Market Overview
▪ On February 13, the three major indices of the Hong Kong stock market collectively weakened in the morning session. After a strong breakout that set a new high yesterday, the market faced significant profit-taking pressure this morning. By the close of the midday session, all three indices had turned from gains to losses, showing a decline across the board, indicating that risk aversion among investors is rising at high levels, and the market has entered a short-term digestion and consolidation phase.
▪ The Hang Seng Index closed at 26,548.41 points, down 1.79%, with the index's focus shifting downward, entering a technical correction zone in the short term.
▪ The Hang Seng Tech Index reported 5,319.88 points, down 1.65%, as the technology sector weakened after consecutive gains, with constituent stocks generally retreating.
▪ The Hang Seng China Enterprises Index reported 9,015.42 points, down 1.74%, following the broader market's downward trend, indicating that the divergence between bulls and bears is intensifying at high levels, and the market may maintain a volatile trend in the short term.
Sector Performance
▪ The internet content and information sector showed a downward trend, with regulatory interviews and competitive pressures leading to a collective weakness in tech stocks. Tencent Holdings fell 1.68%, although it attracted attention from southbound funds, the stock price adjusted with the market due to regulatory interviews regarding compliance in train ticket sales during the Spring Festival and competitive pressure from ByteDance; Baidu -SW fell 3.78%, with tightening regulatory expectations and siphoning effects from surrounding markets leading to capital outflows for risk aversion; Kuaishou -W fell 2.08%, facing fierce competition in the short video and live e-commerce sectors, with market sentiment becoming cautious.
▪ The retail sector overall declined, with regulatory compliance and competition for traffic suppressing performance. JD.com -SW fell 3.04%, affected by regulatory interviews regarding ticket grabbing and tightening liquidity, leading to capital withdrawal for risk aversion; Alibaba -W fell 2.27%, facing compliance rectification requirements for Fliggy and traffic diversion challenges from ByteDance; Miniso fell 1.25%, dragged down by the weak market and the retail consumption sector's correction, showing relatively low performance.
▪ The restaurant sector showed a mixed trend, with regulatory impacts causing leading stocks to plummet, while capital rotation led to localized activity. Meituan -W plummeted 4.54%, leading the sector down, with regulatory interviews and ByteDance's penetration into local life creating dual negative pressures; Haidilao rose 2.22% against the trend, benefiting from expectations of a recovery in consumption during the Spring Festival, attracting defensive capital; Yum China fell 1.20%, lacking clear positive catalysts, slightly adjusting with the broader market.
Macroeconomic Background
▪ Recently, macro data for the Hong Kong stock market is in a release window, with market focus shifting to external liquidity and verification of economic recovery in the mainland. In the absence of significant indicator guidance, expectations for the Federal Reserve's interest rate path have significantly amplified their impact on the Hong Kong dollar exchange rate and capital flows. Investors are closely monitoring the performance of heavyweight stocks to assess the effectiveness of the mainland's stable growth policies, with the market expected to maintain a volatile consolidation in the short term, awaiting a new round of catalysts.
Popular Stocks
▪ Tencent Holdings (00700) fell 2.28%, with a trading volume of HKD 12.026 billion. Affected by the overall risk aversion sentiment in the market and the broad decline in tech stocks, the stock price fell on the day, reaching a new low in recent adjustments. Despite the pressure on the stock price, on February 12, southbound funds net bought HKD 1.429 billion, ranking first in the net buying list of Hong Kong Stock Connect, with domestic capital significantly increasing its holdings against the trend, showing recognition of the long-term value of leading stocks
▪ MEITUAN-W (03690) fell 4.50%, with a transaction volume of HKD 3.831 billion. On February 12, the Beijing Municipal Market Supervision Administration interviewed the company regarding issues related to online train ticket sales, requiring it to standardize its operations. The regulatory interview has temporarily suppressed market risk appetite, but southbound funds have net bought over HKD 1.6 billion for three consecutive days, indicating that investors remain optimistic about its long-term competitiveness in the local lifestyle sector.
▪ Xiaomi Group-W (01810) fell 1.56%, with a transaction volume of HKD 2.746 billion. Lei Jun announced the official discontinuation of the first-generation Xiaomi SU7, with cumulative deliveries nearing 370,000 units, marking a smooth iteration of the product cycle. The company received a net purchase of HKD 1.02 billion from southbound funds, and a HKD 2.5 billion repurchase plan is also ongoing, with the market expecting new models to drive profit growth.
▪ Zhipu (02513) rose 28.68%, with transaction volume undisclosed. Benefiting from the surge of domestic large models and technological breakthroughs, the stock has accumulated a rise of over 130% this week, with a single-day surge reaching a historic high. As a leading stock in the large model sector, its strong performance has significantly enhanced the market's valuation premium regarding the landing and commercialization prospects of AI applications.
Market Transaction Volume TOP10
▪ Tencent Holdings (00700.HK) latest transaction price HKD 526.5, down 1.68%, transaction volume HKD 7.082 billion
▪ Alibaba-W (09988.HK) latest transaction price HKD 155.0, down 2.27%, transaction volume HKD 4.931 billion
▪ MEITUAN-W (03690.HK) latest transaction price HKD 81.0, down 4.54%, transaction volume HKD 4.547 billion
▪ AIA Group (01299.HK) latest transaction price HKD 80.6, down 3.82%, transaction volume HKD 2.242 billion
▪ Xiaomi Group-W (01810.HK) latest transaction price HKD 36.32, down 0.55%, transaction volume HKD 1.982 billion
▪ Hua Hong Semiconductor (01347.HK) latest transaction price HKD 100.1, up 0.55%, transaction volume HKD 1.768 billion
▪ Hong Kong Stock Exchange (00388.HK) latest transaction price HKD 405.4, down 2.08%, transaction volume HKD 1.689 billion
▪ China Life Insurance (02628.HK) latest transaction price HKD 32.64, down 4.95%, transaction volume HKD 1.649 billion
▪ Zijin Mining (02899.HK) latest transaction price HKD 42.68, down 5.20%, transaction volume HKD 1.57 billion
▪ SMIC (00981.HK) latest transaction price HKD 70.1, up 0.43%, transaction volume HKD 1.532 billion

