The Hang Seng Index rose only 34 points for the day, closing at 25,868 points. Auto stocks continued to be favored. Investors may want to keep an eye on Tencent and Alibaba's upcoming earnings reports; consider focusing on China Merchants Hang Seng Tech ETF.

As the conflict in the Middle East continues and geopolitical uncertainties remain, U.S. government officials reiterated that oil prices will quickly fall once the conflict ends. NVIDIA’s GTC conference officially opened last night, with U.S. stocks rising and oil prices retreating temporarily. This morning, Taiwan and South Korean stocks also performed well. The Hang Seng Index opened 104 points higher and rose to a high of 26,250 points in early trading but then turned negative. In the afternoon, news broke that China would restrict red-chip companies from listing in Hong Kong, coupled with a nearly 3% surge in oil prices, causing the index to drop below the 26,000-point level, reaching a low of 25,844 points. However, losses narrowed, and it closed at 25,868 points, up 34 points or 0.13%, with a turnover of 268.2 billion HKD. The Hang Seng Tech Index closed at 5,107 points, down 4 points or 0.08%, with a turnover of 59.3 billion HKD. The Hang Seng China Enterprises Index closed at 8,826 points, up 10 points or 0.12%, with a turnover of 86.3 billion HKD. Among blue chips, 58 rose, 30 fell, and 2 remained unchanged. Northbound funds flowed out by 11.4 billion HKD.

Contemporary Amperex Technology Co., Limited (CATL)$CATL (03750.HK)$After several days of gains following impressive earnings, CATL opened higher this morning, hitting a new high of 685 yuan. However, profit-taking emerged, leading to a final close down 22 yuan or 3.28% at 648 yuan, making it the worst-performing blue chip stock of the day.

Auto stocks continued to outperform the broader market as NVIDIA announced during its GTC conference collaborations with various automakers including BYD, Geely Auto, Hyundai Motor, Nissan Motor, and Isuzu Motors to work on the NVIDIA DRIVE Hyperion autonomous driving platform for Level 4 autonomous vehicles. Geely Auto ($GEELY AUTO (00175.HK)$ ) rose by 0.82 yuan or 4.55%, closing at 18.84 yuan, making it the best-performing blue-chip stock of the day; regarding other sector-related shares, Zero Run Automobile ($LEAPMOTOR (09863.HK)$ ) reversed last year's loss to profit over 500 million RMB and is exploring diversified cooperation in complete vehicles and parts with Stellantis. The stock surged nearly 7% during the session but retreated before closing, finally ending at 45.42 yuan, up 0.86 yuan or 1.93%; Li Auto ($LI AUTO-W (02015.HK)$ ) rose by 1.4 yuan or 2%, closing at 71.3 yuan; Nio ($NIO-SW (09866.HK)$ ) rose by 0.28 yuan or 0.59%, closing at 47.32 yuan; Xiaomi Group ($XIAOMI-W (01810.HK)$ ) rose by 0.16 yuan or 0.45%, closing at 35.36 yuan; BYD Co., Ltd. ($BYD COMPANY (01211.HK)$ ) rose by 0.2 yuan or 0.19%, closing at 104.5 yuan; XPeng Motors ($XPENG-W (09868.HK)$ ) fell by 0.05 yuan or 0.064%, closing at 78.2.

Shanghai further lowers the threshold for home purchases, reducing the down payment ratio for commercial property loans to no less than 30%. This is another measure to stabilize the property market following the implementation of Shanghai's 'Seven Measures for Housing' on February 26. Real estate stocks performed well, with Longfor Properties (0960.HK) rising by 0.4 yuan or 4.44%, closing at 9.4 yuan; China Resources Land ($CHINA RES LAND (01109.HK)$ ) rose by 0.58 yuan or 1.9%, closing at 31.1 yuan; China Overseas Land & Investment (0688.HK) increased by 0.37 yuan or 2.84%, closing at 13.42 yuan; Vanke Enterprise ($CHINA VANKE (02202.HK)$ ) rose by 0.06 yuan or 1.78%, closing at 3.44 yuan.

