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Dongfang Electric (1072): The company is demonstrating growth potential in the Asian gas turbine market, particularly with a higher success rate among data center and utility customers in Southeast Asia. While the company's 50MW units employ a low-price strategy to reflect technological gaps, it has successfully exported five units to Kazakhstan and the Middle East and plans to expand capacity to ten units per year. However, the joint venture with Mitsubishi Heavy Industries limits the export capacity of large units, and short-term growth momentum still relies heavily on expanding overseas markets with its medium-sized product line.
U.S. retail sales were flat month-over-month in December
The U.S. Commerce Department released data yesterday (December 10th) showing that December retail sales were flat month-over-month (0%), falling short of market expectations of a 0.4% increase. Core retail sales excluding automobiles also missed expectations. The data indicates that U.S. consumer spending is showing signs of weakness in a high-interest-rate environment. Affected by the weak retail data, market bets on the Federal Reserve cutting interest rates earlier or more significantly increased, pushing the yield on the 10-year U.S. Treasury bond down to 4.13%. Major U.S. stock indices found support at high levels due to liquidity expectations. Furthermore, the January non-farm payroll report, delayed due to the government shutdown, will be released tonight (December 11th), with the market closely watching whether the labor market will cool down simultaneously.
Hong Kong Stock Connect recorded a net inflow of HK$0.85 billion on Tuesday, with Meituan (3690) recording the largest net inflow at HK$5.5 billion, followed by CNOOC (883); Tencent Holdings (700) recorded the largest net outflow at HK$1.4 billion, followed by Pop Mart (9992).
Hong Kong stocks rose today. The HSI opened 63 points higher and then extended its gains, rising 116 points or 0.4% to 27,299 points at mid-day; the HSCEI rose 38 points or 0.4% to 9,281; and the HSTECH rose 59 points or 1.1% to 5,510. The total turnover of the market was HK$118.61bn. MSCI announced changes to the China Index, with SenseTime (0020) and Pony.ai (2026), which were added, rising 2.9% and 2.3% respectively, Hesai (2525) rising 6.9%, and Yangtze Optical Fibre and Cable (6869) shares retreating 3.9%. China Literature (0772) expects its IFRS loss last year to widen to at least RMB750mn, and its share price fell 7.1%.
Source: KGI Investment Products and Solutions Department
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U.S. employment data came in weaker than expected, with initial jobless claims rising by 22{,}000 to 231{,}000, above market expectations. The cooling labor market has also prompted speculation that the Federal Reserve may deliver a larger scale of rate cuts this year…