Mainland China announced 'Three Economic Indicators' today (the 15th). In October, the value added of industrial enterprises above a designated size increased by 5.3% year-on-year, lower than expected. However, retail sales in October increased by 4.8% year-on-year, exceeding expectations. Hong Kong stocks were oscillating today. Federal Reserve Chairman Powell stated that the U.S. economy is strong and may need to remain patient with future interest rate cuts. The Dow and Nasdaq fell by 0.5% and 0.6% respectively on the night of the 14th, with the yield on U.S. two-year bonds at 4.324%, and the yield on U.S. 10-year bonds rising to 4.437%. The U.S. dollar index is at 106.6. Dow futures fell by 262 points or 0.6%, while Nasdaq futures fell by 0.9%. The Shanghai Composite Index fell by 49 points or 1.5% to close at 3,330 points, the Shenzhen Component Index fell by 2.6%, and the Chinext Price Index in mainland China fell by 3.9%, with the total turnover of Shanghai and Shenzhen exceeding nearly 1.83 trillion RMB.

The Hang Seng Index opened 67 points higher, initially fell by 103 points to 19,332 points before rising. It reached as high as 172 points at 19,608 points but fluctuated and closed 9 points lower or 0.05% at 19,426 points, marking a sixth consecutive day of decline (a total decline of 1,527 points or 7.3%). The H-share Index rose by 6 points or 0.1% to close at 6,980 points, and the Hang Seng Tech Index rose by 9 points or 0.2% to close at 4,327 points. The total market turnover for the day was 155.495 billion yuan. Alibaba (09988.HK) fell by 0.9% to close at 87.2 yuan, while Tencent (00700.HK) fell by nearly 0.6%.

The Hang Seng Index fell by 1,301 points or 6.3% this week, the H-share Index fell by 481 points or 6.5% this week, and the Hang Seng Tech Index fell by 340 points or 7.3% this week. The market is focused on the specific scale and effectiveness of mainland China's market support measures, the composition and impact on China of President-elect Trump's future government team in the United States, as well as expectations for the extent of future interest rate cuts by the Federal Reserve.

【Hang Seng Index Falls for Sixth Consecutive Day Netease Bounces Back Against the Market】

JD.com-SW (09618.HK) reported a 24% year-on-year increase in third-quarter net profit under non-U.S. GAAP, beating expectations. However, brokerage firms indicated conservative guidance for the quarter, resulting in a full-day stock price decline of 1.9%. Bank of America Securities published a research report stating that JD.com's third-quarter net revenue increased by 5.1% year-on-year, in line with market expectations. In particular, JD.com's retail revenue rose by 6.1% year-on-year, accelerating from the 1.5% growth in the second quarter, mainly due to the recovery of growth in the self-operated platform (1P) electronics and home appliance categories since September due to the subsidy-driven 'trade-in' program. This performance reflects that central subsidies will continue to benefit JD.com's electronic and home appliance sales in the fourth quarter, and may even continue until 2025.

Netease (09999.HK) reported a 17% decline in third-quarter net profit, lower than expected, but the market's anticipation of the online game version of 'Yan Yun Sixteen Sounds' launching next month caused the stock price to rise by 12%. Goldman Sachs released a report stating that Netease's third-quarter performance exceeded the market's pessimistic expectations, with strong growth in computer games and deferred revenue becoming the highlights of the quarter. Following the earnings release and a conference call with management, the company is expected to see modest revenue growth in the fourth quarter due to a lack of contributions from new mobile games. However, next year's gaming business is expected to reach a turning point as multiple games go live by the end of this year, providing a clearer revenue growth outlook for next year.

【Falling Stocks Reach a Thousand: Cathay Pacific Stock Price Rises】

Today, the overall market weakness continued, with a rise-fall ratio of 19:24 for main board stocks (compared to 10:34 the previous day), with 1,019 declining stocks (a decrease of 2.9%). In the Hang Seng Index constituent stocks, 47 stocks rose today, while 32 fell, with a ratio of 57:39 (compared to 4:95 the previous day). The market recorded short-selling of 26.564 billion yuan today, accounting for 19.568% of the total turnover of short-selling shares at 135.748 billion yuan (compared to 18.516% the previous day).

Cathay Pacific (00293.HK) has proposed to repurchase 6.74 billion yuan of secured convertible bonds, with the full-day stock price soaring by 8.2% to 8.7 yuan. UBS Group issued a report stating that Cathay Pacific, after repurchasing warrants recently, is now considering repurchasing 6.7 billion yuan of convertible bonds due in 2026 based on market conditions, investor demand, and conditions in dealer management agreements. Assuming a conversion price of 7.92 yuan per share, if fully converted, the dilution of equity may be as high as 12%.

UBS Group expects a positive market response to Cathay Pacific's proposed repurchase of convertible bonds. From a fundamental perspective, the bank believes that the market undervalues Cathay Pacific's fleet expansion constraints leading to sustained high ticket prices, which is estimated to increase the group's profit margin in the coming years and strengthen the free cash flow position, potentially further enhancing the cash return prospects for shareholders. Therefore, the bank still regards Cathay Pacific as one of the preferred stocks in the Asia-Pacific aviation sector, with a target price of 10.8 yuan and a "buy" rating.