Daily Investment Strategy
Daily focus：Meituan（3690）
Meituan faces significant short-term profit pressure due to intensified market competition and high subsidies, which is expected to impact core business profit margins. However, in the medium to long term, as competition becomes more rational, its strong market position and user base will support a turning point in profitability. Meanwhile, the company's forward-looking investments in new businesses and overseas markets, while a short-term drag on profits, are key drivers of future growth and a necessary price to pay for consolidating its competitive advantage and positioning itself for long-term growth.
Trump puts pressure on India
The Trump administration has once again used tariffs as a bargaining chip in trade negotiations, threatening to significantly raise tariffs on Indian goods. This move is mainly due to Trump's claim that India has been purchasing large quantities of Russian oil and then reselling it for profit. Given the current unstable U.S. inflation data and the Federal Reserve's expected dynamic balance, such sudden trade policy risks further increase policy uncertainty in financial markets. Additionally, if India retaliates with countermeasures or adjusts its energy procurement sources, it may add additional volatility pressure on fuel prices and potentially raise risk premiums in related sectors such as shipping, raw materials, and emerging market risk assets. In response to this dynamic, the market must closely monitor the progress of bilateral negotiations and the details of policy implementation to grasp macroeconomic risk turning points.
Regarding Hong Kong stock connect on Monday, there was a net outflow of HKD 18.1 billion. Alibaba (9988) recorded the largest net inflow of HKD 730 million, followed by INNOSCIENCE (2577). On the other hand, the Tracker Fund of Hong Kong (2800) saw the largest net outflow of HKD 14.5 billion, followed by the Hang Seng China Enterprises Index ETF (2828).
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.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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