Daily focus：Alibaba (9988)
The company's latest quarter results showed steady growth, with significant increases driven by its core e-commerce business and fast-moving consumer goods (FMCG) business. Its cloud business also led the industry with its AI and innovative applications, with both revenue and profit exceeding market expectations. The synergy of diversified businesses helped the group withstand profit pressure and contributed to overall gross margin improvement. Looking ahead, Alibaba will focus on cloud expansion and service innovation to consolidate its technology ecosystem and long-term growth potential.
80% chance to see a rate cut in December
U.S. stock traders are closely watching for any news that could influence the Federal Reserve's subsequent monetary policy decisions. According to the CME Group's FedWatch Tool, the market expects a greater than 80% probability of a 25-basis-point rate cut in December. Furthermore, sources indicate that Hassett is considered the frontrunner in the race to succeed current Fed Chair Powell, according to Trump's advisors and allies. Traders have rapidly increased their bets on rate cuts over the next year, reflecting a consensus market expectation that Hassett will implement the aggressive rate cuts called for by President Donald Trump.
Hong Kong Stock Connect saw a net inflow of HK$11.1 billion on Tuesday, with Alibaba (9988) experiencing the largest net inflow at HK$5.6 billion, followed by Kuaishou (1024). On the other hand, CNOOC (883) recorded the largest net outflow at HK$203 million, followed by SMIC (981).
Hong Kong stocks continued their rebound today, with the Hang Seng Index closing up 178 points or 0.69% at 25,894, having briefly climbed back above the 26,000 mark during the session. The Hang Seng Tech Index performed better, rising 66 points or 1.2% to 5,612, while the H-share Index rose 79 points or 0.87% to 9,158. Total turnover for the day was approximately HK$231.1 billion. Xiaomi Group (1810) benefited from founder Lei Jun's purchase of 2.6 million shares for over HK$100 million the previous day, with its share price closing up 4.3% at HK$40.34. Technology stocks generally performed well, with Baidu (9888) rising 4.6% to HK$116.9. On the downside, Xinyi Glass (868) fell 2.1% to HK$8.64, and CR Beer (291) fell 1.5% to HK$27.52.
Source: KGI Investment Products and Solutions Department
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