and AAC Technologies (02018.HK) rose 4.3% and 3.4%. According to recent reports from domestic media, supply chain sources indicate that Apple's (AAPL.US) first foldable phone, iPhone Fold, has entered the engineering verification and pre-mass production phase, with only minor design adjustments remaining, and is expected to be released by the end of next year.

In addition, ZTE (00763.HK) saw its stock price rise by 13.9% to close at HKD 35.8, with a turnover of HKD 3.76 billion. According to comprehensive reports from domestic media, ByteDance and ZTE are set to release an AI phone in early December, with ByteDance leading the integration of the Doubao large model and AI interaction features, while ZTE will lead hardware, product design, and manufacturing