The Hang Seng Index rose 174 points, surpassing 26,000. SUNNY OPTICAL increased by 6%, while Meituan fell by 3% after earnings. Experts: The market anticipates a new Federal Reserve Chair｜Hong Kong stocks close

Hong Kong stocks kicked off in December, rising above the 26,000 mark, closing at 26,033 points, up 174 points, with the market turnover increasing to HKD 20.09 billion. Analysts predict that Hong Kong stocks will continue to hover between 25,700 and 26,300 points in the short term. If the U.S. lowers interest rates this month or announces the next chair of the Federal Reserve, it will be beneficial for the local market. U.S. President Donald Trump stated that he has confirmed the candidate for the next chair of the Federal Reserve, and the popular candidate, Kevin Hassett, director of the White House Council of Economic Advisers, expressed his willingness to take the position.

The Hang Seng Index opened up 86 points, at one point rising 321 points to a high of 26,179 points, but later narrowed its gains, at one point only up 55 points, ultimately closing at 26,033 points, up 174 points. The Hang Seng China Enterprises Index closed at 9,172 points, up 42 points. The Tech Index closed at 5,644 points, up 45 points, marking two consecutive days of gains totaling 0.8%.

iPhone Fold rumored to enter pre-production, supply chain stocks surge

Domestic media "Economic Daily" cited supply chain news indicating that Apple's first foldable phone, iPhone Fold, has currently entered the engineering verification and pre-production process, with only minor design adjustments remaining, and is expected to be released by the end of next year. Apple-related stocks surged, with SUNNY OPTICAL (2382) reporting HKD 67.45, up 6.2%, making it the best-performing blue-chip stock; Lens Technology (6613) reported HKD 25.24, up 4.9%; Q Technology (1478) reported HKD 9.55, up 4.3%; AAC Technologies (2018) reported HKD 37.96, up 3.4%.

ZTE surges 14% on AI phone production news

Additionally, domestic media reported that ByteDance and ZTE Corporation (763) are collaborating on an AI phone that will be released early this month, with ByteDance leading the integration of the Doubao large model and defining AI interaction features, while ZTE leads hardware definition, product design, and manufacturing. ZTE Corporation closed near its daily high at HKD 35.8, up 13.9%.

Alibaba up 2%, Xiaomi down 2%

Technology stocks showed mixed performance, with Meituan (3690) facing multiple downgrades from major brokerages after its earnings report, closing at HKD 99.55, down 2.9%, making it the worst-performing stock in the Tech Index. Morgan Stanley stated that it has lowered its profit forecast for Meituan's core local business and increased overseas investments, reducing its target price from HKD 135 to HKD 120, while reiterating an "Overweight" rating. Xiaomi (1810) closed at HKD 40.3, down 1.8%. As for Alibaba (9988), it closed at HKD 154.9, up 2.2%; Tencent (700) reported HKD 619.5, up 1.3%; JD.com (9618) reported HKD 117.1, up 0.5%.

There are rumors that Yu Ze, a member of the Party Committee and Vice President of China Pacific Insurance (1339), as well as the Party Secretary and President of PICC Property and Casualty, has been taken away for investigation by relevant authorities. China Pacific Insurance closed at HKD 6.68, down 5.2%; China Reinsurance (2328) reported HKD 17.18, down 2.7% In terms of blue-chip stocks, Pop Mart (9992) closed at HKD 215.2, down 4.3%, making it the worst-performing constituent of the Hang Seng Index and the Hang Seng China Enterprises Index. HSBC (005) reported HKD 110.5, up 1.1%.

Li Ze Ming: Fluctuating between 25,700 and 26,300 points, the risk of liquidation is manageable

Li Ze Ming, Investment Director of Hong Ant Capital, stated that Hong Kong stocks have not shown a clear direction, with no significant inflow or outflow of funds in individual stock sectors. The Hang Seng Index faced significant selling pressure near the 26,200-point level, and it is expected to continue fluctuating between 25,700 and 26,300 points in the short term. If the U.S. reduces interest rates this month or announces the next Federal Reserve Chair, it would be beneficial for the Hong Kong stock market. However, he reminded that rising Japanese bond yields reflect market bets on Japan raising interest rates, which may trigger increased risk aversion and lead to liquidation situations, but the overall market situation remains manageable.

The Hang Seng Index opened 86 points higher at the start of December, with the gain expanding to 321 points, peaking at 26,179 points, before retreating. As of noon, it reported 26,068 points, up 209 points or 0.81%, maintaining above the 26,000 mark, with a turnover of HKD 20.9 billion. The Tech Index reported 5,654 points at noon, up 55 points or 0.99%.

Among blue-chip stocks, Alibaba (9988) rose 3.3% in the first half of the day, along with HSBC (005) up 1.4% and Tencent (700) up 0.8%, contributing significantly to the rise of the Hang Seng Index. In contrast, Xiaomi (1810) and Meituan (3690) fell 2% and 1.5%, respectively, dragging down the overall market.

