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 rose slightly by 4 points, or 0.02%, to 25,836; the Hang Seng China Enterprises Index fell 7 points, or 0.08%, to 9,143; and the Hang Seng Tech Index fell 0.58% to 5,574. Total market turnover was HK$245.1 billion. Techtronic Industries (0669) rose 5.36% to HK$88.5, leading the blue chips, after brokers maintained their buy ratings and conducted share buybacks. Link REIT (0823) announced a 5.9% year-on-year decrease in interim distribution per unit, falling 6.42% to HK$38.8, below market expectations. Kingsoft (3888) announced a 48% year-on-year plunge in third-quarter profit to RMB 213 million, with revenue also down 17%. Following the results, its stock price plummeted 7.03% to HK$28.56, a one-year low.
Source: KGI Investment Products and Solutions Department
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