Zhitong Hong Kong Stock Exchange Unravels | The Truth Behind the Tragedy of US Stocks Stampede The Direction of People's Livelihood Has Become a Safe Haven

[Anatomy Dashboard]

The world is so magical. Yesterday was full of laughter and laughter. Today, the Nasdaq evaporated 2.3 trillion US dollars. The Philadelphia semiconductor index fell 12%, Nvidia fell 9%, Sandisk fell 22%, Micron Technology fell 17%, AMD fell 17%, and the Asia-Pacific region was the hardest hit area. The Korean stock market triggered a collapse of more than 6%, and Nikkei 225 plummeted by nearly 6%; the A-share decline was moderate; the Shanghai index fell by more than 1%, and the Hong Kong stock fell 1.27%.

The source of the storm was an original article published by Yassamin Ansari (Ansari) on the X platform on November 4: On the first day of the new House Democratic Party's inauguration, the first agenda was to suspend advanced AI development, regulate uncontrolled industries, and ban super-smart ASI. It also clearly binds to a bill drawn up by Sanders a few months ago. The content is quite shocking, so I won't post it here. Combined with the Democratic Party winning the election, all states are banning the construction of data centers, and this shortcoming has been infinitely amplified. Then the trampling on US stocks happened.

Objectively speaking, this is a huge exaggeration. The so-called bills introduced by the Democratic Party at the beginning were only a weapon against the Republican Party; they were more of a political need: the Democratic Party, which supports the Republican Party, must oppose it. This is the essence of the problem. Now that the Democratic Party has come up, the script is not necessarily like this. Moreover, the Democratic Party is not brainless against AI; instead, it wants to strengthen supervision, develop in an orderly manner, and not affect people's livelihood, because without AI, what is left of US stocks? There is a consensus between the two parties on how the economy continues to develop, AI is a contention between the two parties. On the other hand, the question of Musk's liquidation is probably not that exaggerated. As can be seen from the speech of Gina Hinojosa, a Democrat who was elected governor of Texas, the state of Texas can establish a strong working relationship with Musk and his company, but only if the conditions of her administration are followed.

As a result, when US stocks have plummeted this time, some people are taking advantage of the idea. It has gone beyond the AI issue itself; it has more political implications. Trump's direct statement on social media platforms: “The US stock market experienced one of the worst trading days in history due to the election results. It is so sad to witness such a sad sight! We have gone through great hardships to reach unprecedented heights, yet we have been hit like this. As a result, the value of your 401 (k) account shrinks. Remember, the responsibility is not on the Republicans, but on the Democrats. But don't worry, either way, we're going to be stronger than ever.” As a voice-over, who told you to vote for the Democratic Party, the stock market will rise if you vote for the Republican Party. No wonder it was surprisingly calm after the midterm elections; it turned out to be here waiting.

Wall Street is all professional. Don't watch people fall; think the losses are heavy. You need to know that they have a shorting mechanism; you can make money by shorting even if you crash.

Each has its own destiny, but it's all just an exchange of interests. One point, however, is that the internal destructive power generated by this mutual struggle between the two parties is enormous, and instability is definitely the norm. The Democratic Party is already taking action. A US federal district judge issued a 14-day temporary restraining order on the 5th to prevent the Trump administration from starting construction of the “Arc de Triomphe” in the capital Washington. More actions will follow.

According to feedback from Hong Kong stocks, technology stocks naturally plummeted, but there were also strong ones, such as Huahong Hongli (01347): recorded record revenue of US$987 million in the third quarter, up 19.9% year on year, already including the newly incorporated Huali Microelectronics; if the revenue is on an independent scale, it reached US$803 million, which is higher than market guidance. The key point is that the speculation is autonomous and controllable; today it has risen by more than 4%.

What it can carry is the direction of people's livelihood. For example, in terms of health care, JD Health (06618) officially launched the “Medical Treatment in China” service during the Expo to provide a one-stop service for international patients, including helping patients connect with hospitals and doctors, arrange appointments and travel, and assist with visas. When patients arrive in China, they are accompanied by interpretation and coordination of diagnosis and treatment, and follow-up after returning home. This is indeed a good project, which, incidentally, can drive travel and consumption.

