Group 1: Hang Seng Index - Ningde Times (300750) (03750), Luoyang Molybdenum (603993) (03993), and Laopu Gold (06181) will be included in the Hang Seng Index, increasing the number of constituent stocks from 88 to 90 [1][2]. Group 2: Hang Seng China Enterprises Index - Beike-W (02423) and Horizon Robotics-W (09660) will be added to the Hang Seng China Enterprises Index, while China Resources Beer (00291) will be removed, maintaining the total number of constituent stocks at 50 [5]. Group 3: Hang Seng Composite Index - East Asia Bank (00023) and Guofu Quantum (00290) will be included in the Hang Seng Composite Index, with the number of constituent stocks increasing from 507 to 532 [9][10].

Group 1 - The Hang Seng Index Company announced the quarterly review results for the Hang Seng Index series, effective from March 9, 2026, after market close on March 6, 2026 [1] - The Hang Seng Index will add three stocks: Contemporary Amperex Technology Co., Limited (03750), Luoyang Molybdenum Co., Ltd. (03993), and Laopuhuang Co., Ltd. (06181), while removing Zhongsheng Group Holdings Limited (00881), increasing the number of constituent stocks from 88 to 90 [1] - Laopuhuang has seen a significant price increase, with a cumulative rise of nearly 20% since the beginning of 2026 [1] Group 2 - The Hang Seng China Enterprises Index will maintain 50 constituent stocks, adding Beike-W (02423) and Horizon Robotics-W (09660), while removing China Resources Beer (00291) and Mengniu Dairy (02319) [2] - The Hang Seng Composite Index will add 53 stocks, including Bank of East Asia (00023), and remove 28 stocks, including Shui On Land (00272), increasing the number of constituent stocks from 507 to 532 [5] - The Hang Seng Technology Index will not change, maintaining 30 constituent stocks [6] Group 3 - The total assets under management for products tracking the Hang Seng Index series is approximately $117.7 billion as of December 2025 [6] - The adjustments in index constituents may trigger passive fund rebalancing, potentially leading to increased trading volume for related stocks as the effective date approaches [6] - The inclusion of new economy enterprises in sectors like renewable energy, new consumption, and biotechnology is expected to enhance the growth potential and investment attractiveness of the indices, reducing the weight of traditional industries [6]

Core Viewpoint - The Hong Kong stock market is undergoing significant adjustments in its major indices, with changes in constituent stocks for the Hang Seng Index and other related indices [2][4][8]. Group 1: Hang Seng Index Adjustments - The Hang Seng Index will increase its constituent stocks from 88 to 90, adding Ningde Times (03750), Luoyang Molybdenum (03993), and Laopu Gold (06181), while removing Zhongsheng Group (00881) [2][4]. - Laopu Gold has shown a strong performance, with a cumulative increase of nearly 20% since the beginning of 2026 [4]. Group 2: Hang Seng China Enterprises Index Changes - The Hang Seng China Enterprises Index will maintain 50 constituent stocks, adding Beike-W (02423) and Horizon Robotics-W (09660), while removing China Resources Beer (00291) and Mengniu Dairy (02319) [6]. Group 3: Hang Seng Composite Index Changes - The Hang Seng Composite Index will add 53 stocks, including East Asia Bank (00023), and remove 28 stocks, increasing its total from 507 to 532 [8]. - The Hang Seng Technology Index will remain unchanged at 30 constituent stocks [8]. Group 4: Market Performance Analysis - Since the beginning of 2026, the Hang Seng Index has risen by 3.65%, while the Hang Seng Technology Index has decreased by 2.82% [10]. - In 2025, both indices saw increases, with the Hang Seng Index up by 27.77% and the Hang Seng Technology Index up by 23.45% [10]. - Among the 88 constituent stocks of the Hang Seng Index, 69 have risen, 18 have fallen, and 1 has remained flat since the end of 2025 [10]. Group 5: Notable Stock Performances - The top performers since the beginning of 2026 include New World Development (41.18%), Techtronic Industries (31.92%), and Pop Mart (31.81%) [11]. - Conversely, the worst performers include Trip.com (-24.22%), Meituan (-20.47%), and NetEase (-13.47%) [11].

