Daily Investment Strategy
Recommended Stock：Tencent（700）
As China's macroeconomic outlook improves, Tencent's payment business may benefit from a recovery in the retail market, while its advertising business could gain from increased spending by merchants. However, if the macroeconomic situation does not improve, Tencent maintains a defensive position compared to other tech stocks due to its game segment, which accounts for over one-third of its revenue and is less correlated with economic cycles. Market research firm Sensor Tower announced that TENCENT's "Honor of Kings" remains the highest-grossing mobile game worldwide. Meanwhile, "Pokemon Trading Card Game Pocket" secured the second spot, followed closely by "Royal Match", "MONOPOLY GO!" and "Last War: Survival". Tencent is one of our top picks for 2025. Target price: $507.
US Consumer Confidence dropped
US Conference Board Consumer Confidence dropped to 104.7 in December, falling short of expectations for 113.2 and down from 112.8 in November. Consumer views of current labor market conditions continued to improve, consistent with recent jobs and unemployment data, but their assessment of business conditions weakened. Compared to last month, consumers in December were substantially less optimistic about future business conditions and incomes. Moreover, pessimism about future employment prospects returned after cautious optimism prevailed in October and November.
Hong Kong Stock Connect had a net inflow of HK$2.65bn on Monday of which ICBC (1398) had the largest net inflow, reaching HK$1.07bn; followed by SMIC (981). Meituan (3690) recorded the largest net outflow at $1.22bn, followed by Kuaishou (1024).
Wen Kit Kenny 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/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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