The active variety is Health 160 (02656): It focuses on medical services, providing AI diagnosis, AI guidance, and operating share of the entire course of the disease for the top three hospitals. The gross margin of digital medical solutions is very high (70% +), cooperating with the top three hospitals continues to increase, and the market is benchmarking vertical medical AI platforms. After experiencing the first unban window after the listing in September of this year, the stock price fell all the way down, but after October 29, the situation changed. Barclays PLC increased its holdings by 24.182 million shares, at a price of about HK$3.18 million, for a total amount of about HK$76.927,800. The latest number of shares held after the increase was 288.435 million shares, with a shareholding ratio of 8.31%.

The reason for the huge increase in holdings was that the company entered the field of AI computing power, announced a 650 million computing power framework agreement in September, and landed the first 42 million computing power equipment contract in October. However, it should be noted that all of the above are only intended purchase orders from intermediaries or partners, and the orders that can eventually lead to terminal pharmaceuticals are real. After all, the purchaser itself has computing power. There is no need to go to the Health 160 and buy it in one fell swoop. It is simply a matter of liking its resources for cooperation with pharmaceuticals, making it easy to participate in winning the bid together. Observe more for a while. I can only tell the story copied later if it actually landed in a hospital. Today, the increase is over 13%. Others include Hygea Healthcare (06078), which rose nearly 5%.

The electricity sector is also very stable. Ge Ju, deputy director of the Development Planning Department of the National Energy Administration, said that during the “15th Five-Year Plan” period, China's electricity demand will continue to grow rigidly, driven by emerging industries such as computing power. The average annual increase is expected to reach about 600 billion kilowatts, which is equivalent to adding 3 new electricity consumption in Shanghai every year. In order to ensure the supply of electricity, we have established an early warning mechanism for the sufficiency of electricity supply. It is proposed that the electricity supply sufficiency will be greater than 1.1 in 2030, that is, at the peak of electricity consumption load, there is still a 10% margin of guarantee capacity to ensure that it can “withstand the peak and cover the bottom” at critical times. In particular, those with thermal power have the bottom of the policy. A subsidy policy was mentioned two days ago. What worked well was that Huaneng International (00902) and Huadian International (01071) both increased by more than 3%. There is also strong policy support for waste-to-energy generation. Zhitong Jinchang Everbright Environment (00257) rose more than 2% in November.

Other livelihood directions, such as COFCO Jiajiakang (01610): Four parallel businesses: pig breeding, slaughter and processing, chilled brand meat, the second largest meat import and distribution in the country (beef/pork imports), multi-sector hedging, not just gambling on pig prices. Whether pig prices rise or fall, they can make money. Today, it has risen by more than 5%.

Also, in the Guochao brand apparel category, Li Ning (02331) officially announced a special dividend on November 5:2.32 yuan per share, converted to HK$1.168 per share, equivalent to HK$2.71 per share. Based on the company's approximately 2,585 billion issued shares, the total amount of this special dividend is approximately RMB 6 billion. Note that the net removal date is November 18, the share registration date is November 23, and payments will be made on December 1; the company suspended share transfer registration from November 20 to November 23. It is true that there are not many dividends this year, an increase of more than 5%. The main background is that at a time when Adi and others continue to lose their market share and are still clearing inventory, Li Ning is ahead of the curve and is expected to continue to encroach on their share.

At 21:30 p.m. Beijing time on Friday, the US will release the October non-farm payrolls report. At a time when technology stocks are experiencing a historic sharp decline, the market's attention will be very high. The market expects US employment growth to pick up slightly in October compared to September, but it is still weak. The market generally expects that the number of new non-farm payrolls in the US will be only 59,000 in October. Compared with the 29,000 new increase in September, the US unemployment rate will remain at a very low level of 4.2% in October. Anyway, it's almost fine. The stock market is like this anyway; if it's better, it's even more difficult. When US stocks plummet, it would be very dangerous if they didn't recover. Before the US market: AI hardware stocks collectively rebounded, Sandee rose nearly 8%, and semiconductor equipment stocks had the highest gains.

