Hong Kong Stocks Close (Feb. 23)
Zhitong Finance APP learned that the Spring Festival holiday in the Year of the Horse came to a roaring close, and Hong Kong stocks returned to the 27,000 mark. Today, the three major Hong Kong stock indices all turned green, with the Hang Seng Index and the China Enterprises Index both rising by more than 2%. The Hang Seng Tech Index performed the best, closing up over 3%. At the close, the Hang Seng Index rose 2.53%, or 668.56 points, to 27,081.91 points, with a full-day turnover of HK$172.963 billion; the Hang Seng China Enterprises Index gained 2.65%, closing at 9,197.38 points; and the Hang Seng Tech Index surged 3.34%, ending at 5,385.35 points.
Kaiyuan Securities notes that recently, as market sentiment toward technology continues to evolve and become more discerning across U.S. stocks, Hong Kong stocks, and A-shares, the tech sector is experiencing intensified internal competition amid already high overall valuations, with significant divergence emerging within the tech space. However, compared to the U.S. tech sector, domestic tech valuations remain relatively low, suggesting that tech sector divergence may be relatively manageable. With Hong Kong’s tech valuations remaining relatively under control—and given that Chinese internet companies’ AI investments have been relatively moderate—tech sector divergence is likely to stay within controllable bounds. Therefore, we should steadfastly adhere to a “technology-first” strategy without wavering.
Blue-chip stock performance
Zijin Mining (02899) delivered a standout performance. As of the close, it rose 5.35%, trading at HK$44.95 with a turnover of HK$1.741 billion, contributing 22.03 points to the Hang Seng Index. A research report released by DBS pointed out that vigorous mergers and acquisitions, coupled with strong operational capabilities, are jointly driving Zijin Mining’s growth; the company maintains sustainable cost competitiveness among gold miners. The bank stated that bullish sentiment toward gold and copper prices will support its earnings growth, with an expected compound annual growth rate of 44% through 2027.
Among other blue‑chip stocks, Meituan-W (03690) rose 5.26%, trading at HK$85 and contributing 37.67 points to the Hang Seng Index; SMIC (00981) gained 5.02%, closing at HK$71.1 and adding 24.67 points to the Hang Seng Index; New Oer Energy (02688) fell 0.22%, trading at HK$69 and weighing down the Hang Seng Index by 0.19 point; Chow Tai Fook (01929) dropped 0.14%, closing at HK$14.26 and dragging down the Hang Seng Index by 0.06 point.
Regarding popular sectors:
On the market front, large-cap tech stocks rebounded across the board, with Meituan-W surging over 5%, while JD.com, Alibaba, Xiaomi, and Baidu all gained more than 3%. The disruption caused by U.S. tariff rulings, coupled with the renewed escalation of tensions in the Middle East, drove strong performance throughout the day for non-ferrous metals concept stocks, with gold and copper stocks particularly shining. Several optical communication companies kept their production bases fully operational during the Spring Festival; influenced by this news, related concept stocks led gains today. UBS Group turned bullish on “Chinese lithium,” and with lithium carbonate prices having surged recently, both lithium industry and lithium battery concept stocks rallied strongly. On the other side, gambling stocks and new energy vehicle makers rose, while storage and paper stocks declined.
1. Internet stocks rebounded across the board. As of the close, Meituan-W (03690) rose 5.26%, closing at HK$85; JD.com Group-SW (09618) gained 3.56%, closing at HK$107.5; Alibaba-W (09988) climbed 3.47%, closing at HK$152.2; Xiaomi Group-W (01810) increased 3.39%, closing at HK$36.56; Kuaishou-W (01024) rose 3.08%, closing at HK$68.55; Tencent Holdings (00700) advanced 3.07%, closing at HK$538.
