Daily Investment Strategy
Daily focus：CMB（3968）
The medium and long-term capital entry plan announced by the central government will help state-owned insurance companies increase their A-share investments. We expect that dividends to shareholders will be more stable, and SOE related stocks with continuously growing dividends will benefit first, including CMB. For the time being, the wealth management business of CMB looks promising. With further rate cuts, residents have more incentive to seek better returns, benefiting CMB's wealth management business. The number of Golden Sunflower and above clients reached 5.0657 million, reflecting a 9.16% increase compared to the end of the previous year. The Company’s balance of AUM of these clients amounted to RMB11.7 trillion, marking an 8.15% growth from the end of last year. Additionally, the number of private banking clients increased by 7.22% compared to the end of the previous year. As risk appetite rises, the bank stands to benefit from its wealth management competitive advantage.
The market may gradually factor in AI valuation
The United States released the Personal Consumption Expenditures (PCE) price index on Friday, which is closely watched by the Federal Reserve. The December figure rebounded to 2.6% as expected by the market, with a monthly increase of 0.3%. The core PCE remained consistent with November, rising 2.8% year-on-year and 0.2% month-on-month, in line with market expectations. Additionally, regarding Trump's tariff measures, a 25% import tariff on Canada and Mexico and a 10% import tariff on China have been implemented as of February 4th.
Furthermore, since the introduction of the DeepSeek R1 model, the market has seen an increased valuation potential for Chinese AI concepts. In the past few days, Alibaba launched a new AI model called Qwen2.5-Max, which has demonstrated performance comparable to DeepSeek V3, GPT-4, and Claude-3.5-Sonnet in various benchmark tests. During U.S. trading sessions, Alibaba's ADR stock price surpassed $100 last week.
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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