Daily Investment Strategy
Daily focus：CCC（1800）
The Group has sped up the growth of emerging businesses, securing RMB390bn in new contracts, up 27% year-on-year. Key sectors include offshore wind power, Beidou tech, and offshore cable-laying. By 2030, the new urban infrastructure plan aims to make cities more resilient. As a leader, China Communications Construction Company is poised to benefit from government-backed infrastructure projects. The 3Q24 operating cash flow of the Group has improved, with a net outflow of RMB2.87bn. China's RMB10tn local government debt plan, announced in November, will provide more funds for settling outstanding payments and starting new projects, positively impacting the infrastructure sector. Target price: $6.28.
S&P 500 shrugs off hawkish stance of Fed Dec. minutes
The Dow Jones Industrial Average rose 106 points, or 0.25%; the S&P 500 rose 0.1%; and the Nasdaq Composite fell 0.07%. The private payrolls added 122,000 jobs last month, compared with 146,000 in November, according to the ADP National Employment Report. In addition, the Fed minutes showed that "Committee would likely slow the pace of further adjustments to the stance of monetary policy." Fed members are cautious about further cutting interest rates due to slow progress in curbing inflation toward the 2% target. However, Treasury yields steadied after a surge on Tuesday as Fed Governor Waller backed further rate cuts amid expectations that inflation may continue to fall.
Hong Kong Stock Connect had a net inflow of HK$14.8bn on Wednesday of which Tencent (700) had the largest net inflow, reaching HK$8.5bn; followed by Tracker Fund (2800). Meituan (3690) recorded the largest net outflow at $0.77bn, followed by Sunny Optical (2382).
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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