Daily Investment Strategy
Daily focus：NetEase（9999）
NetEase announced a collaboration with Kuaishou’s visual generative AI model “Kling.” In the game Justice Online (逆水寒), players can input a few simple action descriptions for their characters, which are then used to generate animated images. This enriches the game’s social features, which are crucial elements in large-scale multiplayer online role-playing games (MMORPGs). The technological integration between Justice Online and Kling adds a new layer of fun beyond the original storyline and system. Moreover, the commercial application of AI technology in gaming sets an example to the market, driving technological advancement and ecosystem development across the entire industry.
Trump and Musk's public spat caused market turmoil
Yesterday, the S&P 500 was under pressure, falling about 0.5% to 5,939 points on June 5, reflecting the market's concerns about multiple uncertainties. Among them, the public dispute between Trump and Musk became the focus of the market. Musk publicly criticized the massive tax and spending bill promoted by Trump, warning that his tariff policy would cause the US economy to fall into recession in the second half of the year. Trump then hit back on social media, saying that he had asked Musk to leave the White House and threatened to cancel his company's government contracts. This incident caused Tesla's stock price to plummet by more than 14%, and its market value evaporated by more than US$150bn, causing a significant drag on the technology sector and consumer stocks. Despite this, the overall market remains resilient, and investors are closely watching the upcoming employment data to assess the direction of economic fundamentals. This fierce confrontation between political and business giants may exacerbate market volatility in the short term and bring challenges to corporate investment and policy expectations.
Hong Kong Stock Connect recorded a net inflow of HK$740mn on Thursday, of which Meituan (3690) recorded the largest net inflow of HK$1.08bn, followed by BYD (1211); Xiaomi (1810) recorded the largest net outflow of HK$1.61bn, followed by Tencent (0700).
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