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GDS(9698): In the first quarter of 2026, net revenue increased by 23.6% year-over-year to RMB 3,367.1 million , while net profit surged by 247.1% to RMB 2,652.1 million. However, excluding certain one-time items, net revenue growth was only 7.9%. This indicates that the profit surge was primarily driven by non-operating gains, such as dilution and divestment income from its DayOne investment , while the growth of its core business actually remained relatively flat. Operationally, driven by surging demand for AI infrastructure, net new bookings in the first quarter reached a single-quarter record high of approximately 200MW. By the end of the quarter, the total committed and pre-committed area grew by 11.7% year-over-year to 725,485 square meters , and the area-in-service billing rate edged up slightly to 77.3%.
The minutes of the Federal Reserve's April meeting were generally hawkish
The minutes of the Federal Reserve's April meeting were generally hawkish. Most officials believed that if inflation remained above 2%, it would pave the way for a possible interest rate hike; many leaned towards removing any indication of loosening monetary policy. The market currently estimates a 36.8% - 48.6% probability of a December rate hike. This highly divided meeting was the last monetary policy meeting chaired by current Chairman Jerome Powell. Kevin Warsh will be sworn in this Friday (May 22nd). The market generally believes that Warsh will be taking on a difficult task due to internal divisions and resurgent inflation.
Hong Kong Stock Connect saw a net inflow of HK$5.708 billion on Wednesday, with SMIC (00981) seeing the largest inflow at HK$2.166 billion, followed by China Mobile (00941) with a net inflow of HK$1.564 billion. GigaDevice (03986) recorded the largest net outflow at HK$470 million, followed by Alibaba-W (09988) with a net outflow of HK$168 million.
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