Daily Investment Strategy

Daily focus：Tencent（700）

Following its September anniversary celebration, the company's shooter game "Delta Force" surpassed 30 million daily active users and remained at the top of China's iOS revenue charts, driving strong growth in its summer gaming business. Diversified products such as "Peace Elite" and "CrossFire" actively segmented their user base and reduced internal competition. The company continued to promote new content updates, integrate IPs, and expand physical merchandise, while strengthening its player community and marketing efforts to increase user stickiness. With strong summer revenue performance and the momentum of its diversified product offerings, Tencent's quarterly financial report is expected to remain robust. Overall, Tencent's gaming sector maintains strong momentum, maintaining its dominant position in the internet industry.

Fed Officials Issue Statements

Following the Fed's 25-basis-point interest rate cut, Fed officials issued a series of statements. Fed Governor Steven Miran stated that interest rates are too high and explained the necessity of further significant rate cuts in the coming months to protect the labor market. In his first policy speech since being appointed to the Fed by Trump, Miran outlined the reasons for the decline in the neutral interest rate, which neither stimulates nor constrains the economy. Miran suggested that the previously overestimated neutral interest rate has recently declined due to tariffs, immigration restrictions, and tax policies. He said this means that interest rates should be lowered significantly to prevent damage to the economy. On the other hand, Cleveland Fed President Beth Hammack stated that she remains highly concerned about inflation, and officials should be cautious when lowering interest rates to avoid overheating the economy. She noted that inflation has been above the Fed's 2% target for over four years and may take several years to return to the central bank's target.

The Hong Kong Stock Connect recorded a net inflow of HKD 12.7 billion on Monday, with the Hang Seng ETF (2800) seeing the largest net inflow at HKD 2.86 billion, followed by Alibaba (9988). On the other hand, Meituan (3690) recorded the largest net outflow at HKD 385 million.