MONTAGE TECH (06809.HK) Launches IPO Today, Aiming to Raise Over $7 Billion; Minimum Investment Set at $10,796.8; Alibaba Among Key Cornerstone Investors
IPO Launch: MONTAGE TECH (06809.HK) has initiated its IPO, offering 65.89 million H shares with a price cap of HKD106.89 per share, aiming to raise approximately HKD7.043 billion. The public offering will run until February 4, with shares expected to list on February 9.
Financial Performance: The company reported a revenue of RMB4.06 billion for the first nine months of the previous year, marking a 57.8% year-over-year increase, and a profit of RMB1.63 billion, up 66.9%.
Key Investors: Cornerstone investors have committed USD450 million in shares, including major firms like JPMIMI, UBS Asset Management, and others.
Customer Base: MONTAGE TECH's primary customers include major memory module manufacturers and cloud service providers, with notable clients such as Micron, Samsung, and SK Hynix.
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Industry Experts Anticipate Upcoming Release of BABA-W's Next-Generation Foundation Model Qwen3.5
Hugging Face Pull Request: The AI open-source community, Hugging Face, has submitted a pull request to merge Alibaba's next-generation model Qwen3.5 into its Transformers project.
Qwen3.5 Features: Industry insiders anticipate the imminent release of Qwen3.5, which is expected to feature a new hybrid attention mechanism and possess capabilities for native visual understanding.
Short Selling Activity Reaches $18.8B, Representing 16.9% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $18.8 billion at midday, accounting for 16.9% of the eligible securities turnover, a decrease from 22.2% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, XIAOMI-W, TRACKER FUND, MEITUAN-W, and BABA-W, with short selling ratios ranging from 11.3% to 45.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) had a short selling turnover of $1.16 billion, with a short selling ratio of 30.2%.
XIAOMI-W and MEITUAN-W Highlights: XIAOMI-W (01810.HK) reported a short selling turnover of $996 million and a ratio of 40.8%, while MEITUAN-W (03690.HK) had a turnover of $916.9 million with a ratio of 45.7%.
<JPM's New 'High-Conviction' Stock Picks in Emerging Markets (Table)>
JPMorgan's High-Conviction Stocks: JPMorgan has identified several "High-Conviction" stocks in emerging markets, all rated as Overweight, including Hong Kong-listed BABA-W, PING AN, and ZIJIN MINING.
Stock Performance and Short Selling: The report highlights the short selling data for these stocks, with BABA-W showing a short selling ratio of 17.737%, PING AN at 30.252%, and ZIJIN MINING at 30.161%.
Additional Stock Picks: Other notable stocks listed in different regions include TSMC in Taiwan, Samsung Electronics in South Korea, and State Bank of India in India, among others.
Market Reactions: Morgan Stanley has maintained TENCENT as a top pick, suggesting that the market may be overreacting to potential negative impacts from VAT regulation.
JPM: It's Premature to Identify Final Leaders in AI Applications, Favors BABA-W, BIDU-SW, and KUAISHOU-W
Changing Consumer Behavior: JPMorgan's research indicates a shift in consumer behavior towards using chatbots as primary tools for search, recommendations, and task execution, prompting large internet platforms to invest heavily in marketing to boost adoption and increase token consumption.
Investment Recommendations: The broker favors companies benefiting from China's AI infrastructure, such as Alibaba (BABA-W) and Baidu (BIDU-SW), as well as online advertising firms like Kuaishou (KUAISHOU-W), while noting the uncertainty in identifying long-term AI winners.
Tencent's AI Strategy: Concerns have been raised about Tencent's cautious approach to AI advancements compared to competitors, with the stock trading at a valuation that reflects some market apprehension, yet the broker believes its core earnings outlook remains strong.
Tencent's Competitive Edge: JPMorgan emphasizes that Tencent's greatest asset lies in its distribution and user engagement capabilities, which can enhance the scalability of new technologies, including AI, at a lower user acquisition cost than its peers.
Report: Qianwen from BABA-W and Yuanbao Red Packet from TENCENT Now Allow Copying in WeChat
Stock Performance: BABA-W (09988.HK) saw a rise of 2.516%, while TENCENT (00700.HK) experienced a decline of 2.922% in their stock prices.
Short Selling Data: BABA-W had short selling of $2.37B with a ratio of 19.556%, while TENCENT's short selling reached $2.97B with a ratio of 15.248%.
WeChat Developments: Chinese media reported that WeChat has now allowed the copying of TENCENT's "Yuanbao" within its platform, following earlier restrictions against both "Qianwen" and "Yuanbao".
Market Context: The changes in WeChat's policies come amid a competitive landscape for AI red packets during the Spring Festival, where both companies were previously facing a blockade.
HKD4.3 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows totaling HKD4.3 billion, while other stocks like BABA-W (09988.HK) and POP MART (09992.HK) experienced notable short selling activity.
