Market Overview - The Hang Seng Index is expected to fluctuate around 26,000 points due to anticipated interest rate cuts by the Federal Reserve and a cautious outlook on corporate earnings in Hong Kong [1] - The U.S. Federal Reserve announced a 0.25% interest rate cut, marking the third consecutive reduction, with projections for one more cut in 2026 and 2027 [3][5] - The Chinese service sector's PMI dropped to 52 in December, indicating the weakest expansion rate in six months, while the composite PMI slightly increased to 51.3 [7] Company News - Alibaba (9988) is applying visual AI technology in the restaurant sector to compete with Meituan (3690) for market share [9] - Sunny Optical (2382) is considering a spin-off of its automotive optical business for a separate listing in Hong Kong [9] - China National Airlines (0753) reduced its stake in Cathay Pacific (0293) by over 6%, realizing approximately 1.3 billion HKD [3] Sector Focus - The National Development and Reform Commission (NDRC) is promoting new economic growth points in quantum technology, hydrogen energy, and brain-computer interfaces [2][7] - The biopharmaceutical sector in China saw a record high in new drug licensing transactions last year, indicating sustained demand [6] - The insurance sector is benefiting from strong A-share performance, leading to improved investment returns [6] IPO Market Outlook - PwC forecasts that Hong Kong will see around 150 new IPOs in 2026, raising between 320 billion to 350 billion HKD, potentially ranking among the top three globally [7] Real Estate Market - In December 2025, Hong Kong recorded 8,999 property sale contracts, a 26.4% increase month-on-month, with a total value of 65 billion HKD [8] - The Centaline Property Index reached a 19-month high, reflecting ongoing positive sentiment in the real estate market [8]

Market Overview - The Hang Seng Index (HSI) is expected to find short-term support around the 25,000 point level, following the Federal Reserve's interest rate cut of 0.25% in December, with market expectations for two additional rate cuts in 2026 after the leadership change [2][5] - Despite the Fed's rate cuts and increased monetary policy space in mainland China, the economic situation remains stable, and there is limited incentive for further policy easing in the short term [2] - The focus is on the Central Economic Work Conference's deployment, with the 14th Five-Year Plan emphasizing expanding domestic demand and promoting technological self-reliance [3] Company News - Sanhua Intelligent Control (2050) forecasts a net profit growth of 25%-50% for the year, driven by its leadership in the refrigeration and air conditioning parts industry and strong demand in the automotive parts sector [4][12] - Cathay Pacific (0293) reported a 26% increase in passenger numbers in November, with expectations for annual performance to surpass last year [4][12] - Vanke (2202) has extended the grace period for its domestic bond, with a principal amount of 2 billion yuan, although the proposal for a one-year extension was not approved [4][12] - Geely Automobile (0175) has completed the privatization of Zeekr, which will now operate as a wholly-owned subsidiary [4][12] Industry Insights - The telecommunications industry in mainland China reported a cumulative revenue of 1.61 trillion yuan in the first eleven months, reflecting a year-on-year growth of 0.9% [10] - The Hong Kong stock market led global IPO financing in 2025, with a total of 274.6 billion HKD raised, marking a significant increase from the previous year [10] - The insurance regulatory authority in Hong Kong is proposing new regulations to guide insurance capital towards cryptocurrencies and infrastructure assets [10][11] - The automotive sector saw the top ten SUV manufacturers sell 9.583 million units from January to November, accounting for 65.9% of total SUV sales [10]

Market Overview - The Hang Seng Index is expected to fluctuate around 26,000 points due to the Federal Reserve's hawkish stance on interest rate cuts and ongoing uncertainties in the US-China trade relations [1] - The third quarter economic performance in mainland China has further cooled, prompting a focus on expanding domestic demand and promoting technological self-reliance as outlined in the 14th Five-Year Plan [1] Company News - Pony.ai (2026) has set its share offering price at HKD 139 [3] - Geely has acquired a 26.4% stake in Renault's Brazilian operations, allowing it to benefit from production and sales at the Brazilian factory [3] - Chow Tai Fook (1929) has adjusted prices for some gold products starting today [3] - Sa Sa International (0178) has issued a profit warning, expecting a mid-term profit increase of over 50% [3] Economic Indicators - The US Federal Reserve announced a 0.25% interest rate cut, lowering the target range to 3.75% to 4.00%, and plans to end balance sheet reduction starting December [4] - The Hang Seng Index closed at 26,158 points, up 0.97%, with a trading volume of HKD 228.7 billion [5] - The manufacturing PMI in China fell to 50.6 in October, below expectations, indicating a slowdown in economic activity [7] Sector Focus - The insurance sector is seeing improved investment returns in Q3 due to strong performance in A-shares [6] - AI concept stocks are benefiting from accelerated applications of "Artificial Intelligence+" in mainland China, with breakthroughs in chip development [6] - Macau gaming stocks reported October gaming revenue exceeding expectations, reaching a nearly six-year monthly high [6] Regulatory Developments - The Hong Kong Monetary Authority has launched the "FinTech 2030" initiative, focusing on over 40 projects across four key areas to enhance the financial technology landscape [8] - The Securities and Futures Commission has issued new guidelines to facilitate licensed virtual asset trading platforms, allowing them to merge trading instructions with affiliated overseas platforms [8]

