Daily Investment Strategy
Daily focus：Tencent Music（1698）
Tencent Music is actively transforming to become the "Chinese Spotify." The company promotes its high-value SVIP subscription service, increasing user conversion to paid memberships and driving continuous growth in online music subscription revenue, aligning its model with Spotify’s. Tencent Music plans to acquire Ximalaya, China’s largest audio platform, integrating long-form audio content to enhance its music and audio ecosystem and improve user experience, mirroring Spotify’s diversified audio development. Additionally, Tencent Music invested about HK$1.4bn to become the second-largest shareholder of South Korea’s SM Entertainment, advancing content internationalization and facilitating Korean artists’ entry into the Chinese market, boosting offline concerts and fan economy. These initiatives strengthen Tencent Music’s competitiveness in China and Asia, laying a foundation for future growth.
Markets will focus on the Federal Reserve’s monetary policy meeting to be held this week
Reports indicate that Iran has informed Arab officials that they are willing to return to the negotiating table as long as the United States does not participate in attacks. Driven by this news, WTI oil fell 1.6%. At the G7 leaders’ summit held in Canada, Trump stated that reaching an agreement between the US and Canada within the next few weeks “is achievable.” When asked whether an agreement could be reached within days or weeks, Trump agreed. Additionally, markets will focus on the Federal Reserve’s monetary policy meeting to be held this week.
On Monday, the Stock Connect program recorded a net inflow of HKD 5.7 billion. Meituan (3690) saw the largest net inflow, amounting to HKD 1.12 billion, followed by China Construction Bank (939). On the other hand, Xiaomi Group (1810) experienced the largest net outflow, reaching HKD 1.88 billion, followed by Tencent (0700).
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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
