Daily focus：Mao Geping (1318)
The company's controlling shareholder and management plan to reduce their holdings by no more than 3.51% within six months, amounting to approximately 16% of the free float shares. This news came as a surprise and may exacerbate stock price volatility and selling pressure in the short term. Although the major shareholder's holdings remain stable, and the reduction may be a personal financial arrangement, the stock price is currently weak and easily affected by negative market sentiment. Despite the company's strong profit growth prospects as a leading domestic high-end cosmetics company, short-term fundamental advantages are unlikely to offset valuation pressures and technical selling. Investors should be wary of downside risks.
CES 2026
The strongest macro signal from CES 2026 lies in the fact that AI is rapidly moving from "cloud models" to "physical terminals." The competition between Nvidia and AMD is no longer limited to data centers but extends to humanoid robots and autonomous driving edge computing, marking the beginning of the second phase of technology capital expenditure (Capex)—hardware empowering the real economy. Macro funds are reassessing the length of the semiconductor cycle, believing that increased silicon content will spread from servers to consumer electronics and industrial equipment, providing new earnings support logic for highly valued tech stocks. Meanwhile, Toyota's tariff warning highlights the tug-of-war between policy risks and technology deflation. While pursuing AI growth, investors need to be wary of the structural increase in hardware supply chain costs due to trade protectionism.
Hong Kong stocks saw a net inflow of HK$2.9 billion on Tuesday, with Ping An Insurance (2318) experiencing the largest net inflow at HK$1.84 billion, followed by Alibaba (9988); China Mobile (941) saw the largest net outflow at HK$870 million, followed by Tencent Holdings (700).
The Hang Seng Index fell 251 points, or 0.9%, to 26,459; the H-share Index fell 105 points, or 1.1%, to 9,138; and the Hang Seng Tech Index fell 86 points, or 1.49%, to 5,738. Total market turnover was HK$276.1 billion. Alibaba (9988) fell 3.2%; Tencent (700) fell 1.2%; and Meituan (3690) fell 1.5%. China Duty Free Group (1880) rose over 6%, with duty-free sales in Hainan during the New Year's Day holiday increasing by 129% year-on-year; Hesai Technology (2525) rose over 5%, having been selected by Nvidia as a LiDAR partner.
Source: KGI Investment Products and Solutions Department
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
Minutes from the December FOMC meeting showed notable division among officials on the policy path, raising the likelihood of a pause at an upcoming meeting. Most officials believe shifting policy toward neutral would help avoid further labor-market deterioration…