Influenced by the performance of mainland retail and other economic data, sectors such as domestic demand and consumer stocks extended yesterday's upward trend. Li Ning ($LI NING (02331.HK)$ ) rose by 0.7 yuan or 3.58%, closing at 20.26 yuan; Pop Mart ($POP MART (09992.HK)$ ) increased by 6.6 yuan or 3.16%, closing at 215.4 yuan; Anta Sports ($ANTA SPORTS (02020.HK)$ ) climbed by 1.25 yuan or 1.59%, closing at 79.65 yuan; Laopu Gold ($LAOPU GOLD (06181.HK)$ ) advanced by 8 yuan or 1.24%, closing at 655 yuan; China Resources Beer (0291) gained 0.3 yuan or 1.18%, closing at 25.82 yuan.

Alibaba ($BABA-W (09988.HK)$ ) announced the establishment of the Alibaba Token Hub division to fully implement the group’s AI strategy, with shares rising over 3% to reach a high of 138.5 yuan, but gains evaporated in the afternoon, closing at 134.6 yuan, up 0.6 yuan or 0.45%; Baidu ($BABA-W (09988.HK)$ ) released 'Home-use Lobster,' integrating OpenClaw into Xiaodu smart speakers, allowing users to initiate complex tasks with voice commands, with shares dropping 3.7 yuan or 3% throughout the day, closing at 119.2 yuan; Yaotai ($BRIGHT SMART (01428.HK)$ ) resumed trading after finalizing the sale to Ant Group, opening over 65% higher this morning, closing the day at 13.6 yuan, up 4.33 yuan or 46.71%.

US Treasury Secretary Besant stated that the US allows Iranian oil tankers to pass through the Strait of Hormuz, with persistently high oil prices leading to mixed performances among oil stocks, CNOOC ($CNOOC (00883.HK)$ ) fell by 0.64 yuan or 2.17%, closing at 28.8 yuan; PetroChina ($PETROCHINA (00857.HK)$ ) fell by 0.04 yuan or 0.38%, closing at 10.58 yuan; Sinopec ($SINOPEC CORP (00386.HK)$ ) rose by 0.01 yuan or 0.21%, closing at 4.78 yuan; Shandong Molong ($SHANDONG MOLONG (00568.HK)$ ) fell by 0.17 yuan or 1.51%.

The activity level of the technology sector in Hong Kong stocks has gradually increased recently, with many tech stocks beginning to stabilize and rebound after halting their declines. Benefiting from the buzz surrounding Lobster AI and strong performance and news from auto-related stocks, some tech sectors such as Tencent ($TENCENT (00700.HK)$ ), Alibaba ($BABA-W (09988.HK)$ ) have started to recover. Additionally, positive developments have driven gains in auto stocks like BYD ($BYD COMPANY (01211.HK)$ ), Xiaomi Group ($XIAOMI-W (01810.HK)$ ), and chip stocks like Huahong Semiconductor (1347). A significant amount of capital is also gradually flowing back into the technology sector. The Hang Seng Tech Index has shown relatively strong performance recently, maintaining a position above 5100 points today, reflecting short-term bottoming signals for the tech index. This week, key heavyweights of the tech index, Tencent ($TENCENT (00700.HK)$ ), and Alibaba ($BABA-W (09988.HK)$ ), will release their earnings reports. Investors who remain optimistic about the development of tech stocks and AI-related sectors this year, or those hoping to buy the dip before tech stocks rebound, may consider tracking ETFs that follow the Hang Seng Tech Index, such as the China Merchants Hang Seng Tech ETF ($CMS Hang Seng Tech Index ETF (03423.HK)$ ), diversifying investments across various technology stocks to reduce the high investment risk caused by the volatility of a single stock. The ETF closed today at 9.13 yuan, up 0.005 yuan or 0.055%, making it suitable for medium- to long-term investors optimistic about the future development of the technology sector.

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