Asian Marco Initial Thoughts: Data light in Asia today but expect caution ahead of US jobs data tonight. Poor US retail sales -VE for Asian exporters. Japan closed for Foundation Day

NZX opened lower but now trending higher in choppy trading. ASX opened higher and trading in a tight range.

Feb 10, 2026

Overview
Expect markets to remain cautious ahead of US jobs data tonight and Fed speakers overnight indicating that some of the FOMC board do not see rate moves ahead feeling the policy currently is about right.

In Asia next weeks Lunar New Year is likely to mean local investors closing some riskier positions and moving into cash and liquidity could also be reduced.

Interesting to see the latest release of Epstein paper from the DoJ is catching more people in the crosshairs. Howard Lutnick admitted yesterday he visited Jeffrey Epstein’s island in 2012 but says he did nothing wrong. Revelations will continue as the people shift through the papers.

Interesting to see Paramount is sweetening its takeover offer for Warner Bros Discovery, as the Netflix bid is subject to a competition investigation. The media group adds ‘ticking fee’ to give shareholders additional payment for every quarter deal does not close

Earnings still in focus;

Wednesday Ahold Delhaize Q4/FY, Albemarle Q4/FY, America Movil Q4/FY, Barratt Redrow HY, Cisco Systems Q2, Commerzbank Q4/FY, Commonwealth Bank of Australia HY, Computershare HY, CSL HY, Dassault Systemes Q4/FY, Equinix Q4/FY, EssilorLuxottica FY, Heineken FY, Hilton Worldwide Q4, James Hardie Industries Q3, Kraft Heinz Q4/FY, Mahindra & Mahindra Q3, McDonald’s Q4/FY, Michelin FY, MJ Gleeson HY, PZ Cussons FY, Randstad Q4/FY, Renishaw HY, Severn Trent Q3 trading update, Tenet Healthcare Q4/FY, Titan Q3/9M, TotalEnergies Q4/FY, T-Mobile US Q4/FY

Thursday Affiliated Managers Group Q4/FY, Airbnb Q4/FY, Ameren Q4/FY, Anheuser-Busch InBev FY, Applied Materials Q1, Ashmore HY, Baxter International Q4/FY, British American Tobacco FY, Brookfield Q4/FY, Expedia Q4/FY, Hermès FY, Iron Mountain Q4/FY, Isuzu Motors Q3, KBC Q4/FY, Leggett & Platt Q4/FY, Legrand FY, L’Oréal FY, Mercedes-Benz Q4/FY, Nissan Q3, Pinterest Q4/FY, RELX FY, Rollins Q4/FY, Schroders FY, Siemens Q1, SoftBank Q3, Sun Life Financial Q4/FY, Swisscom FY, Thyssenkrupp Q1, Tripadvisor Q4/FY, Tyler Technologies Q4/FY, Unilever Q4/FY, Vertex Pharmaceuticals Q4/FY, Wynn Resorts Q4/FY

Friday Capgemini FY, Ingersoll Rand Q4/FY, Moderna Q4/FY, Mohawk Industries Q4/FY, NatWest FY, Yamaha FY

Housekeeping
On Monday morning I was on RTHK’s Money Talk with host Nitin Dialdas and other guest Florence Savage, Investment Strategist at Ascalon Capital. We talked about what was happening in Crypto, Precious Metals and what was happening in equities before looking at Japan election and outlook for India.

If there is anything you’d like discussed on the show next week, then click the link below and let them know. Equally if you just want to listen to the programme, click the link https://www.rthk.hk/radio/radio3/programme/money_talk

Last Thursday afternoon I was on RTHK’s The Close with host Nitin Dialdas and Hugh Chung CIO of Endowus. We looked at the melt down in precious metals and bitcoin. Along with Kevin Warsh’s impact and what to look forward to.

If there is any topic you want discussed on next programme please message me or them via the link, which can also be used to listen to the programme
https://www.rthk.hk/radio/radio3/programme/the_close

For excellent independent research ERI-C.com Provides the best selection of Independent Research, Showcase Events, Introductions & Marketplace, Reports, blogs, trials, podcasts and more https://www.eri-c.com/

It is MiFID II compliant, you can try Before You Buy, there is Research Evalution. and information can be shared across team or firm. It has Different Views at the Best Price. Buyers transact at offered prices or with vendor permission, by agreement. ERIC’s industry low commission rates - charged only to sellers - allow both buyers and sellers to realise better net pricing simulataneously. The differentiated price discovery mechanism entertains private bids and negotiation (on or offline) to broaden demand capture and liquidity. If you have any problems connecting, call or message me and I will sort your issue out.

