Semiconductor stocks rose against the trend

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With Hongguang Semiconductor and SMIC rising more than 6%, followed by Megain Holdings and Hua Hong Semiconductor.

On the news front, Goldman Sachs expects that SMIC will show a gradual upward trend amid the long-term growth in China's semiconductor demand and geopolitical risks. For fourth-quarter 2024 earnings, revenue is expected to increase 1% quarter-on-quarter to $2.2 billion, with a gross margin of 18.5%, which is better than the previous data and consistent with management's guidance range. In addition, Tianfeng Securities research report pointed out that subsidies for new purchases of mobile phones and other products may drive demand for semiconductors.

Film and television stocks were active , with Huanxi Media rising more than 8%, followed by Alibaba Pictures, Emperor Entertainment Group, and eSun Holdings.

Oil stocks rose, with PetroChina and China National Offshore mint data Oil Corporation rising by more than 2%, followed by CNOOC Oilfield Services and Shanghai Petrochemical Corporation.

In the news, the US Treasury Department issued comprehensive new sanctions on Russia's oil industry last Friday. The new measures target two companies that handle more than a quarter of Russia's seaborne oil exports. "The United States is expected to announce more sanctions against Russia in the coming days, which will exacerbate the continued slowdown in Russian crude oil exports," said analysts at DNB Markets.

Gold stocks rose , with Tongguan Gold and Shandong Gold rising by more than 3%, and Zhaojin Mining and Zijin Mining active.

Today, southbound funds made a net purchase of HK$6.572 billion, of which Hong Kong Stock Connect (Shanghai) made a net purchase of HK$5.516 billion and Hong Kong Stock Connect (Shenzhen) made a net purchase of HK$1.056 billion.

Looking ahead to the future market, Tianfeng Securities pointed out that in 2024, the Hang Seng Index of Hong Kong stocks will close up more than 17% for the whole year, ending four consecutive years of decline. In January, the Hang Seng Index fluctuated downward to around 19,000 points. Compared with the global market, Chinese assets are still cost-effective. Based on the gradual recovery of expectations and the expectation that subsequent fundamentals will gradually improve, we believe that the current valuations of Chinese stocks listed in Hong Kong are still attractive and have a high risk-return ratio.