Market Overview
On February 10, Hong Kong stocks closed higher, with all three major indices rising collectively. Market sentiment showed a mild recovery, continuing the recent trend of oscillation and repair.
▪ The Hang Seng Index maintained a positive performance throughout the day, ultimately rising 0.58% to close at 27,183.15 points. Although the index has shifted upward, it has not yet broken through the previous high point from January 29, remaining in a phase of consolidation.
▪ The Hang Seng Tech Index rose 0.62% to close at 5,451.03 points. Technology heavyweight stocks showed stable performance, but the index is still some distance from the early February peak, with rebound potential needing further exploration.
▪ The Hang Seng China Enterprises Index performed relatively strongly, closing up 0.81% at 9,242.75 points, leading the three major indices. Core blue-chip assets demonstrated strong resilience.
Sector Performance
▪ The retail sector exhibited a strong upward trend, driven by cost reduction and efficiency improvement strategies, leading to improved profit expectations among investors. Alibaba -W (09988.HK) rose 1.65%, with a trading volume of HKD 9.386 billion. The market reacted positively to its strategy of reducing non-core assets and focusing on e-commerce and cloud business; JD.com -SW (09618.HK) rose 1.95%, with a trading volume of HKD 1.254 billion, as the company's supply chain optimization and reduced offline heavy asset investment boosted market confidence; Miniso (09896.HK) rose 1.39%, with a trading volume of HKD 166 million, attracting funds due to its high cost-performance products and global expansion, with earnings forecasts indicating high growth.
▪ The internet content and information sector showed mixed performance, with both positive AI commercialization news and concerns over high capital expenditures. Tencent Holdings (00700.HK) fell 1.61%, with a trading volume of HKD 16.194 billion. Despite strong performance in AI business, the market is worried that high short-term capital expenditures will suppress profit margins; Kuaishou -W (01024.HK) rose 1.59%, with a trading volume of HKD 2.726 billion, as its Kling AI revenue breakthrough and leading position in video generation offset the negative impact of fines; Baidu -SW (09888.HK) rose 0.84%, with a trading volume of HKD 1.264 billion, as the Spring Festival red envelope and AI marketing collaborations are expected to boost advertising revenue, driving a mild rebound in stock prices.
▪ The restaurant sector experienced a downward trend, with intensified industry competition and expansion costs raising market concerns over profits. Meituan -W (03690.HK) fell 2.47%, with a trading volume of HKD 6.639 billion, as the market worries that acquiring fresh food e-commerce and overseas expansion will incur significant short-term costs; Haidilao (06862.HK) fell 2.60%, with a trading volume of HKD 571 million, affected by downward pressure on average spending and lack of new growth points, leading to cautious fund sentiment; Yum China (09987.HK) rose 1.35%, with a trading volume of HKD 340 million, benefiting from digital transformation and better-than-expected fourth-quarter operating profits, demonstrating strong risk resilience
Macroeconomic Background
▪ Recently, the Hong Kong stock market is facing dual challenges of liquidity and external environment. Although foreign exchange reserves remain robust, the market is closely watching the upcoming retail sales and import-export data to assess the resilience of local consumption and foreign trade recovery.
▪ The uncertainty of the Federal Reserve's interest rate path remains a core factor suppressing the valuation recovery of Hong Kong stocks, and investors need to be cautious of exchange rate fluctuation risks.
Popular Stocks
▪ China Literature Group (772.HK) closed with a change of +15.41%, with a trading volume of HKD 2.166 billion. Driven by ByteDance's release of the Sora-level video model, the company, as a leading IP holder, is seen as a beneficiary of the AI video wave, establishing an &#34;IP + AI&#34; strategy to drive value reassessment, with recent active stock performance.
▪ Fubo Group (3738.HK) closed with a change of +14.44%, with a trading volume of HKD 1.283 billion. Breakthroughs in AI video generation technology stimulate demand for copyright protection, and the market is optimistic about its role as a &#34;water seller&#34; in the AI era, expecting explosive growth in its core business, significantly boosting stock prices.
▪ Zhiyu (2513.HK) closed with a change of +14.81%, with a trading volume of HKD 1.085 billion. Due to the exposure of the high-performance model &#34;Pony Alpha,&#34; speculated to be GLM-5, its technical strength has been validated by the market, with capital inflow pushing its market value to surpass HKD 120 billion.
▪ TianShu ZhiXin (9903.HK) closed with a change of +12.40%, with a trading volume of HKD 240 million. Strategic investment from Xueda Education and inclusion in the integration of production and education systems, as a domestic general-purpose GPU unicorn, broadens its commercial landing scenarios, and the market is optimistic about its application prospects in vertical industries.
▪ WanKa YiLian (1762.HK) closed with a change of 0.00%, with a trading volume of HKD 65.7891 million. Benefiting from the integration of the Android ecosystem and AI mobile phone concepts, the stock price reached a new 52-week high, with the market rediscovering its value in AI marketing and traffic distribution.
Market Trading Volume TOP10
▪ Tencent Holdings (00700.HK) closing price HKD 551.00, down 1.61%, trading volume HKD 16.194 billion
▪ Alibaba -W (09988.HK) closing price HKD 160.50, up 1.65%, trading volume HKD 9.386 billion
▪ Meituan -W (03690.HK) closing price HKD 88.80, down 2.47%, trading volume HKD 6.639 billion
▪ Pop Mart (09992.HK) closing price HKD 269.80, up 4.90%, trading volume HKD 6.005 billion
▪ Yangtze Optical Fibre and Cable (06869.HK) closing price HKD 114.00, up 8.88%, trading volume HKD 3.848 billion
▪ Xiaomi Group -W (01810.HK) closing price HKD 35.58, up 1.08%, trading volume HKD 3.844 billion
▪ Semiconductor Manufacturing International Corporation (00981.HK) closing price HKD 71.55, up 1.71%, turnover HKD 3.208 billion
▪ Ping An Insurance (02318.HK) closing price HKD 73.45, up 0.62%, turnover HKD 3.157 billion
▪ AIA Group Limited (01299.HK) closing price HKD 85.90, down 0.52%, turnover HKD 2.833 billion
▪ Zijin Mining Group Company Limited (02899.HK) closing price HKD 42.32, up 2.52%, turnover HKD 2.814 billion