Mark Tinker’s February Market Thinker Diversification, rotation and the Return of the Cycle. A guide to 2026 and some key events that will take place and what possibly to expect. He also released Diamonds and Pearls under This is Not Investment Advice

Leave a comment

Market opening indications and data due

New Zealand - No Data Schedule
NZX 50 opened lower testing down to 13,420 (-100pts) before seeing support, the trended higher in choppy trading now -40pts -0.3% at 13,466

Australia
ASX 200 opened higher in the staggered open up 42pts 0.47% at 8,909.4 after Futures indicated the market opening up 36 pts 0.4% at 8,855. But weakness in energy and miners mixed. Data due out after the open could impact the upside.
Watch CSL -12% after announcing weak results having announce the retirement of its CEO Dr Paul McKenzie with immediate effect Tuesday afternoon.
Commonwealth Bank 5.8% on good results
ASX stock -2.2% as announces CEO to step down in May
Data 90 minutes after the open
Home Loans Q4 QoQ vs 4.7% Q3 (F/cast is 4.1%)
Investment Lending for Homes Q4 vs 17.6% Q3 (F/cast is 5%)
Later
RBA’s Hauser Speech

Japan - No Data Schedule - Market closed re-opens THursday
Nikkei Futures indicate 655pts 1.14% at 57,900 overnight
Yen 154.33 at the US close. Opening 154.42 in early trades

S Korea
Kospi futures indicate market to open lower, -13.78pts -0.36% at 3,844.92 but the better than expected unemployment rate could give stocks a boost.

Kospi closed Tuesday nearly flat adding 3.65 points, or 0.07%, to close at 5,301.69.
Trade volume was moderate at 705.3 million shares worth 22.9 trillion won ($15.7 billion), with winners outnumbering losers 687 to 209.
Foreigners net bought 143.7 billion won and institutions net purchased 563.5 billion won worth of local shares, while retail investors net sold 873.4 billion won.
Investors turning cautious ahead of key US data and Lunar New Year holidays. Only Auto’s, Financials textile, logistics, food and other consumer goods sectors gained ground, other sectors weak.
The Korean won was quoted at 1,459.1 won against the US dollar at 3:30pm Tuesday, up 1.2 won from the previous session.
Data out pre market
Unemployment Rate Jan 3% vs 4% Dec (F/cast was 4.1%)

Taiwan - No Data Scheduled
Futures indicating market opening down 41 pts -0.12% at 33,262 although down side limited by the strong TSMC numbers

On Tuesday the Taiex closed up 668.35 points, or 2.06%, at 33,072.97 on turnover of NT$656.51 billion (US$20.82 billion) vs NT$630.88 billion (US$19.96 billion) Monday.

China
Market to open higher after Golden Dragon Index closed up 62pts 0.87% at 7,886 but expect caution ahead of the inflation data & PPI data due out on the open
FTSE A50 futures indicating up 3.4pts 0.02% at 15,024.8
MSCI A50 futures indicating up 4.8pts 0.18% at 2,649.6
USD/CHN opening unchanged at 6.9124
Spot USD/CNY climbed 155 bps to close at 6.9129 today (10th). As of 4:57 pm, USD/CNY in the night session lifted 97 bps. USD/CNH added 47 bps to 6.9102, 27 bps above USD/CNY.
Data due
Inflation Rate Jan YoY vs 0.8% Dec (F/cast is 0.5%)
Inflation Rate Jan MoM vs 0.2% Dec (F/cast is 0.4%)
PPI Jan YoY vs -1.9% Dec (F/cast is -1.7%)

Hong Kong - No Data Scheduled this week
HSI to open higher after ADR’s closed up 92pts 0.34% at 27,305 with only HSBC, Bank of China, Bank of China HK, CK Hutch and Meituan in the red. But Chinese data out on the open will have an impact. Also expect turnover the drop as we approach markets being closed for Chinese New Year next week.
Hang Seng Futures up 85pts 0.31% at 27,260
Turnover Tuesday $234.04 billion vs HK$255.142 billion Monday
Short Selling Tuesday 19.8% vs 21.2% Monday again less names being shorted and with Chinese New Year next week expect fewer shorts going into the end of the week.

