Due to the weakness in Network Technology stocks, the Hong Kong stock market declined today. The Dow Jones and NASDAQ in the USA both rose 0.8% and 1.8% last Friday, respectively. At the time of writing, the yield on the USA 2-year Bonds rose to 4.283%, and the yield on the USA 10-year Bonds rose to 4.626%. The US Dollar Index fell to 108.67, while Dow futures rose by 31 points or 0.07%, and NASDAQ futures rose by 0.46%. The Caixin China Services PMI rose to 52.2 in December, surpassing expectations, but the new export order index fell below the critical point for the first time since August 2023 (a nearly two-year low). The onshore RMB fell by 203 points to 7.3296 against the US dollar, a new low since September 2023. The Shanghai Composite Index fell by 4 points or 0.14% to close at 3,206 points, and the Shenzhen Component Index fell by 0.12%, with a total turnover of 1.06 trillion RMB in the Shanghai and Shenzhen markets today.

Hong Kong stocks initially rose and then fell back. The Hang Seng Index opened 88 points higher before retreating, once dropping 132 points to a low of 19,627 points, closing down 71 points or 0.4% at 19,688 points; the National Index fell 23 points or 0.3% to close at 7,135 points; the Hang Seng TECH Index fell 8 points or 0.2% to close at 4,395 points. The total turnover for the day was 121.635 billion HKD. XINYI SOLAR (00968.HK) rose 5%, and the report from CCB International pointed out that XINYI SOLAR issued a profit warning, stating that, based on RMB accounting standards, it expects last year's net profit to decline by 70% to 80% year-on-year, but with a recovery in demand and rationalization of monthly industry output, supply and demand conditions are expected to gradually improve, supporting a rebound in Glass prices in the second quarter of this year and beyond.

Alibaba (09988.HK) and Baidu (09888.HK) each saw their stock prices drop 0.5% and 0.4% throughout the day, while Tencent (00700.HK), Bilibili (09626.HK), and Kuaishou (01024.HK) fell by 1.1% to 1.2%. However, Xiaomi (01810.HK) rose by 0.1% to 36.3 HKD, reaching a new high of 36.85 HKD during the session. Beer stocks were under pressure, with CHINA RES BEER (00291.HK) falling 3.7% and BUD APAC (01876.HK) declining by 2.9%.

[Beer stocks face downward pressure, Sunac has selling pressure]

Some car stocks showed strength, with NIO (09866.HK) and Xiaopeng (09868.HK) rising by 4% and 3.4%, respectively, while the latter partnered with Volkswagen to build the largest super-fast charging network in China. Geely Holding CEO Li Donghui indicated that the target for total vehicle sales is over 5 million by 2027, with Geely (00175.HK) rising by 0.1%. Cui Dongshu, Secretary-General of the Passenger Car Association, stated that the number of price-reducing car models reached 227 last year, surpassing the 148 models for the entire year of 2023, and greatly exceeding 95 models in 2022. He believes that with the strengthening of the promotion subsidies for scrapping and updating vehicles, and the market warming up, the driving effect on the car market is evident; thus, the pressure from price wars has somewhat diminished, leading to a sustained strengthening of the car market by the end of the year.

Some Mainland Real Estate stocks are under pressure, with Sunac (01918.HK) seeing its stock price drop 14.4% to close at 1.91 HKD, while China Oceanwide (03377.HK) fell 7.9% to close at 0.223 HKD. Country Garden (03383.HK), Shimao (00813.HK), and Hopson Development (01813.HK) fell between 5.7% and 6.3%.

[Declines in a thousand stocks, POP MART faced a setback]

Today, the Hong Kong stock market continued to be weak, with a rise and fall ratio of 18 to 24 for Main Board Stocks (compared to 18 to 25 yesterday). There were 1,034 declining stocks (a decline of 2.6%). Among the components of the Hang Seng Index, 31 stocks rose while 41 fell, with a rise and fall ratio of 37 to 49 (compared to 55 to 41 yesterday). The total short-selling today reached 19.558 billion HKD, accounting for 18.185% of the total trading volume of 107.552 billion HKD of shortable stocks (compared to 20.203% yesterday).

POP MART (09992.HK) experienced a decline of 6.1% in stock price, closing at 88.45 yuan. A report from Morgan Stanley suggests that investors may take advantage of the drop in prices due to concerns about a further decline in resale prices of POP MART. The bank expects a sales growth of 35% this year, believing that POP MART will achieve the fastest sales growth among the large consumer companies it tracks. Additionally, due to overseas sales and profit mix expected to account for over half this year, the company's valuation premium is considered reasonable. Morgan Stanley has assigned a rating of 'Shareholding' and a Target Price of 113 yuan for the company.