Production Sector - The coke oven operating rate increased to 71.63%, up by 0.87% from the previous week[7] - The blast furnace operating rate rose to 79.33%, a 0.37% increase week-on-week[7] - The PX operating rate improved to 90.07%, reflecting a 1.67% increase[7] - The full tire steel operating rate decreased slightly to 58.02%, down by 0.13%[7] - The semi-tire steel operating rate fell to 65.89%, a decrease of 2.36%[7] Consumption Sector - Weekly box office revenue reached 107.3 million yuan, a significant increase of 51.5 million yuan compared to the previous week[7] - Average daily retail sales of passenger cars increased to 82,048.55 units, up by 3,134.35 units[7] - Average daily wholesale sales of passenger cars rose to 106,358.95 units, an increase of 6,925.70 units[7] Real Estate and Infrastructure - The transaction area of commercial housing in 30 major cities dropped to 116.27 million square meters, down by 110.15 million square meters from the previous week[7] - The transaction area of second-hand houses in major cities increased to 206,569.54 square meters, up by 53,755.83 square meters[7] - The land transaction area in 100 major cities decreased to 625.15 million square meters, down by 593.60 million square meters[7] - The land premium rate in 100 major cities increased to 1.41%, up by 0.96%[7] Trade and Inflation - The Shanghai Export Container Freight Index (SCFI) fell to 1,647.39, a decrease of 8.93 points[8] - The China Export Container Freight Index (CCFI) rose to 1,194.89, an increase of 48.22 points[8] - The Baltic Dry Index (BDI) decreased to 1,688.00, down by 194.00 points[8] - The wholesale price index for agricultural products dropped to 128.65, down by 0.78 points[8] Transportation - The subway passenger volume in Beijing decreased to 950.13 million, down by 1.58 million from the previous week[8] - The subway passenger volume in Shanghai fell to 917.29 million, a decrease of 56.71 million[8] - The subway passenger volume in Guangzhou dropped to 969.54 million, down by 105.56 million[8] - The number of domestic flights (excluding Hong Kong, Macau, and Taiwan) decreased to 12,383.71, down by 294.57 flights[8]

Group 1: Top Net Buy/Sell Companies - The top net buy company is 盈富基金 (2800.HK) with a net buy amount of 6.465 billion CNY, representing a holding change of 244,904,500 shares[8] - The second highest net buy is 小米集团-W (1810.HK) with a net buy amount of 3.704 billion CNY, with a holding change of 97,941,310 shares[8] - The top net sell company is 中国移动 (0941.HK) with a net sell amount of -3.517 billion CNY, reflecting a holding change of -43,443,065 shares[9] Group 2: Industry Distribution of Net Buy/Sell - The financial sector shows a significant net buy, while the telecommunications sector has a notable net sell, indicating a shift in investor sentiment[11] - Information technology companies like 小米集团-W and 腾讯控股 are actively traded, with mixed net buy/sell results, suggesting volatility in this sector[11] - The healthcare sector, represented by companies like 石药集团, has seen a net buy, indicating potential growth interest from investors[11] Group 3: Active Stocks - 阿里巴巴-W (9988.HK) is the most active stock in the Shanghai-Hong Kong Stock Connect with a total trading volume of 6.569 billion CNY and a net sell of -2.114 billion CNY[18] - The second most active stock is 金风科技 (2208.HK) with a trading volume of 3.307 billion CNY and a net sell of -0.130 billion CNY[18] - The trading activity of 中芯国际 (0981.HK) shows a total volume of 2.174 billion CNY with a net sell of -0.174 billion CNY, indicating investor caution[18]