Macau - No Data Scheduled
Singapore - No Data Scheduled

Malaysia - Data Scheduled
Construction Output Q4 YoY vs 10.6% Q3 (F/cast is 10.9%)
Unemployment Rate Dec vs 2.9% Nov (F/cast is 3.1%)

Philippines - No Data Scheduled
Indonesia - No Data Scheduled
Thailand - No Data Scheduled
Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled
M3 Money Supply 23 Jan vs 10.5% prior

Europe
Eurozone - No Data Scheduled
Germany - 15/20/30-year Bund Auction, 30-year Bund Auction
France - No Data Scheduled
United Kingdom - No Data Scheduled

United States
Futures DOW up 67pts 0.1%, S&P 0.16% NDX 0.2%
After Market
API Crude Oil Stock Change 06 Feb 13.4m vs -11.1m prior
Earnings after market from
Robinhood -7% net revenue missed as Bitcoin sold off in December

Mattel -25% as earnings missed on poor Christmas sales and buying a stake in a mobile gaming JV.

Ford 0.1% mixed Q4 earnings, worst in 4 yrs, which missed expectations but forecasts profit jumping in 2026. It says EV woes will continue to plague company despite writedown Carmaker posts full-year net loss of $8.2bn owing to $19.5bn charge it disclosed last month. Its unexpected tariff charge shows exporting country doesn’t pay.

Lift -15% posted a surprise operating loss

Data Scheduled: MBA Mortgage Data (30-year Rate, Applications, Mortgage Index, Refinance Index, Purchase Index), Non Farm Payrolls, Unemployment Rate, Average Hourly Earnings, Participation Rate, Average Weekly Hours, Government Payrolls, Manufacturing Payrolls, NonFarm Payrolls Private, U-6 Unemployment Rate, EIA Oil Report, 17-week Bill Auction, 10-Year Note Auction, Monthly Budget Statement.

HEADLINES & NEWS

NEW ZEALAND & AUSTRALIA
CSL announced its chief executive Dr Paul McKenzie is retiring with immediate effect on Tuesday afternoon, as the company tries to rebuild confidence among investors following a grim year and sharp sharemarket sell off. A day before the company delivers its half-year results on Wednesday. The biotech giant said senior executive Dr Gordon Naylor would be the interim chief executive while the board searched for a permanent replacement.

Telstra is proposing to slash hundreds of roles from its AI joint venture with consulting firm Accenture with some work to be offshored to India. On Tuesday, the firm proposed to cut 209 jobs from the $700 million joint venture, one of the biggest AI investments by an Australian company to date. The venture, announced in January last year, is aimed at rolling out AI capabilities across Telstra to improve its business processes, with chief executive Vicki Brady saying at the time it would build specialised AI tools for its teams to “work smarter and faster”. The latest job cuts come after the company announced plans in 2024 to trim back up to 2800 workers, or about 10 per cent of its workforce.

True North builds scale at Queensland copper-gold hub True North Copper has upped its Cloncurry project resources, lifting contained copper by 7% and gold by 9% in a timely boost to its looming prefeasibility study.

Lenore Taylor, Australia’s longest-serving editor, resigns from The Guardian The Walkley-award winning former political correspondent was one of the founding staff at the publication and the longest-serving top editor in the country.

JAPAN
Japan’s national debt, which comprises of government bonds, loans, and government short-term securities, is projected to have reached approximately JPY1,342.17 trillion by the end of 2025, according to Japan’s Ministry of Finance. This marks an increment of about JPY24.54 trillion from the end of 2024, setting an all-time high.Specifically, Japanese government bonds are expected to rise by approximately JPY24.08 trillion from the end of 2024, reaching about JPY1,197.64 trillion. Of this, “ordinary government bonds”, which are primarily repaid and interest paid through tax revenue, will increase by about JPY23.48 trillion, totaling approximately JPY1,094.49 trillion.

SoftBank (9984.JP) 10.7% Tuesday, after its telecom business raised its earnings outlook. Is expected to post a healthy profit on its investment in OpenAI when it reports quarterly results on Thursday, as the market focuses on how it will fund its artificial intelligence spending spree. With OpenAI striking a string of multi-billion-dollar deals despite continuing to lose money, investors have grown concerned about the company’s ability to finance those commitments, souring sentiment around major tech firms with which it has close links.

