Market Overview - The Hong Kong stock market experienced fluctuations, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The market saw a further decrease in trading volume, with total turnover dropping to 82.799 billion [1] - The net inflow of funds through the Hong Kong Stock Connect was 484 million, with 283 million from the Shanghai Stock Connect and 201 million from the Shenzhen Stock Connect [1] Sector Performance - The local real estate, software, and 5G concept sectors faced significant declines, while gold stocks performed well against the market trend [1] - Notable performers included Chifeng Jilong Gold, which rose nearly 6%, and China National Building Material, which increased by over 11% [1] - The market showed a structural divergence, with resource/building materials strong and financial sectors weak, particularly in light communication and CPO [1] US Market Insights - The US stock market saw slight declines, with the Dow Jones down 0.13% and the Nasdaq down 0.16% [2] - Major tech stocks like IBM and Salesforce led the declines, with IBM dropping over 6% [2] - The Nasdaq Golden Dragon China Index fell by 0.65%, indicating challenges for Chinese tech firms in the US market [2] Future Market Outlook - The report emphasizes the importance of technology self-reliance and AI applications as core themes for future performance in the Hong Kong stock market [3] - The Ministry of Industry and Information Technology's recent policies on national computing power are expected to boost domestic computing and communication sectors [3] - Investment opportunities are highlighted in sectors supported by policies for "technology self-reliance," including AI, semiconductors, and industrial software [3] Key Company Performances - The report notes significant stock performance variations among major companies, with Tencent and Alibaba showing declines of 0.5% and 0.2% respectively [12] - BYD's stock increased by 3.5%, while XPeng Motors saw a rise of 1.9% [12] - In the pharmaceutical sector, companies like WuXi Biologics and CSPC Pharmaceutical reported positive stock movements, with WuXi Biologics up 3.4% [12]

Core Viewpoint - Korean investors are aggressively purchasing Chinese AI stocks, particularly leading companies in the large model sector, indicating a strong interest in the Chinese market and AI technology [1]. Group 1: Investment Trends - As of February 10, 2026, Korean investors have significantly increased their buying activity in Chinese stocks compared to the previous year [1]. - The top ten stocks purchased by Korean investors include MiniMax-WP, 华夏沪深300ETF, 澜起科技, and others, reflecting a diverse interest in various sectors [1]. Group 2: Purchase Amounts - The purchase amounts for key stocks are as follows: MiniMax-WP at $2,067.12 million, 华夏沪深300ETF at $1,918.22 million, and 澜起科技 at $1,864.71 million [2]. - Other notable purchases include 安硕恒生科技ETF at $736.47 million and 南方东英每日杠杆三星电子 at $732.50 million, showcasing a strong preference for technology and ETF products [2].

Group 1 - The Hang Seng Index rose by 0.43%, gaining 116 points to close at 27,299 points, while the Hang Seng Tech Index increased by 1.10% [1] - Xiaomi Group-W (01810) saw a rise of over 4%, with the new generation SU7 expected to launch in April [1] - The first-day listing of Xian Dao Intelligent (00470) increased by 0.44%, while fishing company Lexin Outdoor (02720) surged by 33% on its second day of trading [1] - The Kintor Group (00148) and Kintor Laminates (01888) experienced gains of 5% and 14% respectively, driven by expected high growth in copper-clad laminate performance by 2025 [1] - The precious metals sector saw gains, with Wan Guo Gold Group (03939) rising over 9% to reach a new high, benefiting from increased gold prices [1] - Tungsten prices continued to rise, with tungsten oxide increasing by 20,000 yuan per ton and ammonium paratungstate rising by 10,000 yuan per ton, leading to a surge of over 12% for Jiaxin International Resources (03858) [1] - China Duty Free Group (01880) rose over 5% following a strong start to the Spring Festival travel season for duty-free shopping in Hainan [1] Group 2 - Gilead Sciences-B (01672) increased by over 6%, with plans to submit an IND for ASC36 oral tablets for obesity treatment to the FDA in the second quarter [2] - Jinli Permanent Magnet (06680) rose over 7% as rare earth prices continue to climb, with institutions predicting a dual increase in valuation and performance for the sector [3] - Mongol Mining (00975) surged over 11% as its BKH gold mine ramped up production and dividend restrictions were gradually lifted [4] - Semiconductor Manufacturing International Corporation (00981) fell by 3.63% post-earnings, with Goldman Sachs indicating that its first-quarter gross margin guidance was below expectations [5] - Health 160 (02656) plummeted by 33%, retracting most of its gains for the year, with its total market value briefly falling below 20 billion HKD [6]

