After the Hang Seng Index rose for six consecutive days (a cumulative increase of 1,149 points or 6.7%), it traded cautiously today (23rd). In the individual developments of the US stock market last Friday (20th), the Dow Jones rose by 0.1% to a new high while the Nasdaq fell by 0.4%. At the time of writing, the yield on US 2-year bonds dropped to 3.574 basis points, the yield on US 10-year bonds increased to 3.739 basis points, the US Dollar Index rose to 101.2, Dow Jones futures fell by 28 points or 0.07%, and Nasdaq futures rose by 0.01%. The People's Bank of China restarted the 14-day reverse repurchase and reduced the medium-term lending facility rate to 1.85%. Tomorrow (24th), the People's Bank of China, the China Securities Regulatory Commission, and the China Banking and Insurance Regulatory Commission will hold a press conference to introduce the financial support for economic development. The Shanghai Composite Index rose by 12 points or 0.44% to close at 2,748 points, the Shenzhen Component Index rose by 0.1%, with the total trading volume of the two markets in excess of 551 billion yuan.

After starting low with a decline of 21 points, the Hang Seng Index performed well, rising by 168 points at one point to reach a high of 18,426 points. In the afternoon, it fell by 45 points to a low of 18,212 points but closed the day with a decline of 11 points, just under 0.1%, at 18,247 points. The HSI rose by 7 points or 0.1% to close at 6,389 points. The Hang Seng Tech Index fell by 5 points or 0.2% to close at 3,698 points. The total turnover in the market for the day was 124.289 billion yuan.

Network technology stocks traded with caution, with Alibaba-W (009988.HK) falling by 0.5%, Tencent (00700.HK) dipping nearly 0.3% to close at 387.6 yuan, and Meituan-W (03690.HK) sliding by 2.3% to close at 132.8 yuan. China Aoyuan (03883.HK) introduced Middle Eastern company Multi Gold as a strategic shareholder, resulting in a nearly 1.27 times increase in the stock price with a transaction value exceeding 0.128 billion yuan.

Aoyuan doubles, Xiaomi and AAC Tech rise.

Xiaomi-W (01810.HK) will release the Note14 this Thursday (26th), and it is reported that Xiaomi Auto plans to deliver end-to-end smart driving within the year. The stock rose by 3.4% throughout the day to close at 20.55 yuan, reaching a 52-week high. AAC Tech (02018.HK) saw an increase of nearly 3.9% to close at 29.5 yuan. Goldman Sachs recently released a report stating that Huawei launched the 'Mate XT' foldable phone on September 11th, with each unit priced at 19,999 yuan (2,819 USD) and aiming at the high-end market. The bank observed leading smartphone brand companies launching various forms of foldable smartphones from June to September this year, including flip-fold and tri-fold smartphones. The prices of foldable phones range from 685 USD to 2,819 USD, targeting the high-end market. The upgrades in specifications mainly focus on larger display sizes, thinner speakers, cameras, and batteries. The bank is optimistic about the new smartphones' form and size, which may attract more end-users to upgrade their phones.

Regarding audio and camera aspects, Goldman Sachs stated that foldable phones require thinner bodies to control the overall thickness when folded, leading to a demand for thinner speakers and cameras. Foldable phones bring opportunities for AAC Tech's high-end products, such as advanced speaker technology, innovative materials applications, and high-performance speakers with industry-leading slimness.

Market breadth weakens, Midea bounces back.

The Hong Kong stock market turned weaker today, with a ratio of 19 to 22 for the rise and fall of main board stocks (compared to 28 to 15 on the previous day). Today, there were 38 rising stocks and 39 falling stocks among the Hang Seng Index constituents, with a ratio of 46 to 47 (compared to 91 to 6 on the previous day). The overall short position recorded today was 22.469 billion yuan, accounting for 20.748% of the total turnover of shortable shares of 108.296 billion yuan (compared to 20.343% on the previous day).

Home appliances stocks have support, haier smarthome (06690.HK) rose by 1.7% to close at 26.25 yuan, midea group co., ltd (00300.HK) surged 5.6% to close at 67.6 yuan. Citigroup released a report, initiating coverage on midea group with a "buy" rating for the first time, anticipating accelerated implementation of the central government's "old-for-new" policy in the consumer goods sector. Home appliances are expected to be the most benefited consumer industry in the second half of the year, with the group's sales growth in the second half expected to accelerate. Bullish on its profit visibility, with a target price of 90.08 yuan, corresponding to a forecast pe of around 15 times in 2024.

Citigroup includes midea group in its list of short-term uptrend stocks for the next 90 days, expecting the company to benefit more from the mainland government's "old-for-new" policy to be implemented from September to December. Midea and Haier are the top choices among white appliances enterprises at the bank. The home appliances industry is the preferred industry for the bank in the second half of this year in China's non-essential consumer goods sector, as the "old-for-new" policy can accelerate next year's sales growth and bring greater transparency to profit margins.