Daily focus：Trip.com（9961）
The Chinese New Year holiday runs from Jan. 28 to Feb. 4. With the addition of just two days off, workers can enjoy an 11-day break, encouraging more travel, including international trips. Looking forward, we expect further consumption boosting policies in China. The State Council's measures, like the "Hundred Cities and Hundred Districts" plan, promote cultural and tourism consumption with vouchers, discounts, and regional integration. We anticipate more large-scale consumption stimulus to come at this year's "Two Sessions," benefiting consumption-related sectors. Target price is HK$625.3.
S&P Global US Manufacturing PMI Returns to Expansion Territory
Last Friday, S&P Global released the US Manufacturing PMI preliminary value for January, which stood at 50.1. This marks a return to expansion territory after being in contraction since August, and it exceeded market expectations of 49.8. As for the Services PMI, the figure dropped to 52.8, remaining in expansion territory but at its lowest level in 7 months. Additionally, the University of Michigan Consumer Confidence Index declined for the first time after six consecutive months of increase. Market analysts attribute this to the inauguration of the new government, with people adopting a more skeptical attitude.
On Friday, the Southbound Stock Connect saw a net outflow of HK$3.36 billion. Among individual stocks, SMIC (981) received the highest inflow of HK$318 million, followed by Alibaba (9988). The Tracker Fund (2800) recorded the largest net outflow of HK$2.69 billion, followed by Xiaomi Group (1810).
The Hang Seng Index opened 142 points higher and then extended its gains, rising as much as 444 points to reach 20,144 points. It closed up 366 points or 1.86% at 20,066 points. The Hang Seng China Enterprises Index rose 148 points or 2.06% to 7,312 points, while the Hang Seng Tech Index gained 142 points or 3.1% to 4,658 points. The total market turnover for the day was HK$159.8 billion. Bank of China (3988) plans to provide comprehensive financial support of no less than 1 trillion (RMB) to various entities across the entire artificial intelligence (AI) industry chain over the next five years. SMIC (981) rebounded by 5.76%.
Source: KGI Investment Strategy
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