Daily focus：Tencent Holdings (700)
Tencent Holdings announced its third-quarter 2025 results, demonstrating solid performance and exceeding market expectations. Total quarterly revenue reached RMB192.9 billion, a 15% year-on-year increase. Non-IFRS net profit was RMB70.6 billion, an 18% year-on-year increase, showcasing strong profitability.Growth was primarily driven by gaming and advertising businesses. International gaming revenue performed exceptionally well, surging 43% year-on-year, mainly due to the strong performance of Supercell and contributions from newly acquired studios. Domestic gaming revenue also grew by 15%, driven by new games such as Delta Force and Valorant. Marketing services (advertising) revenue increased by 21% year-on-year, with growth contributed by Video Accounts, Mini Programs, and WeChat Search.
China's October social financing data, far below expectations
China's October social financing data, far below expectations, became the focus of the market. Data showed a significant slowdown in both new RMB loans and total social financing, reflecting extremely weak financing demand in the real economy, with households lacking confidence. Although the central bank's third-quarter monetary policy report released attempted to signal stability, stating that inflation was moderate and that there was a greater focus on direct financing, the weak credit data was clearly more impactful. In the US, the government resumed operations after a historic 43-day shutdown. The market is anxiously awaiting a large amount of delayed key economic data (such as employment and inflation), which will significantly influence the Federal Reserve's next move and bring considerable uncertainty.
Hong Kong Stock Connect saw a net outflow of HK$3.5 billion on Thursday, with Alibaba (9988) experiencing the largest net inflow at HK$1.37 billion, followed by Xiaomi Group (1810). On the other hand, the Tracker Fund of Hong Kong (2800) recorded the largest net outflow at HK$6.23 billion, followed by the Hang Seng China Enterprises Index (2828).
Hong Kong stocks were dragged down by the overnight plunge in US stocks, with technology stocks generally declining. The Hang Seng Index opened 412 points lower and then widened its losses, closing down 500 points or 1.8% at 26,572; the H-share Index fell 201 points or 2.1% to 9,398; and the Hang Seng Tech Index fell 168 points or 2.8% to 5,813. Total market turnover was HK$232.8 billion. Baidu (9888) shares plunged more than 6%, its biggest drop in nearly seven months. JD.com (9618) shares fell more than 5%. In contrast, JD Health (6618) reported a 29% increase in third-quarter revenue to RMB 17.1 billion, beating expectations, and its shares rose 6.6% against the market trend, making it the best-performing blue-chip stock.
Source: KGI Investment Products and Solutions Department
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