Valuation of Hong Kong Stock Market - The report analyzes the valuation of major indices in the Hong Kong stock market, including the Hang Seng Composite Index (HSCI), Hang Seng Index (HSI), and Hang Seng Tech Index (HSTECH) [7]. - The report highlights that there are no industries with a PE valuation below the 20th percentile, indicating no severely undervalued sectors [23]. - Industries with PE valuations below the 50th percentile include Consumer Discretionary, Consumer Staples, Healthcare, Information Technology, and Utilities [23]. Industry Valuation Levels - The report presents the PE (TTM) valuation levels for various industries, showing that Energy, Materials, Industrials, Financials, and Telecom Services have valuations above the 50th percentile [23]. - For PB (LF) valuations, no industries are below the 20th percentile, with Consumer Staples, Information Technology, Utilities, and Real Estate below the 50th percentile [23]. - Industries with relatively high PB valuations include Energy, Materials, Industrials, Consumer Discretionary, Healthcare, Financials, and Telecom Services, all above the 50th percentile [23]. AH Share Premium/Discount Levels - The report includes an analysis of the Hang Seng AH Share Premium Index, tracking its performance over time [31]. - The index shows fluctuations with an average value and standard deviations noted, indicating the premium or discount levels of AH shares [33].

Group 1: Weekly Buyback Statistics - The total buyback amount for the week was HKD 3.052 billion, a decrease of HKD 1.469 billion from the previous week[10] - A total of 83 companies conducted buybacks this week, an increase of 8 companies compared to last week[10] - Tencent Holdings (0700.HK) ranked first with a buyback amount of HKD 2.542 billion[10] Group 2: Industry Analysis - The information technology sector had the highest buyback amount, totaling HKD 3.067 billion[13] - The number of companies conducting buybacks in the information technology sector was the highest, with 26 companies participating[13] - The healthcare sector ranked second with 18 companies conducting buybacks[13] Group 3: Individual Company Buyback Data - Xiaomi Group-W (1810.HK) ranked second with a buyback amount of HKD 299.575 million[10] - COSCO Shipping Holdings (1919.HK) ranked third with a buyback amount of HKD 108.908 million[10] - The buyback amount for Kuaishou-W (1024.HK) was HKD 69.581 million, ranking fourth[10] Group 4: Buyback Significance - Company buybacks are defined as the repurchase of shares from the secondary market using liquid cash[24] - Large-scale buyback waves often occur during bear markets, indicating that companies believe their stock prices are undervalued[24] - Historical data shows that buyback waves in the Hong Kong market since 2008 have been followed by subsequent price increases[24]

Group 1: Top Net Buy/Sell Companies - The top net buy company is Agricultural Bank of China (1288.HK) with a net buy amount of 10.51 billion CNY, acquiring 181,815,021 shares[8] - The top net sell company is China Mobile (0941.HK) with a net sell amount of -46.61 billion CNY, selling 57,046,826 shares[9] - Other notable net buys include Industrial and Commercial Bank of China (1398.HK) with 6.50 billion CNY and China Petroleum & Chemical Corporation (0386.HK) with 3.49 billion CNY[8] Group 2: Industry Distribution of Net Buy/Sell - The financial sector shows significant net buying, while the telecommunications sector has the highest net selling, particularly driven by China Mobile and China Unicom[14] - The net buy/sell distribution indicates a strong preference for financial stocks, with utilities and consumer staples also seeing positive net inflows[14] - The energy sector has a moderate net buy, reflecting ongoing interest in energy stocks despite broader market trends[14] Group 3: Active Stocks - Alibaba (9988.HK) and Tencent (0700.HK) are the most active stocks, with total trading volumes of 41.57 billion CNY and 34.90 billion CNY respectively, both showing significant net selling[20] - Semiconductor Manufacturing International Corporation (0981.HK) has a notable trading volume of 34.20 billion CNY, with a net sell of -7.65 billion CNY[20] - Other active stocks include Xiaomi (1810.HK) and China Mobile, both experiencing substantial trading activity but with negative net buying figures[20]

