CI-HSCI@EC2603A

Max Increase in Holdings for Hang Seng China Enterprises and SHK Fund

Max Increase in Holdings for HSCEI ETF, Max Decrease for SenseTime

HSCEI Holding Quantities Increased for Hang Seng China Enterprises, Decreased for China Cinda

Bank of America Increases Holdings in Hang Seng China Enterprises

HSBC China Enterprises Conducts Block Trade

Global X Hang Seng China Enterprises ETF AUM Surges Nearly 79 Times to Surpass $200 Million

HANG SENG CHINA ENTERPRISES MAKES LARGE TRANSACTION

Trade Tensions Ease but Chinese Investors Remain Cautious

HSBC China Enterprise Shares Show Large Transactions

HSBC China Enterprises Engaged in Large Volume Transactions

HSCEI Trades HKD 20,517,776

HSBC Holdings China Enterprise Inc. Engaged in a Large Transaction

Bank of America Report Warns of Significant Adjustment in Chinese Stock Market

Bank of America Increases Holdings in Hang Seng China Enterprises by 4.1722 Million Shares, Total Amount Approximately HKD 322 Million

Korean financial regulatory agency found that securities firms improperly sold Hang Seng China Enterprises Index-linked products to retail investors

GUANZE MEDICAL

PCPD

STARCOIN GROUP

HUILI RES

TIMES UNI GP

MANY IDEA CLOUD

WALNUT CAP

SILKWAVE INC

HUA LIEN INT'L

WAI CHUN GROUP

HSCEI

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CIADY

Hang Seng Indexes Company announced that in the quarterly review results up to December 31, 2025, the Hang Seng China Enterprises Index will add BEKE-W and HORIZONROBOT-W, while removing CHINA RES BEER and Mengniu Dairy. The total number of constituent stocks will remain at 50, and all changes will be implemented after the market closes on March 6, 2026, and will take effect on March 9, 2026

AASTOCKS

Hang Seng China Enterprises Index

HSCEI ETF

Penghua CSI Alcoholic Drink ETF

HORIZONROBOT-W

MENGNIU DAIRY

BEKE-W

CHINA RES BEER

Mengniu Dairy

In the "Quarterly Review," the Hang Seng China Enterprises Index includes BEKE-W and HORIZONROBOT-W while excluding CHINA RES BEER and Mengniu Dairy

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510300

MCHI

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00HSI

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JP Morgan's recent report pointed out that the current market expectations for the earnings growth of Chinese enterprises in the fourth quarter of 2025 are relatively low, with significant upside revision potential. The financial sector is overly pessimistically priced, and the assumed quarter-on-quarter decline of 58% may be difficult to realize. Among the disclosed performances, the positive forecast rate for sectors such as capital markets, industry, and electricity exceeds 60%, indicating structural prosperity signals

Wallstreetcn

Fullgoal CSI 800 Banks ETF

Huatai-PB CSI 300 ETF

iShares MSCI China

Tianshun

Hwabao WP CSI All Share Investment Banking & Brokerage ETF

Defiance Daily Target 2X Long JPM ETF

E Fund CSI 300 ETF Initiating Fund

JPMorgan Chase

China Southern Hang Seng ETF

CSI 300

ChinaAMC CSI Banks ETF

Hang Seng Index

Hwabao WP CSI Banks ETF

ChinaAMC Hang Seng ETF

Huaan CSI Banks ETF

GF Fund CSI HK Connect Financials(ex Banks) Thematic ETF

WP CSI Banks ETF

TRACKER FUND

Guotai CSI All Share Investment Banking & Brokerage ETF

Yinhua CSI All Share Investment Banking & Brokerage ETF

Earnings season brings surprises! JP Morgan: The market's earnings expectations for Chinese companies are too low!

