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NetEase Cloud Music (9899): announced its full-year 2025 results, with total revenue slightly down 2.4% year-on-year to RMB 7.76 billion. Despite revenue pressure, the gross margin significantly expanded from 33.7% to 35.7%, benefiting from optimized copyright costs and operating leverage. Net profit reached RMB 2.75 billion, a substantial increase of 75.4% year-on-year; adjusted net profit also rose 68.2% to RMB 2.86 billion, demonstrating the company's significant achievements in profit release and cost control.
Federal Reserve Meeting minutes
Significant disagreement has emerged within the Federal Reserve regarding the path of interest rate cuts. Meeting minutes reveal that while some officials supported rate cuts after inflation subsided, most members pointed out that downside risks to employment had diminished, and the pace of inflation cooling was slow. They called for maintaining the "two-way" in interest rate guidance to allow room for rate hikes when inflation remains high. Federal Reserve Governor Milan also noted that improvements in the labor market may mean fewer rate cuts this year. With expectations of a prolonged high-interest-rate environment and rising concerns about tightening liquidity, not only are financing costs increasing, but valuation headwinds are also creating challenges for risk assets.
Hong Kong stock market performed well in the morning today. The HSI opened 65 points lower but rebounded to close up 138 points or 0.5% at 26,705; the HSCEI rose 37 points or 0.4% to close at 9,070; and the HSTECH rose 7 points or 0.1% to close at 5,367. Total turnover recored HK$85bn. CATL (3750), CMOC (3993), and Laopu Gold (6181) were added to the HSI during the quarterly review, while Zhongsheng (0881) was removed. CATL rose 2.7%, Luoyang CMOC and Laopu Gold rose 6.4% and 6.6% respectively, while Zhongsheng fell 0.2%. Beike-W (2423) and Horizon-W (9660), which were added to the HSCEI, saw Beike close down 2.1% and Horizon rise 0.9%.
Source: KGI Investment Products and Solutions Department
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U.S. employment data came in weaker than expected, with initial jobless claims rising by 22{,}000 to 231{,}000, above market expectations. The cooling labor market has also prompted speculation that the Federal Reserve may deliver a larger scale of rate cuts this year…