Core Viewpoint - The meeting between Hu Changsheng, the Secretary of the Provincial Party Committee, and Wang Xiangming, Chairman of China Resources Group, emphasizes the importance of deepening cooperation between central and local governments to promote high-quality economic development in Gansu Province [1] Group 1: Government and Economic Development - Hu Changsheng expressed gratitude for China Resources Group's long-term support for Gansu's development and highlighted the province's focus on building a modern industrial system that reflects its unique characteristics and advantages [1] - The provincial government is committed to implementing the spirit of the 20th Central Committee and Xi Jinping's important instructions during his visit to Gansu, with a focus on economic construction and high-quality development [1] Group 2: Investment and Cooperation - Wang Xiangming acknowledged Gansu's strong momentum in high-quality economic and social development, citing the province's favorable business environment and openness [1] - China Resources Group plans to increase its investment in Gansu and accelerate the construction of cooperative projects, particularly in sectors such as new energy, new materials, biomedicine, specialty agricultural products, and digital economy [1]

Core Insights - The launch of "Yue Xiao Beer," a collaboration between China Resources Beer and Guyue Longshan, marks the first product from their strategic partnership initiated in October last year [1] - This product represents a significant step in the integration of traditional beer and yellow wine categories, focusing on flavor innovation and market expansion [1] Product Details - "Yue Xiao Beer" features two initial flavors: "Plum Sparkling Island" and "Dried Tangerine Peel Grapefruit Shop," combining Snow Beer’s all-malt lager with high-quality yellow wine from Guyue Longshan [1] - The product is packaged in 330ml cans with an alcohol content of ≥5.0 vol, priced at 10 yuan per can [1] Market Strategy - The product will be available for sale both online and offline starting February 10, with online sales through platforms like JD.com and the instant delivery service "Yaimasongjiu" [1] - Initial distribution will focus on key markets such as Hangzhou and Shanghai, with plans for gradual expansion across the country [1]

Group 1: Moutai's New Product Launch - Moutai's "Zhenxiang" edition of 53% vol 500ml Guizhou Moutai liquor will be available for sale from February 10 to February 16, with daily sales starting at 9:00 AM until sold out [1] - The "Moutai" brand will have four major sales events throughout the year, including Spring Festival, brand day, Mid-Autumn Festival, and Winter [1] - The launch of the zodiac edition during the Spring Festival is expected to boost direct sales revenue and gross margin, capitalizing on gifting and collecting demand [1] Group 2: Appointment of New General Manager at Kuaijishan - Kuaijishan has appointed Tang Guijiang as the new General Manager, with a term aligned with the seventh board of directors [2] - Tang has a background in sales management from Budweiser and China Resources Snow Beer, indicating the company's intention to leverage experienced management from the fast-moving consumer goods sector [2] - The new General Manager's marketing experience is anticipated to enhance the company's sales management system and channel layout [2] Group 3: Huaren Beer’s Engagement with Industry Association - Huaren Beer’s President Jin Hanquan visited the China Alcoholic Drinks Association, accompanied by executives from several liquor companies [3] - The discussion focused on the current industry landscape and Huaren's project developments, highlighting the company's positive growth in the beer sector and steady exploration in the liquor sector [3] - The visit signifies Huaren's commitment to its "dual empowerment" strategy in both beer and liquor, aiming for improved resource integration efficiency [3] Group 4: Introduction of New Brand by Fenggu - Fenggu Liquor plans to launch an innovative brand named FORGOOD, targeting new consumer groups with a preference for non-fragrant liquor [4] - The company aims to develop "fragrance-free liquor" and other alcoholic beverages that do not adhere to traditional fragrance classifications [4] - This initiative reflects Fenggu's proactive exploration in product development and market segmentation, contributing to a differentiated product matrix [4]

Core Insights - The article highlights the top short-selling ratios and amounts for various companies, indicating significant market sentiment against these stocks [1][2]. Group 1: Top Short-Selling Ratios - Lenovo Group-R (80992) has the highest short-selling ratio at 91.38% with a short-selling amount of 52.16 thousand [2]. - Ping An Insurance-R (82318) follows with a short-selling ratio of 83.34% and a short-selling amount of 200.88 thousand [2]. - Xiaomi Group-WR (81810) has a short-selling ratio of 80.95% with a short-selling amount of 597.54 thousand [2]. Group 2: Top Short-Selling Amounts - Tencent Holdings (00700) leads in short-selling amount at 29.69 billion, with a short-selling ratio of 15.25% [2]. - Alibaba Group-W (09988) has a short-selling amount of 23.66 billion and a short-selling ratio of 19.56% [2]. - Xiaomi Group-W (01810) ranks third with a short-selling amount of 10.16 billion and a short-selling ratio of 21.54% [2]. Group 3: Top Short-Selling Deviation Values - Ping An Insurance-R (82318) has the highest deviation value at 36.33%, indicating a significant difference from its average short-selling ratio [2]. - Xiaomi Group-WR (81810) follows with a deviation value of 34.41% [2]. - China Resources Beer (00291) has a deviation value of 33.89% [2].

