$XIAOMI-W(01810.HK)

Looking at the recent interpretation of the surrounding gains, the reasonable explanation tends to be:

- The rise in the A-share market comes from the release of retail and institutional funds at the end of the year due to the Spring Festival effect, seeking new investment opportunities, and there happen to be hot and scarce sectors like commercial aerospace, with everyone optimistic about the sector's narrative.

- Stocks like Zhupu in the Hong Kong market are also due to the scarcity of the AI sector in Hong Kong, which has heightened investment enthusiasm, but looking at revenue, it might not be so easy to maintain the high expectations brought by the investment gains.

- The rise in Alibaba has a theory that AI model companies are also capital-intensive and heavily rely on cloud for market distribution, equivalent to selling computing power tokens, where the cloud might have more profit and pricing power.

- Xiaomi's inability to rise is most recognized as due to the hardware ecosystem being the foundation, while the memory in the production-side supply chain and rising commodity prices put pressure on profits, coupled with market competition in the sales-side industry. I understand that capital isn’t actually pessimistic about Xiaomi, but in this environment, it chooses to adjust positions and hedge with shorts. The capital movement itself is part of the market's self-regulation, mainly related to cycles and not much to fundamentals, as the stock price hasn’t changed much compared to last year, but fundamentals are better and more complete in every aspect with more potential. From a holdings perspective, an environment where surrounding stocks rise is better than none rising, proving that funds have been flowing recently.

From an investment perspective, either have the experience to chase hotspots and volatility, or spot the right opportunity and hold.