According to the Zhitong Finance APP, after a slight positive open, the three major indices in the Hong Kong stock market fell, with a brief short-term rise during the session, where the Hang Seng TECH Index rose nearly 1% at one point, but then immediately fell back into the red, and the decline widened in the afternoon. As of the close, the Hang Seng Index fell by 0.36% or 71.98 points, closing at 19688.29 points, with a total transaction amount of 121.635 billion HKD; the Hang Seng China Enterprises Index fell by 0.33%, closing at 7135.48 points; the Hang Seng TECH Index fell by 0.18%, closing at 4395.08 points.

CICC pointed out that the A-share and Hong Kong stock markets unexpectedly weakened in the first week of 2025, catching many investors off guard. However, the performance of the Hong Kong stock market was better than that of the A-share market, reaffirming the bank's several judgments: 1) The overall market has not yet escaped the震荡格局; 2) At the current position, there is room to go up or down, so caution remains the main approach in the short term; 3) The main advantages of the Hong Kong stock market compared to A-shares come from its valuation and industry structure attractiveness.

Blue chip performance

XINYI SOLAR (00968) led the blue chips. At the close, it was up 5.02%, closing at 3.14 HKD, with a transaction volume of 0.193 billion HKD, contributing 1.19 points to the Hang Seng Index. XINYI SOLAR expects its net profit in 2024 to decline by 70-80% year-on-year to 0.77-1.15 billion RMB. Looking ahead, Goldman Sachs suggests that investors pay attention to the company's improvement in fundamentals, including the progress of production cuts in the first quarter of this year, and the potential seasonal demand recovery in the second quarter, believing that it can speed up inventory digestion, restoring the industry's profitability, and expects that XINYI SOLAR could gain more market share in the long term due to cost advantages and overseas layout.

In other blue chip stocks, JD HEALTH (06618) rose by 2.82%, closing at 27.3 HKD, contributing 1.34 points to the Hang Seng Index; SINOPHARM (01099) rose by 1.2%, closing at 21.05 HKD, contributing 0.52 points to the Hang Seng Index; CHINA RES BEER (00291) fell by 3.74%, closing at 23.15 HKD, dragging down the Hang Seng Index by 2.29 points; OOIL (00316) fell by 3.19%, closing at 115.4 HKD, dragging down the Hang Seng Index by 0.82 points.

Hot sectors

On the market, large Technology stocks showed mixed results, with Tencent down 1.16%, Alibaba down 0.54%, and JD.com up 1.12%. Bitcoin has returned above $99,000, and Concept stocks related to Cryptos were strong throughout the day, with GRANDSHORES soaring 22%; most Biomedical stocks rose, with HBM Pharma increasing nearly 17%; the surge in flu cases drove related Pharmaceutical sales up, with SHANDONG XINHUA and HEC CJ PHARM both rising over 6%; China-Affiliated Brokerage stocks, solar stocks, some chip stocks, and Autos also advanced. On the other hand, Mainland Real Estate and CSI Consumer 360 index stocks all saw declines, with SUNAC at one point dropping nearly 18%.

1. Concept stocks related to Cryptos had strong gains. By the close, GRANDSHORES (01647) was up 22.22%, reporting HKD 0.088; BOYAA (00434) was up 12.47%, reporting HKD 5.23; OKG TECH (01499) was up 12.05%, reporting HKD 0.186; LINEKONG (08267) was up 10.64%, reporting HKD 0.52.

After a sharp correction at the end of 2024, Bitcoin prices returned above $99,000. As of the time of writing, Bitcoin was valued at $99,497 each. It is reported that Michael Saylor, co-founder and executive chairman of the publicly listed company MicroStrategy known for holding Bitcoin, posted a Bitcoin tracking chart on Sunday, suggesting that MicroStrategy will again push for Bitcoin acquisition on Monday. Additionally, an Analyst pointed out that Bitcoin could rise to over $0.125 million in the first quarter or possibly drop to around $0.077 million, depending on whether the incoming President Donald Trump will quickly fulfill his promises to the Cryptocurrency industry after taking office.

2. Some Pharmaceutical stocks strengthened. By the close, SHANDONG XINHUA (00719) was up 6.18%, reporting HKD 6.36; HEC CJ PHARM (01558) was up 6.54%, reporting HKD 9.94.

According to the latest data from the China CDC on January 5, the positive rate of influenza virus continues to rise, with over 99% being Type A influenza. With the increase in flu infections, sales of Antiviral medications have recently continued to grow. Currently, the main available Antiviral drugs for influenza in the domestic market include Oseltamivir, Abidol, Marbofloxacin, Zanamivir, and Peramivir. Many pharmacies have reported tight supply of Marbofloxacin, with some pharmacies already sold out.

