Market Reaction: Chinese developers saw an average increase of 8% due to reports of a potential relaxation of the "Three Red Lines" policy and a recovery in second-hand home transactions, alongside stable home prices in major cities.

Caution on Stability: UBS cautioned that it is premature to declare the market stabilized, emphasizing the need for further observation of actual trading data post-Chinese New Year.

Sentiment vs. Reality: The recent uptick in second-hand property transactions is viewed as a reaction to policy shifts rather than a sign of genuine market recovery, supported by the People's Bank of China and the Ministry of Finance.

Weak New Home Sales: Despite the positive sentiment, new home sales remain weak, indicating ongoing challenges in the Chinese property market.

Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.

Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.

Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.

Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.

Stock Performance: Several stocks showed positive movements, with BABA-W increasing by 3.5% and ALI HEALTH by 3.3%, while BIDU-SW and JD HEALTH experienced declines of 1.4% and 1.2%, respectively.

Short Selling Data: Notable short selling activity was observed, particularly in BIDU-SW with a ratio of 28.7% and ALI HEALTH at 25.4%, indicating significant market interest in these stocks.

UBS Research Report: UBS reassessed BEKE-W (02423.HK), noting a decline in market share in China's major cities, although the rate of decline has slowed compared to previous quarters.

Market Trends: The physical market remains weak, with home prices in major cities dropping by 1.7% month-over-month in November, prompting a moderate policy response from the Central Economic Work Conference.

Earnings Forecasts: UBS lowered its earnings forecasts for BEKE-W for 2026-2027 by 4-5% due to reduced revenue expectations.

Target Price Adjustments: UBS cut its target price for BEKE-W's US stock from $19 to $18 and for its H-shares from $48 to $47.5, maintaining a Neutral rating.

BEKE-W Stock Performance: BEKE-W (02423.HK) experienced a decline of 4.34%, settling at HK$42.8 after hitting a low of HK$42.3, with a turnover of HK$209 million.

Peng Yongdong's Share Sale: Peng Yongdong, co-founder and CEO of Beike, sold shares to meet a donation commitment, marking his first sale since the company's US listing in 2020.

China Vanke's Investment Update: CHINA VANKE (02202.HK) announced that it has sold all its shares in Beike, responding to investor inquiries.

Short Selling Data: BEKE-W had significant short selling activity, with a ratio of 25.239% and a total of $52.78 million in short sales.