Market Performance - The Hong Kong stock market showed a strong performance with the Hang Seng Index rising by 0.43% to 27,299.62 points, the Hang Seng Tech Index increasing by 1.1% to 5,510.82 points, and the National Enterprises Index up by 0.41% to 9,280.92 points [1] - Major technology stocks mostly saw gains, with Alibaba up by 0.81%, JD.com up by 0.64%, Xiaomi up by 4.72%, and NetEase up by 1.04%, while Tencent fell by 0.54% [1] Company Earnings - Semiconductor company SMIC reported a significant increase in performance, with projected sales revenue of $9.327 billion for 2025, a year-on-year increase of 16.2%, and a net profit of $685 million, up by 39.1% [2] - SMIC's average capacity utilization rate reached 93.5% for the year, with Q4 utilization hitting 95.7% [2] - PCCW reported a 7% increase in revenue to HKD 40.252 billion, with a 16% reduction in losses [2] Corporate Developments - Minth Group plans to establish a joint venture with Aisin and Toyota to produce aluminum vehicle body frames, strengthening its supply chain in North America [3] - Singlomics completed a placement raising HKD 835 million, with 90% allocated for global Phase III clinical trials of its obesity drug ASC30 [5] - Huatai Securities completed a zero-coupon convertible bond issuance of HKD 10 billion [6] Market Insights - CICC noted that the recent pullback in the Hong Kong market is due to three pressures: hawkish expectations from the Federal Reserve, doubts about AI capital expenditure returns, and lower-than-expected PMI [7] - The market is expected to have limited upward space in the medium term, with a target range for the Hang Seng Index between 28,000 and 29,000 points [7] - Analysts suggest focusing on essential retail and technology hardware sectors for potential growth [7]

Core Viewpoint - The stock of Gilead Sciences-B (01672) has increased over 30% in the month, with a current price of HKD 18.24 and a trading volume of HKD 17.99 million, following the announcement of its first oral glucagon-like peptide-1 receptor agonist, ASC36, entering clinical development [1] Group 1 - The company announced on February 11 that it has selected ASC36 oral tablets for clinical development, with plans to submit an Investigational New Drug (IND) application to the FDA in the second quarter of 2026 for obesity treatment [1] - ASC36 is expected to have superior oral bioavailability and efficacy compared to a recently FDA-approved GLP-1R agonist, potentially allowing for lower dosing [1] - The weight loss effect per milligram of ASC36 peptide is anticipated to be more effective, which may lead to lower manufacturing costs due to scalability advantages [1] Group 2 - ASC36 is developed using the company's proprietary Artificial Intelligence-assisted Structure-Based Drug Discovery (AISBDD) technology [1] - The oral tablet formulation of ASC36 has been optimized using the company's proprietary POTENT technology for effective oral peptide delivery [1]

Core Viewpoint - The stock of Gilead Sciences-B (01672) has increased by over 30% in the month, with a current rise of 6.42% to HKD 18.24, driven by the announcement of its first oral glucagon-like peptide-1 receptor agonist, ASC36, entering clinical development [1] Company Developments - On February 11, Gilead Sciences-B announced that its board has selected ASC36 oral tablets for clinical development [1] - The company plans to submit an Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) for ASC36 in the second quarter of 2026 for the treatment of obesity [1] Product Advantages - ASC36 is expected to have superior oral bioavailability and efficacy compared to a recently FDA-approved GLP-1R agonist, potentially allowing for lower dosing [1] - Each milligram of ASC36 peptide is anticipated to provide better weight loss effects, which may lead to lower manufacturing costs due to scalability advantages [1] Technology and Innovation - ASC36 is developed using Gilead's proprietary Artificial Intelligence-assisted Structure-Based Drug Discovery (AISBDD) technology [1] - The oral tablet formulation of ASC36 has been optimized using Gilead's proprietary POTENT technology for effective oral peptide delivery [1]

Market Overview - The Hang Seng Index is expected to be constrained by this year's high of 28,056 points due to the hawkish stance of the newly appointed Federal Reserve Chairman and a rebound in the US dollar index, which has led to profit-taking in the commodity market [2] - The Chinese government is anticipated to focus on expanding domestic demand and technological self-sufficiency in the first quarter of 2026, as it marks the beginning of the 15th Five-Year Plan [2] - There is a policy vacuum in China ahead of the Two Sessions, with many provinces lowering their GDP growth targets, leading to expectations of a GDP growth target of 4.5%-5% for 2026, down from approximately 5% in 2025 [2] Company News - Alphabet is expected to raise $32 billion through a rare issuance of century bonds in GBP [4] - Alibaba has launched the RynnBrain model, which aims to give robots a "thinking brain" [4] - Semiconductor manufacturer SMIC reported a 61% increase in profits last quarter, exceeding revenue guidance [4] - WuXi Biologics has issued a profit warning, expecting a 46% increase in profits for the previous year [4] Economic Outlook - The Federal Reserve maintained interest rates in January, aligning with market expectations, and expressed a positive outlook on economic activity, indicating a cautious approach to future rate adjustments based on economic data [4] - Recent economic data has shown resilience, which may limit the scope for interest rate cuts in the near term [4] - Geopolitical tensions have led to a rebound in oil prices, although an oversupply situation is expected to limit the upward movement of international oil prices [4] Sector Focus - The travel sector is experiencing strong demand as the Lunar New Year approaches [7] - The AI sector is seeing rapid growth due to intensive upgrades in AI models, benefiting the semiconductor industry [7] - The innovative pharmaceutical sector continues to see significant licensing deals and ongoing international expansion [7] Macro Focus - The People's Bank of China is expected to implement a moderately loose monetary policy, utilizing tools such as reserve requirement ratio cuts and interest rate reductions to support economic growth and stabilize prices [8] - The central bank aims to maintain liquidity and financing conditions that align with economic growth and price level expectations [8]

