Jinwu Financial News | The Hang Seng Index closed at 19229 on Friday (22nd), down 371 points, or 1.9%. The market turnover was 157.9 billion yuan. The national index fell 2.1% to 6887; the Science Index fell 2.6% to 4246. China expanded the scope of visa-free countries, including Japan, and the airline stock market reversed. China Eastern Airlines (00670) plans to repurchase shares, up 1.7%; Apple concept stocks are generally improving today. Shunyu (02382) rose 2.2%; Ruisheng (02018) surged 7.9%; BYD Electronics (00285) rose 4.3%, making it the blue chip with the biggest increase today and the blue chip with the strongest increase this week, with a total increase of 20.4%;

The Dow closed at 44,296 points, 426 points, or 0.97% on Friday (22nd). The index repeatedly rebounded 0.35% to 5969 points; the NASDAQ rebounded 0.16% to 1,003 points; Among blockbuster stocks, Alphabet's stock price closed down 1.7%. There are reports that artificial intelligence (AI) startup OpenAI is considering developing an online browser, and recently reached an agreement on search functions with retail, travel and other websites. Amazon announced an additional investment of 4 billion dollars into AI startup Anthropic, and the stock price fell 0.6% repeatedly. The chip stock Nvidia (Nvidia) fell 3.2%, making it the Dow component with the biggest decline. Tesla (Tesla) jumped 3.8% and Boeing climbed 4.1%, making it the strongest performing Dow component. The Asia-Pacific stock market moved individually this morning (25th). The Nikkei 225 Index now reports 38,946 points, up 919 points, or 2.4%. The South Korea Composite Index now stands at 2,530 points, up 50 points, or 2%. The technical trend in the market is gradually deteriorating, and the market expects the central government to bail out the market even more.

(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)

Market Focus: Huahong Semiconductor (01347)

ST's MCU announced a partnership with local foundry Huahong Semiconductor to produce 40nm node microcontrollers (MCUs) in China to support the achievement of medium- to long-term revenue goals. The news helped the Group's stock price rise. The Group's third-quarter revenue was 0.5263 billion US dollars, up 10% month-on-month, and net profit to mother was 44.8 million US dollars, up 571.6% month-on-month and 222.65% year-on-year; the Group's revenue and gross margin slightly exceeded expectations, mainly due to shipments exceeding expectations, and net profit slightly exceeding expectations due to foreign currency exchange earnings and government subsidies. ST is one of Europe's largest semiconductor companies and one of the world's largest suppliers of silicon carbide chips, and has customers for electric vehicle brands such as Tesla and Geely. I believe this collaboration between the Group and STMicroelectronics MCU will positively help the Group's performance.

Target Price: $26 Stop Loss Price: $18.6

(The author is a licensed person of the Securities Regulatory Commission and the author does not hold the above shares)

Author: Dr. Tang Sheng-hing, Chairman of the Hong Kong Association of Equities Analysts