Market Overview - The Hong Kong stock market experienced a half-day trading session on February 16, with all three major indices opening lower but recovering. The Hang Seng Index closed up 0.52% at 26,705.94 points, with a total turnover of 849.97 billion HKD. The Hang Seng Tech Index rose 0.13%, while the Hang Seng China Enterprises Index increased by 0.42% [1] - For the year of the Snake, the Hang Seng Index has gained over 32%, the Hang Seng Tech Index has risen over 13%, and the China Enterprises Index has increased by over 23% [1] Blue Chip Performance - Zijin Mining (02899) led the blue-chip stocks, rising 4.67% to 43.52 HKD, contributing 18.71 points to the Hang Seng Index. Citigroup raised its target prices for Zijin's A-shares and H-shares by over 30% due to increased gold and lithium price forecasts and higher gold sales [2] - Other notable blue-chip performers included China Hongqiao (01378) up 3.92%, CNOOC (00883) up 3.71%, while HSBC Holdings (00005) fell 1.11% [2] Sector Highlights - The technology sector showed mixed results, with Alibaba down 0.45%, Baidu up over 1%, and Tencent up 0.19%. The storage chip sector saw significant price increases, with companies like Lianqi Technology and Zhaoyi Innovation reaching new highs [3] - The storage chip price surge is expected to improve profitability across the NAND industry, with Kioxia projecting a 50% increase in average selling prices starting Q1 2026. Morgan Stanley estimates Kioxia's adjusted gross margin will reach 66% in Q1 [3] - The large model AI sector also saw significant gains, with MINIMAX (00100) up 24.56% and Zhipu AI (02513) up 4.74%. MINIMAX launched a new flagship programming model, while Zhipu announced a price increase for its AI programming subscription [4] Commodity and Energy Stocks - The non-ferrous metals sector experienced broad gains, with Luoyang Molybdenum (03993) up 6.35%, China Nonferrous Mining (01258) up 5.55%, and Zijin Mining (02899) also contributing to the sector's performance [4] - The oil and shipping sectors remained active, with rising sentiments among shipowners due to geopolitical tensions, leading to higher freight rates [10] Recent Developments - The Hang Seng Index Company announced its quarterly review results, with companies like CATL, Luoyang Molybdenum, and Laopuhuang being added to the Hang Seng Index, increasing the number of constituent stocks from 88 to 90 [7] - Haizhi Technology Group (02706) saw a significant rise of 29.59% on its second day of trading, attributed to its focus on AI solutions and rapid revenue growth [8] - Fubo Group (03738) also experienced an 8.22% increase, driven by the popularity of its new copyright management platform [9]

Market Overview - The Hong Kong stock market opened slightly lower on February 16, with the Hang Seng Index down by 0.25%, the Hang Seng Tech Index down by 0.19%, and the Hang Seng China Enterprises Index down by 0.08% [1] - The market experienced a downward trend, with the Hang Seng Tech Index seeing a decline of nearly 2% at one point, although the losses narrowed by the time of reporting [1] Index Performance - As of the latest update, the Hang Seng Index decreased by 0.41%, the China Enterprises Index fell by 0.62%, and the Hang Seng Tech Index dropped by 1.58% [2] - The Hang Seng Tech Index reached a high of 5351.270 and a low of 5253.640, with a trading volume of 171 million shares [2] Sector Performance - The precious metals, semiconductor, and oil & petrochemical sectors showed strength against the market trend, while sectors such as defense, consumer discretionary, and hardware equipment struggled [2] - The non-ferrous metals sector led the market, with notable gains from companies like Luoyang Molybdenum, which rose over 7%, and Lingbao Gold, which increased by over 6% [4][5] Notable Stocks - Luoyang Molybdenum's stock price increased by 7.55% to HK$23.360, while Lingbao Gold rose by 6.73% to HK$25.360 [5] - Other companies in the non-ferrous metals sector, such as China Nonferrous Mining and Shandong Gold, also saw significant gains [5] AI and Semiconductor Sector - The AI application sector opened higher, with stocks like Fubo Group rising over 10% and MINIMAX-WP increasing by nearly 6% [8][9] - The semiconductor sector experienced a sharp rise, with stocks like North Microelectronics increasing by over 17% and Lanke Technology rising by over 13% [12][13] Upcoming Changes in Index Composition - The Hang Seng Index will increase its constituent stocks from 88 to 90, adding Ningde Times, Luoyang Molybdenum, and Laopuguojin, while removing Zhongsheng Holdings, effective March 9 [7]

Core Viewpoint - The Hang Seng Index Company announced the results of its quarterly review for the Hang Seng Index series, with significant changes set to take effect in March 2026, including the inclusion of Ningde Times, Luoyang Molybdenum, and Laopu Gold as constituent stocks, increasing the total number of constituents from 88 to 90 [1] Group 1: Company Performance - Laopu Gold (06181) saw a rise of 7.24%, trading at 792 HKD [1] - Luoyang Molybdenum (603993) increased by 6.54%, reaching 23.14 HKD [1] - Ningde Times (300750) experienced a gain of 3.48%, priced at 535.5 HKD [1] Group 2: Index Changes - The Hang Seng Index series will see its constituent stocks increase from 88 to 90 [1] - The changes will be implemented after the market closes on March 6, 2026, and will take effect on March 9, 2026 [1] - The inclusion of these companies is expected to enhance their visibility and potentially attract more investment [1]

