Daily Investment Strategy
Daily focus：CMB（3968）
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. Target price is HK$43.0.
Continuing jobless claims hit three-year high
The United States reported that initial jobless claims for the week ending January 18 increased by 6,000 to 223,000, which is close to the market expectation of 220,000. However, the number of continuing unemployment benefit claims in the previous week rose further to 1.899 million, higher than the market expectation of 1.866 million and the previous week's 1.853 million. This level is also the highest since November 2021, indicating that unemployed individuals are taking longer to find new jobs.Additionally, JPMorgan CEO Jamie Dimon stated at the World Economic Forum annual meeting that current U.S. stock valuations require very good data to justify their levels. Currently, we are at the peak of the U.S. earnings release season, which will help verify market confidence.
The Southbound Stock Connect saw a net inflow of HKD 5.4 billion on Thursday. The Tracker Fund of Hong Kong (2800) received the highest inflow of 2.65 billion Hong Kong dollars, followed by Tencent Holdings (700). CNOOC (883) recorded the highest net outflow of 365 million Hong Kong dollars, followed by Industrial and Commercial Bank of China (1398).
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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