Daily Investment Strategy
Daily focus：Tencent Holding（700）
Tencent's core business focuses on the Chinese domestic market, helping to avoid tariff impacts. Its international game revenue is small, with limited U.S. contribution, and current tariffs exclude software and services, reducing direct risks to its core operations. In 2025, Tencent plans to advance its game business domestically and globally, launching new titles and leveraging AI to boost engagement. However, Sino-US decoupling may impact China’s economy and Tencent’s profitability, though its core business retains a degree of defensiveness.
Powell's Tariff Warning Sparks Market Sell-Off
The U.S. stock market saw sharp declines today, with the Dow Jones Industrial Average plunging over 900 points, the Nasdaq Composite sliding more than 4%, and the S&P 500 dropping 2.4%. The catalyst was Federal Reserve Chair Jerome Powell's warning about President Trump's escalating tariffs. Speaking at the Economic Club of Chicago, Powell cautioned that these tariffs could spark higher inflation and slower growth, raising fears of stagflation—a toxic mix for the economy. His comments signal potential challenges ahead, including strained corporate earnings and weakened consumer spending amid a possible trade war with China. Investors reacted swiftly, driving the sell-off as concerns mount over the Federal Reserve's limited room to counteract these risks without tipping the economy into a recession. Market sentiment reflects deep unease about the uncertain road ahead.
The Hong Kong Stock Connect recorded a net inflow of HK$7.9bn on Wednesday, with Tracker Fund Management (2800) recording the largest net inflow of HK$1.71bn, followed by Alibaba (9988); Xiaomi (1810) recorded the largest net outflow of HK$950mn, followed by Semiconductor Manufacturing International Corporation (0981).
Cheung Cho Shing, Joseph 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/ACQ030/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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