Honda Motor (7267.T) posted a 61% drop in third-quarter profit on Tuesday, hit by U.S. tariffs and restructuring costs tied to its electric-vehicle business, becoming the latest automaker to rack up fresh EV losses as demand for the technology cools. The company’s grim results follow warnings from global automakers including Ford (F.N) and Stellantis (STLAM.MI) which have recently flagged massive writedowns related to their EV operations. Demand for the technology has weakened in markets such as the United States, where buyers are increasingly choosing lower-priced cars as well as gasoline-electric hybrid models, an area long dominated by Toyota (7203.T). While Honda has never been an EV powerhouse, it said its automobile business slipped into a loss over the nine months ended in December due to one-off EV-related costs, including asset writedowns, alongside the impact of tariffs.

Prudential Life’s new CEO seeks to overhaul work culture in wake of fraud. Prudential Life Insurance sales staff worked under an intense performance-based system that was a major factor behind the rampant misconduct uncovered at the company, newly appointed CEO Hiromitsu Tokumaru said Tuesday. The company is under fire for various fraudulent activities by 107 former and current employees who took advantage of their position as a “life planner” to defraud around 500 customers of a total ¥3.1 billion ($19.9 million) between 1991 and 2025.

SOUTH KOREA
SK Group Chairman Chey Tae-won met Nvidia CEO Jensen Huang in Silicon Valley last week to discuss cooperation in artificial intelligence semiconductors, reinforcing their partnership over “chimaek” -- fried chicken and beer -- industry sources said Tuesday. The two held talks on Feb. 5 at a Korean-style fried chicken restaurant, 99 Chicken, in Santa Clara, California, about five minutes from Nvidia’s headquarters. The venue is known as one of Huang’s regular dining spots. During the meeting, they are believed to have discussed supply plans for HBM4, the next-generation high bandwidth memory set to be used in Nvidia’s upcoming AI accelerator platform, Vera Rubin, expected to launch in the second half of this year.

German states Saxony and Saxony-Anhalt are stepping up efforts to attract South Korean semiconductor companies, pitching their regions as strategic entry points into Europe as the continent accelerates its push for technological sovereignty. At an investment briefing in Seoul, officials highlighted the region’s central location, logistics infrastructure and highly skilled workforce, urging Korean chipmakers and suppliers to tap into what they described as Europe’s largest semiconductor cluster.

Global X Europe, the European exchange-traded fund arm of Mirae Asset Global Investments, has surpassed $8 billion in assets under management, marking a major milestone in the world’s second-largest ETF market, according to the South Korea-based asset manager Tuesday. As of the end of January, Global X Europe’s AUM totaled $8.03 billion. During 2025 alone, its assets surged 214.6 percent, marking the fastest growth among European ETF managers with more than $1 billion in assets, Mirae Asset noted. The milestone was achieved in just under five years since Mirae Asset expanded into the European ETF market in late 2020. The market, with assets of roughly $3.5 trillion, ranks as the world’s second largest, following the US at around $13.8 trillion.

London-based activist investor Palliser Capital has called on LG Chem, a key chemicals arm of South Korea’s LG Group, to implement changes aimed at improving the company’s market valuation. Palliser said Monday that it has submitted a proposal to be discussed at LG Chem’s annual general shareholders’ meeting scheduled for March. The move follows its announcement in October that it had acquired a stake of more than 1 percent in the chemical materials maker. While LG Chem recently announced it plans to reduce its ownership stake in LG Energy Solution, a leading battery maker under the group, by nearly 10 percentage points to 70 percent in five years, the fund urged the company to present an updated capital allocation plan that would aim for a larger reduction. LG Chem currently holds a 79.4 percent stake in LG Energy Solution, which the hedge fund argued is not fully reflected in LG Chem’s market cap.

CJ CheilJedang CEO Yoon Seok-hwan called for a company-wide shakeup, warning that without overhauling business practices that have dragged on performance in recent years, the company’s long-term survival could be at risk. “After four years of stalled growth, we closed last year with the disappointing result of a net loss,” Yoon wrote in a companywide message to staff Tuesday. “This should serve not as a passing shock but as a warning about the company’s survival in the years ahead.” The company last year posted a net loss of 417 billion won ($285 million) after non-operating losses tied largely to asset valuation adjustments, while consolidated revenue rose 0.4 percent to 27.34 trillion won and operating profit fell 15 percent to 1.23 trillion won.

