Market Overview
On February 13, the Hong Kong stock market closed with all three major indices experiencing a collective pullback, as the market underwent a technical adjustment after reaching short-term highs.
▪ The Hang Seng Index maintained a weak oscillation throughout the day, closing down 1.72% at 26,567.12 points, significantly retreating from the recent peak reached on February 11;
▪ The Hang Seng Tech Index fell 0.9% to close at 5,360.42 points;
▪ The China Enterprises Index also declined, down 1.55% to close at 9,032.71 points. Overall, the indices showed profit-taking pressure after consecutive gains, entering a short-term consolidation period.
Sector Performance
▪ The internet content and information sector generally declined, mainly affected by concerns over AI monetization and macroeconomic conditions. Tencent Holdings (700.HK) fell 0.65%, with a trading volume of HKD 14.234 billion. Although institutions are optimistic about its AI and gaming business realization in 2026, it adjusted slightly with the market; Kuaishou-W (1024.HK) dropped 1.58%, with a trading volume of HKD 2.115 billion. Goldman Sachs pointed out that it would benefit from the expansion of the AI video market, but its stock price remains under pressure from the overall market; Baidu-SW (9888.HK) fell 3.07%, with a trading volume of HKD 1.999 billion. Despite the company approving a new USD 5 billion repurchase plan, the market remains concerned about weak macro advertising demand.
▪ The retail sector showed weak performance due to intense price wars and sluggish consumer sentiment. Alibaba-W (9988.HK) fell 2.02%, with a trading volume of HKD 10.845 billion. Analysts indicated that it is facing fierce price competition from JD.com and Meituan in the &#34;instant retail&#34; sector; JD-SW (9618.HK) dropped 1.85%, with a trading volume of HKD 1.456 billion. The market is worried that its high capital expenditure in the &#34;instant delivery war&#34; will drag down short-term profits; Miniso (9896.HK) fell 0.94%, following the sector's fluctuations due to consumer sentiment.
▪ The restaurant sector showed mixed performance, with platform stocks under pressure while chain brands rebounded. Meituan-W (3690.HK) fell 3.18%, with a trading volume of HKD 8.163 billion, leading the sector down as the market is concerned about the profit margins of its core delivery business being harmed by intense industry competition; Haidilao (6862.HK) rose 3.13%, with a trading volume of HKD 0.43 billion, as funds are optimistic about a stronger-than-expected recovery in restaurant consumption after the Spring Festival and stable cash flow; Yum China (9987.HK) rose 0.6%, with a trading volume of HKD 0.414 billion. The company raised its profit expectations and announced dividends, with a clear expansion strategy boosting confidence.
Macroeconomic Background
▪ Recently, the Hong Kong stock market has faced dual challenges of liquidity and external macroeconomic conditions. Although foreign exchange reserves remain stable, fluctuations in retail and trade data have raised concerns about the recovery of local domestic demand. Investors are closely monitoring the Federal Reserve's monetary policy shift and the spillover effects of economic stimulus policies in the mainland. The Hang Seng Index seeks to balance between valuation repair and fundamental pressures, suggesting a focus on defensive opportunities in high-dividend and policy-benefiting sectors
Popular Stocks
▪ GUANZE MEDICAL (2427.HK) rose by 40.29%, with a trading volume of HKD 35.3765 million. The company's stock was favored by funds after a short suspension or adjustment, with the market speculating positively on its medical cloud business prospects, recording a significant increase in a single day, but liquidity risks should be noted.
▪ Yingda Real Estate (0432.HK) rose by 39.02%, with a trading volume of HKD 5.619 million. The company announced the sale of a hotel property in Hokkaido, Japan for USD 80 million, expecting to confirm a profit of approximately HKD 261 million, which stimulated a sharp rise in stock price due to capital recovery.
▪ Star Chain Group (0399.HK) rose by 38.18%, with a trading volume of HKD 10.7028 million. A retaliatory rebound occurred from a very low stock price base, with the market betting on potential restructuring or shell protection actions, which is speculative trading.
▪ Duoxiang Cloud (6696.HK) rose by 33.05%, with a trading volume of HKD 31.8525 million. The company is advancing its &#34;20-for-1&#34; share consolidation plan to be implemented in early 2026, driven by changes in capital structure and speculative funds, leading to a technical adjustment surge in stock price.
▪ Junyu Foundation (1757.HK) rose by 18.63%, with a trading volume of HKD 22.2249 million. The company previously faced a pullback due to high concentration of equity being named by the Securities Regulatory Commission, and today saw a rebound from overselling, with clear characteristics of capital speculation.
Market Trading Volume TOP10
▪ Tencent Holdings (00700.HK) latest trading price HKD 532.0, down 0.65%, trading volume HKD 14.234 billion
▪ Alibaba -W (09988.HK) latest trading price HKD 155.4, down 2.02%, trading volume HKD 10.845 billion
▪ Meituan -W (03690.HK) latest trading price HKD 82.15, down 3.18%, trading volume HKD 8.163 billion
▪ Xiaomi Group -W (01810.HK) latest trading price HKD 36.84, up 0.88%, trading volume HKD 4.673 billion
▪ AIA Group (01299.HK) latest trading price HKD 80.3, down 4.18%, trading volume HKD 4.634 billion
▪ Zijin Mining (02899.HK) latest trading price HKD 41.58, down 7.64%, trading volume HKD 4.131 billion
▪ Hong Kong Stock Exchange (00388.HK) latest trading price HKD 405.2, down 2.13%, trading volume HKD 3.591 billion
▪ SMIC (00981.HK) latest trading price HKD 70.35, up 0.79%, trading volume HKD 3.517 billion
▪ Trip.com Group -S (09961.HK) latest trading price HKD 419.8, down 2.10%, trading volume HKD 3.421 billion
▪ Pop Mart (09992.HK) latest transaction price is HKD 247.4, down 1.90%, with a transaction volume of HKD 3.242 billion

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On February 13th, the Hong Kong stock market collectively adjusted, with the Hang Seng Index falling 1.72%, breaking below short-term highs. The internet and retail sectors experienced widespread declines, influenced by the macro environment and intensified competition, with heavyweight stocks like Meituan and Alibaba weakening. The restaurant sector showed mixed performance, with Haidilao rising against the trend due to recovery expectations. In terms of individual stocks, Yingda Real Estate surged over 39% on expectations of profits from asset sales. The market has entered a short-term consolidation period, with funds focusing on liquidity changes and policy directions

- On February 13, Hong Kong stocks declined collectively after reaching a short-term high, with the Hang Seng Index falling 1.72% to 26,567.12 points. 
- The retail sector suffered due to intense price competition and weak consumer sentiment, impacting major players like Alibaba and JD.com. 
- Amid mixed macroeconomic signals, investors are advised to consider defensive opportunities in high-dividend and policy-benefited sectors.

Market Heartbeat

TENCENT

KUAISHOU-W

BIDU-SW

BABA-W

JD-SW

MNSO

MEITUAN

HAIDILAO

YUM CHINA

GUANZE MEDICAL

PCPD

STARCOIN GROUP

MANY IDEA CLOUD

AFFLUENT FDN

Hong Kong Stock Market Closing | Hang Seng Index fell 1.72%, Meituan dropped 3.18% leading the blue chips, Yingda Real Estate surged 39% on positive news