The Market Review: Hang Seng Index "Five Consecutive Increases" Reaches Above 27,000; China Life and Zijin Systems Surge

Driven by the rise in financial and technology stocks, the Hang Seng Index today (27th) rose for five consecutive trading days (a cumulative increase of 639 points or 2.4%) and closed above the 27,000 mark. The market is focused on the performance of several major U.S. stocks and the Federal Reserve's interest rate decision later this week. The Dow Jones and Nasdaq rose 0.6% and 0.4% respectively on the night of the 26th. At the time of writing, the yield on the U.S. 2-year Treasury bond is at 3.593%, the yield on the 10-year Treasury bond has risen to 4.215%, and the U.S. dollar index has risen to 97.24. The latest Dow futures are down 54 points or 0.1%, while Nasdaq futures are up 136 points or 0.5%. The National Bureau of Statistics announced that profits of large-scale industrial enterprises in China rose by 5.3% year-on-year in December last year. The Shanghai Composite Index rose 7 points or 0.18% to close at 4,139 points, while the Shenzhen Component Index rose 0.09%. The total transaction amount in the Shanghai and Shenzhen markets was 2.89 trillion yuan.

After opening 97 points higher, the Hang Seng Index expanded its gains, once rising by 423 points to a high of 27,188 points, ultimately closing up 361 points or 1.4% at 27,126 points; the Hang Seng China Enterprises Index rose 97 points or 1.1% to close at 9,244 points; the Hang Seng Tech Index rose 28 points or 0.5% to close at 5,754 points. The total transaction amount for the day was 254.373 billion yuan. The total transaction amount for northbound trading was 102.207 billion yuan, while southbound funds recorded a net outflow of 635 million yuan today (following a net outflow of 830 million yuan on the previous trading day), marking three consecutive days of net outflows.

Tencent (00700.HK) rose nearly 1.3% to close at 607 yuan, with a transaction amount of 14.46 billion yuan. Alibaba (09988.HK) launched a new reasoning model Qwen3-Max-Thinking under its subsidiary Qianwen, with performance comparable to GPT-5.2 and Gemini 3 Pro, rising 2.8% to close at 169.9 yuan, with a transaction amount of 12.41 billion yuan. Bilibili (09626.HK) bounced 5.9%, Zhiyu (02513.HK) rose 7.6%, and MINIMAX (00100.HK) surged 26.5%. Cloud service providers Kingsoft Cloud (03896.HK) and GDS Holdings (09698.HK) rose 9.7% and 7% respectively.

【Hang Seng Index rises for five consecutive days, AIA and China Life strong】

Financial stocks were favored, with HSBC (00005.HK) rising 2.7% to close at 134.5 yuan, AIA (01299.HK) bouncing 4.1% to close at 86.45 yuan, China Life (02628.HK) rising nearly 6% to close at 34.1 yuan, and Ping An (02318.HK) rising 2.3%. Industrial and Commercial Bank of China (01398.HK) and Agricultural Bank of China (01299.HK) rose 1.9% and 4.1% respectively.

CICC recently released a report stating that last Thursday (22nd), the China Insurance Industry Association, the China Actuarial Society, and the China Banking and Insurance Regulatory Commission jointly issued a document to improve key infrastructure based on their respective functions in areas such as commercial health insurance pricing data, product design, drug catalogs, and information sharing. The China Banking and Insurance Asset Management Association also issued a statement confirming the insurance industry's long-term investment support for the healthcare sector. The bank previously discussed in its series of reports on China's commercial health insurance (1) the predicament of commercial health insurance being trapped in "low product value creation and financing efficiency - insufficient payment power unable to leverage medical resources - difficulty in enhancing product value creation and financing efficiency" due to various long-standing top-down obstacles. The bank believes that this policy combination directly addresses the main bottlenecks and will effectively guide the industry towards a positive feedback loop Opening a new era of development.

CICC suggests focusing on investment opportunities in the following areas: (1) Leading internet platforms and super-large insurance groups committed to and with the potential to build commercial insurance payment systemic projects; (2) Leading brokerage channels and related entities deeply engaged in the corporate group insurance sector with higher fundraising efficiency; (3) Reinsurance companies and insurance companies that continuously enhance their health insurance operational capabilities or benefit from the development of the health insurance market; (4) Pharmaceutical upstream and downstream enterprises (innovative drug and medical device companies, retail medical service institutions, etc.) that benefit from the incremental commercial insurance payments.

【Stock Surge of One Thousand: Zijin Group Rises High】

The Hong Kong stock market is trending positively, with a rise-to-fall ratio of 27 to 23 for main board stocks (compared to 23 to 29 the previous day), and 1,115 stocks rising (an increase of nearly 2.5%). Today, 54 constituent stocks of the Hang Seng Index rose, while 31 fell, with a rise-to-fall ratio of 61 to 35 (compared to 52 to 44 the previous day). The market recorded short selling of HKD 29.214 billion, accounting for 15.186% of the total turnover of shortable stocks of HKD 192.379 billion.

Zijin Gold International (02259.HK) spent RMB 28 billion to fully acquire Allied Gold, with its stock price rising 11.6% to close at HKD 233, while Zijin (02899.HK) rose 2.9%. A Morgan Stanley research report indicates that Zijin plans to acquire 100% of Allied Gold Corporation (AAUC.US) for a total cash consideration of CAD 5.5 billion. Allied Gold aims to achieve a production target of 11.7 to 12.4 tons by 2025; after the expansion of its Sadiola project and the commissioning of the new Kurmuk project, the annual production is expected to reach 25 tons by 2029.

Regarding operational improvement potential, Zijin's management stated that after the second phase of the Sadiola project expansion and the operation of self-generated power units, the comprehensive maintenance cost could be reduced from USD 2,067 per ounce in the third quarter of last year to USD 1,200. Additionally, both the Sadiola and Kurmuk projects of Allied Gold are located near Zijin Mining's projects, which can bring about synergies in management