UOB Kay Hian stated that the Chinese stock market rebounded in January, with the Hang Seng Index and MSCI China Index rising 6.9% and 5% month-on-month, respectively. However, overall gains were constrained by the “national team,” led by Central Huijin, which sold $68 billion worth of shares. Among its top-performing selected stocks for January were Wuxi Bio (02269.HK) and Smart Sunny Holdings (01523.HK), both rated as buys, delivering returns of 17.7% and 16.6%, respectively.
UOB Kay Hian noted that market conditions in February may remain volatile, but maintained a constructive view on the mid-term outlook. The exponential rise in gold and silver prices over the past two months saw a sharp correction at the beginning of February, potentially forcing leveraged long positions to be liquidated and spilling over into equity markets. Therefore, the market is likely to stay volatile in February, but due to supportive macro policy environments, the firm remains constructive on the mid-term outlook. Alibaba-W (09988.HK), Ganfeng Lithium (01772.HK), and Minth Group (00425.HK) have been added to the buy list, while Meituan (03690.HK) has been added to the sell list. Regrettably, the firm had to execute stop-loss sales on Midea Group (000333.SZ), PDD Holdings (PDD.US), Sunny Optical (02382.HK), and Wuxi Bio (02269.HK).
