<Midday Update> HSI Ends Midday at 26,558, Decreasing by 26 Points; HSTI Ends at 5,722, Down 23 Points; WHARF REIC Rises Over 4%; WHARF REIC, BIDU-SW, SHK PPT, SINOPEC CORP, CK ASSET Reach New Peaks
Market Performance: The HSI dropped 26 points (0.1%) to 26,558, while the HSTI and HSCEI also saw declines of 0.4% and 0.3%, respectively.
Active Heavyweights: Notable declines were observed in PING AN, XIAOMI, MEITUAN, and TENCENT, with PING AN experiencing the largest drop of 2.044%.
Constituents on the Rise: WHARF REIC, BIDU-SW, and SHK PPT all hit new highs, with BIDU-SW leading with a 4.2% increase.
Short Selling Trends: Significant short selling activity was noted across various stocks, with BIDU-SW and XIAOMI having the highest short selling amounts at $1.11B and $1.13B, respectively.
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<Full-day Summary> HSI Falls 325 Points; HSTI Declines 59 Points; AIA Drops More Than 5%; ZTO EXPRESS-W, BOC HONG KONG, SHK PPT, REALORD GROUP, SANY INT'L Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 325 points (1.2%) to 26,559, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $247.87 billion.
Active Heavyweights: Major stocks like Alibaba, Meituan, and Tencent saw significant drops, with Alibaba closing down 2.9% at $155, while Xiaomi and CCB managed slight gains.
Notable Movers: AIA experienced a sharp decline of 5.5%, while Li Auto and Mengniu Dairy saw increases of 3.6% and 3%, respectively, with several stocks hitting new highs.
Short Selling Trends: High short selling ratios were noted for several companies, including Ping An and CCB, indicating increased market speculation and potential bearish sentiment.
M Stanley Predicts 13% Growth in SHK PPT (00016.HK) Underlying EPS for 1HFY26
SHK PPT Financial Outlook: SHK PPT is expected to announce its 1HFY26 results by the end of February, with a predicted 13% YoY growth in underlying EPS to HKD3.89 and an unchanged interim DPS of HKD0.95.
Property Development Margins: The company is likely to achieve high-teens margins on property development due to lower costs from completed inventory and recent price hikes in new property sales.
Upcoming Projects: SHK PPT is set to launch the luxury CULLINAN HARBOUR PHASE II project, with anticipated initial pricing over HKD45,000 per square foot, potentially yielding a margin exceeding 15%.
Brokerage Rating: Morgan Stanley has assigned an Overweight rating to SHK PPT, with a target price set at HKD120, reflecting positive sentiment towards the company's performance.
HSBC Research Positive on HK/SG Real Estate Markets; Capital Inflows and Policy Support as Main Influencers
Positive Outlook on Real Estate: HSBC Global Research has a favorable view on the real estate sectors in Hong Kong and Singapore, citing structural factors that support this optimism.
Recommended Stocks: The report highlights five Buy-rated stocks in Hong Kong, including SHK PPT, Henderson Land, and Sino Land, along with City Developments and UOL Group in Singapore.
Market Dynamics: The Hong Kong property market is benefiting from a shift in capital away from China's adjusting property market, enhancing its attractiveness.
Singapore's Market Revitalization: Singapore has introduced a SGD5 billion policy to stimulate the stock market and attract local investment into its undervalued real estate sector.
SHK PPT Examines Alleged Incidents Involving Maureen Fung and Commits to Necessary Follow-Up Measures
Executive Resignation: Maureen Fung has resigned as Executive Director of SHK PPT due to health issues, effective immediately.
Corruption Allegations: Fung was previously suspended amid allegations of involvement in a corruption incident related to shopping mall operations in China.
Company's Response: SHK PPT is reviewing recent media reports concerning Fung and plans to take appropriate follow-up actions.
Market Activity: SHK PPT's stock saw a short selling of $312.91 million, with a short selling ratio of 46.460%.
Maureen Fung Steps Down as Executive Director of SHK PPT Citing Health Concerns
Executive Resignation: Maureen Fung has resigned as an Executive Director of SHK PPT effective February 3, 2026, due to health issues.
Corruption Allegations: Fung was reportedly suspended due to her involvement in a corruption case linked to the IAPM mall in Shanghai, concerning marketing and advertising activities.
Short Selling Activity: SHK PPT has experienced significant short selling, with a total of $312.91 million and a short selling ratio of 46.460%.
