Daily Investment Strategy

2024.12.12 09:00

Recommended Stock:Trip.com(9961)

According to sources cited by Reuters, the Chinese government is considering allowing the Renminbi to depreciate in 2025 in response to rising trade tariffs under the incoming U.S. Trump Presidency. Trip.com’s international online travel agency (OTA) platform continued to see over 60% growth in orders in 3Q24, with the APAC region hitting 70% growth. Management has indicated that inbound tourism accounts for approximately 25% of the international OTA platform's revenue, with the fastest growth coming from regions with visa-free entry to China, demonstrating that the introduction of new visa exemptions has a direct positive impact on trip.com's business. If the RMB depreciates, trip.com can benefit from the increase in inbound tourism. Target price: $542.

 

 

CPI data in line with expectations solidifies expectations for rate cut next week

The U.S. Consumer Price Index (CPI) rose by 2.7% last month, a slight acceleration from October's 2.6%. Excluding volatile items such as food and fuel, core CPI rose 3.3%, also in line with expectations. About 98% of traders expect the Fed to cut interest rates next week, up from 89% the day before.

Hong Kong Stock Connect had a net inflow of HK7.28bn on Wednesday of which Tracker Fund (2800) had the largest net inflow, reaching HK$5.22bn; followed by China Mobile (941). Tencent (700) recorded the largest net outflow at 0.74bn, followed by Meituan (3690).

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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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