Escalating Middle East tensions dragged Hong Kong stocks down by 291 points, breaking below the 250-day moving average. Profit-taking hit Asia-Pacific markets; consider Southern twice short Samsung Electronics, twice short Nikkei, and twice short NVIDIA.

Amid ongoing tensions in the Middle East, with the U.S. and Israel initiating military actions against Iran, U.S. stocks closed flat yesterday, while most Asia-Pacific stock markets declined today. South Korea's Kospi index plunged over 7% after the holiday break, Japan's Nikkei fell 3%, and Taiwan’s market also dropped more than 2%. Hong Kong stocks opened higher but turned lower; they initially rose 130 points to a high of 26,218 points before retreating. They briefly rebounded above 26,000 points pre-noon but fell further in the afternoon, hitting an intraday low of 25,727 points before closing at 25,768 points, down 291 points or 1.12%, breaking below the 250-day moving average. The trading range was 491 points, with turnover reaching HKD 370.5 billion. The Hang Seng China Enterprises Index (HSCEI) dropped 93 points or 1.07%, closing at 8,608 points with a turnover of HKD 113.6 billion. Among blue-chip stocks, only 17 rose, 4 remained unchanged, and 67 fell, with total turnover at HKD 133.7 billion, accounting for 36.1% of the overall market turnover.

Tech stocks led the plunge, with Hang Seng Tech falling 112 points or 2.26% to close at 4,876 points, with a turnover of HKD 71.9 billion, including Zero Run Automobile$LEAPMOTOR (09863.HK)$dropping HKD 2.88 or 7%, making it the worst-performing constituent stock, closing at HKD 38.26; BYD Electronics$BYD ELECTRONIC (00285.HK)$ Dropped by 1.84 yuan or 5.83%, closing at 29.72 yuan; XPeng Motors $XPENG-W (09868.HK)$ Dropped by 3.8 yuan or 5.65%, closing at 63.45 yuan, Huahong Semiconductor $HUA HONG SEMI (01347.HK)$ Dropped by 5.15 yuan or 5.54%, closing at 87.8 yuan; Nio $NIO-SW (09866.HK)$ Dropped by 1.9 yuan or 4.92%, closing at 36.72 yuan. Among heavyweight tech stocks, Xiaomi fell by 1.56 yuan or 4.7%, closing at 31.58 yuan; Meituan $MEITUAN-W (03690.HK)$ Dropped by 1.75 yuan or 2.26%, closing at 75.65 yuan; Alibaba $BABA-W (09988.HK)$ Dropped by 1.6 yuan or 1.17%, closing at 134.8 yuan; Tencent $TENCENT (00700.HK)$ Dropped by 3.5 yuan or 0.68%, closing at 510.5 yuan, Baidu $BIDU-SW (09888.HK)$ Dropped by 1.2 yuan or 1.01%, closing at 117.3 yuan; NetEase $NTES-S (09999.HK)$ Will switch to a dual listing in the US and Hong Kong within a year. The stock price rose against the market trend by 2.5 yuan or 1.41%, closing at 179.8 yuan.

As the conflict between the US and Iran escalates, shipping through the Strait of Hormuz has been forced to halt. This strait handles about one-fifth of the world's oil transportation, and the cost of chartering super tankers for crude oil transport from the Middle East to China has surged to an all-time high. Oil and shipping stocks have risen significantly, with the 'three major oil companies' in A-shares soaring. In Hong Kong stocks, PetroChina $PETROCHINA (00857.HK)$ Up 0.5 yuan or 5.04%, closing at 10.43 yuan; China National Offshore Oil Corporation $CNOOC (00883.HK)$ Up 0.86 yuan or 3.22%, closing at 27.6 yuan; Sinopec $SINOPEC CORP (00386.HK)$ Down 0.15 yuan or 2.68%; oil service stock Shandong Molong $Luzhou Laojiao (000568.SZ)$ Up 26% or 2.44 yuan, closing at 11.79 yuan; Sinopec Oil Service $SINOPEC SSC (01033.HK)$ Up 0.18 yuan or 13.43%, closing at 1.52 yuan; in the shipping sector, COSCO Shipping Development $COSCO SHIP DEV (02866.HK)$ Up 26.67%, to 1.52 yuan; COSCO Shipping Energy $COSCO SHIP ENGY (01138.HK)$ Up 0.4 yuan or 1.95%, to 20.9 yuan; Transfar Shipping $TS LINES (02510.HK)$ Up 1.32%, to 10.01 yuan.

Following reports that QatarEnergy halted liquefied natural gas production after Ras Laffan facilities were attacked by drones, natural gas prices soared, exacerbating market concerns over supply capacity through the Strait of Hormuz. Hong Kong-listed gas stocks surged, with ENN Energy $ENN ENERGY (02688.HK)$ As the best-performing blue-chip stock of the day, up 3.5 yuan or 5.12%, closing at 71.85 yuan; Dazhong Public Utilities $DZUG (01635.HK)$Surged 61.81% or 1.91 yuan, closing at 5 yuan; Zhongyu Energy rose 13.86% or 0.42 yuan, closing at 3.45 yuan.

