Daily Investment Strategy
Recommended Stock：JD.com (9618)
JD.com will announce its results on November 14. The market expects the group’s adjusted EBITDA to rise 5.6% to RMb13.62bn in the 3Q24, and quarterly revenue to reach RMb259.7bn, a yoy increase of 4.8%. This accelerated from the 1.2% annual growth rate in the 2Q24. Benefiting from the " trade-in subsidy", JD.com's sales of home appliance more than doubled on average between August 26 and September 21. JD.com can be said to be the biggest beneficiary of macro policies, including home appliance trade-in programs, measures to stimulate the real estate market (increasing demand for home appliance) and consumer coupons. Target price: 175, stop loss price: 138.
Housing and corporate mid- and long-term loans both improved in October
The POBC announced social financing figures for October, which is the first full month since the intensive rescue policies launched on September 26. New social financing increased by RMb1.4tn in, a decrease of RMb2.36tn from RMb3.76n in the previous month. Household loans increased by RMb160bn monthly, compared with a contraction of RMb16.5bn in the same period last year. Among them, medium and long-term loans increased by RMb110bn, compared with an increase of only RMb37.4bn in the same period last year. Corporate loans increased by RMb130bn monthly, compared with an increase of RMb117.5bn in the same period last year. Among them, medium and long-term loans increased by RMb170bn, compared with a decrease of RMb78bn in the previous year. Both medium and long-term household loans and business loans have shown signs of rebounding yoy. With the implementation of mainland property market policies, the real estate market may begin to bottom out, while business loans are facing greater uncertainty due to the impact of potential U.S. tariffs.
Hong Kong Stock Connect recorded a net inflow of HK$9.865bn on Monday, of which Tracker Fund (2800) had the largest net inflow, reaching HK$3.49bn, followed by Hang Seng China Enterprises (2828). China National Offshore Oil Corporation (0883) had the largest net outflow, reaching HK$430mn, followed by Tencent Holdings (0700).
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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