Daily focus：Kuaishou (1024)
Kuaishou reported solid performance in the third quarter of 2025, with total revenue rising 14.2% year-on-year to RMB 35.6 billion, slightly exceeding market expectations. Adjusted net profit reached RMB 5 billion, a 26.3% year-on-year increase, demonstrating continued improvement in profitability. In terms of business segments, online marketing services revenue grew 14% to RMB 20.1 billion, live streaming revenue rose slightly by 2.5%, while other services revenue jumped significantly by 41.3% to RMB 5.9 billion, benefiting from the expansion of its e-commerce business. The company actively promoted its AI strategy, with Kling AI's quarterly revenue exceeding RMB 300 million, and model upgrades reducing generation costs by 30%. AI technology has also been deeply integrated into marketing and e-commerce scenarios, effectively improving the accuracy of ad placement and the efficiency of various monetization methods.
The FOMC meeting minutes reflect a slim chance of a December rate cut.
The minutes of the Fed's October meeting revealed a significant divergence of opinion among policymakers regarding a rate cut. Although a 10-2 vote was ultimately passed to cut rates, a "majority" of officials believed that no further rate cuts were needed before the end of the year. Following the release of the minutes, market expectations for a December rate cut plummeted to approximately 33%. Officials also expressed concerns about a slowing labor market and persistent, unsustainable inflation, indicating a more cautious approach to future monetary policy. Notably, the Fed unanimously agreed to halt balance sheet reduction starting in December; investors should closely monitor subsequent economic data to determine the Fed's next move.
Hong Kong Stock Connect saw a net inflow of HK$6.59bn on Wednesday, with Xiaomi Group (1810) experiencing the largest net inflow at HK$2.39bn, followed by Alibaba (9988). On the other hand, the Tracker Fund of Hong Kong (2800) recorded the largest net outflow at HK$1.48bn, followed by China Mobile (941).
The Hang Seng Index briefly climbed above the 26,000 mark in early trading, reaching a high of 26,045 points, but the decline widened in the afternoon, closing at 25,831 points, down 99 points or 0.38%. The Hang Seng Tech Index underperformed the market, falling 38 points or 0.69% to 5,607 points; the Hang Seng China Enterprises Index fell 23 points or 0.26% to 9,151 points. The total market turnover was HK$211.4 billion. In terms of individual stocks, Xiaomi Group-W (1810) saw its target price lowered by several brokerages after announcing its results, with its share price falling 4.8% throughout the day; Techtronic Industries (669) fell 3.0%.
Source: KGI Investment Products and Solutions Department
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