Tongzhong Hong Kong Stocks Morning Brief | Trump officially nominates Waller as Federal Reserve Chair FT China 50 Index adjustment announced

【Today’s Headlines】

FT China 50 Index Adjustment: Includes New China Insurance (01336), Weichai Power (02338); Removes China Minsheng Bank (01988), ZTE Corporation (00763)

On March 4, FT Russell announced quarterly review changes to the FT China Index series, with adjustments taking effect after market close on March 20, 2026. The FT China 50 Index will include China Insurance (01336) and Weichai Power (02338), while removing Hong Kong-listed stocks China Minsheng Bank (01988) and ZTE Corporation (00763).

Additionally, FT Russell released the new candidate stock list for the next quarter of the FT China 50 Index, including Hong Kong stocks: China Aluminum (02600), China Tourism Group Duty Free (01880), Hansoh Pharmaceutical (03692), Shandong Gold (01787), and Sanhua Intelligent Controls (02050).

【Market Outlook】

US Stock Indices Rise Across the Board; Most Major Tech Stocks Perform Well

As of the close yesterday, the US stock market saw the Dow Jones Industrial Average up 238.14 points to 48,739.41, a 0.49% increase; the S&P 500 rose 52.87 points to 6,869.5, up 0.78%; the Nasdaq Composite gained 290.79 points to 22,807.48, up 1.29%. Most large tech stocks rose, with Intel up over 5%, Amazon and Tesla up over 3%. Cryptocurrency-related stocks surged collectively, with Coinbase up over 14%, Strategy up over 10%, and storage-related stocks like Micron and SanDisk up over 5%.

Most popular Chinese concept stocks also rose, with the Nasdaq Golden Dragon China Index up 0.80%. TSMC increased 1.22%, Alibaba fell 1.71%, Pinduoduo rose 0.48%. The Hang Seng Index ADRs increased, with an adjusted close of 25,540.98 points, up 291.5 points or 1.15% from Hong Kong market close.

NYMEX WTI crude futures for the current month rose $1.55 to $76.11 per barrel, a 2.08% increase. COMEX gold futures rose $27.90 to $5,151.60 per ounce, up 0.54%. COMEX silver futures increased $0.29 to $83.765 per ounce, up 0.35%.

【Hot Topics Preview】

US Treasury Secretary Says 15% Global Tariffs Expected to Take Effect This Week

On March 4, US Treasury Secretary Janet Yellen stated that the new 15% “global import tariff” is expected to be officially implemented sometime this week. Yellen said this tariff rate was decided by President Trump last month.

Trump Officially Nominates Kevin W. Woots as Next Fed Chair

On Wednesday, President Trump formally nominated Kevin W. Woots as the next Federal Reserve Chair. If confirmed by the Senate, Woots will succeed Jerome Powell for a four-year term. The White House issued a statement confirming the nomination, which was formally submitted to the Senate more than a month after Trump first publicly announced his intention to appoint Woots.

COSCO Shipping Ports Suspends New Bookings on Relevant Routes Due to Escalating Middle East Conflict

COSCO Shipping Ports issued an update on Middle East tensions. Due to ongoing conflict escalation and restrictions on maritime traffic through the Strait of Hormuz, to ensure cargo safety and operational stability, the company has decided to suspend new bookings on related routes effective immediately until further notice. The scope includes: 1. Suspension of all new bookings from global to UAE (excluding Fujeirah and Horfakkan), Qatar, Bahrain, Iraq, Saudi Arabia (excluding Jeddah), and Kuwait. 2. Suspension of all new bookings from these Middle Eastern countries to global destinations. Affected Hong Kong stocks include COSCO Shipping Holdings (01919), COSCO Shipping Ports (01199), COSCO Shipping International (00517).

Lenovo (00992) Issues Price Increase Notice; Some Computers Up Over 1,000 Yuan

In early 2026, a price hike driven by upstream core components is sweeping the consumer electronics market. An insider revealed that Lenovo has issued a price adjustment letter to its channel partners, deciding to raise prices on some of its computer products. The same signals appeared earlier online, with prices adjusted or discounts withdrawn since March. The letter mainly targets offline stores, with some models seeing retail prices increase by over 1,000 yuan compared to last year. However, student purchase subsidies remain in effect, so student prices are unaffected. Affected stock: Lenovo Group (00992).