Recently, Alibaba Cloud, a subsidiary of Alibaba, announced the open-source release of its next-generation Qwen 3.5-Plus large model, with API pricing as low as 0.8 RMB per million tokens. Zhongyuan Securities pointed out that the pace of AI application deployment in 2026 is far exceeding market expectations. Domestically developed large models have recently seen a flurry of product launches, while their performance has begun to closely match that of overseas models—and they boast particularly significant advantages in terms of compute efficiency and cost. This suggests that by 2026, domestically produced AI large models will begin to replace leading overseas models, potentially reshaping the global AI model competition landscape.
BOC International stated that the current AI rally has yet to exhibit clear signs of bubble formation, and AI investment is expected to enter the second half of its industry-wide trend in 2026. At present, ample liquidity is providing a solid foundation for the high-growth, highly elastic AI industry chain. The TMT sector continues to deliver relatively strong performance, with hard tech firms benefiting from a “winner-takes-all” dynamic and soft tech companies experiencing a turnaround from adversity. The evolution of the AI industry is also likely to follow a pattern of progression from hard to soft technologies, with both hard and soft tech sectors alternating in an upward trajectory. According to China Merchants Securities International, the investment rationale underpinning the AI focus of China’s leading internet companies has grown significantly stronger, helping to drive valuation recovery in the Hong Kong stock technology sector. Upcoming heavyweight models—including DeepSeek-V4, Doutou 2.0, and Mini Max M2.2—could serve as catalysts for the next phase.
2. Throughout the day, colored metal concept stocks performed strongly, with gold and copper shares rising. As of the close, Zijin Gold International (02099) surged 6.82%, closing at HK$228.8; Wukuang Resources (01208) climbed 6.63%, closing at HK$10.45; China Gold International (02099) gained 6.14%, closing at HK$202.2; Zhaojin Mining (01818) rose 5.83%, closing at HK$33.02; and Zijin Mining (02899) advanced 5.35%, closing at HK$44.92.
The lack of clarity in U.S. tariff and trade policies may cast a shadow over the global outlook, keeping volatility high across markets. As a result, spot gold surged to $5,170 per ounce during trading. Additionally, it is worth noting that, according to market media reports on February 22, U.S. President Trump has told his advisors that he “leans toward launching a preliminary strike against Iran in the coming days,” followed by a larger-scale military operation in the coming months, aiming to force Iran to “submit” and reach an agreement as the U.S. side demands. China Galaxy Securities stated that with rising geopolitical risks in the Middle East and significant adjustments looming in U.S. tariff policies, investor risk aversion is intensifying, and sectors such as precious metals (core stocks) are expected to experience volatile upward movements.
BOC International stated that as we enter 2026 and the market moves into the second phase of the bull market—namely, the earnings-driven rally—under the dual drivers of “curbing involution” and boosting domestic demand, the narrative of re-inflation in China is gaining momentum. This is expected to highlight the strong cyclical characteristics of non-ferrous metals, with the primary supporting logic stemming from the synergistic catalysis of financial attributes and industry trends: 1) The onset of a weak U.S. dollar cycle is providing support for commodity prices; 2) Frequent geopolitical risks are continuously reinforcing the supply rigidity of resource commodities; 3) With domestic demand stabilizing and prices recovering, A‑share earnings factors are poised to return to normal; 4) This year, the non‑ferrous metals sector may see relatively high levels of prosperity on the earnings front.
3. Concept stocks in the optical communications sector led the gains. As of the close, Yangtze Optical Fibre and Cable (06869) rose 14.43%, closing at HK$127.7; Cambridge Technology (06166) climbed 6.25%, trading at HK$68.05; Huiju Technology (01729) gained 5.28%, ending the day at HK$16.95; and HuaHong Semiconductor (01347) surged 4.51%, closing at HK$98.4.
On February 22, according to a post on the “China Optics Valley” official WeChat account, the head of Huagong Technology’s optical module business stated that during the Spring Festival, the company’s two major production bases in Wuhan and Thailand operated at full capacity, resuming work on the first day of the Lunar New Year and making every effort to ensure the mass production and delivery of high‑speed optical modules such as 1.6T and 800G. The company’s connectivity business orders are already scheduled through the fourth quarter of 2026, and its AI high‑speed optical module production line is running at full capacity around the clock. In addition, during the Spring Festival, all production lines at Yangtze Optical Fibre and Cable’s various bases remained fully operational.