Public information shows that Shandong Xinhua Pharmaceutical is a significant global supplier of antipyretic analgesic drugs, with products including Ibuprofen, Aspirin, and Meloxicam series; HEC CJ PHARM's main products include the flu drug Kewei (Oseltamivir capsules and granules). Kewei, as the company's core product, accounts for about 60% of hospital sales, with coverage rates in secondary and tertiary hospitals reaching 70% and 76%, respectively. Oseltamivir products have attained a leading position in the domestic flu treatment market.

3. Most solar stocks rebounded. By the close, XINYI SOLAR (00968) was up 5.02%, reporting HKD 3.14; XINTE ENERGY (01799) was up 4.5%, reporting HKD 7.43; FLAT GLASS (06865) was up 2.66%, reporting HKD 11.56; GCL NEWENERGY (00451) was up 2.13%, reporting HKD 0.48.

According to the Silicon Industry Association, both silicon wafers and Solar Cells have seen a certain increase in prices this week, due to supply not meeting demand. HAITONG INT'L believes that against the backdrop of the national cleanup of "involution" competition, the solar energy industry is actively implementing supply-side self-discipline actions, with leading companies taking the lead. Based on the current upward trend in prices, the effects of self-discipline actions are starting to show. Recently, the solar sector has seen some price adjustments with a relatively tepid atmosphere. The firm believes that the fundamentals of the solar industry are at a turning point upward, with supply-demand and inventory levels beginning to show a positive trend, and the solar sector stock prices, after short-term adjustments, now offer a high investment cost-effectiveness.

4. Mainland Real Estate stocks saw an increase in decline in the afternoon. By the close, SUNAC (01918) fell 14.35%, closing at 1.91 HKD; RONSHINECHINA (03301) dropped 12.68%, closing at 0.31 HKD; SINO-OCEAN GP (03377) decreased 7.85%, closing at 0.223 HKD; AGILE GROUP (03383) fell 5.71%, closing at 0.66 HKD.

UBS Group released a report on Mainland Real Estate stocks, expecting several trends from last year to continue this year, including an increase in the proportion of second-hand housing sales, the rising importance of the rental market, ongoing challenges for high-end malls, the emergence of Chinese REITs under low interest rates, and the weakening influence of policies on the domestic housing market and Mainland Real Estate stocks. The bank also expected the trend of destocking in the Mainland Real Estate sector to continue this year. It forecasts that the selling area of newly completed residential properties and new starts will fall by 10% and 15% year-on-year respectively, with first-tier city housing prices declining by 10% year-on-year. The bank's latest inventory model shows that destocking may be completed by the middle of next year, earlier than the previously expected third quarter of next year, benefiting from recent policy stimulus.

Popular stocks with abnormal movements

1. UBTECH (09880) performed strongly throughout the day. By the close, it rose 10.58%, closing at 51.2 HKD.

On January 5, UBTECH announced that the company's CTO and Executive Director Xiong Youjun, Executive Director Wang Lin, and individual shareholder Zhao Guoqun committed not to sell any shares they directly hold in UBTECH for 12 months starting from January 5, 2025. This is the second lock-up announcement from core executives of the company following the founder, Board of Directors Chairman, and CEO Zhou Jian.

2. KANOTE (02276) reached a new high again. By the close, it rose 8.03%, closing at 26.9 HKD.

GTJA pointed out that the company is actively laying out its smart eyewear business and will benefit from the accelerated development of the industry. AI smart glasses are the best hardware carrier for AI implementation, and the industry is entering a rapid development phase. The company is progressing smoothly with collaboration initiatives and will be among the first to benefit. SWHY stated that GoerTek intends to continuously subscribe to and acquire company shares, demonstrating recognition within the Industry Chain, while also likely empowering the development of the company's related business and opening up future growth space.

3. BESTSTUDY EDU (03978) surged in the early session. By the close, it rose 6.38%, closing at 4 HKD.

BESTSTUDY EDU announced that the Board of Directors has approved the dividend plan for the fiscal years 2024, 2025, and 2026 (three-year dividend plan). According to the three-year dividend plan, the company plans to gradually increase the dividend payout ratio to 50%, 60%, and 70% of the net income attributable to the company owners for the previous fiscal year over the next three years, with the final and interim dividends paid in two installments.

4. MTR CORPORATION (00066) had a weak performance. At closing, it fell 1.51% to 26.05 HKD.

Last week, market news indicated that MTR CORPORATION plans to invest in maintenance, updates, and several new railroad projects over the next 10 to 12 years, potentially exceeding 160 billion HKD. If new lines under study are included, the total investment could reach as high as 200 billion HKD. In light of the potential expenditure reaching 200 billion, MTR CORPORATION is currently exploring cost-saving measures, including considering bond financing and the sale or mortgage of malls or other properties, potentially adopting a 'comprehensive approach' to meeting funding needs.