Doubao launches mobile phone AI assistant

In terms of stock price fluctuations, Sunny Optical (2382) rose over 6% in the first half of the day, making it the best-performing blue-chip stock, while Zijin Mining (2899) and JD Health (6618) rose 5% and 3.3%, respectively. On the news front, Doubao announced the launch of the Doubao mobile phone AI assistant, which stimulated a rise in shares across the mobile phone supply chain. Besides Sunny Optical, Lens Technology (6613) rose 6%, while QiuTai (1478) and AAC Technologies (2018) rose 4.8% and 3.9%, respectively.

On the other hand, expectations for U.S. interest rate cuts have risen, boosting gold and silver prices. In addition to Zijin Mining, China Silver (815) rose nearly 10% in the first half of the day, while Zhaojin (1818) and Lingbao (3330) both rose over 4%, and Zijin Gold International (2259) rose 2.9%.

Last Friday, the U.S. stock market was only open for half a day, but the market was optimistic about Thanksgiving benefiting consumer stocks, driving U.S. stocks to achieve five consecutive gains. The night session of the Hong Kong stock market also rose 127 points, returning to the 26,000-point level. However, the official manufacturing PMI released yesterday from the mainland fell short of market expectations and has been in contraction for eight consecutive months. Analysts suggest that the Hong Kong stock market may open higher in December following external trends, but the current trading volume is insufficient to support a sustained rise in the market. Additionally, the weak manufacturing sector in the mainland is likely to "drag down" the market. It is expected that the Hang Seng Index will remain weak for most of December, but may improve towards the end of the year due to window dressing effects The Hang Seng Index opened 86 points higher this morning, reporting 25,945 points. Technology stocks showed mixed developments, with Alibaba (9988) rising 1%; Tencent (700) up 0.3%; Meituan (3690), which announced its results last Friday, falling over 2%; JD.com (9618) also down 0.7%; while Xiaomi (1810) rose 0.5%.

The People's Bank of China stated that stablecoins are a form of virtual currency that currently cannot effectively meet customer identification, anti-money laundering, and other requirements, posing risks of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers. Bitcoin has fallen below the $90,000 mark, recently dropping over 4% to $87,530; related concept stocks listed in Hong Kong are under pressure, with Yunfeng Financial (376) down 2.6%; Boyaa Interactive (434) down 2.5%; and Guotai Junan (1788) down 1.7%.

Related article: The People's Bank of China holds a meeting to combat virtual currencies, stating that stablecoins are involved in money laundering, fraud, and capital flight.

Sirus Added to Hong Kong Stock Connect

In terms of individual stocks, Sirus (9927) has been added to the Hong Kong Stock Connect eligible securities list, opening at HKD 120, up over 4%.

Guo Sizhi: May Benefit from Window Dressing at Month-End

Guo Sizhi, Vice Chairman of the Hong Kong Stock Analysts Association, stated that the Hang Seng Index has hovered around the 26,000 point level for most of November, showing an overall downward trend. With a significant decrease in trading volume, it is expected that the index needs to return to 26,300 points in the short term for a more optimistic outlook. However, the U.S. stock market performed well last Friday, and the Hong Kong stock night futures also returned to 26,000 points, suggesting that Hong Kong stocks may open higher today (1st).

He estimates that if the market trading volume does not rebound, Hong Kong stocks may show a trend of volatility without significant gains in December, with rebounds but no substantial rises. However, there may be benefits from window dressing effects at the end of the month, and the performance of Hong Kong stocks in December may be better than in November. Nevertheless, Guo Sizhi also pointed out that the latest official manufacturing PMI has been in contraction for eight consecutive months, indicating the aftereffects of adjustments in the domestic real estate industry, which continue to impact the real economy and may have a certain negative effect on the future of Hong Kong stocks.

Liang Jiewen: Wait for Better Opportunities to Enter

Liang Jiewen, Investment Manager at Hong Kong High Securities, also stated that due to the recent significant narrowing of volatility in Hong Kong stocks and continuous shrinkage in market trading, even if Hong Kong stocks have the opportunity to open higher following external markets today, the gains may be very limited. Additionally, the cumulative gains of Hong Kong stocks this year have been substantial, and with a lack of major positive news to drive the market, it is expected that trading in Hong Kong stocks will be weak in December, making it difficult to break upward, and there may even be a gradual downward adjustment. The Hang Seng Index is expected to fluctuate between 25,000 and 26,500 points in December. He advises investors to remain cautious and wait for better opportunities to enter the market.

Liang Jiewen further indicated that investors may be more optimistic about stocks benefiting from the interest rate cut cycle, such as high-dividend stocks and utility stocks. He believes that although the pace and extent of U.S. interest rate adjustments are currently slow and limited, the rate-cutting actions are still ongoing, making high-dividend stocks and utility stocks more likely to outperform.

Federal Reserve Enters Quiet Period Before Meeting

Looking ahead to this week, the U.S. Federal Reserve will enter its customary quiet period before the December meeting. However, Fed Chairman Jerome Powell will still deliver a speech at a commemorative event this week. Additionally, important data such as the November ISM Manufacturing PMI, the "little non-farm" ADP employment report, and the PCE (Personal Consumption Expenditures) price index will be released They will also be released one after another this week. In terms of new stocks, Jinyan Gaoling New Materials (2693), Lemo Technology (2539), Tianyu Semiconductor (2658), and Yujian Xiaomian (2408) will be listed successively this week