Daily Investment Strategy
Daily focus：Kuaishou（1024）
Kuaishou’s online advertising revenue continues to accelerate, benefiting from strong demand in digital entertainment and local service ads, while new e-commerce advertising also contributes incremental growth. AI technology has become the core driver of revenue growth by enhancing content recommendation and generation efficiency, which not only increases user engagement but also significantly reduces short video production costs and improves ad conversion rates. Its proprietary “Kling AI” has seen rapid revenue growth, with a high proportion of paying users and broad applications across advertising, short dramas, and smart devices, supporting Kuaishou’s expansion into international markets.
Federal Reserve meeting minutes
The Federal Reserve meeting minutes emphasized the need to remain patient. Nearly all committee members were concerned that inflation was proving more persistent than expected. Officials pointed out that, due to the potential impact of tariff policies, both inflation and unemployment risks have increased since the last meeting in March, which could put the Fed in a dilemma between its two policy objectives of "price stability" and "maximum employment." The minutes also showed that Fed researchers have lowered their economic growth forecasts for 2025 and 2026 to reflect currently announced trade policies. They also predict that the job market will show "significant weakness."
Southbound Stock Connect recorded a net inflow of HKD 3.58 billion on Wednesday. Meituan (3690) saw the highest net inflow at HKD 1.07 billion, followed by China Mobile (941). Xiaomi Corporation (1810) recorded the highest net outflow at HKD 710 million, followed by the Hang Seng China Enterprises Index ETF (2828).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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