The market index showed no significant issues, but individual stock performances varied. The Hang Seng Index opened lower with a gap down but managed to recover, closing up 0.14%. Market sentiment stabilized in the absence of speculative rumors and escalating US-Iran tensions. Iranian Foreign Minister Araghchi announced on social media that Iran would hold nuclear talks with the US in Muscat, Oman on the 6th. Iran maintains a firm stance, insisting negotiations focus solely on nuclear issues and excluding discussions on its missile program or regional proxy relationships. As long as the situation does not mirror the Venezuela scenario, concerns remain limited. Consequently, gold lost its upward momentum, with silver prices plunging over 14% on Thursday and gold falling more than 2% to below $4,900 per ounce.
Positively, Russian and Chinese leaders held a video call on February 4th. Russian Presidential Assistant Ushakov stated that President Putin plans to visit China in the first half of 2026, following an invitation from China's leader. Additionally, US and Chinese leaders also spoke on February 4th, with former President Trump describing the conversation as substantive and positive, covering regional situations and economic cooperation, including his planned April visit to China. These密集 communications primarily aim to align positions and prevent miscalculations, with Iran likely being a topic. Overall, the situation appears controllable.
Regarding Panama, reports indicate China has requested state-owned enterprises to suspend new investment projects there. Yesterday's discussion on tech stock declines aligns with major banks' views. Deutsche Bank's latest report reveals a harsh reality: the AI investment frenzy has entered a "shakeout" phase, with index prosperity potentially sustained by just one company. South Korea's market, previously strong, was also affected, with the Kospi Index falling over 3% and Samsung Electronics and SK Hynix both dropping more than 4%. This demonstrates that no one is immune in a broad downturn.
However, declines in US tech stocks do not necessarily dictate the performance of Chinese tech shares. For instance, Novosense (02676) rose nearly 4% after reporting better-than-expected annual results and planning a 10%-25% price increase for related products in Q2. The US market relies heavily on investments from its giants and continuous international capital inflows to support its massive valuations. While some Chinese stocks may be impacted, the sell-off in internet giants appears exaggerated, making a rebound inevitable.
On February 5th, BIDU-SW (09888) announced a new share repurchase program authorizing up to $5 billion in buybacks, effective until December 31, 2028. The board also approved an inaugural dividend policy, potentially including regular and/or special distributions, with the first dividend expected to be announced in 2026. This combination of buybacks and dividends proved effective, driving BIDU-SW up nearly 3%. XIAOMI-W (01810) also rose nearly 3% after repurchasing 4.3 million shares for HK$146 million on February 4th. A CLSA report projected double-digit growth for TENCENT's (00700) gaming business and approximately 20% growth in its advertising business for 2026. TENCENT finally halted its decline, with hopes for active buybacks. MEITUAN-W (03690) plans to acquire Dingdong for $717 million. These countermeasures by giants are crucial for market stability.
After cyclical stocks were favored yesterday, consumer sectors took the spotlight today. Kweichow Moutai Co.,Ltd. (600519.SH) showed strong momentum in A-shares, with consecutive gains directly boosting consumer valuations. In Hong Kong, new consumer leader EAST BUY (01797) surged over 10%, as its unique advantages in proprietary brands and membership models are difficult to replicate, with strong market recognition of its post-transformation performance improvement. Established consumer leader POP MART (09992) saw its new PUCKY Knock-Knock series and Starry Heartthrob series sell out on official websites and command significant premiums on secondary markets. Hidden versions of the PUCKY Knock-Knock/Starry Heartthrob blind boxes fetched premiums of 2-3x/3-6x, while regular versions saw premiums of 70-200%. The stock rose nearly 6% intraday.
