EAST BUY Sees Approximately 15% Recovery Following Response to Online Speculation
EAST BUY Stock Performance: EAST BUY (01797.HK) saw a significant rebound, trading at HKD39.4, up 14.8%, with a volume of over 30 million shares and short selling amounting to $59.51M.
NEW ORIENTAL-S Stock Performance: NEW ORIENTAL-S (09901.HK) opened flat and traded down 1.51% at HKD36.44, with a high short selling ratio of 22.92%.
Market Rumors Impact: EAST BUY experienced a volatile trading day on August 19, initially rising by 23.8% but closing down 20.9% due to rumors regarding NEW ORIENTAL-S CEO Zhou Chenggang being under investigation.
EAST BUY's Response: In response to the rumors, EAST BUY issued a statement denying the allegations, claiming they are false, and announced that they have reported the matter to the police and initiated legal action.
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EAST BUY's New Initiative: EAST BUY plans to establish an e-commerce training school in Beijing to train operation talents and hosts from various regions in China.
Market Performance: Michael Yu, founder of NEW ORIENTAL-S, and chairman of EAST BUY, reported significant short selling figures for both companies, indicating market interest and potential volatility.
Market Performance: The HSI rose by 155 points (0.6%) to close at 27,183, with a total market turnover of HKD234.04 billion. The HSCEI and HSTECH also saw gains, closing at 9,242 and 5,451 respectively.
Tech Stock Movements: Major tech stocks like TENCENT and MEITUAN-W experienced declines of 1.6% and 2.5%, while KUAISHOU-W, JD-SW, and BABA-W saw increases between 1.6% and 1.9%.
AI and Pharma Stocks Surge: AI stocks such as UNISOUND and INSILICO rose significantly, with KNOWLEDGE ATLAS jumping 14.8% after JPMorgan initiated coverage. Pharma stocks also performed well, with CSPC PHARMA and INNOVENT BIO gaining between 4.7% and 5.5%.
Chip Sector Performance: SMIC gained 1.7%, while HUA HONG SEMI dipped 1.2%. Other chip-related stocks like INNOSCIENCE and BIREN TECH saw notable increases, with INNOSCIENCE rising 6.9%.

Market Performance: The HSI rose 146 points (0.5%) to 27,173, while the HSCEI and HSTECH also saw gains, with total market turnover reaching HKD133.823 billion.
Tech Stock Movements: Major tech stocks like TENCENT and MEITUAN fell, while others like KUAISHOU and JD-SW experienced gains, indicating mixed performance in the tech sector.
AI and Chip Sector Trends: AI stocks remained in demand, with significant gains for companies like KNOWLEDGE ATLAS and MINIMAX-WP, while chip stocks showed varied results, with SMIC edging up and HUA HONG SEMI dipping.
Pharmaceutical Sector Gains: Drug manufacturers like CSPC PHARMA and INNOVENT BIO saw notable increases in their stock prices, reflecting positive momentum in the pharmaceutical industry.

Market Performance: The HSI rose by 1.8% to close at 27,027, with significant gains in the HSCEI and HSTECH, while total market turnover reached $255.142 billion.
Insurance Sector Gains: Chinese insurers, particularly CHINA LIFE and PING AN, saw substantial increases of 4% and 4.9%, respectively, following PING AN's stake increase in CHINA LIFE.
Financial Stocks Rise: Major financial institutions like HSBC and HKEX experienced gains between 2.6% and 3.4%, contributing to a positive trend in the financial sector.
Tech and AI Stocks Surge: Tech stocks rebounded, with TENCENT and BIDU-SW rising over 2%, while AI-related stocks like KNOWLEDGE ATLAS soared by 36.2%, reflecting strong investor interest.

EAST BUY Financial Performance: EAST BUY reported an adjusted net profit of RMB257 million in 1HFY26, driven by scale leverage and higher-margin products, leading to improved gross profit margins and cost efficiency.
Analyst Outlook: Daiwa upgraded its outlook on EAST BUY, raising the target price from HKD13.5 to HKD29 and increasing earnings forecasts for 2026-27 by 42-97%, reaffirming an Outperform rating.

Market Performance: The HSI experienced a strong start, reaching a 4.5-year high of 27,981 before settling at 27,975, with a midday increase of 148 points or 0.5%. The HSCEI also rose by 43 points, while the HSTECH saw a slight decline.
Chinese Property Developers Rally: Several Chinese property developers surged in stock prices after being exempted from submitting monthly "Three Red Lines" reports, with notable increases of 26-34% for companies like CHINA AOYUAN and LOGAN GROUP.
Mixed Results in Other Sectors: While property managers and some tech stocks saw gains, companies like SANDS CHINA and GALAXY ENT experienced declines, with SANDS CHINA dropping 7.3% despite a rise in its adjusted property EBITDA.
Commodity and Tech Stock Movements: Gold and silver prices reached new highs, positively impacting ZIJIN MINING, while tech giants like TENCENT and BIDU-SW saw minor increases, contrasting with losses from BABA-W and BILIBILI-W.





