<Midday Update> HSI Falls 287 Points; HSTI Declines 71 Points; BABA Drops More Than 3%; CGN Mining, SD Gold, Jiangxi Copper, Tiangong International, and Ganfeng Lithium Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 287 points (1.1%) to 26,669, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.1% and 1.0%, respectively.
Active Heavyweights: Major stocks like Alibaba, Meituan, and Tencent saw significant drops, with Alibaba closing down 3% at $175 and Meituan down 2.6% at $102.9, amidst high short selling ratios.
Notable Declines: Longfor, Zhongsheng Holdings, and Baidu all reported substantial losses, with Longfor down 5.6% and Baidu down 3.4%, indicating a trend of declining stock prices among these companies.
Gainers in the Market: Conversely, CGN Mining, SD Gold, and Jiangxi Copper achieved notable gains, with CGN Mining rising by 9.8% to a new high, reflecting a positive performance in certain sectors despite overall market declines.
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HSI Closes 465 Points Lower; AIA and Stanchart Drop 4%; Commodity Stocks Decline
Market Overview: The DJIA fell 1.3% as tech stocks were sold off, leading to a similar decline in the Hong Kong stock market, where the HSI ended down 1.7% at 26,567.
Financial Sector Performance: Major financial stocks like HSBC and HKEX dropped by 2.7% and 2.1%, respectively, while Bank of East Asia plunged 11% after reporting a significant profit drop and dividend cut.
Commodity and Gold Prices: Gold prices fell below USD 5,000/oz, impacting gold mining stocks, which saw declines of 5.9-7.6%. Oil prices also dropped nearly 3%, affecting major oil companies.
Tech Sector Decline: The tech sector experienced minor declines, with Tencent and Alibaba seeing drops of around 0.7% to 2.0%, while other tech stocks like Meituan and Baidu fell over 3%.
HSI Drops 484 Points at Midday Amid Weakness in Chinese Insurers and Commodity Stocks; AI Large Model Stocks Surge
Market Performance: The HSI dropped 484 points (1.8%) to 26,547, with significant declines in financial stocks like HSBC and HKEX, while total half-day turnover reached $128.406 billion.
Chinese Inflation: China's inflation rate for January was reported at 0.2%, lower than the previous 0.8% and below the forecast of 0.4%.
Gold Prices Decline: Gold prices fell below $5,000 per ounce, negatively impacting several gold-related stocks, which saw declines ranging from 3.6% to 5.2%.
AI Stocks Surge: AI-related stocks experienced significant gains, with MINIMAX-WP rising 9.4% and KNOWLEDGE ATLAS surging 11.9% following the launch of new programming models.
Citi Raises Target Price for JIANGXI COPPER (00358.HK) to $54.1, Maintains Buy Rating
Profitability Outlook: Despite a projected decline in processing fees and rising sulfuric acid prices, JIANGXI COPPER's copper smelting business is expected to remain profitable according to Citi Research.
Acquisition Impact: The successful acquisition of Solgold is anticipated to drive long-term profit growth starting from 2028.
Target Price Increase: Citi Research has raised its target price for JIANGXI COPPER's H-shares from $39.8 to $54.1, maintaining a Buy rating based on discounted cash flow and fair PB ratio valuation.
Market Activity: As of February 12, 2026, JIANGXI COPPER has reported significant short selling activity amounting to $33.76 million, with a short selling ratio of 5.418%.
HSI Starts 422 Points Up; HSBC HOLDINGS Gains 3%; Strong Performance in Chips and Commodities
Market Performance: The HSI opened 1.6% higher at 26,982, with significant gains in the HSCEI and HSTECH, reflecting a positive trend in the Hong Kong stock market.
Tech Sector Highlights: Major tech stocks like TENCENT and JD-SW saw increases, while KUAISHOU-W experienced a decline; overall, tech stocks showed a mixed performance with varying short selling ratios.
Automotive and Commodity Stocks: BYD COMPANY and other automotive stocks like NIO-SW and XPENG-W reported gains, alongside a rebound in commodity prices benefiting gold and mining stocks.
Financial Sector Gains: Financial stocks, including HSBC HOLDINGS and HKEX, opened higher, indicating a positive sentiment in the financial market amidst broader market gains.
Citi Anticipates Higher Commodity Prices Will Favor Basic Materials While Straining Auto and Mid-Tier Battery Firms
Commodity Price Impact: Commodity prices have risen significantly, benefiting the basic materials sector in China, particularly suppliers of aluminum, copper, and lithium, with positive ratings for companies like CHALCO and MMG.
Automakers Under Pressure: Rising material costs are expected to increase the production costs for mass-market electric vehicles, with smaller automakers like XPENG and GAC GROUP being more vulnerable compared to larger firms like BYD and Geely.
Battery Industry Outlook: Short-term challenges are anticipated for second-tier battery companies, while CATL is expected to maintain a strong position due to its bargaining power and upcoming production resumption.
Tech Sector Challenges: Xiaomi may face margin pressures from increasing memory costs, which significantly impact the bill of materials for its smartphones, potentially affecting profitability.
G Sachs' Recommended Buy List for H Shares According to ERLI (Table)
Goldman Sachs Buy Stocks: Goldman Sachs released a list of Buy stocks in Hong Kong based on the Earnings Revision Leading Indicator (ERLI), including notable companies like AIA, Xiaomi, and HKEX.