Market Outlook: Citi has projected greater earnings per share upside potential for Hong Kong developers in 2026-2027, recommending SHK PPT among others.
SHK PPT Allegedly Pursuing Minimum $5 Billion Loan Over Five Years
Loan Acquisition: SHK PPT is seeking a five-year loan of at least $5 billion, with potential for a larger amount depending on bank responses, according to Bloomberg sources.
Stock Performance: The company's share price opened 0.42% higher and peaked at $123.2, closing at $122.7 with a 2% increase and a trading volume of 4.2167 million shares.
<Full-day Summary> HSI Falls 325 Points; HSTI Declines 59 Points; AIA Drops More Than 5%; ZTO EXPRESS-W, BOC HONG KONG, SHK PPT, REALORD GROUP, SANY INT'L Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 325 points (1.2%) to 26,559, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $247.87 billion.
Active Heavyweights: Major stocks like Alibaba, Meituan, and Tencent saw significant drops, with Alibaba closing down 2.9% at $155, while Xiaomi and CCB managed slight gains.
Notable Movers: AIA experienced a sharp decline of 5.5%, while Li Auto and Mengniu Dairy saw increases of 3.6% and 3%, respectively, with several stocks hitting new highs.
Short Selling Trends: High short selling ratios were noted for several companies, including Ping An and CCB, indicating increased market speculation and potential bearish sentiment.
M Stanley Predicts 13% Growth in SHK PPT (00016.HK) Underlying EPS for 1HFY26
SHK PPT Financial Outlook: SHK PPT is expected to announce its 1HFY26 results by the end of February, with a predicted 13% YoY growth in underlying EPS to HKD3.89 and an unchanged interim DPS of HKD0.95.
Property Development Margins: The company is likely to achieve high-teens margins on property development due to lower costs from completed inventory and recent price hikes in new property sales.
Upcoming Projects: SHK PPT is set to launch the luxury CULLINAN HARBOUR PHASE II project, with anticipated initial pricing over HKD45,000 per square foot, potentially yielding a margin exceeding 15%.
Brokerage Rating: Morgan Stanley has assigned an Overweight rating to SHK PPT, with a target price set at HKD120, reflecting positive sentiment towards the company's performance.
HSBC Research Positive on HK/SG Real Estate Markets; Capital Inflows and Policy Support as Main Influencers
Positive Outlook on Real Estate: HSBC Global Research has a favorable view on the real estate sectors in Hong Kong and Singapore, citing structural factors that support this optimism.
Recommended Stocks: The report highlights five Buy-rated stocks in Hong Kong, including SHK PPT, Henderson Land, and Sino Land, along with City Developments and UOL Group in Singapore.
Market Dynamics: The Hong Kong property market is benefiting from a shift in capital away from China's adjusting property market, enhancing its attractiveness.
Singapore's Market Revitalization: Singapore has introduced a SGD5 billion policy to stimulate the stock market and attract local investment into its undervalued real estate sector.
SHK PPT Examines Alleged Incidents Involving Maureen Fung and Commits to Necessary Follow-Up Measures
Executive Resignation: Maureen Fung has resigned as Executive Director of SHK PPT due to health issues, effective immediately.
Corruption Allegations: Fung was previously suspended amid allegations of involvement in a corruption incident related to shopping mall operations in China.
Company's Response: SHK PPT is reviewing recent media reports concerning Fung and plans to take appropriate follow-up actions.
Market Activity: SHK PPT's stock saw a short selling of $312.91 million, with a short selling ratio of 46.460%.
Maureen Fung Steps Down as Executive Director of SHK PPT Citing Health Concerns
Executive Resignation: Maureen Fung has resigned as an Executive Director of SHK PPT effective February 3, 2026, due to health issues.
Corruption Allegations: Fung was reportedly suspended due to her involvement in a corruption case linked to the IAPM mall in Shanghai, concerning marketing and advertising activities.
Short Selling Activity: SHK PPT has experienced significant short selling, with a total of $312.91 million and a short selling ratio of 46.460%.
Market Outlook: Citi has projected greater earnings per share upside potential for Hong Kong developers in 2026-2027, recommending SHK PPT among others.
SHK PPT Allegedly Pursuing Minimum $5 Billion Loan Over Five Years
Loan Acquisition: SHK PPT is seeking a five-year loan of at least $5 billion, with potential for a larger amount depending on bank responses, according to Bloomberg sources.
Stock Performance: The company's share price opened 0.42% higher and peaked at $123.2, closing at $122.7 with a 2% increase and a trading volume of 4.2167 million shares.
