Markets are overvalued and needs a breather so whatever the narrative is, it looks like a pullback is due.
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Beijing Haizhi Technology Group Co., Ltd. develops and provides intelligent agents and industrial-grade artificial intelligence (AI) solutions in China and Hong...
Haizhi Tech Group opened high and then fell in the morning session, trading at HKD 23.52 as of 09:31 BJT, up about 9.7% from the previous close of HKD 21.44, but with significant intraday volatility:the stock hit a high of HKD 23.80 before quickly retreating on a thin volume of just 37,200 shares. The company was recently included in the Shenzhen Stock Connect list, which initially boosted liquidity expectations and led to a 13.41% surge on June 10, but was followed by multiple profit-taking pullbacks exceeding 10%, including an 11.81% drop on June 12 and a 12.67% plunge on June 15. The latest quarterly results show Q4 2025 revenue grew 33.47% YoY to HKD 413.68 million, net profit rose 17.27% YoY to HKD 148.25 million, yet operating profit fell 33.54% YoY to HKD 55.10 million, squeezing net profit margin to just 1.48%. The stock is now 85.45% below its 52-week high of HKD 161.60, down 74.6% YTD, and trades well below its 20-day MA of HKD 34.85, with a negative PE of -41.43x and PB of -5.86x reflecting ongoing loss concerns. While Huachuang Securities maintains a Buy rating, the market remains cautious about the stock's high valuation amid earnings pressure.
Beijing Haizhi Technology Group opened high at 28.80 HKD but quickly reversed, closing at 27.40 HKD (down 5.00% from prior close of 28.84 HKD) with a low-volume turnover of only 3.18 million HKD. The intraday range was between 28.56 HKD (high) and 27.40 HKD (low), a spread of about 4.2%. The stock briefly touched its 52-week low of 26.44 HKD on July 26, and despite today's slight rebound, it remains 83.04% below its 52-week high of 161.60 HKD, with a YTD decline of 70.41%. It also trades well below both its 20-day MA (38.511 HKD) and 60-day MA (51.785 HKD), indicating persistent weakness. Recent news shows high volatility: the stock surged 13.41% on June 11 after being added to Stock Connect, but has since experienced multiple sharp drops exceeding 10%, with today's move continuing the downtrend. However, the latest earnings showed mixed signals: Q4 2025 revenue grew 33.47% YoY to 413.68 million HKD and net profit rose 17.27% to 148.25 million HKD, but operating profit fell 33.54% to 55.10 million HKD, and net profit margin plunged from 22.12% to 1.48%, raising questions about earnings quality.
2706.HK opened at a low of 26.440 HKD in the morning session on July 27, then rose steadily to close at 27.720 HKD, down 1.0% from the previous close of 28.000 HKD, with an intraday range of 4.6%. The rebound was supported by the company's Q4 2025 operating revenue surging 33.47% YoY to 413.68 million HKD and net profit increasing 17.27% YoY to 148.25 million HKD, lifting the stock 4.84% from its 52-week low of 26.440 HKD. However, the price remains 82.85% below the 52-week high of 161.6 HKD, undercuts both the MA20 (39.685 HKD) and MA60 (52.102 HKD), and has fallen 70.06% YTD, reflecting lingering concerns over high valuation and volatility.
Haizhi Tech Group (2706.HK) traded at HKD 30.30 around 9:36 BJ in the morning session, down about 5% from its opening of HKD 31.90, with an intraday range of approximately HKD 1.5 and extremely thin volume of 26,600 shares, turnover of HKD 824,000. The stock has faced persistent selling pressure, with multiple daily declines exceeding 10% in the past week, including a 11.81% drop on April 17, reflecting intense capital competition. The company's valuation remains deeply negative, with a PE of -53.37 and PB of -7.55, and a total market cap of about HKD 12.1 billion. Although Q4 2025 earnings showed revenue up 33.47% YoY to HKD 413.7 million and net profit up 17.27% YoY to HKD 148.3 million, operating profit fell 33.54% YoY and net profit margin plunged from 22.12% to 1.48%, indicating margin pressure. The stock has broken below its 52-week low of HKD 30.30, down 81.25% from the 52-week high of HKD 161.60, and trades below both the MA20 (HKD 41.06) and MA60 (HKD 52.47), positioning it at historic lows. However, Huachuang Securities maintains a Buy rating, and BOCI has a target price of HKD 80.81, suggesting institutional confidence in the long-term outlook.
2706.HK staged a low-open rally in the morning session, closing at HKD 34.920, up 5.24% from the previous close of HKD 33.180, driven by the Q4 2025 earnings release. The intraday low was HKD 33.240, with a high of HKD 34.900, yielding a 5.0% range on turnover of HKD 7.54 million. Q4 operating revenue grew 33.47% YoY to HKD 413.7 million, net profit rose 17.27% YoY to HKD 148.3 million, and EPS increased 17.27% YoY to HKD 0.3981, though operating income slumped 33.54% YoY to HKD 55.1 million, compressing the net profit margin to just 1.48%. The stock has broken above the 52-week range midpoint, but a negative PB of -8.7x warrants caution. Nonetheless, total market cap stands at ~HKD 13.98 billion, and turnover rate is a thin 0.06%.
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Huachuang Securities Sticks to Its Buy Rating for Beijing Haizhi Technology Group Co., Ltd. Class H (2706)
Hong Kong stock movement: HAIZHI TECH GP fell by 11.81%, with significant fluctuations in capital flow
Hong Kong stock movement: HAIZHI TECH GP fell by 11.07%, with significant fluctuations in capital flow
Markets are overvalued and needs a breather so whatever the narrative is, it looks like a pullback is due.
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