Market risk aversion sentiment surged, with some funds deploying into utility stocks, including Hong Kong and China Gas.$HK & CHINA GAS (00003.HK)$Rose 0.14 yuan or 1.85%, closing at 7.7 yuan, MTR Corporation rose 0.32 yuan or 0.88%, closing at 36.54 yuan.$MTR CORPORATION (00066.HK)$CLP Holdings rose 0.65 yuan or 0.88%, closing at 74.8 yuan.$CLP HOLDINGS (00002.HK)$Henderson Land rose 0.5 yuan or 0.8%, closing at 63.3 yuan.$POWER ASSETS (00006.HK)$Increased by 0.5 yuan or 0.8%, reported at 63.3 yuan.

MINIMAX-WP$MINIMAX-W (00100.HK)$MINIMAX-WP reported an adjusted net loss of 1.96 billion yuan last year, while revenue increased 1.56 times. A major investment bank praised the company for exceeding revenue expectations. It closed at 821 yuan, rising 68.5 yuan or 9.1%; Mi Strategy launched a Pokémon card tokenization fund, closing at 1.74 yuan, up 0.34 yuan or 24.29%.$MEMESTRATEGY (02440.HK)$Amid concerns over rising energy costs triggered by tensions in the Middle East, risk-off sentiment swept through global markets. Asia-Pacific stock markets fell broadly, including Korea and Japan. The benchmark index in Korea dropped more than 7%, briefly triggering a circuit breaker mechanism, marking the largest decline since November 5 of last year. Previously hot storage concept stocks saw profit-taking after peaking, with Samsung Electronics falling more than 9% and SK Hynix dropping more than 11%. Japan's stock market also plunged, with the Nikkei 225 Index closing down 1,778 points or 3.06% at 56,279 points, the biggest drop since last November. Analysts pointed out that hedge funds, which had heavily invested in Asian equities earlier, are now rushing to reassess their positions due to escalating tensions in the Middle East.

In light of the concerns over rising energy costs due to the situation in the Middle East, risk-averse sentiment has swept across global markets, leading to widespread declines in the Asia-Pacific stock markets, including South Korea and Japan. The South Korean benchmark index fell by more than 7%, triggering a circuit breaker at one point, marking the largest drop since November 5 of last year. Recently popular storage concept stocks adjusted from their highs, with Samsung Electronics down over 9% and SK Hynix down over 11%. The Japanese stock market also suffered significant losses, with the Nikkei 225 index closing down 1,778 points or 3.06%, at 56,279 points, the largest drop since November of last year. Analysts have pointed out that due to the escalation of tensions in the Middle East, hedge funds that had previously made large purchases of Asian market stocks are now eager to reassess their positions.

In response to the market downturn, investors looking to hedge related assets may consider the Southern Twice Short Samsung Electronics ETF $CSOP Samsung Electronics Daily (-2x) Inverse Product (07347.HK)$ and the Southern Twice Short Nikkei ETF $CSOP Nikkei 225 Daily (-2x) Inverse Product (07515.HK)$ . As the largest stock in the Korean market, Samsung's share price fluctuates not only with company-related events but is also easily affected by macro events such as Korean political issues, tariff conflicts, and unwinding of yen carry trades. Its short-term volatility often presents trading opportunities. The Southern Twice Short Samsung Electronics ETF (7347) is the world’s only leveraged and inverse product for Samsung, with a management fee of 1.6% of the fund’s annual net asset value. Today, its price closed at 0.35 yuan, up 0.047 yuan or 15.51%. Investors who are bearish on Japanese stocks in the short term can look at the Southern Twice Short Nikkei ETF (7515), which closed today at 23.46 yuan, up 1.44 yuan or 6.54%. It should be noted that ETFs are leveraged, with potentially higher price volatility and may not fully track asset prices due to management fees or market factors, leading to tracking errors. These products are more suitable for short-term trading. Regarding US stocks, NVIDIA’s share price fell after releasing its Q4 earnings, dropping nearly 10% over two days. Concerns about the Middle East situation have yet to be reflected in US stocks, which could face adjustment risks in the near term. NVIDIA is a leading semiconductor company in the US stock market, and short-term bearish investors can opt for the Southern Twice Short NVIDIA $CSOP NVIDIA Daily (-2x) Inverse Product (07388.HK)$ , which has recently seen capital inflows. Its share price closed today at 20.66 yuan, down 1.34 yuan or 6.09%.

@孫子的末代傳人 @中戶變大戶小牛變大牛 @股海GSO

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