China now controls nearly two-thirds of global ship orders, but for South Korea, the real concern is not volume alone — it is that its remaining edge is no longer purely technological, but geopolitical, ecosystem-driven and increasingly time-limited. In 2025, Chinese shipyards accounted for 63 percent of global new vessel orders, far ahead of South Korea’s 21 percent and Japan’s 5 percent, according to London-based Clarkson Research Services. Chinese state data put the figure even higher at 69 percent, underscoring Beijing’s growing dominance across the industry. China also led the world last year in the three core metrics of new orders, ship completions and total order backlogs, reflecting the scale of its state-backed shipbuilding system, which combines industrial capacity, financing and shipping demand into a tightly coordinated ecosystem. Yet the battle is not decided by volume alone. South Korea still commands high-value segments such as liquefied natural gas carriers, where decades of engineering experience and operational reliability make for an enduring competitive edge. Even that lead, however, is narrowing quickly. Chinese yards are expanding into advanced vessel categories at a rapid pace, backed by steady domestic orders and state support, forcing Korean shipbuilders to rethink their long-term strategy.

TAIWAN
TSMC posted its highest monthly revenue ever. Its January revenue soared to $401.3 billion New Taiwan dollars, up 37% from the same quarter a year ago, the firm said Tuesday in a statement.

The U.S. House of Representatives on Monday (U.S. time) passed the PROTECT Taiwan Act, directing the United States to exclude China from international financial institutions if Chinese actions threaten Taiwan’s security, by a 395-2 vote. up 668.35 points, or 2.06 percent, at 33,072.97 Under the bill, the United States would, “to the maximum extent practicable,” remove Chinese representatives from the Group of 20 (G20), the Bank for International Settlements (BIS), the Financial Stability Board (FSB) and other financial institutions if China’s actions pose “a threat to the security or the social or economic system of the people on Taiwan.”

The Mainland Affairs Council yesterday dismissed Beijing’s call for “reunification,” describing it as a rehash of its longstanding stance with the ultimate goal of Taiwan’s annihilation. Addressing the meeting of Beijing’s annual “Taiwan Work Conference” yesterday, Chinese People’s Political Consultative Conference Chairman Wang Huning, the Chinese Communist Party’s (CCP) fourth-ranked leader, said officials must advance the “great cause of national reunification,” Xinhua news agency reported. China will offer firm support for “patriotic pro-reunification forces” in Taiwan and strike hard against “separatists,” Wang said. He also stressed the need to uphold Beijing’s “one China” principle and the so-called “1992 consensus” to firmly combat “Taiwan independence separatist forces and oppose interference by external forces,” Xinhua said. The “1992 consensus,” a term former MAC chairman Su Chi in 2006 admitted making up in 2000, refers to a tacit understanding between the Chinese Nationalist Party (KMT) and the CCP that both sides of the Taiwan Strait acknowledge there is “one China,” with each side having its own interpretation of what “China” means. Wang also called for facilitating people-to-people and primary-level exchanges, and supporting Taiwanese compatriots, especially young people, seeking to study, work and live in China, Xinhua said. Wang underlined the importance of supporting the development of Taiwanese businesspeople and enterprises in China, so that people on both sides of the Strait could share the opportunities and achievements of Chinese modernization, it said.

Winbond Electronics Corp yesterday said it is planning record capital expenditure (capex) of NT$42.1 billion (US$1.33 billion) this year as the demand for memory chips continues to rise amid the artificial intelligence (AI) boom. This year’s capital outlay, a spike from NT$5.5 billion last year, aims to boost Winbond’s DRAM shipments by about 100 percent, and its NOR and NAND flash memory shipments by 30 percent to 40 percent year-on-year, the company said at an earnings conference in Taipei. “Our capacities have been fully booked this year and next year, including DRAM, NOR and NAND,” Winbond president James Chen said. “The industry’s upcycle should last for quite a long time.”

Central Depository Insurance Corp (CDIC) has auctioned a 15.1 percent stake in Taipei 101 operator Taipei Financial Center Corp (TFCC), with two affiliates of the Hung Tai Group winning the bid for NT$8.6 billion (US$272.6 million). The shares, previously held by China United Trust Investment Co, were jointly acquired by Hung Tai Life Insurance and Chengda Investment at NT$38.72 per share — just 0.05 percent above the floor price of NT$38.7 set by CDIC. The auction attracted six bidders, CDIC said, adding that the transaction would proceed only if existing shareholders waive their right of first refusal by March 5.