Market Performance - Hong Kong stocks weakened. The Hang Seng Index opened 212 points lower, with its decline narrowing to 109 points in the morning session and then widening again. It closed down 356 points or 1.4% at 26,128 points. The Hang Seng China Enterprises Index fell 141 points or 1.5% to 9,303 points, and the Hang Seng Tech Index dropped 184 points or 2.9% to 6,195 points. The total turnover of the market was HK$323.674 billion [1] - A - share market: The Shanghai Composite Index closed at 3,828 points, down 25 points or 0.7%, with a turnover of RMB 92.79 trillion. The Shenzhen Component Index closed at 13,209 points, down 236 points or 1.8%, with a turnover of RMB 1.22 trillion. The ChiNext Index closed at 3,151 points, down 84 points or 2.6%, with a turnover of RMB 567.1 billion [2] - US stocks rebounded on Friday. The Dow Jones Industrial Average rose 299 points or 0.7% to 46,247 points. The S&P 500 Index rose 38 points or 0.6% to 6,643 points, and the Nasdaq Composite Index rose 99 points or 0.4% to 22,484 points [2] Monetary Policy and Exchange Rate - The People's Bank of China conducted 7 - day reverse repurchase operations worth RMB 165.8 billion at an operating rate of 1.4% and 14 - day reverse repurchase operations worth RMB 600 billion on the 26th. There were RMB 354.3 billion of reverse repurchases maturing. The central parity rate of the RMB against the US dollar was lowered by 34 points to 7.1152 [2] - The CFETS RMB exchange - rate index rebounded 0.61 to 96.97 on a weekly basis on the 26th. The BIS currency - basket RMB exchange - rate index rose 0.73 to 102.87, and the SDR currency - basket RMB exchange - rate index rose 0.44 to 91.34 [5] Oil Market - Due to rising oil prices, OPEC+ may approve an increase in oil production by at least 137,000 barrels per day at its October 4th meeting to regain market share. OPEC+ has reversed its production - cut strategy since April and has increased its daily production quota by more than 2.5 million barrels, about 2.4% of global demand. The October 5th meeting will discuss an increase of at least 137,000 barrels per day in November, but no final decision has been made [3] Stock Market Valuation - The "Buffett Indicator" measuring the degree of over - valuation has risen to 217% as of the end of June, breaking the previous record and higher than the 190% level during the millennium dot - com bubble and the COVID - 19 period. When the indicator drops to 70% - 80%, it may be profitable to enter the market, while when it rises to 200%, it is risky [3][4] Trade Policy - The Trump administration is studying new tariffs on imported electronic products containing chips, calculating the number of chips in the products to force companies to move manufacturing back to the US. The US Department of Commerce initially plans to estimate the value of chips in products and levy tariffs proportionally. If implemented, it will cover a wide range of consumer goods [4] Logistics and Industrial Data - China's logistics demand has maintained rapid growth this year. The total social logistics volume in the first eight months was close to RMB 230 trillion, with stable expansion in scale and continuous optimization and upgrading in structure [4] - The total profits of industrial enterprises above designated size in China increased by 0.9% year - on - year in the first eight months. In August alone, the profits of these enterprises increased by 20.4% after a 1.5% decline in July, showing obvious improvement [4] Company News - Meituan's international food - delivery brand Keeta officially launched operations in Dubai, UAE on September 27th, its third Middle - Eastern market in 40 days [5] - Xiaomi 17 series phones went on sale on the 27th. The Xiaomi 17 Pro Max accounted for over 50% of the sales volume in the Xiaomi 17 series and broke the sales and revenue records of domestic mobile phones in all price segments on the first - sale day [5] - Tmall announced that the 2025 "Double 11" will be divided into a pre - sale and an on - spot sale stage. The pre - sale will start at 2 pm on October 15th, and the on - spot sale will start at 8 pm on October 20th [5] - New World Development reported a widened loss attributable to shareholders from continuing operations of HK$16.301 billion for the year ended June 30th, and no dividend was declared [6]