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On February 13th, the three major indices of Hong Kong stocks collectively weakened in the morning session, with the Hang Seng Index falling by 1.79% and the Hang Seng TECH Index dropping by 1.65%. Affected by regulatory interviews and profit-taking pressure, technology stocks fell across the board, with MEITUAN down 4.54%, Baidu down 3.78%, and JD.com down 3.04%. Although Tencent continued to attract attention from southbound funds, its stock price still adjusted down by 1.68%. Individual stocks showed divergence, with AI concept stock Zhipu surging over 28% against the trend, and catering leader Haidilao rising by 2.22%. Market risk aversion sentiment is rising, entering a phase of digestion and consolidation in the short term

- On February 13, Hong Kong's three major indices fell after a recent high, indicating profit-taking pressure amid heightened risk aversion.  
- The Hang Seng Index closed at 26,548.41 points, dropping 1.79%, with the technology and retail sectors, including Tencent and Alibaba, showing significant declines due to regulatory concerns.  
- Market focus is shifting to external liquidity and mainland economic recovery, as the upcoming macro data release is anticipated to influence market direction.

Market Heartbeat

TENCENT

BIDU-SW

KUAISHOU-W

JD-SW

BABA-W

MNSO

HAIDILAO

MEITUAN

YUM CHINA

XIAOMI-W

KNOWLEDGE ATLAS

Tencent Holdings Limited

Dacheng Hang Seng Technology ETF(QDII)

Tencent

Hang Seng TECH Index

Hang Seng Index

CAM HS TECH

CSOP HS TECH

HSTECH ETF

FL2 CSOP HSI

Baidu

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

Tianhong Hang Seng TECH ETF(QDII)

FI2 CSOP HSI

ChinaAMC Hang Seng Technology ETF(QDII)

Hong Kong Stock Midday Review | The Hang Seng Index fell 1.79%, tech stocks collectively declined, while AI concept stock Zhipu surged over 28% against the trend