Group 1 - The Hang Seng Index opened down 0.21%, and the Hang Seng Tech Index fell 0.22%. The new energy vehicle sector led the gains, with NIO rising over 3% and Xpeng Motors increasing more than 2%, while tech stocks adjusted [1] - Huatai Securities noted that the volatility in asset performance and frequent style and sector rotations have led to a decline in the clarity of main lines in the market, with a weaker activity level for risk assets towards the end of the year. They identified two major consensus points: 1) The logic for the bulk commodity sector is solid and subject to rapid revaluation; 2) Weak recovery in domestic demand suggests a left-side allocation in the consumer sector [1] - CITIC Securities highlighted the recent appreciation of the RMB, which is favorable for the performance of RMB-denominated equity assets. They expect stable macro-financial conditions to lead to a stable banking operating environment by 2026, with bank interest margins bottoming out and income and profit recovery in the real sector [1] - Founder Securities mentioned that the central economic work conference and the Ministry of Finance have clarified the optimization of the "two new" policies, with multiple regions selecting old-for-new platform enterprises. Reports indicate that national subsidies will continue in 2026, with a maximum subsidy of 30,000 yuan per vehicle, focusing on phasing out old high-emission vehicles while enhancing subsidies for new energy and hybrid models [1] Group 2 - Huaxi Securities stated that the pressure from stock unlocks in the Hong Kong market will significantly decrease in January 2026. In December, a total of 113.9 billion HKD was unlocked, which has been a constraint on the market. In January, the unlock market value will drop to 47.2 billion HKD, particularly from mid-January to mid-February, where no companies will have unlock values exceeding 10 billion HKD, indicating a reduction in unlock pressure and potential for a rebound [2]

Group 1 - The Beijing Stock Exchange (BSE) is rumored to change its IPO process to a market capitalization-based system, requiring investors to hold BSE stocks instead of just cash deposits [3] - There are rumors about the launch of the first batch of BSE 50 ETFs, which could enhance liquidity in the BSE market [3] - The A-share market has seen increased trading volume, which may positively impact the BSE if the new IPO rules are implemented [3] Group 2 - The Hong Kong stock market has been underperforming, with a significant decline since mid-November, attributed to a peak in lock-up expirations totaling HKD 126 billion in December [4] - The divergence in A-share fundamentals and poor liquidity in the US market have negatively affected the Hong Kong market, making it less responsive to positive news [4] - The lock-up pressure is expected to ease in January, with expirations below HKD 50 billion, which could be beneficial for the Hong Kong market [4] Group 3 - There is uncertainty regarding further interest rate cuts by the Federal Reserve, with internal divisions on the matter [6] - Former President Trump criticized the current rate cuts as insufficient, advocating for lower rates [7] - Some analysts believe that significant rate cuts may not occur until after the current Fed Chair Powell's term ends in May, with the next chair likely to pursue further cuts [8] Group 4 - If US economic data weakens, it could lead to increased expectations for rate cuts, potentially benefiting the Hong Kong stock market [9] - High dividend yields, particularly those exceeding 6%, are currently seen as attractive investment opportunities in the Hong Kong market [9] - Technology growth stocks may be worth monitoring, but should be approached cautiously until stronger signals for rate cuts are indicated by the Federal Reserve [9]