Major Events - Xian Dao Intelligent (00470) received a subscription rate of 79.54 times for its public offering in Hong Kong, with a final issue price of HKD 45.8 per share [1] - Shishi Pharmaceutical Group (02005) is expected to win bids for 45 products in the national centralized procurement [1] - Gilead Sciences-B (01672) has selected the oral amylin receptor agonist peptide ASC36 for clinical development [1] - China Railway Construction (01186) recently won major projects totaling CNY 451.42 billion [1] - Shoucheng Holdings (00697) invested in Qimiao Labi through its subsidiary fund, focusing on expanding its product matrix around core intellectual property [1] - Minshi Group (00425) plans to establish a joint venture to produce aluminum body frame components [1] - Fubo Group (03738) has reached a strategic cooperation with Xinglu Technology [1] - Jin Xun Resources (03636) plans to increase capital by a total of USD 44 million for its overseas subsidiaries [1] - Changfei Optical Fiber and Cable (06869) experienced abnormal fluctuations in A-share trading, clarifying that it does not engage in CPO-related businesses [1] Operating Performance - SMIC (00981) reported Q4 revenue of USD 2.489 billion, a quarter-on-quarter increase of 4.5%, with a gross margin of 19.2% [1] - PCCW (00008) reported a loss attributable to shareholders of HKD 253 million for the fiscal year 2025, narrowing by 16% year-on-year [1] - WuXi Biologics (02269) issued a positive profit alert, expecting a year-on-year profit increase of approximately 46.3% to CNY 4.908 billion for the fiscal year 2025 [1] - Dongyue Group (00189) issued a positive profit alert, anticipating over 100% year-on-year growth in profit attributable to owners for 2025 [1] - Elephant Future Group (02309) issued a positive profit alert, expecting a mid-term profit attributable to owners of approximately HKD 178 million, reversing from a loss [1] - Sihuan Pharmaceutical (00460) issued a positive profit alert, expecting revenue of no less than CNY 2.5 billion for 2025, with a growth rate exceeding 30% compared to the previous year [1] - Beijing Automotive (01958) expects a net profit attributable to the parent company of approximately CNY 110 million to CNY 130 million for 2025, a year-on-year decrease of about 86.4% to 88.5% [1] - COFCO Joycome (01610) issued a profit warning, expecting a loss attributable to shareholders of approximately CNY 230 million to CNY 350 million, reversing from profit year-on-year [1] - New Town Development (01030) achieved a contract sales amount of approximately CNY 714 million in January, a year-on-year decrease of 29.79% [1] - Yue Yuen Industrial (00551) reported a net operating income of approximately USD 705 million in January, a year-on-year decrease of 12.5% [1] - Baoshan International (03813) reported a cumulative net operating income of CNY 1.748 billion in January, a year-on-year decline of 32.5% [1]

Group 1 - The core point of the article is that Gilead Sciences-B (01672) has deposited shares worth HKD 1.129 billion into Standard Chartered Bank (Hong Kong), representing 6.93% of its total shares [1] - Gilead Sciences-B announced that its board has selected its first oral amylin receptor agonist peptide, ASC36 oral tablets, for clinical development [1] - The company expects to submit an Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) for ASC36 oral tablets for the treatment of obesity in the second quarter of 2026 [1]

Core Insights - The company has selected its first oral glucagon-like peptide-1 (GLP-1) receptor agonist, ASC36 oral tablets, for clinical development, with plans to submit an Investigational New Drug (IND) application to the FDA in Q2 2026 [1] Group 1: Drug Development - ASC36 oral tablets are developed using the proprietary oral peptide delivery enhancement technology (POTENT) [1] - In non-human primates, the absolute oral bioavailability of ASC36 was 8% for the 10 mg dose and 6% for the 25 mg dose, with elimination half-lives of 116 hours and 167 hours respectively, supporting once-daily dosing [1][2] - ASC36 demonstrated significant weight loss effects in both non-human primates and diet-induced obesity (DIO) rat models, achieving up to a 13.2% reduction in average body weight relative to baseline after 7 days of treatment [2] Group 2: Competitive Advantage - In head-to-head comparisons with other GLP-1 receptor agonists, ASC36 achieved weight loss effects that were approximately 32% and 91% better than eloralintide and petrelintide respectively [2] - The potential for superior oral bioavailability and efficacy may allow for lower dosing of ASC36 compared to recently FDA-approved GLP-1R agonists, which could lead to cost advantages in manufacturing [2] - The company has developed ASC36 using its Artificial Intelligence-assisted Structure-Based Drug Discovery (AISBDD) technology, contributing to a competitive and diversified product pipeline aimed at addressing diverse treatment needs for obesity and other metabolic diseases [3]