Market Overview
▪ As of noon on February 6, the three major indices of the Hong Kong stock market continued to consolidate, with a cautious market atmosphere.
▪ The Hang Seng Index reported 26,580.94 points at noon, down 1.13%, retreating from the recent high set yesterday, with a clear short-term high-level adjustment trend.
▪ The Hang Seng Tech Index closed at 5,380.72 points at noon, down 0.47%, failing to maintain its previous high performance, pulling back from the February 5 peak.
▪ The China Enterprises Index closed at 9,045.82 points at noon, down 0.52%, also adjusting from yesterday's recent high, with no new breakthroughs.
Sector Performance
▪ The internet content and information sector collectively declined at noon, reflecting low market sentiment and significant capital outflow. Leading stock Tencent Holdings fell 0.90%, Baidu dropped 0.99%, and Kuaishou decreased by 1.71%, with average trading performance and no major news guidance for related companies, putting short-term pressure on the sector.
▪ The retail sector continued to retreat, reflecting weak consumer demand, with capital mainly on the sidelines, and mainstream stocks all declined. Alibaba fell 2.57%, JD dropped 2.21%, and MNSO decreased by 3.59%, with overall trading under pressure and major funds continuing to exit.
▪ The hardware, storage, and peripherals sector showed mixed performance. Xiaomi Group rose 1.55%, with increased capital inflow, indicating heightened interest in growth directions. Lenovo Group and Legend Holdings slightly adjusted, down 0.32% and 0.35%, respectively, revealing structural opportunities within the market. Short-term capital flowed towards quality leaders, boosting Xiaomi's strength.
Macroeconomic Background
▪ The core focus of the Hong Kong stock market recently has been on the rebound of local manufacturing PMI and export indicators, while retail, unemployment, and CPI data remained stable. Although there are pressures on the foundation of economic recovery, external macro policies and data have influenced capital preferences.
▪ Currently, foreign exchange reserves are abundant, and the trade balance continues to show a surplus. Investors are highly concerned about the impact of future Federal Reserve interest rate policy changes on Hong Kong dollar liquidity and the overall Hong Kong stock market.
Popular Stocks
▪ Long Resources (1712.HK) rose 35.87% at noon, with a transaction volume of HKD 119 million. The core reason for the rise comes from the company's recent profit warning, expecting after-tax net profit to grow 3.5 to 3.8 times year-on-year by 2025.
▪ YOFC (6869.HK) surged 10.17% during the session, with a transaction volume reaching HKD 2.359 billion. Recent reports indicate that global demand for optical fibers and cables has reached a historical high, but downstream labor shortages have created supply bottlenecks and wage increases in the industry, raising market concerns about future profitability. High prosperity expectations and supply-demand mismatch logic have attracted concentrated capital attention, driving the stock price to continue rising.
▪ CMON (1792.HK) increased by 69.57%, with a transaction volume of HKD 21.0214 million. The company has entered into a second supplementary agreement regarding the placement, revising the placement price from HKD 0.80 per share to no less than HKD 0.95 per share, with a maximum expected net fundraising amount of approximately HKD 9.4 million, intended to be fully used for general working capital
▪ INNOCARE (9969.HK) rose 11.06%, with a transaction volume of HKD 237 million. On the news front, the company announced a profit warning, expecting a revenue growth of approximately 134% year-on-year in 2025, and for the first time, it will turn a profit in net profit attributable to shareholders.
▪ NANFANG COMM (1617.HK) rose 30.11%, with a transaction volume of HKD 10.4359 million, with significant short-term inflows of main funds, showing active performance, and future event-driven catalysts can be monitored.
Market Transaction Volume TOP10
▪ TENCENT (00700.HK) latest transaction price HKD 553.50, down 0.90%, transaction volume HKD 11.198 billion
▪ BABA-W (09988.HK) latest transaction price HKD 155.50, down 2.57%, transaction volume HKD 6.749 billion
▪ XIAOMI-W (01810.HK) latest transaction price HKD 35.46, up 1.55%, transaction volume HKD 2.676 billion
▪ YOFC (06869.HK) latest transaction price HKD 95.30, up 10.17%, transaction volume HKD 2.359 billion
▪ AIA (01299.HK) latest transaction price HKD 84.10, down 4.86%, transaction volume HKD 2.169 billion
▪ SMIC (00981.HK) latest transaction price HKD 68.40, up 1.41%, transaction volume HKD 2.143 billion
▪ POP MART (09992.HK) latest transaction price HKD 244.20, up 0.74%, transaction volume HKD 1.887 billion
▪ HONG KONG EXCHANGE (00388.HK) latest transaction price HKD 408.00, down 1.54%, transaction volume HKD 1.560 billion
▪ MEITUAN-W (03690.HK) latest transaction price HKD 92.00, down 1.92%, transaction volume HKD 1.529 billion
▪ ZIJIN MINING (02899.HK) latest transaction price HKD 39.24, down 1.06%, transaction volume HKD 1.478 billion

On February 6th, the Hong Kong stock market showed a cautious performance by midday, with the three major indices experiencing a phase of high position adjustment. The Hang Seng Index fell by 1.13%, the Hang Seng Tech Index decreased by 0.47%, and the National Enterprises Index dropped by 0.52%. There was a clear divergence among mainstream sectors, with popular leading stocks rotating actively. Changfei Optical Fiber and Long Resources broke through with increases of 10.17% and 35.87%, respectively, with significantly enlarged trading volumes. Funds are chasing structural opportunities, with macro data and policy expectations becoming dominant, while sector fund flows and individual stock movements have become the focus of investors

- As of February 6, Hong Kong's three major indices exhibited a cautious market atmosphere, with the Hang Seng Index falling 1.13% to 26,580.94 points following recent highs.  
- Meanwhile, the tech sector showed a slight decline, highlighted by significant drops in stocks like Tencent and Alibaba, reflecting a general pullback amid low market sentiment.  
- Key individual stocks such as Long Resource surged by 35.87% on positive earnings forecasts, while changes in macroeconomic indicators continue to draw investor attention.

Market Heartbeat

YOFC

TENCENT

BIDU-SW

KUAISHOU-W

BABA-W

JD-SW

MNSO

XIAOMI-W

LENOVO GROUP

LEGENDHOLDING

CMON

INNOCARE

NANFANG COMM

DRAGON MINING

Hong Kong Stock Midday Review | The Hang Seng Index fell 1.13% during the session, with Long Resources leading the rise at 35.87%, and YOFC rising 10.17%