Daily Investment Strategy

Daily focus：Kuaishou Technology (1024)

announced its unaudited interim results for the second quarter ended June 30, 2025. Revenue reached RMB 35.046 billion, representing a year-on-year increase of 13.1%. Profit for the period was RMB 4.922 billion, with adjusted net profit amounting to RMB 5.618 billion, +20% YoY. The board declared a special dividend of HKD 0.46 per share for the first time, totaling about HKD 2 billion, demonstrating confidence in the company's long-term growth and financial strength. Management highly praised the Kling AI business, emphasizing its leading advantages in visual generation large model technologies and comprehensive product performance improvements. The Kling AI 2.1 series launched the new "Smart Canvas" feature, providing creators with an all-in-one efficient intelligent creation experience. Kling AI revenue in Q2 reached at least RMB 250 million, rising 67% from the previous quarter and exceeding market expectations. Management expects revenue and capital expenditure for Kling AI to be twice as high as initially forecasted early this year, but anticipates only a limited impact on overall profit margins, approximately 1-2 percentage points.

Federal Reserve’s July FOMC meeting minutes

The release of the Federal Reserve’s July FOMC meeting minutes showing that most committee members consider upside inflation risks more important than downside employment risks. Despite recent weak U.S. employment data, the minutes emphasized the uncertain impact of tariffs on inflation, suggesting that the committee’s concerns about inflation expectations becoming unanchored remain strong. This stance reflects monetary policymakers’ cautious approach when facing a complex macroeconomic environment, particularly in the context of the Trump administration’s large-scale tariff policies potentially reigniting inflationary pressures. From a macro perspective, this policy orientation may mean the Federal Reserve will maintain higher interest rate levels for a longer period to ensure inflation can steadily return to the 2% target. This will have profound implications for global liquidity and asset allocation, while also presenting new challenges for global central bank policy coordination.

The Stock Connect recorded a net inflow of HKD 7.46 billion on Thursday, with Tencent Holdings (700) having the highest net inflow of HKD 1.87 billion, followed by Meituan (3690). On the other hand, the Tracker Fund of Hong Kong (2800) recorded the largest net outflow of HKD 820 million, followed by Alibaba (9988).