The Ministry of Economic Affairs yesterday broke ground on the Industrial Technology Research Institute’s advanced semiconductor research and development (R&D) base in Hsinchu County’s Jhudong Township. The NT$3.772 billion (US$119.56 million) base is a joint project with the National Development Council and the National Science and Technology Council as part of the government’s Chip-based Industrial Innovation Program, the ministry said. The base would house pilot production lines for advanced semiconductor processes, submicron sensing chips and advanced packaging, as well as laboratories for inspection, measurement and verification, it said.

CHINA
China yesterday released a policy white paper on Hong Kong’s practice of safeguarding national security to ensure stability in a volatile world, emphasizing that Beijing has “fundamental responsibility” for national security affairs in the territory. The white paper was released by China’s State Council a day after a Hong Kong court sentenced leading China critic and former media mogul Jimmy Lai to 20 years imprisonment in a landmark foreign collusion case under the territory’s National Security Law. Lai’s sentence, the heaviest so far under the China-imposed law, drew international criticism from Taiwan, the US, the UK, the EU, Japan and rights groups. The white paper said Hong Kong would continue to improve its legal system to safeguard national security. “Hong Kong, enjoying high-standard security, is bound to overcome all risks and challenges on the journey forward, and remain as steady as a rock in a turbulent world,” it read.

China’s embassy in London Tuesday criticized the U.K.’s decision to expand a visa program for Hong Kong residents, calling the move an interference in its internal affairs after a court sentenced pro-democracy media tycoon Jimmy Lai to 20 years in prison under a national security law. The U.K. on Monday expanded the British National Overseas (BNO) visa scheme on Monday to allow children of BNO status holders — who were under 18 at the time of Hong Kong’s handover to mainland China in June 1997 — to apply for the route independently of their parents.

Last Friday (6th), eight Chinese central government departments jointly issued the “Notice on Further Preventing and Handling the Risks of Virtual Currency” (Yinfa Document No. 42), CMBI said in a report. On the same day, the China Securities Regulatory Commission implemented the “Regulatory Guidelines on the Issuance of Asset-Backed Securities Tokens for Domestic Assets Abroad”, marking the first time that regulations have positively defined Real World Asset (RWA) and provided a clear regulatory framework. CMBI believed this regulation has three major implications.

First, it distinguishes between virtual currency and RWA business forms, clearly defining RWA and establishing a record-based regulatory framework for the overseas tokenization of domestic assets. It allows domestic entities and overseas subsidiaries of domestic financial institutions to compliantly promote RWA financing abroad.
Second, regulation is enforced based on the classification of RWA underlying assets. The regulation stated that domestic entities conducting RWA business abroad should adhere to the principle of “same business, same risk, same rules”, applying corresponding compliance regulation akin to traditional financing business. The classifications include foreign debt RWA, equity RWA, asset securitization RWA, and other forms of RWA.
Third, as a global digital asset center, Hong Kong is anticipated to be the first to benefit from the increased demand for quality asset outflows from China, promoting Hong Kong’s RWA sector from innovative trials to a stage of normalization and scaling. Among institutions that can provide compliant listing, custody, and trading clearing services abroad, licensed Virtual Asset Trading Platforms (VATP) in Hong Kong are expected to become core participants in the industry chain.

The broker believed that beneficiaries of the expanded overseas RWA financing channels include two tiers: “T1” beneficiaries include
(1) financial infrastructure and service providers such as YUSYS TECHNOLOGIES (300674.SZ), LONGSHINE (300682.SZ), and SUNLINE TECH (300348.SZ)
(2) overseas subsidiaries of brokers with cross-border securitization experience such as CITIC SEC (06030.HK), HTSC (06886.HK), BOC HONG KONG (02388.HK) and GUOTAI JUNAN I (01788.HK)
(3) “T2” beneficiaries include Hong Kong licensed VATP brokerages and trading platforms such as Futu (FUTU.US), Up Fintech Holding (TIGR.US), HASHKEY HLDGS (03887.HK) and OSL GROUP (00863.HK)