Notably, Lumentum recently announced that the company has secured hundreds of millions of dollars in CPO-related orders, with CPO revenue expected to reach approximately 50 million USD by Q4 2026, and a surge is anticipated in the first half of 2027. According to CITIC Securities, it is advisable to pay close attention to the CPO industry chain, including optical engines, FAUs, ELS lasers, MPOs, shuffle boxes, and polarization-maintaining fibers. As the fiber optic industry shifts toward a phase of “tight supply and rising prices,” we recommend: first, focusing on companies with optical preform production capacity; and second, paying attention to firms with substantial fiber optic production capacity or those specializing in specialty fibers.
4. Both lithium and lithium‑battery concept stocks rallied strongly. As of the close, Ruipu Lanjun (00666) rose 15.42%, closing at HK$15.94; CN Innovation (03931) gained 7.35%, ending at HK$28.34; Longpan Technology (02465) climbed 3.12%, settling at HK$10.91; CATL (03750) increased by 3.14%, closing at HK$542.5. Among lithium stocks, Ganfeng Lithium (01772) surged 8.48%, trading at HK$66.5; Tianqi Lithium (09696) rose 2.77%, closing at HK$45.32.
UBS Group released its latest research report, stating that the bank is firmly bullish on “China’s lithium,” significantly raising its price forecasts for spodumene and lithium carbonate. The report also pointed out that the market has entered its third lithium supercycle. UBS further noted that China’s low battery costs will help Chinese automakers capture a larger share of the global electric vehicle market; by 2030, the global market share of Chinese automakers is expected to rise to around 35%. This transformation in the electric vehicle industry is triggering a ripple effect across multiple sectors, including complete vehicles, batteries, trucks, energy storage, and even humanoid robots.
Previously, the Lithium Branch of the China Nonferrous Metals Industry Association released its report on the performance of the lithium industry in January 2026. In January, lithium carbonate prices surged, market transactions were robust, and basis differentials widened. On the supply side, lithium carbonate production remained stable, though some cathode material manufacturers conducted maintenance on their production lines. On the demand side, the extension of government subsidies boosted market expectations for new energy vehicles, while a reduction in export tax rebates for lithium batteries spurred strong demand for early-year export shipments.
Hot Stocks with Significant Movements
1. Xun Ce (03317) surged throughout the day, hitting a new all-time high with an intraday peak of HK$95.5. By the close of trading, it had risen 12.78%, closing at HK$90.
On February 13, Hang Seng Indexes Company announced the results of its quarterly review, with Xuncè being included in the Hang Seng Composite Index. The relevant adjustments will be implemented after the close of trading on March 6 and will officially take effect on March 9. Recently, Cathay Haitong Securities released a research report stating that, leveraging its core “data flow” capability, Xuncè Technology is replicating the “China‑style Palantir” model—from the asset management industry to diverse sectors. In addition, the domestic large model sector has recently witnessed a flurry of new releases and version upgrades. Under the evolving industry logic of “shifting from purchasing computing power to utilizing data,” companies that can provide data infrastructure capable of supporting the stable operation and continuous optimization of large models have become the new focus of the capital market.
2. China Tourism Group Duty Free (01880) declined, falling 8.88% to close at HK$91.85, with a turnover of HK$0.37 billion.
The U.S. Customs and Border Protection stated that it will cease levying tariffs imposed under the IEEPA at 12:01 a.m. Eastern Time on Tuesday. Notably, last April, China responded to the U.S. government’s announcement of “reciprocal tariffs” with its own countermeasures. At the time, Guotai Haitong Securities pointed out that the mutual imposition of tariffs between China and the United States could widen the price gap between taxed and duty‑free goods, potentially shifting sales of mid‑ to high‑end imported products toward duty‑free channels. With the U.S. tariff policy now ruled unlawful, market sentiment has been disrupted, and investors are closely watching for further developments in tariff policies across various countries.