Market Activity Overview: TENCENT was the most active stock in both Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, with substantial net inflows, while stocks like XIAOMI-W and AKESO faced the highest net outflows.
Short Selling Statistics: The short selling ratios for TENCENT, BABA-W, and POP MART were 15.248%, 19.556%, and 27.852% respectively, indicating a high level of market speculation.
Overall Market Sentiment: The total Southbound Trading net outflow was HKD0, accounting for 35.67% of the total transaction amount of HKD88.42 billion, reflecting fragile market sentiment according to JPM.
Industry Experts Anticipate Upcoming Release of BABA-W's Next-Generation Foundation Model Qwen3.5
Hugging Face Pull Request: The AI open-source community, Hugging Face, has submitted a pull request to merge Alibaba's next-generation model Qwen3.5 into its Transformers project.
Qwen3.5 Features: Industry insiders anticipate the imminent release of Qwen3.5, which is expected to feature a new hybrid attention mechanism and possess capabilities for native visual understanding.
Short Selling Activity Reaches $18.8B, Representing 16.9% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $18.8 billion at midday, accounting for 16.9% of the eligible securities turnover, a decrease from 22.2% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, XIAOMI-W, TRACKER FUND, MEITUAN-W, and BABA-W, with short selling ratios ranging from 11.3% to 45.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) had a short selling turnover of $1.16 billion, with a short selling ratio of 30.2%.
XIAOMI-W and MEITUAN-W Highlights: XIAOMI-W (01810.HK) reported a short selling turnover of $996 million and a ratio of 40.8%, while MEITUAN-W (03690.HK) had a turnover of $916.9 million with a ratio of 45.7%.
<JPM's New 'High-Conviction' Stock Picks in Emerging Markets (Table)>
JPMorgan's High-Conviction Stocks: JPMorgan has identified several "High-Conviction" stocks in emerging markets, all rated as Overweight, including Hong Kong-listed BABA-W, PING AN, and ZIJIN MINING.
Stock Performance and Short Selling: The report highlights the short selling data for these stocks, with BABA-W showing a short selling ratio of 17.737%, PING AN at 30.252%, and ZIJIN MINING at 30.161%.
Additional Stock Picks: Other notable stocks listed in different regions include TSMC in Taiwan, Samsung Electronics in South Korea, and State Bank of India in India, among others.
Market Reactions: Morgan Stanley has maintained TENCENT as a top pick, suggesting that the market may be overreacting to potential negative impacts from VAT regulation.
JPM: It's Premature to Identify Final Leaders in AI Applications, Favors BABA-W, BIDU-SW, and KUAISHOU-W
Changing Consumer Behavior: JPMorgan's research indicates a shift in consumer behavior towards using chatbots as primary tools for search, recommendations, and task execution, prompting large internet platforms to invest heavily in marketing to boost adoption and increase token consumption.
Investment Recommendations: The broker favors companies benefiting from China's AI infrastructure, such as Alibaba (BABA-W) and Baidu (BIDU-SW), as well as online advertising firms like Kuaishou (KUAISHOU-W), while noting the uncertainty in identifying long-term AI winners.
Tencent's AI Strategy: Concerns have been raised about Tencent's cautious approach to AI advancements compared to competitors, with the stock trading at a valuation that reflects some market apprehension, yet the broker believes its core earnings outlook remains strong.
Tencent's Competitive Edge: JPMorgan emphasizes that Tencent's greatest asset lies in its distribution and user engagement capabilities, which can enhance the scalability of new technologies, including AI, at a lower user acquisition cost than its peers.
Report: Qianwen from BABA-W and Yuanbao Red Packet from TENCENT Now Allow Copying in WeChat
Stock Performance: BABA-W (09988.HK) saw a rise of 2.516%, while TENCENT (00700.HK) experienced a decline of 2.922% in their stock prices.
Short Selling Data: BABA-W had short selling of $2.37B with a ratio of 19.556%, while TENCENT's short selling reached $2.97B with a ratio of 15.248%.
WeChat Developments: Chinese media reported that WeChat has now allowed the copying of TENCENT's "Yuanbao" within its platform, following earlier restrictions against both "Qianwen" and "Yuanbao".
Market Context: The changes in WeChat's policies come amid a competitive landscape for AI red packets during the Spring Festival, where both companies were previously facing a blockade.
HKD4.3 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows totaling HKD4.3 billion, while other stocks like BABA-W (09988.HK) and POP MART (09992.HK) experienced notable short selling activity.
Market Activity Overview: TENCENT was the most active stock in both Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, with substantial net inflows, while stocks like XIAOMI-W and AKESO faced the highest net outflows.
Short Selling Statistics: The short selling ratios for TENCENT, BABA-W, and POP MART were 15.248%, 19.556%, and 27.852% respectively, indicating a high level of market speculation.
Overall Market Sentiment: The total Southbound Trading net outflow was HKD0, accounting for 35.67% of the total transaction amount of HKD88.42 billion, reflecting fragile market sentiment according to JPM.
