Daily Investment Strategy
Daily focus：Kuaishou (1024)
Kuaishou reported solid performance in the third quarter of 2025, with total revenue rising 14.2% year-on-year to RMB 35.6 billion, slightly exceeding market expectations. Adjusted net profit reached RMB 5 billion, a 26.3% year-on-year increase, demonstrating continued improvement in profitability. In terms of business segments, online marketing services revenue grew 14% to RMB 20.1 billion, live streaming revenue rose slightly by 2.5%, while other services revenue jumped significantly by 41.3% to RMB 5.9 billion, benefiting from the expansion of its e-commerce business. The company actively promoted its AI strategy, with Kling AI's quarterly revenue exceeding RMB 300 million, and model upgrades reducing generation costs by 30%. AI technology has also been deeply integrated into marketing and e-commerce scenarios, effectively improving the accuracy of ad placement and the efficiency of various monetization methods.
The FOMC meeting minutes reflect a slim chance of a December rate cut.
The minutes of the Fed's October meeting revealed a significant divergence of opinion among policymakers regarding a rate cut. Although a 10-2 vote was ultimately passed to cut rates, a "majority" of officials believed that no further rate cuts were needed before the end of the year. Following the release of the minutes, market expectations for a December rate cut plummeted to approximately 33%. Officials also expressed concerns about a slowing labor market and persistent, unsustainable inflation, indicating a more cautious approach to future monetary policy. Notably, the Fed unanimously agreed to halt balance sheet reduction starting in December; investors should closely monitor subsequent economic data to determine the Fed's next move.
Hong Kong Stock Connect saw a net inflow of HK$6.59bn on Wednesday, with Xiaomi Group (1810) experiencing the largest net inflow at HK$2.39bn, followed by Alibaba (9988). On the other hand, the Tracker Fund of Hong Kong (2800) recorded the largest net outflow at HK$1.48bn, followed by China Mobile (941).
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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