On January 3rd, the first trading day of the new year, global financial markets showed a mixed but generally strong trend.

In the Hong Kong stock market, the Hang Seng Index closed up 2.76%, with the technology index rising even more significantly by 4%. Meanwhile, the offshore RMB against the US dollar broke through the 6.97 level, reaching a new high since May 2023, reflecting a re-pricing of RMB assets. There were also bright spots in the industrial sector: BYD has surpassed Tesla to become the world's top electric vehicle seller. Additionally, the China National Integrated Circuit Industry Investment Fund increased its holdings in SMIC's H-shares from 4.79% to 9.25%, highlighting continued investment in the chip industry.

The US stock market at the start of the year showed a structured pattern—three major indices diverged, but the Nasdaq Golden Dragon China Index surged 4%, indicating that market enthusiasm for Chinese concept tech stocks remains strong. However, Tesla's delivery data cast a bit of a chill: Q4 2025 deliveries fell more than expected, and annual sales declined for the second consecutive year, signaling concerns about growth prospects in the electric vehicle industry.

On the international front, Venezuelan President Maduro stated that he is ready to engage in dialogue with the US on relevant issues; a 6.5 magnitude earthquake in Mexico caused casualties, with frequent aftershocks. These geopolitical factors may more or less impact commodities and risk assets.

Overall, market sentiment at the start of the year is relatively optimistic, but growth expectations need further validation.