Core Insights - The investment environment in 2025 was challenging, with foreign equity markets achieving their best returns in over a decade, while the International Growth Composite Portfolio finished the year essentially flat due to a market preference for cyclically sensitive businesses [8][11]. Portfolio Performance - The International Growth Composite Portfolio's performance was -2.21% for the quarter and 0.68% year-to-date, compared to the MSCI ACWI (ex-USA) which returned 5.05% for the quarter and 32.39% year-to-date [5]. - Top contributors to the Portfolio's performance included Tokyo Electron, ASML, and Shopify, while the largest detractors were Monday.com, MercadoLibre, and SAP [13][17]. Company-Specific Insights - **Tokyo Electron**: A leading player in semiconductor manufacturing equipment, expected to grow revenues at a high single-digit rate and increase operating margins from 25% in 2024 to 35% in the medium term, driving mid-teens earnings growth [14]. - **ASML**: Benefiting from investor optimism around AI, as its equipment is essential for advanced chips, which are critical for AI applications [16]. - **Monday.com**: Despite strong results, the stock sold off due to concerns over near-term growth slowdown, but revenue growth is expected to sustain over 20% as it expands its market reach [18]. - **MercadoLibre**: The largest e-commerce platform in Latin America, experiencing a decline in stock price due to a slight decrease in operating margin while investing in growth initiatives [19]. - **SAP**: Despite cloud revenue growth exceeding expectations, the stock faced pressure due to market conditions, but is viewed as resilient with a strong market position and high recurring revenues [20]. Portfolio Activity - New position established in **Nintendo**, which is expected to see significant growth following the release of the Switch 2, with anticipated earnings growth of 30% annually over the next few years [23]. - Positions in **Teleperformance** and **Siemens Healthineers** were eliminated due to ongoing business challenges, reallocating funds to invest in Nintendo and Tencent [25][26]. Market Outlook - The outlook for the Portfolio remains positive, with expectations of benefiting from structural trends such as technology shifts and growth in emerging markets like India [27].

Group 1 - The Hang Seng Index increased by 0.51%, closing at 27,968.09 points, with a total market turnover of 331.99 billion HKD [1] - The southbound trading data revealed significant net purchases in certain stocks, including 2.395 billion HKD in the Tracker Fund of Hong Kong, 800 million HKD in Tencent Holdings, and 643 million HKD in Xiaomi Group-W [1][2] - Conversely, net sales were observed in China Mobile, Zijin Mining, and Alibaba-W, with net outflows of 646 million HKD, 377 million HKD, and 331 million HKD respectively [1][2] Group 2 - The Tracker Fund of Hong Kong recorded a closing price of 28.18 HKD, with a price increase of 5.00% [2] - Tencent Holdings closed at 622.00 HKD, reflecting a price increase of 1.60% [2] - Xiaomi Group-W had a closing price of 36.62 HKD, with an increase of 8.30% [2] - In contrast, stocks like Huahong Semiconductor and Alibaba-W experienced significant declines, with Huahong Semiconductor dropping by 53.00% and Alibaba-W decreasing by 1.20% [2]

Group 1 - Net inflow into the Yingfu Fund reached 2.395 billion, Tencent Holdings 0.8 billion, Xiaomi Group-W 0.643 billion, Zhaojin Mining 0.148 billion, and Huahong Semiconductor 0.113 billion [1] - Continuous net buying of Tencent for 5 days totals 4.28853 billion HKD, while China Mobile has seen continuous net selling for 19 days totaling 15.43408 billion HKD [1] - Alibaba has experienced net selling for 5 consecutive days, amounting to 3.40229 billion HKD, and Zijin Mining has seen net selling for 4 days totaling 3.15093 billion HKD [1] Group 2 - Alibaba-W's stock price decreased by 0.1% with a net outflow of 0.248 billion, while Tencent Holdings saw a slight increase of 0.2% with a net inflow of 0.505 billion [4] - Xiaomi Group-W's stock price increased by 0.8% with a net inflow of 0.338 billion, and Huahong Semiconductor's stock price decreased by 5.3% with a net inflow of 0.113 billion [4] - Zhaojin Mining is expanding its gold mining portfolio, with Macquarie raising its net profit forecasts for 2025 to 2027 by 10%, 74%, and 50% respectively [5] Group 3 - Tencent announced a cash red envelope activity worth 1 billion on February 1, which is expected to boost the download and daily active user numbers of its Yuanbao app [5] - The gold price has surged, with spot gold prices surpassing 5,500 USD, benefiting companies like Zhaojin Mining [5]

Group 1 - The core viewpoint of the article is that Chinese regulatory authorities have approved Alibaba-W (09988), Tencent Holdings (00700), and ByteDance to purchase NVIDIA's (NVDA.US) H200 AI chips, which could positively impact these companies and the overall Chinese internet industry if confirmed [1][2] - The report highlights that the positive impact is most significant for Tencent, which previously indicated a potential shift to "leasing" GPU computing power as an alternative due to restrictions on direct purchases [1][2] - Citi believes there is an increased risk of capital expenditure rising in 2026, particularly in the AI sector, with a favorable outlook for Tencent, followed by Alibaba, and then Baidu Group-SW (09888) [1][2]

Group 1 - The core viewpoint of the article is that Chinese regulatory authorities have approved Alibaba-W (09988), Tencent Holdings (00700), and ByteDance to purchase NVIDIA's (NVDA.US) H200 AI chips, which could have a positive impact on these companies and the overall Chinese internet industry if confirmed [1] - Citi's report highlights that the positive impact is most significant for Tencent, which previously indicated a potential shift to "leasing" GPU computing power due to procurement restrictions [1] - The report anticipates an increase in capital expenditure risks by 2026, particularly in the AI sector, ranking the companies in the order of Tencent > Alibaba > Baidu Group-SW (09888) in terms of outlook [1]