Market Performance Review - The Hong Kong stock market experienced a narrow upward fluctuation during the week due to the Christmas holiday, with the Hang Seng Index, Hang Seng Tech Index, and Hang Seng Composite Index rising by 0.44%, 0.5%, and 0.37% respectively [5][15] - Most primary industry sectors saw gains, with notable declines in the information technology, telecommunications, and healthcare sectors, which fell by 0.77%, 1.09%, and 1.76% respectively [5][15] - The materials sector surged by 4.3%, driven by strong international precious and industrial metal prices and geopolitical risks that heightened macro risk aversion [15] Valuation Levels - As of the end of the week, the 5-year PE (TTM) valuation percentile for the Hang Seng Composite Index was 82.56%, indicating that the valuation level is close to one standard deviation above the 5-year average [5] Buyback Statistics - The buyback market cooled down this week, with 66 companies participating, a decrease of 9 from the previous week [27] - The total buyback amount for the week was 30.67 billion HKD, down by 19.54 billion from the previous week [27] - Tencent Holdings (0700.HK) led the buybacks with an amount of 1.907 billion HKD, followed by Xiaomi Group (1810.HK) with 444 million HKD [27] Macro Environment Tracking and Outlook - The overall profitability of the Hong Kong stock market is heavily reliant on Chinese state-owned enterprises, with over 80% of profits coming from mainland China, indicating a close correlation with the economic conditions in China [39][40] - Key economic indicators show that industrial profits in November fell by 13.1% year-on-year, significantly down from the previous value of -5.5%, reflecting weak domestic demand in consumption and real estate [45] - The People's Bank of China announced a new digital currency management framework set to launch on January 1, 2026, which may influence future financial transactions [39] - The government plans to continue supporting consumption through fiscal policies, focusing on sectors like artificial intelligence, biopharmaceuticals, and quantum technology [39] Sector Allocation Outlook - The report suggests a favorable outlook for sectors benefiting from policy support, including new energy, innovative pharmaceuticals, and AI technology [5][45] - Low-valuation state-owned enterprises are expected to perform well due to stable earnings and stock prices, alongside local Hong Kong banks, telecommunications, and utility dividend stocks that are relatively independent of broader economic fluctuations [5][45]

Group 1: Weekly Buyback Statistics - The total buyback amount for the week was HKD 3.067 billion, a decrease of HKD 1.954 billion from the previous week[10] - A total of 66 companies conducted buybacks this week, down by 9 companies compared to last week[10] - Tencent Holdings (0700.HK) led the buybacks with an amount of HKD 1.907 billion, followed by Xiaomi Group-W (1810.HK) with HKD 445 million[10] Group 2: Industry Analysis - The information technology sector accounted for the majority of buyback amounts, totaling HKD 2.684 billion[13] - The healthcare sector had the second-highest number of companies participating in buybacks, with 10 companies involved[13] - The consumer discretionary sector ranked third, also with 10 companies conducting buybacks[13] Group 3: Company-Specific Data - Kuaishou-W (1024.HK) had a buyback amount of HKD 234.35 million, representing 0.08% of its total share capital[14] - China Merchants Industry Holdings (1919.HK) repurchased shares worth HKD 149.31 million, accounting for 0.07% of its total share capital[14] - Kingsoft Corporation (3888.HK) executed a buyback of HKD 39.99 million, which is 0.10% of its total share capital[14] Group 4: Buyback Significance - Share buybacks are defined as companies repurchasing their own shares from the secondary market, often signaling that the stock is undervalued[23] - Large-scale buyback trends typically occur during bear markets, indicating companies' confidence in their stock's intrinsic value[23] - Historical data shows that the Hong Kong market has experienced five buyback waves since 2008, all coinciding with subsequent market uptrends[23]

