Daily Investment Strategy
Daily focus：JD.com-SW（9618）
JD.com is leveraging its strong supply chain foundation to actively expand into new businesses such as food delivery, travel, and international e-commerce to seek long-term growth. This expansion strategy means that investment will increase in the short term, which may put pressure on profitability, as the company may tolerate initial losses in new businesses in order to quickly gain market share. Although there is a downside risk to short-term earnings, in the long run, when the new business layout matures, it is expected to drive overall profit improvement, thereby releasing the company's long-term value potential.
The Federal funds rate remains unchanged
The Federal funds rate remains unchanged. The Federal Reserve believes the current policy stance is “moderately restrictive” and “well positioned” to flexibly respond to future data changes. Powell repeatedly emphasized expectations of significant inflation in the coming months, but noted that the transmission path is very difficult to predict. Regarding the employment market, he indicated that supply and demand are currently maintaining overall balance, and the labor market is not calling for rate cuts. The dot plot shows that officials’ median outlook for rates at the end of 2025 remains at 3.875%, implying two rate cuts are expected before year-end. The Fed also lowered its economic growth forecast to 1.4% while raising its core PCE forecast to 3%.
On Wednesday, the Southbound Stock Connect recorded a net inflow of HKD 1.24 billion. Among the stocks, China Construction Bank (0939) saw the largest net inflow of HKD 210 million, followed by Shandong Molong (568). On the other hand, Tencent (0700) experienced the largest net outflow of HKD 610 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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