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588170

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Semiconductor Manufacturing International Corporation (SMIC) shareholders approved the acquisition of the remaining 49% equity interest in SMNC during an extraordinary general meeting on February 12, 2026. Approximately 29.19% of the share capital was represented, with China IC Fund abstaining from voting. The acquisition will be financed through renminbi-denominated shares. The latest analyst rating for SMIC stock (HK:0981) is a Buy, with a price target of HK$87.40. SMIC is a key player in the global semiconductor industry, focusing on integrated circuit manufacturing.

- Semiconductor Manufacturing International Corporation held an extraordinary general meeting on 12 February 2026, where shareholders approved the acquisition of the remaining 49% equity interest in SMNC, funded through renminbi-denominated shares.  
- Approximately 29.19% of the share capital participated in the vote, with China IC Fund and its associates abstaining due to their holdings.  
- The latest analyst rating for the stock (HK:0981) is a Buy, with a price target of HK$87.40, reflecting positive sentiment in the market.

Tip Ranks

ChinaAMC Guozheng Semiconductor Chip ETF

ICBCCS CNI HK Connect Technology ETF

XI2CSOPHSTECH

ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF

SMIC

Guotai CSI Semiconductor Material Equipment Theme ETF

Hwabao WP CSI HK Connect Information Technology Composite ETF

SMIC Shareholders Approve SMNC Acquisition at Extraordinary Meeting

China’s largest contract chipmaker, SMIC, anticipates flat revenue for Q1 due to a decline in low-end orders, despite a surge in AI chip demand. In 2025, revenue rose 16.2% to $9.3 billion, with net profit up 39% to $685.1 million. However, profits fell short of analyst expectations, leading to a 3% drop in Hong Kong shares. SMIC's co-CEO noted that strong AI demand has squeezed orders from lower-end product vendors. The company is positioned to address market demands and drive revenue growth in 2026, amid a global semiconductor supply crunch.

南华早报

China’s SMIC expects flat revenue as drop in low-end orders offsets AI growth

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DRAG

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At the beginning of last year, China's appeal as an investment theme seemed to have diminished significantly. Bloomberg posted on X, highlighting a notable reversal over the past 12 months, prompting banks to seize opportunities arising from this shift in trend. The resurgence in interest has led financial institutions to adjust their strategies to benefit from the renewed focus on China as a viable investment destination. This change marks a significant turnaround from the previous sentiment, where China was largely overlooked by investors.

CoinLive

SSE Index

ISHARES A50

Invesco Golden Dragon China

Roundhill China Dragons ETF

CAM CSI300

Fortune SG SSE 180 Value ETF

CSOP A50 ETF

E Fund CNI Value 100 ETF

NASDAQ Golden Dragon China Index

CAM MSCI A50

China's Investment Theme Revives, Banks Rush to Capitalize

BABX

BABA

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03033

09992

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The short selling amount in the Hong Kong stock market reached HKD 18.04 billion in the half-day session, accounting for 16.7% of the total shortable stock turnover of HKD 108.02 billion. The main shorted stocks include Meituan-W with a short selling ratio of 28.2% and a short selling amount of HKD 1.12 billion; CSOP Hang Seng Technology with a short selling ratio of 44.6% and a short selling amount of HKD 1.03 billion; Alibaba-W with a short selling ratio of 16.9% and a short selling amount of HKD 970 million; POP MART with a short selling ratio of 24.1% and a short selling amount of HKD 880 million; and HSCEI with a short selling ratio of 13.8% and a short selling amount of HKD 660 million

BABA 2x Long Daily ETF - GraniteShares

Alibaba

Tianhong Hang Seng TECH ETF(QDII)

ChinaAMC Hang Seng Technology ETF(QDII)

Hwabao CSI HK Equities Internet ETF

CSOP HS TECH

Hang Seng TECH ETF I

KraneShares 2x Long BABA Daily ETF

POP MART

BABA-W

Dacheng Hang Seng Technology ETF(QDII)

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

MEITUAN

Meituan

Ping An HK Equities HSCEI ETF

E Fund CSI HK Connect Internet ETF

The short selling in the Hong Kong stock market for half a day was HKD 18.04 billion, accounting for 16.7% of the total turnover of shortable stocks

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Hong Kong shares rose 339 points (1.3%) to 27,370, nearing a two-week high, driven by positive sentiment from Wall Street's record high. Gains were limited by caution ahead of upcoming Chinese CPI and PPI data. Tech and consumer sectors led the advance, with notable increases from Minth Group (2.4%), Pop Mart Intl. (5.8%), SMIC (4.1%), JD Health Intl. (3.9%), and AIA Group (3.4%). U.S. Treasury Secretary mentioned efforts to enhance communication with China.