Core Viewpoint - The announcement by Hang Seng Index Company regarding the quarterly review results for the Hang Seng Index series indicates that companies such as Ningde Times, Luoyang Molybdenum, and Laopu Gold will be included in the index, leading to a positive market reaction with significant stock price increases for these companies [1] Group 1: Company Performance - Laopu Gold (06181) saw a stock price increase of 7.24%, reaching 792 HKD [1] - Luoyang Molybdenum (03993) experienced a rise of 6.54%, with its stock priced at 23.14 HKD [1] - Ningde Times (03750) rose by 3.48%, with shares priced at 535.5 HKD [1] Group 2: Index Inclusion - The Hang Seng Index series will increase its constituent stocks from 88 to 90, with the inclusion of Ningde Times, Luoyang Molybdenum, and Laopu Gold [1] - The changes will take effect after the market closes on March 6, 2026, and will be officially implemented on March 9, 2026 [1]

Group 1 - The core viewpoint of the report is a positive outlook for the Chinese stock market in the first half of 2026, driven by potential gradual stimulus measures and strong policy assurances [1] - The report suggests that while large-scale stimulus policies are unlikely, incremental stimulus measures could boost investor sentiment in the short term [1] - The preferred stocks highlighted by the report include China Resources Land (01109) and Midea Group (000333.SZ), which are expected to benefit from the improved market conditions [1] Group 2 - The report includes Old Puhua Gold (06181) and Kingsoft Cloud (03896) in its preferred list due to strong downstream demand leading to price increase expectations [1]

Group 1 - The report from Daiwa emphasizes an optimistic outlook for the Chinese stock market in the first half of 2026, despite recent market volatility [1] - The potential for a stimulus policy season may last until April, with a belief that large-scale stimulus measures are unlikely, but gradual stimulus measures could boost investment sentiment in the short term [1] - Companies such as China Resources Land (01109) and Midea Group (000333) are highlighted as preferred stocks due to the expected positive impact from these measures [1] Group 2 - Strong downstream demand is driving price increase expectations, leading to the inclusion of companies like Laopu Gold (06181) and Kingsoft Cloud (03896) in the preferred list [1]

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].

Core Viewpoint - The article discusses the rapid growth and market positioning of Laopu Gold, highlighting its significant sales increase and consumer interest driven by rising gold prices and a shift in consumer preferences towards gold jewelry as an investment [5][9][20]. Group 1: Company Performance - Laopu Gold's stock price surged over 23 times since its listing on the Hong Kong Stock Exchange in June 2024, reaching a market capitalization of over 180 billion HKD [5][20]. - The company's revenue grew from 3.18 billion CNY in 2023 to 12.35 billion CNY in 2025, representing a staggering growth rate of 251% [10]. - The number of Laopu Gold's members increased from 150,000 at the end of 2023 to 480,000 in just over a year, indicating a rapid expansion of its consumer base [9][10]. Group 2: Market Dynamics - Laopu Gold's pricing strategy, which includes regular price adjustments, has contributed to its high profit margins, with a gross margin of over 40% historically [11][12]. - The company has positioned itself against established luxury brands like Cartier and Bvlgari, focusing on high-end retail locations to attract affluent consumers [15][16]. - The demand for gold jewelry has surged, with consumers increasingly viewing it as a store of value, leading to long queues at Laopu Gold's stores [5][9]. Group 3: Consumer Behavior - Consumers are shifting their preferences from traditional luxury brands to gold jewelry, with many now prioritizing the investment potential of gold over other luxury items [9][14]. - The perception of gold jewelry as both an accessory and an investment has gained traction, particularly among younger consumers [9][19]. - Laopu Gold's products are perceived as having high value due to their craftsmanship and design, despite their higher price points compared to other brands [9][12]. Group 4: Competitive Landscape - Laopu Gold faces increasing competition from emerging brands in the gold jewelry market, which are beginning to capture market share [21][22]. - The company has a significant opportunity for expansion, with potential for more retail locations and a growing consumer base [21]. - Concerns exist regarding the sustainability of Laopu Gold's growth, particularly if gold prices stabilize or decline, which could impact consumer demand and pricing strategies [24][25].

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 Hang Seng Index will increase its constituent stocks from 88 to 90, adding three new companies while removing one [1] Group 1: Changes in Hang Seng Index - The new additions to the Hang Seng Index include Contemporary Amperex Technology Co., Ltd. (宁德时代, 03750.HK), Luoyang Molybdenum Co., Ltd. (洛阳钼业, 03993.HK), and Laopuqin Gold (老铺黄金, 06181.HK) [1] - Zhongsheng Group Holdings Limited (中升集团控股有限公司) will be removed from the index [1] Group 2: Implementation Timeline - All changes to the Hang Seng Index will be implemented after the market closes on March 6, 2025, and will take effect on March 9, 2025 [1]