Daily Investment Strategy
Daily focus：China Mobile（941）
China Mobile's business is highly defensive, thanks to its monopoly market position and vast user base. Its core telecommunications services are essential for daily life, with stable demand and resilience to economic cycles. This provides the company with a robust cash flow and revenue moat in uncertain market conditions. Its high dividend yield is particularly attractive in highly volatile markets. The company's dividend yield exceeds 6%, and it has pledged to increase its payout ratio to over 75%. A stable, high dividend provides investors with reliable cash flow returns during volatile market conditions, making it an ideal defensive investment strategy and helping to reduce overall portfolio volatility.
US-China tariff risks resurface
US-China trade tensions have escalated again, with the US President retaliating with 100% tariffs and export controls against China's new rare earth export restrictions. However, over the weekend, China's Ministry of Commerce reiterated that China's rare earth exports are not a complete ban; export applications that meet certain requirements will be approved, meaning that exports for non-military and non-terrorism purposes are permitted. Furthermore, the continued federal government shutdown has delayed the release of official data, leaving the market without guidance amidst a deluge of information. Overall risk premiums have risen, and short-term funds may be inclined to adjust their asset allocations in a risk-averse manner.
Hong Kong Stock Connect recorded a net outflow of HK$400 million on Friday, with Xiaomi Group (1810) receiving the largest net inflow of HK$930 million, followed by Pop Mart (9992). Meanwhile, SMIC (981) saw the largest net outflow of HK$2.7 billion, followed by Alibaba (9988).
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.
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.
