Daily Investment Strategy
Daily focus：Fast Retailing Group (6288)
The commercialization of its Kling AI business is progressing better than expected, with revenue exceeding $20mn in December 2025, primarily driven by the popularity of new features in Kling Video 2.6 in overseas markets. AI revenue is projected to exceed $250mn in 2026, becoming a core growth engine. Despite headwinds in its e-commerce business, the strong momentum and leading position of its AI business provide robust support for its revenue prospects.
Policy variables offset inflation benefits
The S&P 500 fell slightly by 0.2% yesterday, with market sentiment clearly under pressure. The core focus was on the sharp fluctuations in the financial sector, particularly JPMorgan's poor earnings report and Trump's proposal to cap credit card interest rates at 10%. This policy is expected to severely damage bank profits, triggering extreme market concerns about shrinking net interest margins. Furthermore, the White House's directive for Fannie Mae to purchase $200 billion in mortgage-backed securities, while aimed at stabilizing the housing market, increased the uncertainty of government intervention. The weakness in financial stocks offset the positive impact of slowing inflation data.
Hong Kong Stock Connect recorded a net inflow of HK$1.3bn on Tuesday, with Alibaba-W (9988) recording the largest net inflow at HK$1.07bn, followed by Tencent Holdings (0700); SMIC (0981) recorded the largest net outflow at HK$840mn, followed by China Mobile (0941).
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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