Daily Investment Strategy
Daily focus：Tencent (0700)
Leveraging its global footprint and AI capabilities, it is entering a period of efficiency-driven value expansion. Its cloud business is deeply penetrating overseas markets through a differentiated strategy, optimizing its structure by combining high-profit SaaS with AI tools; its core gaming business is accelerating global monetization while reducing costs through GaaS operations and technological efficiency improvements. With both international market share and R&D efficiency increasing, Tencent will demonstrate stronger profitability and a stronger core competitive advantage.
S&P 500 Falls for Fourth Consecutive Day, Market Valuation Correction
US stocks performed poorly on Wednesday, with the S&P 500 closing down 1.2%, marking its fourth consecutive day of losses and breaking below a key technical support level. The most prominent market focus was the collective pullback in leading AI stocks, with heavyweights like Nvidia and Broadcom experiencing significant declines, reflecting growing investor concerns that tech giants' massive investments in AI infrastructure have yet to translate into substantial revenue. Despite dovish signals from Federal Reserve Governor Waller supporting interest rate cuts and stabilizing Treasury yields, market funds are clearly withdrawing from overvalued tech sectors and shifting towards value and defensive industries. This market sentiment reflects a reassessment of profit visibility by investors, suggesting that tech stocks will face greater volatility and valuation correction pressure in the short term.
Hong Kong Stock Connect saw a net inflow of HK$7.91bn on Wednesday, with Xiaomi Group (1810) experiencing the largest net inflow at HK$1.06bn, followed by Meituan (3690). On the other hand, China Mobile (0941) recorded the largest net outflow at HK$510mn, followed by CNOOC (0883).
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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