Daily Investment Strategy
Daily focus：HKEX (388)
Revenue and profit for the third quarter of 2025 hit record highs for the third consecutive quarter. Profit attributable to shareholders reached HK$4.9 billion, a 56% year-on-year increase. The performance growth was mainly driven by record-high trading volume in the spot market, leading to a 54% year-on-year increase in revenue from core businesses. In terms of operating data, the average daily turnover in the spot market increased by 141% year-on-year, while the average daily turnover of Stock Connect and Shanghai-Shenzhen Stock Connect also recorded year-on-year increases of 285% and 144% respectively. The IPO market performed strongly, raising HK$188.3 billion in the first three quarters, ranking first globally; as of the end of the quarter, 297 listing applications were being processed.
Weak Labor Market Exacerbates US Stock Market Volatility
The three major US stock indices saw a significant pullback yesterday, with the S&P 500 closing down 1.12% at 6720 points, mainly dragged down by concerns about the valuation of AI stocks. October layoffs surged to 153,074, a 183% increase from September, marking the highest October figure in 22 years. This reflects companies adjusting their workforce amid the AI boom, while the government shutdown limited official economic data, amplifying market unease. Although the ADP private employment report showed 42,000 new jobs added in October, exceeding expectations, the overall labor market slowdown was evident, potentially prompting the Federal Reserve to further cut interest rates to support the economy. However, this development also triggered recession fears, leading to a more cautious investor sentiment. Investors anticipate future policy adjustments will impact corporate profits and consumer spending, potentially increasing market volatility.
Hong Kong Stock Connect saw a net inflow of HK$5.48 billion on Thursday, with XPeng Motors (9868) experiencing the largest net inflow at HK$1.21 billion, followed by Southern Hang Seng Technology (3033). On the other hand, Weichai Power (2338) recorded the largest net outflow at 550 million yuan, followed by Pop Mart (9992).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
