Daily focus：Tencent (700)
Tencent's core investment logic lies in its high-quality growth model driven by multiple engines. The gaming business, with its diversified product pipeline and expansion into categories such as FPS, has established a solid revenue foundation. Meanwhile, the company leverages its AI big data model to empower its advertising business and deepens the commercialization of WeChat search and video accounts, effectively driving advertising revenue growth. Looking ahead, Tencent, with its hybrid model at its core, is actively deploying AI applications and expanding into the global market. Adhering to the principle of "profit growth outpacing revenue growth," it will increase investment in technology while ensuring sustainable profitability.
The US Announces Easing of H200 Exports to China
The US has announced the easing of export restrictions on high-end chips (such as the Nvidia H200) to China. This decision marks a shift in the US-China tech war from a unilateral "comprehensive blockade" to a more transactional "pragmatic" phase. From a macro perspective, this move has dual strategic significance: First, it alleviates extreme market concerns about a "hard decoupling" between the US and China leading to a global supply chain disruption, reducing the geopolitical risk premium for the technology sector; second, restoring the supply of high-end computing power will directly remove the hardware bottleneck for the development of China's AI industry, and in the short term, it is expected to stimulate Chinese tech giants to restart large-scale capital expenditures (Capex), while simultaneously reopening a key revenue growth point for US semiconductor companies.
Hong Kong Stock Connect saw a net inflow of HK$530 million on Tuesday, with Tencent Holdings (700) experiencing the largest net inflow at HK$880 million, followed by Xiaomi Group (1810). On the other hand, Pop Mart (9992) recorded the largest net outflow at HK$570 million, followed by SMIC (981).
Hong Kong stocks weakened amid uncertainty surrounding the Federal Reserve's interest rate meeting this week. The Hang Seng Index closed at 25,434 points, down 331 points or 1.3%. The Hang Seng Tech Index closed at 5,554 points, down 107 points or 1.9%. The Hang Seng China Enterprises Index fell 147 points or 1.6% to 8,936 points. Total market turnover was HK$210.2 billion. The green light for Nvidia's H200 exports to China put pressure on the share prices of Chinese chipmakers, with SMIC (981) falling 4.1% and Hua Hong Semiconductor (1347) falling 5.4%.
Source: KGI Investment Products and Solutions Department
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The AI Big four spent $230bn in capex. AI applications are driving demand for data centers and energy facilities, boosting jobs and productivity, as well as supporting U.S. GDP growth…