Citi Supports TENCENT, BABA-W, and BIDU-SW as Internet Giants Intensify CNY Promotions for AI Products
Chinese New Year Promotions: As the Chinese New Year approaches, major Chinese internet companies are launching promotional campaigns for their AI products, with Tencent and Baidu initiating significant cash red envelope campaigns to attract users.
Tencent and Baidu Campaigns: Tencent plans to launch a RMB1 billion cash red envelope campaign on its Yuanbao App, while Baidu has announced a RMB500 million campaign to promote its Baidu App and Ernie Assistant.
Market Competition: The competition among internet giants for user traffic in the AI sector is expected to intensify, with companies like Alibaba also likely to join the red envelope promotions.
Citi's Recommendations: Citi Research favors Tencent, Alibaba, and Baidu in the Chinese AI market, rating them all as Buy, with target prices set at HKD783 for Tencent, HKD195 for Alibaba, and USD186 for Baidu.
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Patsnap, Intellectual Property Data Provider, Exploring Dual Listing in Hong Kong and Singapore
Patsnap's Dual Listing Plans: Intellectual property data provider Patsnap is exploring a dual listing in Hong Kong and Singapore to raise between USD 300-400 million, with discussions still ongoing.
Company Background: Founded in 2007, Patsnap is supported by major investors like SoftBank and Tencent, and it offers intellectual property data and analytics services to over 15,000 companies.
<Midday Update> HSI Falls by 498 Points; HSTI Declines by 105 Points; CSPC PHARMA Drops Over 12%; SHK PPT and HUABAO INTL Reach New Peaks
Market Performance: The Hang Seng Index (HSI) fell by 498 points (1.8%) to 27,469, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines of 1.8% and 2.1%, respectively.
Active Heavyweights: Major stocks like Xiaomi, Alibaba, and Tencent saw significant drops, with Xiaomi down 2.7%, Alibaba down 2.7%, and Tencent down 1.5%, alongside substantial short selling activity.
Notable Declines: CSPC Pharma and Zijin Mining faced sharp declines of 12.5% and 8.6%, respectively, with high short selling ratios indicating bearish market sentiment.
Gainers and New Highs: New Oriental and Huabao International were among the few gainers, with New Oriental up 3.6% and Huabao hitting a new high with a 6.2% increase.
