Daily focus：Haier Smart Home (6690)
Haier Smart Home demonstrates resilience far exceeding the industry average in a volatile market thanks to its outstanding multi-brand matrix and high-end strategy. Unlike the industry's simple price competition, the company precisely targets different customer groups through a comprehensive brand portfolio including Casarte, Haier, and Leader. Among them, the high-end brand Casarte leads the market share in the high-end refrigerator and washing machine market (priced above 10,000 RMB), maintaining double-digit revenue growth in the first three quarters. This pursuit of "quality" rather than "price" gives the company strong pricing power and builds a deep brand barrier.
Market Focuses on Interest Rate Decision
The US Federal Reserve will hold its meeting on December 9-10, and market expectations for a rate cut have increased significantly, with CME futures pricing in an 87.6% probability of a rate cut. A key factor driving this shift in expectations is signs of a weak labor market, including the Challenger report of 71,000 job cuts in November, the worst November figure since 2022, reflecting a cooling job market. Market Analysts have shifted their expectation to a 25 basis point rate cut in December. This move will have a significant impact on global asset allocation, particularly on valuation dynamics in the stock, bond, and currency markets. At the same time, the Fed's policy shift may also increase the attractiveness of emerging market assets, especially RMB-denominated assets. From a macroeconomic perspective, the rate cut decision reflects the risk of a slowdown in US economic growth.
Hong Kong Stock Connect saw a net inflow of HK$1.34 billion on Friday, with Xiaomi Group (1810) seeing the largest net inflow at HK$3.01 billion, followed by Meituan (3690). On the other hand, Alibaba (9988) recorded the largest net outflow at HK$1.78 billion, followed by Tencent Holdings (700).
Hong Kong stocks were pressured on Monday (8th) by a broad decline in Chinese bank stocks. The Hang Seng Index opened 17 points lower and continued to fall, plunging more than 300 points to 25,755 in the afternoon, closing down 320 points or 1.23% at 25,765; the Hang Seng China Enterprises Index fell 115 points or 1.3% to 9,084; and the Hang Seng Tech Index was almost flat at 5,663. Total turnover for the day was HK$206.2 billion. Mainland bank stocks were generally under pressure, with China Construction Bank (939) falling 4% and Industrial and Commercial Bank of China (1398) falling 3.5%. Pop Mart (9992) fell more than 8%, with a Deutsche Bank report indicating that Labubu's increased production capacity may reduce the market premium. Among technology stocks, Baidu (9888) rose 3.5% and SMIC (981) rose 2.9%, performing best.
Source: KGI Investment Products and Solutions Department
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