Stock Performance: The report highlighted various stocks with their respective short selling data, showing significant short selling ratios for companies like Ping An and JD Logistics.
Market Reactions: AIA received positive outlook from Haitong International, which raised its target price, indicating optimism about its growth prospects for 2026/2027.
Short Selling Trends: The report detailed short selling activities across multiple stocks, with varying ratios indicating market sentiment and potential investor strategies.
HSI Closes 465 Points Lower; AIA and Stanchart Drop 4%; Commodity Stocks Decline
Market Overview: The DJIA fell 1.3% as tech stocks were sold off, leading to a similar decline in the Hong Kong stock market, where the HSI ended down 1.7% at 26,567.
Financial Sector Performance: Major financial stocks like HSBC and HKEX dropped by 2.7% and 2.1%, respectively, while Bank of East Asia plunged 11% after reporting a significant profit drop and dividend cut.
Commodity and Gold Prices: Gold prices fell below USD 5,000/oz, impacting gold mining stocks, which saw declines of 5.9-7.6%. Oil prices also dropped nearly 3%, affecting major oil companies.
Tech Sector Decline: The tech sector experienced minor declines, with Tencent and Alibaba seeing drops of around 0.7% to 2.0%, while other tech stocks like Meituan and Baidu fell over 3%.
HSI Drops 484 Points at Midday Amid Weakness in Chinese Insurers and Commodity Stocks; AI Large Model Stocks Surge
Market Performance: The HSI dropped 484 points (1.8%) to 26,547, with significant declines in financial stocks like HSBC and HKEX, while total half-day turnover reached $128.406 billion.
Chinese Inflation: China's inflation rate for January was reported at 0.2%, lower than the previous 0.8% and below the forecast of 0.4%.
Gold Prices Decline: Gold prices fell below $5,000 per ounce, negatively impacting several gold-related stocks, which saw declines ranging from 3.6% to 5.2%.
AI Stocks Surge: AI-related stocks experienced significant gains, with MINIMAX-WP rising 9.4% and KNOWLEDGE ATLAS surging 11.9% following the launch of new programming models.
Citi Raises Target Price for JIANGXI COPPER (00358.HK) to $54.1, Maintains Buy Rating
Profitability Outlook: Despite a projected decline in processing fees and rising sulfuric acid prices, JIANGXI COPPER's copper smelting business is expected to remain profitable according to Citi Research.
Acquisition Impact: The successful acquisition of Solgold is anticipated to drive long-term profit growth starting from 2028.
Target Price Increase: Citi Research has raised its target price for JIANGXI COPPER's H-shares from $39.8 to $54.1, maintaining a Buy rating based on discounted cash flow and fair PB ratio valuation.
Market Activity: As of February 12, 2026, JIANGXI COPPER has reported significant short selling activity amounting to $33.76 million, with a short selling ratio of 5.418%.
HSI Starts 422 Points Up; HSBC HOLDINGS Gains 3%; Strong Performance in Chips and Commodities
Market Performance: The HSI opened 1.6% higher at 26,982, with significant gains in the HSCEI and HSTECH, reflecting a positive trend in the Hong Kong stock market.
Tech Sector Highlights: Major tech stocks like TENCENT and JD-SW saw increases, while KUAISHOU-W experienced a decline; overall, tech stocks showed a mixed performance with varying short selling ratios.
Automotive and Commodity Stocks: BYD COMPANY and other automotive stocks like NIO-SW and XPENG-W reported gains, alongside a rebound in commodity prices benefiting gold and mining stocks.
Financial Sector Gains: Financial stocks, including HSBC HOLDINGS and HKEX, opened higher, indicating a positive sentiment in the financial market amidst broader market gains.
Citi Anticipates Higher Commodity Prices Will Favor Basic Materials While Straining Auto and Mid-Tier Battery Firms
Commodity Price Impact: Commodity prices have risen significantly, benefiting the basic materials sector in China, particularly suppliers of aluminum, copper, and lithium, with positive ratings for companies like CHALCO and MMG.
Automakers Under Pressure: Rising material costs are expected to increase the production costs for mass-market electric vehicles, with smaller automakers like XPENG and GAC GROUP being more vulnerable compared to larger firms like BYD and Geely.
Battery Industry Outlook: Short-term challenges are anticipated for second-tier battery companies, while CATL is expected to maintain a strong position due to its bargaining power and upcoming production resumption.
Tech Sector Challenges: Xiaomi may face margin pressures from increasing memory costs, which significantly impact the bill of materials for its smartphones, potentially affecting profitability.
G Sachs' Recommended Buy List for H Shares According to ERLI (Table)
Goldman Sachs Buy Stocks: Goldman Sachs released a list of Buy stocks in Hong Kong based on the Earnings Revision Leading Indicator (ERLI), including notable companies like AIA, Xiaomi, and HKEX.
Stock Performance: The report highlighted various stocks with their respective short selling data, showing significant short selling ratios for companies like Ping An and JD Logistics.
Market Reactions: AIA received positive outlook from Haitong International, which raised its target price, indicating optimism about its growth prospects for 2026/2027.
Short Selling Trends: The report detailed short selling activities across multiple stocks, with varying ratios indicating market sentiment and potential investor strategies.