- Hong Kong equities rose by 339 points, or 1.3%, to 27,370, nearing a two-week high, influenced by positive trends from Wall Street.  
- U.S. Treasury Secretary Scott Bessent's statement highlighted efforts to improve communication between the U.S. and China, while caution prevailed due to upcoming Chinese CPI and PPI data release.  
- The tech and consumer sectors saw significant gains, with notable movements in Minth Group, Pop Mart Intl., SMIC, JD Health Intl., and AIA Group.

Trading Economics

HS HSI ETF-R-D

MINTH GROUP

CSOP HSI ETF

Hong Kong Shares Extend Rally to Near 2-Week Peak

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The total short selling amount in the Hong Kong stock market reached HKD 44.44 billion, accounting for 17.6% of the tradable short-sellable shares. The main short-sold stocks include: CSOP HS TECH short selling ratio 56.1%, short selling amount HKD 5.28 billion; HSCEI ETF short selling ratio 45.1%, short selling amount HKD 3.24 billion; TENCENT short selling ratio 8%, short selling amount HKD 2.71 billion; TRACKER FUND short selling ratio 6.5%, short selling amount HKD 1.4 billion; XL II CSOPHSTECH short selling ratio 59.9%, short selling amount HKD 1.2 billion

TENCENT

The total short selling in the Hong Kong stock market for the day was HKD 44.44 billion, accounting for 17.6% of the turnover of shortable stocks

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36Kr has learned that as of now, the net inflow of southbound funds has reached HKD 7 billion

36Kr

ISHARESHSI

FL2 CSOP HSCEI

GF Fund HSI SCHK ETF

The net inflow of southbound funds reached HKD 7 billion

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The short selling amount in the Hong Kong stock market for half a day was HKD 22.61 billion, accounting for 17.8% of the total shortable shares traded. The previous day was 18.8%. The main shorted stocks include CSOP HS TECH with a short selling ratio of 56.3% and a short selling amount of HKD 2.83 billion; HSCEI ETF with a short selling ratio of 46.1% and a short selling amount of HKD 1.78 billion; TENCENT with a short selling ratio of 9% and a short selling amount of HKD 1.59 billion; TRACKER FUND with a short selling ratio of 7.4% and a short selling amount of HKD 1.01 billion; and XL2CSOPHSTECH with a short selling ratio of 65.3% and a short selling amount of HKD 820 million

XL2CSOPHSTECH

The short selling in Hong Kong stocks for half a day amounted to HKD 22.61 billion, accounting for 17.8% of the total turnover of shortable shares

Fidelity International analyst Liu Peiqian expects that in 2026, China's economy will continue to be driven by exports, with industry and services becoming new growth engines, and monetary policy will remain stable. Fidelity International's investment director Stuart Rumble predicts that the return on the Chinese stock market will reach 12% this year and next, mainly relying on corporate profit growth. The A-share and H-share markets offer different investment opportunities, with a particular focus on the consumer and healthcare sectors. In terms of real estate, the government will introduce more policies to maintain market stability

ChinaAMC HSCEI ETF(QDII)

ISHARESCSI300

Hang Seng Composite Index

Harvest Hang Seng Consumption ETF

ISHARESCSI300-R

Invesco Great Wall Hang Seng ETF(QDII)

Bosera Hang Seng Health Care ETF(QDII)

GF Fund Hang Seng Consumption ETF(QDII)

Fidelity International expects a return rate of 12% for the Chinese stock market this year and next, with exports continuing to drive economic growth

China's services activity grew at its fastest rate in three months in January, with the RatingDog China General Services PMI rising to 52.3. This increase was driven by stronger new orders and a rise in hiring, reaching a six-month high. Despite this positive trend, an official survey indicated a slowdown in both factory and services activity. Analysts suggest that recent measures may need more time to impact sentiment. Looking ahead, consumption-oriented services are expected to benefit from the upcoming Spring Festival holiday, while producer services may face a seasonal decline.