Group 1 - China has trade deficits, particularly in services, which contrasts with the commonly reported trade surpluses [1] - The focus on megatrends and emerging technologies can provide insights into investment opportunities as society and technologies evolve [1] - The importance of fundamentals, quality of leadership, and product pipeline is emphasized for identifying potential investment opportunities [1] Group 2 - The analyst has experience in evaluating startups and emerging industries, indicating a strong background in assessing new market opportunities [1] - There is a growing interest in marketing and business strategy for medium-sized companies and startups, highlighting a shift towards these sectors [1]

Core Insights - Nanshan District is set to become the first district in China with a GDP exceeding 1 trillion yuan by 2025, achieving an average annual growth rate of over 5.8% from 2016 to 2021 [2][3] Economic Growth - The economic scale of Nanshan has increased from 652.7 billion yuan at the end of the 13th Five-Year Plan to over 1 trillion yuan, marking a significant leap of four hundred billion yuan levels in five years [2][3] - The contribution of strategic emerging industries to the GDP has reached 60%, indicating a strong reliance on new quality-driven economic growth [3][5] Innovation and Industry - Nanshan is recognized as a key center for technological innovation and industrial manufacturing within the Guangdong-Hong Kong-Macao Greater Bay Area, with over 110 tech companies participating in the 2026 International Consumer Electronics Show [3] - The district hosts more than 20 robot manufacturing companies and over 200 upstream and downstream enterprises, showcasing a robust industrial cluster [5] - Nanshan's innovation ecosystem integrates talent, funding, and industry chains, which is crucial for high-quality development and fostering new productive forces [3][5] Social Welfare and Development - Nanshan aims to be a benchmark for social welfare, with plans to supply over 2,000 affordable housing units this year and significant improvements in education, healthcare, and elderly care services [6][7] - The district has committed to expanding educational facilities, with 20 new schools planned and a focus on digital education [6][7] - Healthcare improvements include the construction of new hospital facilities and enhanced community health services, aiming for comprehensive coverage for residents [6][7]

Market Overview - The Hang Seng Index increased by 0.06%, closing at 26,765.52 points, with a total market turnover of 261.699 billion HKD [1] Southbound Trading Data - Tencent Holdings received a net inflow of 1.015 billion HKD, with a closing price of 599.50 HKD, reflecting a 7.60% increase [2] - Xiaomi Group-W saw a net inflow of 822 million HKD, closing at 35.22 HKD, but experienced a decline of 28.10% [2] - Pop Mart International received a net inflow of 613 million HKD, closing at 217.60 HKD, down by 9.10% [2] - China Mobile faced a net outflow of 1.177 billion HKD, closing at 42.18 HKD, with a decrease of 8.80% [2] - Zijin Mining experienced a net outflow of 1.077 billion HKD, closing at 26.98 HKD, with a slight increase of 0.70% [2] - The Hang Seng Index's performance reflects mixed investor sentiment, with significant inflows into certain stocks while others faced notable outflows [1][2]

Summary of Key Points Core Viewpoint - The Hong Kong stock market experienced significant net selling from northbound capital, totaling HKD 8.26 billion on January 26, with notable net selling in major stocks like China Mobile and Zijin Mining, while Tencent and Xiaomi saw net buying. Group 1: Northbound Capital Flow - Northbound capital had a net selling of HKD 8.26 billion, with HKD 1.87 billion from Shanghai Stock Connect and HKD 6.38 billion from Shenzhen Stock Connect [1] - The stocks with the highest net buying included Tencent (00700), Xiaomi Group-W (01810), and Pop Mart (09992) [1] - The stocks with the highest net selling included China Mobile (00941), Zijin Mining (02899), and the Yingfu Fund (02800) [1] Group 2: Individual Stock Performance - Alibaba-W had a buy amount of HKD 18.08 billion and a sell amount of HKD 19.36 billion, resulting in a net outflow of HKD 1.28 billion [2] - Tencent Holdings had a buy amount of HKD 15.18 billion and a sell amount of HKD 10.46 billion, resulting in a net inflow of HKD 4.72 billion [2] - Xiaomi Group-W had a buy amount of HKD 12.76 billion and a sell amount of HKD 7.49 billion, resulting in a net inflow of HKD 5.27 billion [2] Group 3: Market Reactions and News - Tencent received a net buying of HKD 10.15 billion, with Chairman Ma Huateng announcing 2025 as the "AI Year" and launching a cash activity worth HKD 1 billion for its AI application [4] - Pop Mart received a net buying of HKD 6.13 billion, with Citigroup expecting growth driven by IP diversification and product innovation [5] - Zijin Mining faced a net selling of HKD 10.76 billion, with reports of significant sell orders in the A-share market [7]

Group 1 - Tencent announced a new Spring Festival activity starting on February 1, distributing a total of 1 billion cash red envelopes, with individual envelope amounts reaching up to 10,000 yuan [1] - Tencent's Chairman, Ma Huateng, expressed the desire to recreate the success of the WeChat red envelope feature from years past during the company's annual meeting [1] - The company plans to introduce a new social product called "Yuanbao Pai," which was previously a confidential project, and has begun internal testing for new gameplay features [1] Group 2 - In 2015, Tencent distributed 500 million yuan in cash red envelopes during the Spring Festival, attracting 20 million users on New Year's Eve, with over 1 billion red envelopes sent and received, and peak interaction rates reaching 810 million times per minute [1] - The upcoming cash red envelope distribution aims to leverage the Spring Festival as a major social event to promote Tencent's AI applications [1]