Daily Investment Strategy
Daily focus：China Longyuan（0916）
The company's power generation increased by 22.4% YoY in August, driven by wind power installations, offsetting the impact of reduced coal-fired power generation. Utilization hours increased in key regions, significantly improving cash flow due to accelerated subsidy receipts. However, unstable weather in some areas has led to production fluctuations, and the industry faces the risks of electricity price cuts and competition. While short-term liquidity is strong, long-term profitability sustainability remains a concern.
Market focus of the week : PPI & CPI
The US Federal Reserve will hold its upcoming policy meeting on September 16-17. Market expectations are that the benchmark interest rate will be cut by at least 25 basis points, and possibly as much as 50 basis points. This expectation stems from the weak August jobs report, which showed only 22,000 new jobs, far below expectations, and a rise in the unemployment rate to 4.3%, a near four-year high, indicating an accelerating cooling of the labor market. This week, investors will focus on two key inflation reports for further insight into the health of the US economy. The August Producer Price Index (PPI) report is scheduled for release on Wednesday, followed by the Consumer Price Index (CPI) on Thursday.
Hong Kong Stock Connect saw a net inflow of HK$16.7 billion on Monday, with Alibaba (9988) receiving the largest inflow of HK$5.15 billion, followed by Horizon Robotics (9660). Meanwhile, Kuaishou (1024) saw the largest net outflow of HK$860 million, 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.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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