- A recent private sector survey indicates that China's services sector expanded at its fastest pace in three months in January, driven by increased new orders and recruitment reaching its highest level since July last year.  
- The S&P Global RatingDog China Composite Services PMI rose slightly to 52.3, suggesting improvements in business conditions despite contrasting with official data showing a slowdown in factory and service activities.  
- Looking ahead to February, sectors such as culture, tourism, and dining are expected to grow due to the extended Spring Festival holiday, which is anticipated to see a travel peak with a projected 9.5 billion passenger trips.

Businesstimes News

China services activity picks up in January, hiring hits 6-month high: survey

The chairman of the Mandatory Provident Fund Ratings, Cong Chuanpu, stated that in January, the Mandatory Provident Fund recorded a return of 3.42%, with an average gain of approximately HKD 11,091. Total assets are expected to exceed HKD 16 trillion, setting a new historical high. In January, Hong Kong dollar bonds incurred losses, while Asian stocks and Hong Kong and Chinese stocks performed excellently. Cong Chuanpu holds an optimistic view of the local market this year but reminds Mandatory Provident Fund members that they may face volatility challenges, emphasizing the importance of diversified investment

Accumulated Fund Rating: In January, the average MPF earned approximately HKD 11,091

The short selling amount in the Hong Kong stock market reached HKD 29.16 billion in half a day, accounting for 18% of the total shortable stock trading of HKD 162.45 billion. The top five stocks by short selling amount include TRACKER FUND with a short selling ratio of 26.9% and a short selling amount of HKD 3.23 billion; Tencent Holdings with a short selling ratio of 9.8% and a short selling amount of HKD 2.54 billion; CSOP HS TECH with a short selling ratio of 26.9% and a short selling amount of HKD 2.41 billion; HSCEI ETF with a short selling ratio of 26.7% and a short selling amount of HKD 1.88 billion; and XL II CSOP HS TECH with a short selling ratio of 61.7% and a short selling amount of HKD 1.09 billion

The short selling in Hong Kong stocks for half a day reached HKD 29.16 billion, accounting for 18% of the total turnover of shortable shares

Strategy Report

Hello everyone! I am Dolphin Research. Last week, I emphasized in the Dolphin Research Strategy Weekly that Chinese concept assets deserve a cognitive reassessment. From the asset performance last week, the valuation repair of Hong Kong stocks led by technology has been significant: the PE valuation of the Hang Seng Index and the Hang Seng China Enterprises Index has repaired to around 10X, reaching about the 60th percentile of the past five years. Next, an important question is, how much more room is there for reassessment? Before answering this question, let's first look at how the external economic data has provided a repair environment. 1. Is the U.S. economy overheating again? 1) Is inflation going to rebound? Since the beginning of the year...

Roundhill China Magnificent Seven ETF

Invesco China Tech

Chinese Concept Stocks: How Much Longer Can They "Go Crazy"?

CI-HSCI@EC2603A(20550.HK)

In the "Quarterly Review," the Hang Seng China Enterprises Index includes BEKE-W and HORIZONROBOT-W while excluding CHINA RES BEER and Mengniu Dairy

Earnings season brings surprises! JP Morgan: The market's earnings expectations for Chinese companies are too low!

SMIC Shareholders Approve SMNC Acquisition at Extraordinary Meeting

China’s SMIC expects flat revenue as drop in low-end orders offsets AI growth

China's Investment Theme Revives, Banks Rush to Capitalize