Production Sector - The coke oven operating rate is at 70.33%, down by 0.15% from the previous week[7] - The blast furnace operating rate is at 78.3%, also down by 0.15% from the previous week[7] - The PX operating rate decreased to 88.40%, a decline of 0.81%[7] - The PTA operating rate is at 72.84%, down by 0.97%[7] - The full steel tire operating rate is at 61.95%, a decrease of 2.19%[7] - The semi-steel tire operating rate increased to 72.05%, up by 0.66%[7] Consumption Sector - Weekly box office revenue reached 751 million yuan, an increase of 3.4 million yuan from the previous week[7] - Average daily retail sales of passenger cars reached 77,378.5 units, up by 1,567.2 units[7] - Average daily wholesale sales of passenger cars reached 96,624 units, an increase of 2,044.55 units[7] Real Estate and Infrastructure - The transaction area of commercial housing in 30 major cities was 301.91 million square meters, up by 44.90% from the previous week[7] - The transaction area of second-hand houses in major cities increased to 218,053.72 square meters, up by 9,046.58 square meters[7] - The land transaction area in 100 major cities decreased to 3,073.04 million square meters, down by 1,417.45 million square meters[7] - The land premium rate in 100 major cities increased to 2.14%, up by 0.94%[7] Trade and Transportation - The Shanghai Export Container Freight Index (SCFI) rose to 1,656.32, an increase of 103.40[8] - The Baltic Dry Index (BDI) fell to 1,877.00, a decrease of 244.00[8] - The average wholesale price of pork is at 17.67 yuan per kilogram, up by 0.11 yuan[8] - The average wholesale price of vegetables decreased to 5.68 yuan per kilogram, down by 0.15 yuan[8] - The average daily number of domestic flights (excluding Hong Kong, Macau, and Taiwan) reached 12,430.43, an increase of 225.71 flights[8]

Group 1: Top Net Buy/Sell Companies - Tencent Holdings (0700.HK) had a net buy amount of 12.01 billion CNY with a holding change of 1,992,172 shares[8] - Xiaomi Group (1810.HK) saw a net buy of 10.01 billion CNY with a holding change of 25,516,147 shares[8] - China Mobile (0941.HK) was the top net sell company with a net sell amount of -23.20 billion CNY and a holding change of -28,015,413 shares[9] Group 2: Industry Distribution of Net Buy/Sell - The technology sector had significant net buying activity, contributing positively to the overall market[11] - The financial sector also saw notable net buying, indicating investor confidence in financial institutions[11] - The energy sector experienced net selling, reflecting a potential shift in investor sentiment towards energy stocks[11] Group 3: Active Stocks - Alibaba (9988.HK) was among the most active stocks with a total trading volume of 42.74 billion CNY and a net sell of -10.81 billion CNY[20] - Semiconductor Manufacturing International Corporation (0981.HK) had a total trading volume of 34.72 billion CNY with a net buy of 2.59 billion CNY[20] - China Mobile (0941.HK) recorded a total trading volume of 22.04 billion CNY with a net sell of -14.82 billion CNY[19]

Valuation of Hong Kong Stock Market - The report analyzes the valuation of major indices in the Hong Kong stock market, including the Hang Seng Composite Index (HSCI) and the Hang Seng Index (HSI) [9] - The Hang Seng Technology Index (HSTECH) is also evaluated for its current valuation status [17] Industry Valuation Levels - The report presents the PE (TTM) valuation levels of various industries since early 2018, indicating that the utility sector is undervalued, with a PE valuation percentile below 20% [24] - Industries with PE valuation percentiles below 50% include consumer discretionary, consumer staples, healthcare, information technology, and utilities [24] - High valuation industries (above 50%) include energy, materials, industrials, financials, and telecommunications [24] - The report also examines PB (LF) valuation levels, noting that no industry is undervalued (PB percentile below 20%) [28] - Industries with PB valuation percentiles below 50% are consumer staples, information technology, utilities, and real estate [28] - High valuation industries (above 50%) in terms of PB include energy, materials, industrials, consumer discretionary, healthcare, financials, and telecommunications [28] AH Share Premium/Discount Levels - The report includes an analysis of the Hang Seng AH Share Premium Index, tracking its performance over time [34] - The average value and standard deviations of the AH share premium are also presented, indicating fluctuations in premium levels [34]