CICC Research: Chinese Online Platform Stocks Gain Appeal; Top Picks Include TENCENT, KUAISHOU, NTES, and More
Market Sentiment and Valuation: The overall market sentiment has turned negative, leading to a correction in the sector, with valuations currently between the mean and the 25th percentile.
Fundamental Performance: Despite the negative sentiment, the sector shows solid fundamentals with healthy growth in advertising and gaming, particularly for companies like TENCENT, which continues to improve profit margins.
Investment Recommendations: CICC recommends TENCENT as a core investment, while also suggesting attention to KUAISHOU-W, NTES-S, NEWBORNTOWN, and BILIBILI-W, as they are entering a 'reasonable' range of projected PE ratios.
Valuation Insights: Most Chinese online platform companies are projected to have PE ratios of 15-20x by 2026, indicating potential for growth if results exceed expectations, although BILIBILI-W remains at a high valuation compared to others in the sector.
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HSI Starts 422 Points Up; HSBC HOLDINGS Gains 3%; Strong Performance in Chips and Commodities
Market Performance: The HSI opened 1.6% higher at 26,982, with significant gains in the HSCEI and HSTECH, reflecting a positive trend in the Hong Kong stock market.
Tech Sector Highlights: Major tech stocks like TENCENT and JD-SW saw increases, while KUAISHOU-W experienced a decline; overall, tech stocks showed a mixed performance with varying short selling ratios.
Automotive and Commodity Stocks: BYD COMPANY and other automotive stocks like NIO-SW and XPENG-W reported gains, alongside a rebound in commodity prices benefiting gold and mining stocks.
Financial Sector Gains: Financial stocks, including HSBC HOLDINGS and HKEX, opened higher, indicating a positive sentiment in the financial market amidst broader market gains.
TENCENT's Yuanbao AI Image Generation Sees 30-Fold Daily Increase in Usage
Stock Performance: TENCENT (00700.HK) experienced a decline of 2.922%, with short selling amounting to $2.97 billion and a ratio of 15.248%.
New Feature Launch: The "Yuanbao Party" is set to introduce a new Spring Festival red envelope feature, allowing users to receive cash red envelopes through interactions with Yuanbao.
Increased Usage: Since early February, the usage rate of Yuanbao's AI image generation feature has surged by 30 times, coinciding with the launch of the Spring Festival main venue on the Yuanbao APP.
User Engagement Growth: New users are engaging in over eight rounds of interactive Q&A with Yuanbao daily, leading to an 80% increase in daily usage time.
Report: Qianwen from BABA-W and Yuanbao Red Packet from TENCENT Now Allow Copying in WeChat
Stock Performance: BABA-W (09988.HK) saw a rise of 2.516%, while TENCENT (00700.HK) experienced a decline of 2.922% in their stock prices.
Short Selling Data: BABA-W had short selling of $2.37B with a ratio of 19.556%, while TENCENT's short selling reached $2.97B with a ratio of 15.248%.
WeChat Developments: Chinese media reported that WeChat has now allowed the copying of TENCENT's "Yuanbao" within its platform, following earlier restrictions against both "Qianwen" and "Yuanbao".
Market Context: The changes in WeChat's policies come amid a competitive landscape for AI red packets during the Spring Festival, where both companies were previously facing a blockade.
HKD4.3 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows totaling HKD4.3 billion, while other stocks like BABA-W (09988.HK) and POP MART (09992.HK) experienced notable short selling activity.
Market Activity Overview: TENCENT was the most active stock in both Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, with substantial net inflows, while stocks like XIAOMI-W and AKESO faced the highest net outflows.
Short Selling Statistics: The short selling ratios for TENCENT, BABA-W, and POP MART were 15.248%, 19.556%, and 27.852% respectively, indicating a high level of market speculation.
Overall Market Sentiment: The total Southbound Trading net outflow was HKD0, accounting for 35.67% of the total transaction amount of HKD88.42 billion, reflecting fragile market sentiment according to JPM.
WeChat Halts Qianwen and Yuanbao Red Packet Features, Disrupting Customer Acquisition: Report
WeChat's Restrictions: WeChat has implemented restrictions on sharing AI red packet commands during the Spring Festival, blocking commands from Alibaba's Qianwen and Tencent's Yuanbao AI applications in chats.
User Reactions: Users have reported difficulties in sharing commands for Alibaba's Qianwen on WeChat, leading to discussions about a "business war" between major AI applications.