Seedance 2.0 Video Generation Pricing Announced: 1 Yuan per Second

According to Volcano Engine, Seedance 2.0 pricing has been announced: video input costs 28 yuan per million tokens; without video input, 46 yuan per million tokens. Generating a 15-second video consumes about 308,880 tokens. The two pricing options differ in service scope: with video input involves editing, without is pure generation, requiring more computing power and thus higher cost. At 46 yuan per million tokens, a 15-second video costs about 15 yuan, or 1 yuan per second. AI video companies include Zhituo (02513), Kuaishou Keling, MiniMax (00100).

Kangzhe Pharmaceutical (00867): Self-Developed Innovative Drug INHBE Small Nucleic Acid CMS-D008 Approved for Clinical Trials in Overweight or Obesity Indications

Kangzhe Pharmaceutical announced that its self-developed innovative drug INHBE small nucleic acid CMS-D008 injection (CMS-D008) received clinical trial approval from the National Medical Products Administration (NMPA) on March 4, 2026. The NMPA approved the clinical trial for CMS-D008 injection in overweight or obesity indications.

Uni-President China (00220): End-2025 Shareholder Profit of 2.05 Billion Yuan, Up 10.9%

Uni-President China announced that its 2025 revenue reached RMB 31.714 billion, a 4.6% increase from last year; net profit was RMB 2.05 billion, up 10.9%. The company will pay a final dividend of RMB 0.4747 per share on July 8, 2026.

Chizi City Technology (09911) Announces Profit Warning: Expected 2025 Net Profit of About 900 Million to 940 Million Yuan, Up 87.5%–95.8%

For the year ending December 31, 2025, the group’s total revenue is expected to be approximately RMB 6.76 billion to RMB 7 billion, up about 32.8%–37.5% from 2024. The profit increase is mainly due to ongoing AI technology integration across the business chain and the steady growth of diversified social products driven by AI.

China Qinfa (00866): Plans to Issue New Shares at About 10% Discount, Raising Approximately HKD 309.6 Million

China Qinfa announced that on March 5, 2026 (before trading hours), the company, seller Xu Jihua, and joint bookrunners entered into a placing and subscription agreement. The seller agreed to sell 90 million existing shares at HKD 3.51 per share, representing about a 10% discount to the last closing price of HKD 3.9. The company has conditionally approved the issuance of 90 million new shares at HKD 3.51 per share to the seller under general authority, with the proceeds approximately HKD 309.6 million.

Zhou Hei Ya (01458) Announces Profit Warning: Expected 2025 Profit of 150–165 Million Yuan, Up About 52.7%–68.0%

Zhou Hei Ya forecasted that its total revenue for the year ending December 31, 2025, will be between RMB 2.52 billion and RMB 2.55 billion, a 2.8%–4.0% increase from RMB 2.451 billion in 2024. Net profit is expected to be RMB 150–165 million, up approximately 52.7%–68.0% from RMB 98.2 million in 2024. The growth is mainly attributed to improved store operations and channel expansion.

Qingci Games (06633) Announces Profit Warning: Expected 2025 Net Profit Growth of About 134%–197%

Qingci Games forecasted that its net profit for the year ending December 31, 2025, will be approximately RMB 110 million to RMB 140 million, compared to RMB 47.1 million in 2024, representing an increase of about 134%–197%.

【Stock Highlights】

ASMPT (00522): Better-than-Expected Performance

In Q4 2025, performance exceeded guidance, with revenue up 31% year-over-year to HKD 4.254 billion, driven by growth in Semiconductor Solutions (SEMI) and Surface Mount Technology (SMT). Due to product mix and weak automotive and industrial markets affecting surface assembly tech, gross margin slightly declined by 0.8 percentage points to 36.5%.

Management raised the total addressable market (TAM) for hot bar bonding (TCB) significantly, projecting it to reach USD 1.6 billion by 2028, from USD 759 million in 2025, with a CAGR of 30%, surpassing previous estimates of USD 1 billion by 2027. This reflects rapid acceleration in AI logic and high-frequency memory investments.

The company remains optimistic about high-frequency wide-bandwidth memory in 2H, believing that if JEDEC standards relax further, hot bar bonding can support these stacks. They also see high-frequency wide-bandwidth flash memory as a major untapped opportunity for hot bar bonding. Analysts have raised forecasts for 2026–2028 by 6%, 6%, and 3%, respectively, factoring in strong SEMI revenue growth driven by AI and advanced packaging, partially offset by the downturn in SMT.