Daily Investment Strategy

2025.10.17 09:00

Daily focusWeichai Power (2338)

According to the latest operating data, J&T Express demonstrated strong growth momentum in the third quarter of 2025, with total parcel volume reaching 7.677 billion pieces, a year-on-year increase of 23.1%. Southeast Asia was particularly impressive, with parcel volume increasing significantly by 78.7% year-on-year to 1.997 billion pieces. New markets also saw significant growth of 47.9%, reaching 104 million pieces. In contrast, growth in the Chinese market was more stable, with parcel volume increasing by 10.4% year-on-year to 5.576 billion pieces, reflecting the diversified development trends across different markets. Accelerated expansion in overseas markets became the core driving force this quarter. In Southeast Asia, the company's business volume grew rapidly, benefiting from intensified promotional activities by major e-commerce platforms and industry consolidation trends.

 

Rising risk of regional bank loan defaults has triggered market risk aversion

Yesterday, the S&P 500 closed at 6,629, down 0.6%. The credit crisis among regional banks continues to intensify. Zions Bancorp's stock price plummeted 13% after it took a $50mn provision for nonperforming loans. Western Alliance also disclosed in its quarterly earnings report that over $1bn in loans remain uncollected and filed fraud lawsuits against several borrowers, accusing them of misrepresenting their financial status to obtain loans. Furthermore, PacWest Bancorp will be forced to sell high-rated bonds to fill a capital gap due to narrowing spreads and a wave of withdrawals from corporate clients, causing its stock price to fall by more than 15%. The default rate on small and medium-sized enterprise loans and commercial real estate loans within these banks' portfolios has climbed to over 2%, a ten-year high. Growing market concerns about increased banking regulation, tightening credit, and rising capital costs may further drive capital flows into high-rated bonds and defensive sectors.

 

The Hong Kong Stock Connect recorded a net inflow of HK$15.82bn on Thursday, with Zijin Gold International (2259) receiving the largest net inflow of HK$1.74bn, followed by Xiaomi Group (1810). Meanwhile, SMIC (0981) saw the largest net outflow of HK$300mn, followed by Juzi Biotechnology (2367).

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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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