Core Viewpoint - China Resources Beer (00291.HK) has shown a strong independent performance in the Hong Kong stock market, with its stock price rising steadily since January, closing at 27.16 HKD on February 4, indicating potential upward momentum despite market volatility [1][2]. Technical Analysis - The stock price has successfully broken through the upper Bollinger Band, signaling a strong short-term upward momentum, supported by moving averages above MA10 (26.2 HKD) and MA30 (26.36 HKD) [1]. - However, several oscillators have indicated a "yellow light," with the Relative Strength Index (RSI) at 61, suggesting that buying pressure may be waning, and overbought conditions could lead to a price correction [2]. Support and Resistance Levels - Key resistance levels are identified at 28 HKD and 28.9 HKD, with a breakthrough at 28.1 HKD potentially leading to further gains [5]. - Support levels are established at 26.2 HKD and 25.5 HKD, with the latter being a significant buying zone that could maintain the upward trend if defended [6]. Market Sentiment and Strategy - The market sentiment is mixed, with some analysts suggesting a cautious approach due to the overbought indicators, advising investors to wait for more favorable conditions before engaging in derivative products [7]. - Various call options are available for investors, with differing risk-reward profiles, including a low street volume option from Bank of China and higher leverage options from HSBC and JPMorgan [8].

Industry Overview - The beer industry in China is defined as an alcoholic beverage made primarily from malted barley and wheat, with various classifications based on brewing techniques and yeast types [1] - The industry has a significant degree of product homogeneity due to similar brewing processes among most beer products [1] Industry Chain Analysis - The beer industry has a mature supply chain in China, with upstream suppliers providing raw materials, brewing equipment, and packaging [2][4] - Major beer producers dominate the midstream market, with the top five brands (China Resources Beer, Tsingtao Brewery, Budweiser APAC, Chongqing Brewery, and Yanjing Beer) accounting for over 90% of the market share [2][5] Industry Development History - The Chinese beer industry has evolved from foreign control in the late 19th century to a more localized production model post-1949, with significant growth following the economic reforms [7] - The industry experienced a rapid expansion from 1980 to 1994, followed by a consolidation phase from 1994 to 2005, leading to the establishment of major players [7] - Since 2017, the focus has shifted towards high-end beer production as low-end market growth has plateaued [7] Current Industry Status - Beer production in China has stabilized around 35 million kiloliters, with a slight recovery noted after a decline from 2015 to 2020 [10] - The sales revenue of the beer industry saw a significant increase in 2022, reaching 175.11 billion yuan, a 10.1% year-on-year growth [11] - The demand for high-quality beer products is rising, prompting leading companies to invest in the high-end market segment [14] Pricing Trends - The average price of beer in China has been on the rise, increasing from 14.6 yuan per liter in 2019 to an expected 17.2 yuan per liter by 2024 [15] Competitive Landscape - The beer industry in China exhibits a clear oligopolistic trend, with the top five companies dominating the market [18] - The regional concentration of beer production is high, particularly in coastal areas, with Shandong and Guangdong provinces leading in production capacity [23] Future Industry Outlook - The market size of the beer industry is projected to exceed 240 billion yuan by 2031, driven by increasing consumer demand for quality and unique beer products [24] - The industry is expected to see a rise in concentration and a shift towards high-end products, with digital marketing and innovative strategies becoming key growth drivers [28]

Industry and Company Analysis Summary Industry Overview - The beer industry is currently experiencing a high dividend yield, with leading companies increasing their dividends, providing support for stock prices. The focus is on the recovery of service consumption and inflation expectations driving volume and price growth in 2026 [1][2] - The industry is expected to see a recovery in volume and price due to improved service consumption and inflation expectations [1] Key Companies and Insights China Resources Beer (华润啤酒) - Recognized for its leading position and ongoing premiumization strategy [1] - Projected to achieve a small single-digit volume growth in 2025, with stable pricing and a slight decline in H2 compared to H1. Full-year profit is expected to grow by a high single to double-digit percentage [2] - Anticipated revenue and profit for 2025 are 39.1 billion and 5.8 billion respectively, not accounting for impairments [2] - Dividend payout ratio is expected to gradually increase to 70-80% [2] Chongqing Brewery (重啤) - Q4 trends are better than the same period last year, primarily due to strict inventory control in 2025. The company expects stable or slightly increased sales for the year [2] - Notable growth in U.S. and Xinjiang markets, with double-digit growth for brands like Carlsberg and Fenghua Xueyue [2] Yanjing Beer (燕京) - The company forecasts a slight decline in net profit for Q4, with a year-on-year growth rate of -3% to +44% [3] - Plans to launch a new product, A10, to enhance its product matrix in 2026 [3] - Expected stable cost per ton and potential for operational efficiency improvements [3] Financial Metrics - China Resources Beer has a dividend yield of 4.0% for A shares and 5.5% for H shares [2] - Chongqing Brewery's Q4 performance is expected to show a slight increase in sales, with a focus on inventory management [2] - Yanjing's Q4 revenue is projected to grow by 7%, with an annual profit of 1.2 billion [3] Risks - Potential risks include cost fluctuations, slower-than-expected recovery in demand from the restaurant sector, and increased competition [4]