<p>The results of the quarterly review announced earlier by the Hang Seng Index Company will take effect on Monday (the 9th). Contemporary Amperex Technology Co., Limited (3750), China Molybdenum Co., Ltd. (3993), and Laopu Gold (6181) will officially be &#34;dyed blue.&#34; However, after the announcement, these three stocks surged and then &#34;fell back&#34; by approximately 0.9%, 1.4%, and 10.4%, respectively, raising market concerns about the reappearance of the &#34;blue dye curse.&#34; At the same time, with the Hang Seng Composite Index undergoing changes, the Hong Kong Stock Connect eligible securities list will also add 42 stocks and remove 25 stocks on Monday. Wu Lixian, a securities strategist at Everbright Securities International, told Sing Tao Daily that Contemporary Amperex Technology Co., Limited is expected to benefit from the development trend of new energy vehicles in mainland China, and its stock price is likely to rise. Among the new favorites of northbound funds, he is more optimistic about INSILICO (3696) and DEEPEXI TECH (1384). In addition, Wen Jie, a director of the Hong Kong Stock Analysts Association, believes that after the recent continuous decline of Laopu Gold and China Molybdenum, investors can consider accumulating shares in stages.</p>
<h2>Pop Mart's Blue Dye Curse Resulted in a 40% Drop</h2>
<p>There has always been talk of the &#34;blue dye curse&#34; in the market. Taking Pop Mart (9992) as an example, the stock was announced to be included in the blue chip index at HKD 320.4 on August 22 last year. Before officially being dyed blue on September 8, the stock price surged and then &#34;fell back&#34; by over 3% to HKD 309.6. Since then, the stock price has never exceeded that level and hit a low of HKD 174.3 in January this year, resulting in a cumulative drop of nearly 44%. As of last Friday's closing price of HKD 207.4, it has still fallen by over 30%. Given that Laopu Gold and Pop Mart have similar business natures and both belong to the new consumption concept stocks, there are concerns about the price trends of Laopu Gold as well.</p>
<h2>Wu Lixian: Contemporary Amperex Technology Co., Limited Expected to Benefit from Electric Vehicle Trend</h2>
<p>However, Wu Lixian believes that the degree to which the &#34;blue dye curse&#34; manifests is closely related to the overall market trend. He explained that Hong Kong stocks experienced a continuous decline for four years in the past, making it generally difficult for stocks to perform well after being &#34;dyed blue.&#34; However, in recent years, Hong Kong stocks have continued to rebound, making such &#34;curses&#34; less likely to occur. He also pointed out that the Hang Seng Index is currently at the 25,000-point level, which is not too high and has room for upward correction, so he believes that the &#34;blue dye curse&#34; may not appear so easily.</p>
<p>Regarding the three &#34;new blue chips,&#34; Wu Lixian analyzed that Contemporary Amperex Technology Co., Limited is expected to benefit from the development trend of new energy vehicles in mainland China, and its stock price is likely to &#34;stabilize and rise.&#34; China Molybdenum, being a resource stock, is expected to follow the fluctuations in resource prices. Since gold and copper prices still have the potential to rise, the stock price may continue to operate at high levels in the short term, but caution is needed if resource prices decline. Laopu Gold has seen significant gains since its listing but has been continuously declining in recent months, and the market holds a wait-and-see attitude towards its growth momentum.</p>
<h2>Wen Jie: Consider Accumulating Laopu Gold and China Molybdenum in Stages</h2>
<p>Wen Jie believes that the recent adjustments in the aforementioned stocks are mainly following the overall market trend, making it difficult to determine the occurrence of the &#34;blue dye curse&#34; in the short term. He pointed out that stocks included in the blue chip index often show signs of cyclical peaks, leading to occasional declines after inclusion. However, the medium to long-term performance still depends on fundamental factors. If companies can continue to grow, the &#34;curse&#34; may not necessarily exist. He believes that Laopu Gold and China Molybdenum have been continuously declining recently, and aggressive investors may consider accumulating shares in stages. For Contemporary Amperex Technology Co., Limited, it is recommended to wait for a further decline to the HKD 400 level before making any moves</p>
<h2>42 New &#34;Northbound Water&#34; Stocks Debut</h2>
<p>On the other hand, Hong Kong stocks will welcome 42 new &#34;Northbound Water&#34; stocks on Monday, including hotly traded semi-new stocks such as INSILICO, DEEPEXI TECH, XuanZhu Biotechnology (2575), XiPuNi (2583), JingFang Pharmaceutical (2595), Health 160 (2656), Easy Health (2661), and Quantitative Party (2685), among others; at the same time, 25 stocks including Beijing Capital International Airport Company (694), NetDragon (777), Sunac Services (1516), and Midea Real Estate (3990) will be removed from the Hong Kong Stock Connect <strong>(see chart)</strong>.</p>
