Daily focus：Baidu Group（9888）
Recently signed a multi-year strategic cooperation agreement with China Merchants Group, establishing comprehensive collaboration in areas such as AI cloud, transportation and logistics, and finance. This not only benefits the company's mid- to long-term cloud revenue growth, but also further solidifies its leading position in the intelligent industry transformation. Furthermore, Baidu's self-developed Kunlun 3.0 chip has entered mass production and widespread deployment in China, strengthening its AI computing power advantage and empowering various industries. With the gradual implementation of these agreements and the advancement of technological breakthroughs, Baidu is expected to achieve significant operational growth momentum and a positive long-term outlook.
Fed risk-management cut on rate
On September 17, the Federal Reserve announced its first interest rate cut of the year, a quarter-point cut, lowering the benchmark rate to a range of 4.00%-4.25%. Chairman Powell called this a "risk-management cut" in response to signs of labor market weakness. Newly elected Governor Miran voted for a larger 50 basis point cut. The Fed anticipates two more rate cuts for the remainder of the year. The FOMC emphasized maintaining maximum employment and its long-term 2% inflation goals, and considered that downside risks to the labor market had increased, leading to a cautious decision to cut rates. Notably, one member, Stephen I. Miran, advocated for a 0.5 percentage point cut, but the final cut was only 0.25 percentage points.
Hong Kong Stock Connect recorded a net inflow of HK$9.44 billion on Wednesday, with Alibaba (9988) receiving the largest net inflow of HK$5.05 billion, followed by Meituan (3690). Meanwhile, Xiaomi (1810) saw the largest net outflow of HK$640 million, followed by Akeso Biopharma (9926).
Hong Kong stocks fluctuated narrowly in the mid-day session, influenced by the Federal Reserve's interest rate cut. The Hang Seng Index climbed back above 27,000 points in early trading, hitting a four-year high, before retreating, ending the day down 47 points, or 0.18%, at 26,861. The H-share Index fell 11 points, or 0.11%, to 9,586. The Hang Seng Tech Index rose 66 points, or 1.04%, to 6,400. Market turnover totaled HK$ 204.7 billion. Technology stocks were in the spotlight, with Hua Hong Semiconductor (1347) surging over 10% and ASMPT (522) rising nearly 11%. Baidu Group (9888) rose 4.1%, extending its gains from the previous day. Hong Kong Broadband (1310) surged 54% following the closing of China Mobile's acquisition offer.
Source: KGI Investment Products and Solutions Department
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August nonfarm payrolls rose only 22k, far below expectations of 75k. In addition, the Labor Department revised down job gains between Mar 2024 and Mar 2025 by 911k—the largest downward adjustment on record. The weak data reinforced expectations for a Fed rate cut in September…