On February 10th, the three major Hong Kong stock indices closed higher collectively, with the Hang Seng Index rising 0.58% to 27,183.15 points, indicating a mild recovery in market sentiment. The retail sector performed strongly, with Alibaba up 1.65% and JD.com up 1.95%; the internet sector showed mixed results, with Tencent down 1.61% due to concerns over capital expenditures, while Kuaishou benefited from AI commercialization, rising 1.59%; the catering sector experienced fluctuations downward, with Meituan down 2.47%. Investors are closely monitoring the upcoming retail sales data and changes in the external macro environment

- On February 10, the Hong Kong stock market saw all three major indices close higher, indicating a moderate recovery in market sentiment.  
- The Hang Seng Index rose 0.58% to 27,183.15, while the Technology Index increased 0.62%, although it remains below February's peak, suggesting limited upside potential.  
- Retail stocks gained on improved profit expectations, driven by cost-cutting strategies, with Alibaba and JD.com both showing positive performances despite overall market challenges from intensified competition in various sectors.

Market Heartbeat

JD-SW

BABA-W

TENCENT

KUAISHOU-W

BIDU-SW

HAIDILAO

MNSO

YUM CHINA

CHINA LIT

VOBILE GROUP

KNOWLEDGE ATLAS

ILUVATAR COREX

WANKA ONLINE

Alibaba

VanEck Retail ETF

SPDR S&P Retail ETF

KraneShares 2x Long JD Daily ETF

Hwabao CSI HK Equities Internet ETF

BABA 2x Long Daily ETF - GraniteShares

E Fund CSI HK Connect Internet ETF

JD.com

Harvest Hang Seng SCHK Technology ETF

KraneShares 2x Long BABA Daily ETF

Hong Kong Stock Market Closing | Hang Seng Index up 0.58%, retail sector strengthens, Alibaba up 1.65%, Tencent down 1.61%