<h2>Why Are 8 Stocks Not Included?</h2>
<p>It is worth noting that among the results of the Hang Seng Composite Index quarterly review, OSL Group (863), HASHKEY (3887); NobiKan (2635), ZhiDa Technology (2650), and HiDi Intelligent Driving (3881); as well as WenYuan ZhiXing (800), XiaoMa ZhiXing (2026), and MingLue Technology (2718) are all on the list, but why are they not included in this &#34;Northbound Water&#34; list?</p>
<p>The reason is that HASHKEY and OSL Group are estimated to have failed to enter due to the nature of their virtual asset platforms. The three stocks NobiKan, ZhiDa Technology, and HiDi Intelligent Driving are currently undergoing a &#34;stock split&#34; process, which has delayed their entry, but the impact is expected to be temporary. Once the split process is completed, HiDi Intelligent Driving, ZhiDa Technology, and NobiKan are expected to enter on March 16, March 17, and March 25, respectively. As for WenYuan ZhiXing, XiaoMa ZhiXing, and MingLue Technology, they belong to companies with different voting rights, so they must be listed for 6 months to meet the entry criteria.</p>
<h2>DEEPEXI TECH and INSILICO Are Optimistic</h2>
<p>Which stocks are expected to attract more attention from Northbound Water? Eric Wu pointed out that this needs to be judged in conjunction with the hot topics in the A-share market in mainland China. Currently, there is high attention on AI concept stocks in mainland China, and DEEPEXI TECH is given the imagination space of &#34;China's version of Palantir,&#34; which may be more favored by mainland investors; at the same time, AI-related companies like INSILICO are also expected to be more sought after by Northbound Water. However, Eric Wu reminds investors not to blindly chase high prices, emphasizing that Northbound Water will also assess the price levels, and when prices are too high, there may not be significant inflows, suggesting to wait for a pullback before buying.</p>
<p>In fact, adjustments to the Hong Kong Stock Connect have significantly impacted related stocks in the past. For example, in September last year, the average trading volume of 20 newly included stocks surged about 4.3 times compared to the previous day; however, some stocks often face severe corrections after being hotly traded. Taking YaoJie AnKang (2617) as an example, the stock rose more than 10 times in the days following its inclusion but also experienced a single-day drop of over 53%, causing heavy losses for investors who chased high.</p>
<h2>DEEPEXI TECH Expects Revenue to Increase by 65% to 75%</h2>
<p>It is worth mentioning that DEEPEXI TECH and INSILICO both issued profit warnings last Friday. Among them, DEEPEXI TECH expects its operating revenue for last year to be approximately RMB 401 million to RMB 425 million, representing a year-on-year growth of about 65% to 75%, mainly due to a significant increase in revenue from its FastAGI enterprise-level artificial intelligence solutions, driving overall revenue growth
During the period, the net loss is expected to be between approximately RMB 905 million and RMB 965 million, a year-on-year decrease of over 23%, mainly due to improved operating performance driven by revenue growth; at the same time, there are still fair value changes of financial liabilities with preferential shares, share-based payment expenses, and listing expenses recorded. Excluding the impact of the above non-operating items, the adjusted net loss is expected to be between approximately RMB 24.1 million and RMB 33.7 million, a year-on-year decrease of about 65% to 75%.</p>
<h2>INSILICO issues profit warning, expects loss of over USD 350 million last year</h2>
<p>INSILICO has issued a profit warning, expecting a loss of between approximately USD 352.1 million and USD 355.8 million last year, an increase from the loss of about USD 17.1 million in 2024, mainly due to a loss of approximately USD 296.7 million from the fair value change of redeemable convertible preferred shares (which is non-recurring and non-cash in nature); and a year-on-year decline in revenue of approximately USD 29.5 million to USD 30 million, to between USD 55.8 million and USD 56.3 million</p>

03696

513600

02800

<p>The results of the Hang Seng Index Company’s quarterly review will take effect on Monday, with CATL, CMOC, and LAOPU GOLD officially "dyed blue," but their stock prices fell by 0.9%, 1.4%, and 10.4% respectively, raising concerns about the "blue dye curse." The Stock Connect will add 42 stocks and remove 25 stocks. Wu Lixian from Everbright Securities is optimistic about CATL, INSILICO, and DEEPEXI TECH. Analyst Wen Jie suggests gradually accumulating LAOPU GOLD and CMOC. Wu Lixian believes that the "blue dye curse" is related to market trends, and the rebound in Hong Kong stocks has reduced its probability</p>

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INSILICO

China Southern Hang Seng ETF

TRACKER FUND

ISHARESHSI-U

DEEPEXI TECH

CATL

Huaan Yifu Gold ETF

ISHARESHSI

LAOPU GOLD

Hang Seng Index

ChinaAMC Hang Seng ETF

CMOC

Blue chips and new Northbound funds officially debut on Monday. Will Laopu follow in the footsteps of the bubble and encounter the "curse"? Two AI stocks are favored