Daily focus：Fast Retailing Group (6288)
The commercialization of its Kling AI business is progressing better than expected, with revenue exceeding $20mn in December 2025, primarily driven by the popularity of new features in Kling Video 2.6 in overseas markets. AI revenue is projected to exceed $250mn in 2026, becoming a core growth engine. Despite headwinds in its e-commerce business, the strong momentum and leading position of its AI business provide robust support for its revenue prospects.
Policy variables offset inflation benefits
The S&P 500 fell slightly by 0.2% yesterday, with market sentiment clearly under pressure. The core focus was on the sharp fluctuations in the financial sector, particularly JPMorgan's poor earnings report and Trump's proposal to cap credit card interest rates at 10%. This policy is expected to severely damage bank profits, triggering extreme market concerns about shrinking net interest margins. Furthermore, the White House's directive for Fannie Mae to purchase $200 billion in mortgage-backed securities, while aimed at stabilizing the housing market, increased the uncertainty of government intervention. The weakness in financial stocks offset the positive impact of slowing inflation data.
Hong Kong Stock Connect recorded a net inflow of HK$1.3bn on Tuesday, with Alibaba-W (9988) recording the largest net inflow at HK$1.07bn, followed by Tencent Holdings (0700); SMIC (0981) recorded the largest net outflow at HK$840mn, followed by China Mobile (0941).
The Nasdaq China Golden Dragon Index rose over 4%, while the Hsi opened 350 points higher but then narrowed its gains, closing up 239 points or 0.9% at 26,848. The HSCEI rose 65 points or 0.7% to 9,285, and the HSTECH rose 6 points or 0.1% to 5,869. Total market turnover was HK$315.19bn. Newly listed AI concept stocks retreated, with Zhipu (2513), MINIMAX (00100), Biren (6082), and ILUVATAR COR (9903) falling between 7.7% and 12.8%. China and the EU reached a framework consensus on electric vehicle tariffs, with BYD (1211) rising 1.6%, and Great Wall Motor (2333), XPeng (9868), and Leapmotor (9863) rising over 2%.
Source: KGI Investment Products and Solutions Department
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