Reuters article China tightens market oversight to create ‘slow bull’ momentum As global capital trickles back toward China, policymakers are signalling they want growth without the froth, using tougher enforcement and cooling measures to slow the market’s pace in order to strengthen its appeal in the long term. With fund managers now seeking to diversify away from dollar-heavy portfolios, Beijing’s calibrated approach could help reverse years of retreat when some investors even called the country “uninvestable”. Analysts say these measures highlight the growing importance of the financial sector, particularly as China seeks to attract global capital amid a challenging geopolitical environment. The China Securities Regulatory Commission (CSRC) cracked down on speculators, last month after the Shanghai Composite Index (.SSEC) hit 10-year highs on record turnover driven by leverage bets in a sign of overheating. Over the past month, the Shanghai and Shenzhen stock exchanges handled more than 2,000 cases of irregular trading, including “pump-and-dump” schemes and spoofing, marking a monthly record in enforcement activity. Regulators also meted out a 41-million-yuan ($5.92 million) fine to a local hedge fund for illegal fundraising and misappropriation of investors’ money. Broader cooling efforts include tightening margin financing rules, curbing high-frequency traders’ access to exchange data, and curtailing stock-picking “influencers.” Sovereign funds, meanwhile, have pared back equity holdings.

Recently, Sam’s Club, Hema and Dingdong (DDL.US) successively announced adjustments to their service arrangements and delivery fees during the Spring Festival period. For orders placed between 11 and 24 February, an additional RMB3 Spring Festival delivery fee will be charged on top of the existing shipping fees for online deliveries, Sam’s Club said. This fee is intended to subsidize delivery personnel working during the period.

HONG KONG
IPO’s
Wuxi Lead(00470.HK), which will be listed today, Wednesday, opened on the Futu platform up 0.4% to $46 on gray market, Peaking/ bottoming at $49.98/45.8, it closed at $46.3, up 1.1% or $0.50 from the listing price, on volume of 2.07 million shares and turnover of $96.72 million. Excluding handling fee, the book gain was $50 per board lot size of 100 shares. On the PhillipsMart platform it opened up 0.2% to $45.9 on gray market, Peaking/ bottoming at $48.62/45.9, it closed at $46.66, up 1.9% or $0.86 from the listing price, on volume of 2.43 million shares and turnover of $114 million. Excluding handling fee, the book gain was $86 per board lot size of 100 shares.

Ridge Outdoor(02720.HK), which listed Tuesday, opened at $24.02, up 96.1% from the listing price of $12.25. Peaking/ bottoming at $29.4/21.5, the stock closed at $24.78, up 102.3% from the listing price of $12.25, on volume of 6.22 million shares and turnover of $147.95 million. Excluding handling fee, the book gain was $6,265 per board lot size of 500 shares.

Axera(00600.HK), which listed Tuesday, opened at $28.2. Peaking/ bottoming at $29.18/28.2, the stock closed at $28.2, on volume of 22.58 million shares and turnover of $635.4 million.

Earnings
SMIC (00981.HK) For 4Q25 ended December 2025, revenue was US$2.489 billion, up 4.5% QoQ and 12.8% YoY, Net profit amounted to US$173 million, down 9.9% QoQ and up 60.7% YoY. EPS was US$0.02, flat YoY. During the period, gross profit was US$478 million, down 8.5% QoQ and 4.2% YoY. Gross margin was 19.2%, falling from 22% in 3Q25 and 22.6% in 4Q24, and the capacity utilization rate remained at 95.7%.

PCCW (00008.HK) announced its annual results for the year ended December 2025. Loss attributable to equity holders narrowed to $253 million, from a loss of $300 million in the same period last year, with a LPS of $3.27 cents. A final DPS of $28.48 cents wad declared, flat from the same period last year. Combined with the interim DPS of $9.77 cents, the full-year DPS was $38.25 cents, also flat YoY. PCCW reported a revenue of $40.252 billion for 2025, up 7.2% YoY. By business segment, HKT-SS (06823.HK) revenue increased by 5% to $36.553 billion. OTT Business revenue grew by 5% to $2.579 billion. Free TV & Related Business revenue was $1.034 billion, down over 2% YoY.

Government
The Chief Executive (CE) in Council has adopted the recommendation of the Minimum Wage Commission (MWC) on raising the Statutory Minimum Wage (SMW) rate from its prevailing level of $42.1 per hour to $43.1, an increase of $1 or 2.38%. The Government will publish the Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2026 in the Gazette next Friday (February 20) and table it in the Legislative Council (LegCo) on February 25. Subject to the approval of the LegCo, the revised SMW rate will come into force on May 1 this year. When conducting the review under the new annual review mechanism of the SMW, the MWC adopted the formula approved by the CE in Council to recommend the new SMW rate.

