Daily focus：NetEase (9999)
Q3 2025 results show net revenue of RMB 28.4 billion, up 8.2% year-on-year. While slightly below some market expectations, non-GAAP net profit attributable to shareholders was RMB 9.5 billion, generally in line with expectations. Core game and related value-added service revenue was RMB 23.3 billion, up 11.8% year-on-year. Looking ahead, strong deferred revenue suggests that the game business will remain solid in the fourth quarter. With the launch of "Where Winds Meet" and the pipeline of several major new products, including "ANANTA" in 2026, the company possesses multiple growth catalysts.
September Non-Farm Payrolls Higher Than Expected
Expectations for a December rate cut have shifted dramatically, with the probability plummeting from near certainty a month ago to 39%. The driving factor is the unexpectedly strong US September jobs data, released after a delay. The US added 119,000 jobs, far exceeding market expectations of 50,000, while core inflation remained at 3%, slowly approach the Fed's 2% target. This shift will directly impact the global liquidity outlook—the prolonged high US interest rates mean increased attractiveness for dollar-denominated assets, putting pressure on emerging markets and interest rate sensitive growth assets.
Hong Kong Stock Connect saw a net inflow of HK$15.9 billion on Thursday, with the Tracker Fund of Hong Kong (2800) experiencing the largest net inflow at HK$7.42 billion, followed by the Hang Seng China Enterprises Fund (2828). On the other hand, Xiaomi Group (1810) recorded the largest net outflow at HK$610 million, followed by Pop Mart (9992).
Hong Kong stocks weakened significantly in the morning session, influenced by the sharp drop in US tech stocks overnight. The Hang Seng Index opened 375 points lower and fell below the 100-day moving average, closing down 535 points or 2.07% at 25,300 points; the H-share Index fell 196 points or 2.14% to 8,947 points; and the Hang Seng Tech Index dropped 173 points or 3.13% to 5,401 points. Total turnover for the morning session was approximately HK$150.5 billion. The biggest decliner among blue chips was Link REIT (0823), which closed at HK$35.96, down 7.32%; while Longfor Group (960) rose 3.38% to HK$10.09, making it the biggest gainer among blue chips.
Source: KGI Investment Products and Solutions Department
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