Catering stocks performed even more prominently. YUM CHINA (09987) reported 2025 total revenue of $11.797 billion, up 4% year-on-year; net profit of $929 million, up 2%; and EPS of $2.52. A dividend of 29 cents per share was declared. Key highlights included a 11% increase in operating profit and a 25% rise in Q4 operating profit, demonstrating effective scale expansion and efficiency improvements. The company targets over 20,000 stores by 2026, indicating clear long-term growth potential, alongside a $1.5 billion shareholder return. The stock surged over 10%. HAIDILAO (06862) saw founder Zhang Yong return, boosting staff morale and internal management, while emphasizing more aggressive pomegranate plan initiatives to create incremental growth. Its incubated brands primarily source condiments from Yihai, which is poised to benefit from new brand growth. Yihai International (01579) rose over 5%, while HAIDILAO (06862) and Super Hi International (09658) gained nearly 4%.
BRAINAURORA-B (06681) announced at midday a strategic cooperation agreement with Silk Road Boat Technology Co., Ltd. to collaborate on the localization, market promotion, and research translation of digital therapy products for cognitive impairment in Malaysia and Southeast Asia, jointly promoting digital health industry development. The company also confirmed the completion of a placement on January 27, 2026, where placing agents successfully allocated 92 million shares at HK$5.60 per share to no fewer than six placees on a best-efforts basis. Notably, the current stock price is around HK$5, below the placement price, suggesting attractive valuation. Placees likely did not anticipate the 12.09% discount on January 22nd would lead to further declines. With the placement completed and positive developments in Southeast Asian market expansion, the company's stock value is promising. The stock surged over 15%.
The US data center construction boom has triggered an electricity shortage, with natural gas seen as the optimal solution. Data from Global Energy Monitor's Global Oil and Gas Plant Tracker shows that as of January 2026, under-construction natural gas power capacity in the US exceeded 29 GW, more than doubling in a year. However, many projects may not break ground for several years, primarily due to manufacturers' lack of available gas turbines. The CEO of GE Vernova noted that the company's gas turbine contract volume grew about 80% in 2025, but most high-margin orders signed in the past two years will only begin delivery after 2027. Related Hong Kong stocks include: Global Precision (01286), key as a supplier of core castings for gas turbines, with North American turbine expansion driving casting demand and涨价预期, offering significant earnings flexibility; Dongfang Electric (01072), key as its G50 (50MW) and G15 (15MW) gas turbines are in mass production, achieving 0-1 overseas breakthrough in 2025, and currently negotiating with US data center clients, with strong expectations for overseas order finalization.
Cirrus (02507) launched the all-new third-generation Vision Jet (G3 Vision Jet), the latest evolution in its jet product line. The model features a refreshed cabin interior design with premium materials,新增 expanded seating for six adults, and is equipped with ATC datalink and over 30 optimized features. Review: This aircraft targets private and corporate users as well as short-haul charters, emphasizing safety + intelligence + comfort, strengthening differentiated advantages in single-engine private jets. Core upgrades include cabin and capacity: three-row bench seating for 6 adults + 1 child (previous generation 5+2), with superior legroom; premium materials + multiple color schemes, more flexible seating and foldable table layouts; avionics and safety:新增 ATC datalink supporting text communication, reducing cockpit distractions; automatic navigation database updates, alarm-linked electronic checklists, and 3D ground taxiing significantly reduce workload and improve efficiency. ASP is US$150,000-200,000 higher than the previous generation, potentially boosting gross margin; Order situation: 555 deliveries in the first three quarters of 2025 (+15.4%), with a 26.7% market share in Q3, achieving growth against the industry downturn. Cirrus Aircraft is expected to deliver ~800 aircraft for full-year 2025, with ~600 new orders. As a leader in private aviation, Cirrus's precise product iteration through this new model will consolidate its leading position in single-engine private jets. Dual drivers from G7+ piston aircraft + G3 Vision Jet support volume and price increases, with barriers built on safety + ecosystem + market share. Current valuation is lower than peers. Additionally, index companies are expected to announce new adjustment lists in mid-to-late February. The company meets the index companies' requirements based on metrics such as market capitalization, trading volume, and turnover rate as of the end of 2025.
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