As the stock market declines, domestic brokerage firms have also accelerated their entry into the market. Cathay Pacific Haitong completed the first batch of stock purchases; CICC bought stocks today under the third batch of “Facilitated Exchange of Securities, Funds, and Insurance Companies”, and Galaxy Securities completed the first batch of A share purchase operations. The swap facilitates the entry of incremental capital into the market at an accelerated pace, and institutions will enter the market.

[Section Focus]

On the afternoon of November 6, more than 10 Shenzhen companies announced plans to use repurchase loans, including Zhongji Xuchuang, Tianfu Communications, Xinyisheng, Shenghong Technology, Dazu Laser, Lixun Precision, Dongshan Precision, Pengding Holdings, Sanhuan Group, Robotech, etc., covering hard technology core circuits such as optical modules, PCBs, consumer electronics, and laser equipment. On November 2, the head of the relevant department of the Securities Regulatory Commission mentioned in response to reporters' questions about stabilizing market stability expectations that the stock repurchase and increase refinancing policy has been changed from a phased arrangement to a long-term institutional arrangement, and the reloan interest rate has been reduced to 1%. The popularity of policy tools continues unabated. Since October, Shenzhen companies have disclosed that they have used 8 loan announcements to repurchase and increase their holdings, with a loan amount of 2,452 billion yuan. As of November 5, the Shenzhen market as a whole has disclosed more than 560 special loan announcements for repurchases and increases holdings, and the loan amount exceeds 120 billion yuan.

If US stocks rebound, the above stocks are expected to follow the rebound; after all, they have fallen too hard. But be careful the other way around.

[Individual Stock Mining]

Everbright Environment (00257): The share of operating revenue continues to increase, and the growth rate of heating revenue is impressive

Everbright Environmental joined hands with China Construction Third Bureau and Guangzhou Huake to invest about 2.52 billion yuan to build an environmentally friendly thermal power plant in Dongguan. 2026H1, the company achieved operating income of HK$14.181 billion, a year-on-year decrease of 1%; realized net profit to mother of HK$2,431 billion, an increase of 10% over the previous year. The company paid a dividend of HK16.0 HK cents per share in mid-2026, up from HK15.0 cents per share in the same period in 2025.

Comment: Everbright Environmental is the leading domestic solid waste incineration company. It has been ranked among the top ten domestic solid waste companies for many years. The project covers 24 provinces and 228 cities and counties in China. The company has complete self-developed equipment+process barriers, independent furnace, flue gas purification and leachate technology, localization of 750/1000 ton large-scale incinerators; leading the world in miniature furnaces, suitable for counties, islands and overseas small-volume markets; power battery recycling equipment has been selected into the National Major Environmental Protection Equipment Catalogue; and is leading a number of national standards for solid waste. The 2026H1 heating revenue growth rate is impressive, and is the second growth curve. The company's operating service revenue reached HK$10.755 billion, an increase of 8% over the previous year, accounting for 76% of total revenue.

Key domestic tenders won. Southeast Dongguan thermal power: 3,000 tons/day household waste+supporting food waste, BOOT, 31-year license period, investment of 2.52 billion yuan in the first phase. It is one of the largest single waste incineration projects in China recently, and forms a double base in Dongguan with the original Machong project. Qinghai Guide: 200 tons/day county incineration EPC+O, 203.6 million, micro furnace benchmark project, covering many counties in southern Qinghai.

Overseas focus, Namangan and Fergana, Uzbekistan: 1,500 tons/day each, with a total investment of about 3 billion dollars. Construction is ongoing. It is expected to be put into operation in 2027, a core benchmark in Central Asia. Bekasi, Indonesia, 1,400 tons/day, and Vietnam's Thanh Hoa 1,000 tons/day. Priority cooperation/pre-bid was granted, and returned to Vietnam and entered the Indonesian market. Multiple EPC equipment orders from the Philippines, operation and maintenance, equipment orders from Singapore and Seychelles, and asset-light contracts continue to be implemented. The company's share of operating revenue continues to rise, and cash flow is expected to continue to improve as the quality and efficiency of project operations improve. The company said that the construction of an environmentally friendly thermal power plant project in Dongguan will enhance the scale of solid waste treatment and clean energy business, and bring stable returns to the company and shareholders.