Profit Alert
TVB (00511.HK) issued a positive profit alert expecting to record EBITDA in excess of $350 million for the year ended 31 December 2025, compared to EBITDA of $295 million in FY2024; and positive profit attributable to equity holders in excess of $50 million for the year compared to a loss of $491 million in FY2024. Thus, the Group expected to achieve EPS of at least $0.11 in FY2025 compared to a LPS of $1.09 in FY2024.

Buybacks - None Announced

HSI Short Selling Tuesday 19.8% vs 21.2% Monday
Top shorts MTRC (66) 48%, Lenovo (992) 48%, Henderson Land (12) 47%, Bud APAC (1876) 46%, SHKP (16) 45%, Chow Tai Fook (1929) 42%, Xinyi Glass (868) 39%, Li Auto (2015) 39%, China Res Mixc (1209) 38%, BDY Electronic (285) 38%, Wharf REIC (1997) 37%, WH Group (288) 37%, Power Assets (6) 35%, Shenzhou (2313) 35%, Bidu-SW (9888) 35%, China Overseas (688) 33%, China Res Beer (291) 33%, Ping An (2318) 33%, Hansoh Pharma (3692) 30%, CLP (2) 30%, BYD (1200) 29%, Sinopec (386) 29%, Wuxi Apptec (2359) 29%, Zijin Mining (2899) 28%, Bank of China (3988) 27%, Petrochina (857) 27%, Longfor (960) 26%, Meituan (3690) 26%, Haidilao (6862) 26%, HK & China Gas (3) 26%, ZTO Express (2057) 25%, China Res Power (836) 25%.

WATCH
The Lands Department announced that the tender for a site, New Kowloon Inland Lot No. 6675 at Choi Ha Road, Ngau Tau Kok, Kowloon, has been awarded to the highest tenderer, Maxjet Company Limited (parent company: CHINA OVERSEAS (00688.HK) on a 50-year land grant at a premium of $1.80688 billion. The tender for the residential site on Choi Ha Road, Ngau Tau Kok closed last Friday (6th), receiving nine bids. Market had earlier estimated the site at between $1.14 billion and $1.8 billion.

A hoisting accident occurred at ZHAOJIN MINING (01818.HK)’s Canzhuang Gold Mine in Zhaoyuan City, Shandong Province, at around 8:50 am last Saturday (7th), resulting in 7 fatalities, according to a report from Xinhua News Agency. Local emergency and public security departments have launched a simultaneous investigation into the cause of the accident and the company’s alleged failure to report the incident. 11 individuals, including the mine manager, chief engineer, deputy mine manager for safety, and deputy mine manager for production, have been detained by the authorities.

Hong Kong has recorded around 990 new home transactions MTD, according to market data. Specifically, SHK PPT (00016.HK)’s Cullinan Harbour project sold 15 units in four weeks, securing nearly HKD850 million.

Notice is given that a meeting of a Board meeting of HSBC HOLDINGS (00005.HK) will be held on 25 February to consider the announcement of the final results for the year ended 31 December 2025 and to consider the payment of a fourth interim dividend for 2025 on the ordinary shares, as announced by HSBC HOLDINGS. Subject to the approval and confirmation at the Board Meeting, the dividend will be payable on 30 April to holders of record on 13 March on the Principal register in the United Kingdom, the Hong Kong Overseas Branch register, the Bermuda Overseas Branch register and for holders of American Depositary Shares in New York.

It is rumored that BABA-W (09988.HK) has launched an internal project codenamed “O Plan”. This plan, according to insiders cited by Sina Tech, is related to the Baidu App. Previous reports indicated that the monthly active users of the Ernie assistant under the Baidu App had surpassed 200 million, forming the three major domestic AI entry points together with Doubao and Qianwen.

Market rumored that CHOW TAI FOOK (01929.HK) will adjust the prices of gold products in its mainland stores after the Spring Festival, with implementation in mid-March. The company confirmed the price increase but stated that the timing and extent are yet to be determined. The company explained that product price adjustments are part of the group’s routine operational policy. It will adjust prices in a timely manner based on market conditions and product demand, while upholding its commitment to excellent quality and craftsmanship to meet consumer expectations. It followed Chinese media outlet, 21jingji.com, cited several CHOW TAI FOOK (01929.HK) stores in China as confirming that their gold products will see a price hike after the Spring Festival. This price adjustment may officially commence in mid-March. Some stores have already received notifications, with the focus of the price increase on fixed-price products. The hike is expected to reach 15-30%, though the specific details and timing will depend on the adjustments to the in-store price tags.

Asian Market Sense

Discussion about this post

Ready for more?