Daily Investment Strategy
Daily focus：Fast Retailing Group (6288)
Rumors suggest Anta Sports intends to participate in a PUMA equity transaction. If the deal is completed through a minority stake, the impact on leverage and short-term earnings per share dilution will be limited, while preserving options for future brand synergy and supply chain integration. With continued growth in demand for sports and outdoor activities in China and the expansion of the industry driven by sports tourism, the mainland sports goods market is expected to maintain mid-double-digit growth in 2025. The group's multi-brand portfolio, comprising its main brand, FILA, and high-end outdoor brands, is expected to continue to increase market share and solidify profit growth momentum during this period.
Credit Card Interest Rate Cap Proposal Causes Market Volatility
US President Trump's proposal to cap credit card interest rates at 10% triggered significant market volatility. This plan, aimed at addressing the cost of living, is expected to save cardholders nearly $100 billion annually. However, the banking industry and analysts warn that this move would disrupt risk pricing mechanisms, leading financial institutions to cancel credit cards for high-risk customers on a large scale due to reduced profits. Although the proposal still requires congressional support, the anticipated credit tightening has already put pressure on bank stocks and may offset some of the growth momentum from fiscal expansion.
Hong Kong Stock Connect recorded a net inflow of HK$6.82bn on Friday, with Tencent Holdings (0700) recording the largest net inflow at HK$1.41bn, followed by Xiaomi Group-W (1810); Alibaba-W (9988) recorded the largest net outflow at HK$2.62bn, followed by Meituan-W (3690).
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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