Daily Investment Strategy
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Yum China (9987): The company's same-store sales hit a two-year high, with operating leverage offsetting delivery costs and driving profit expansion. Through the transformation of smaller stores and rent optimization, the company has significantly reduced its burden and maintained stable profitability. Leveraging its digital advantages and strong cash flow, it demonstrates excellent defensive value during industry consolidation, making it a high-quality investment target with strong resilience and flexibility amidst macroeconomic uncertainties.
US High-Valuation Tech Stocks Continue to Decline
US stocks exhibited significant sector rotation, with the focus on the interplay between profit-taking in overvalued tech stocks. Despite better-than-expected earnings from chip giant AMD, its weak guidance, coupled with market concerns that AI applications could disrupt traditional software business models, triggered a withdrawal of funds from crowded tech sectors, flowing into defensive sectors such as healthcare and industrials. On the macro level, unexpectedly weak ADP employment data indicated a cooling labor market, which, theoretically reinforcing the Fed's rate-cutting path.
Hong Kong Stock Connect recorded a net inflow of HK$13.37 billion on Wednesday, with Tencent Holdings (0700) recording the largest net inflow at HK$2.23 billion, followed by Alibaba (9988); SMIC (981) recorded the largest net outflow at HK$707 million, followed by Hua Hong Semiconductor (1347).
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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