Short Selling Activity Reaches $47.7B, Representing 22.1% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $47.7 billion, accounting for 22.1% of the eligible securities turnover, slightly down from 23% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W, with CSOP HS TECH leading at $7.79 billion and a short selling ratio of 66.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 0.947%, with a significant short selling turnover of $7.79 billion and a high short selling ratio of 66.7%.
Other Notable Stocks: TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W also showed notable short selling activity, with TENCENT at $2.97 billion and a ratio of 15.2%, while MEITUAN-W had a turnover of $961.98 million and a ratio of 26.6%.
HSI Starts 422 Points Up; HSBC HOLDINGS Gains 3%; Strong Performance in Chips and Commodities
Market Performance: The HSI opened 1.6% higher at 26,982, with significant gains in the HSCEI and HSTECH, reflecting a positive trend in the Hong Kong stock market.
Tech Sector Highlights: Major tech stocks like TENCENT and JD-SW saw increases, while KUAISHOU-W experienced a decline; overall, tech stocks showed a mixed performance with varying short selling ratios.
Automotive and Commodity Stocks: BYD COMPANY and other automotive stocks like NIO-SW and XPENG-W reported gains, alongside a rebound in commodity prices benefiting gold and mining stocks.
Financial Sector Gains: Financial stocks, including HSBC HOLDINGS and HKEX, opened higher, indicating a positive sentiment in the financial market amidst broader market gains.
TENCENT's Yuanbao AI Image Generation Sees 30-Fold Daily Increase in Usage
Stock Performance: TENCENT (00700.HK) experienced a decline of 2.922%, with short selling amounting to $2.97 billion and a ratio of 15.248%.
New Feature Launch: The "Yuanbao Party" is set to introduce a new Spring Festival red envelope feature, allowing users to receive cash red envelopes through interactions with Yuanbao.
Increased Usage: Since early February, the usage rate of Yuanbao's AI image generation feature has surged by 30 times, coinciding with the launch of the Spring Festival main venue on the Yuanbao APP.
User Engagement Growth: New users are engaging in over eight rounds of interactive Q&A with Yuanbao daily, leading to an 80% increase in daily usage time.
Report: Qianwen from BABA-W and Yuanbao Red Packet from TENCENT Now Allow Copying in WeChat
Stock Performance: BABA-W (09988.HK) saw a rise of 2.516%, while TENCENT (00700.HK) experienced a decline of 2.922% in their stock prices.
Short Selling Data: BABA-W had short selling of $2.37B with a ratio of 19.556%, while TENCENT's short selling reached $2.97B with a ratio of 15.248%.
WeChat Developments: Chinese media reported that WeChat has now allowed the copying of TENCENT's "Yuanbao" within its platform, following earlier restrictions against both "Qianwen" and "Yuanbao".
Market Context: The changes in WeChat's policies come amid a competitive landscape for AI red packets during the Spring Festival, where both companies were previously facing a blockade.
HKD4.3 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw significant Southbound Trading net inflows totaling HKD4.3 billion, while other stocks like BABA-W (09988.HK) and POP MART (09992.HK) experienced notable short selling activity.
Market Activity Overview: TENCENT was the most active stock in both Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect, with substantial net inflows, while stocks like XIAOMI-W and AKESO faced the highest net outflows.
Short Selling Statistics: The short selling ratios for TENCENT, BABA-W, and POP MART were 15.248%, 19.556%, and 27.852% respectively, indicating a high level of market speculation.
Overall Market Sentiment: The total Southbound Trading net outflow was HKD0, accounting for 35.67% of the total transaction amount of HKD88.42 billion, reflecting fragile market sentiment according to JPM.
WeChat Halts Qianwen and Yuanbao Red Packet Features, Disrupting Customer Acquisition: Report
WeChat's Restrictions: WeChat has implemented restrictions on sharing AI red packet commands during the Spring Festival, blocking commands from Alibaba's Qianwen and Tencent's Yuanbao AI applications in chats.
User Reactions: Users have reported difficulties in sharing commands for Alibaba's Qianwen on WeChat, leading to discussions about a "business war" between major AI applications.
Short Selling Activity Reaches $47.7B, Representing 22.1% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $47.7 billion, accounting for 22.1% of the eligible securities turnover, slightly down from 23% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W, with CSOP HS TECH leading at $7.79 billion and a short selling ratio of 66.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 0.947%, with a significant short selling turnover of $7.79 billion and a high short selling ratio of 66.7%.
Other Notable Stocks: TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W also showed notable short selling activity, with TENCENT at $2.97 billion and a ratio of 15.2%, while MEITUAN-W had a turnover of $961.98 million and a ratio of 26.6%.
