Daily Investment Strategy
Daily focus：H-World（1179）
The company will significantly benefit from the rebound in tourism demand and the upgrading of domestic consumption during the 2025 National Day Golden Week. With a dense presence in eastern China and major cities, the company saw significant increases in occupancy and revenue per available room during peak season. Leveraging its multi-brand strategy and efficient operations, H-World is able to flexibly meet the diverse accommodation needs of short-distance and self-drive travelers. We expect that with increasing industry concentration and consumption upgrades, H-World’s performance will continue to outperform its peers.
The US government shutdown heightens uncertainty
US stocks closed lower on Tuesday, with the S&P 500 down 0.4%. The government shutdown, stemming from a congressional budget dispute that has entered its third day, has delayed the release of key economic data, including the jobs report, heightening market uncertainty. While the stock market has not been significantly impacted in the short term, and the S&P 500's historical performance outside of recessions shows average positive returns, a prolonged shutdown could trigger a debt ceiling crisis, exacerbate inflationary pressures, and weaken consumer confidence.
Hong Kong Stock Connect was suspended due to a public holiday in China.
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.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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