Weibo Reports Mixed Q4 Results, Recent Outperformers Sell Off
5 Min. Read Time
Key News
Asian equities were mostly lower overnight, though Malaysia and Pakistan managed gains while Vietnam and Taiwan underperformed.
China’s markets continued a downtrend from yesterday as US tariff uncertainty continued to rattle global markets. Mainland investors continued their net buying streak, though at a level much lower than yesterday, which was near the all-time daily record. Meanwhile, there was a slight rotation factor as value sectors managed gains. Gold miners and oil led gains on geopolitical uncertainty and some reports bullish on commodity and rare earth prices. Government bonds continued to sell off, sending yields slightly higher.
Weibo Q4 Earnings Overview
Social media and online advertising platform Weibo reported Q4 and 2025 results this morning after the close in Hong Kong and before the US market opened. Revenue was slightly lower than expected, while net income was slightly higher than most estimates.
- Revenue -1.5% to $456 million
- Net Income $92.8 million
- Earnings per Share (EPS) $0.39
User growth was better than expected, while advertising revenue was down year over year. The company is in a similar position to Baidu, in which the macroeconomic environment does not lend itself well to advertising spending. At the same time, competition in space is increasing from short video platforms and AI enablers such as Alibaba. However, the company did announce a significant dividend of $0.82 per share, which represents a payout ratio of over 40%.
The electric vehicle (EV) ecosystem was lower overnight, and China EV names are selling off in the US this morning. This was after a run-up on positive vehicle sales growth in China. This is one of the many recently outperforming sectors that sold off overnight, including AI, robotics, and consumer plays. This is likely stemming from some short-term profit taking, which we have noticed can be more of a factor in China compared to the US and Europe.
One of China’s top financial publications, the Securities Daily, published an article about the potential for the CNY to rise further against the US dollar. This would run counter to the narrative of long-term higher tariffs, though if domestic consumption really increases, then demand for China assets could rise despite the trade situation weighing on the currency.
The Hang Seng and Hang Seng Tech indexes both closed lower by -0.58% and -1.67%, respectively, on volume that decreased by -16% from yesterday. Mainland investors bought a net $698 million worth of Hong Kong-listed stocks via Southbound Stock Connect. The top-performing sectors were Energy, which gained +1.08%, Materials, which gained +0.47%, and Information Technology, which gained +0.43%. Meanwhile, the worst-performing sectors were Consumer Staples, which fell --1.84 %; Consumer Discretionary, which fell --1.75 %; and Real Estate, which fell -1.27%.
Shanghai, Shenzhen, and the STAR Board all closed lower by -0.39%, -1.12%, and -2.11%, respectively. The top-performing sectors were Energy, which gained +2.66%; Utilities, which gained +0.85%; and Materials, which gained +0.39%. Meanwhile, the worst-performing sectors were Information Technology, which fell --2.22 %; Communication Services, which fell --0.94 %; and Real Estate, which fell -0.84%.
| Country/Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.6% |
| Hang Seng Tech | HSTECH Index | -1.7% |
| Hong Kong Turnover | HKTurn Index | -16% |
| HK Short Sale Turnover | HKSST Index | -12.6% |
| Short Turnover as a % of HK Turnovr | N/A | 17.6% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 211.3 |
| China (Shanghai) | SHCOMP Index | -0.4% |
| China (Shenzhen) | SZCOMP Index | -1.1% |
| China (STAR Board) | Star50 Index | -2.1% |
| Mainland Turnover | .chturn Index | -4.6% |
| Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | -0.6% |
| Japan | NKY Index | -0.1% |
| India | SENSEX Index | -0.3% |
| Indonesia | JCI Index | -0.3% |
| Malaysia | FBMKLCI Index | 1.7% |
| Pakistan | KSE100 Index | 0.9% |
| Philippines | PCOMP Index | 0.8% |
| South Korea | KOSPI Index | 0% |
| Taiwan | TWSE Index | -1.4% |
| Thailand | SET Index | 0% |
| Singapore | STI Index | 0.1% |
| Australia | AS51 Index | -0.5% |
| Vietnam | VNINDEX Index | -0.6% |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | -0.84 |
| Communication Services | 9 | -1.07 |
| Consumer Discretionary | 30 | -1.75 |
| Consumer Staples | 13 | -1.84 |
| Energy | 7 | 1.08 |
| Financials | 23 | 0.17 |
| Health Care | 13 | -0.05 |
| Industrials | 19 | -0.58 |
| Information Technology | 10 | 0.43 |
| Materials | 10 | 0.47 |
| Real Estate | 6 | -1.27 |
| Utilities | 12 | 0.16 |
| Mainland China Listed | 432 | -0.44 |
| Communication Services | 9 | -0.94 |
| Consumer Discretionary | 31 | -0.65 |
| Consumer Staples | 27 | -0.3 |
| Energy | 16 | 2.66 |
| Financials | 63 | 0.03 |
| Health Care | 40 | -0.15 |
| Industrials | 69 | -0.57 |
| Information Technology | 85 | -2.22 |
| Materials | 68 | 0.39 |
| Real Estate | 7 | -0.84 |
| Utilities | 17 | 0.85 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.9 |
| Alibaba HK | 9988 HK Equity | -2.4 |
| JD.com HK | 9618 HK Equity | 0.3 |
| NetEase HK | 9999 HK Equity | -1.2 |
| Yum China HK | 9987 HK Equity | 0.9 |
| Baozun HK | 9991 HK Equity | 1.3 |
| Baidu HK | 9888 HK Equity | -0.7 |
| Autohome HK | 2518 HK Equity | 0.9 |
| Bilibili HK | 9626 HK Equity | -3 |
| Trip.com HK | 9961 HK Equity | -1.5 |
| EDU HK | 9901 HK Equity | -1.6 |
| Xpeng HK | 9868 HK Equity | 0.3 |
| Weibo HK | 9898 HK Equity | -1.1 |
| Li Auto HK | 2015 HK Equity | -1.5 |
| Nio Auto HK | 9866 HK Equity | -2.5 |
| Zhihu HK | 2390 HK Equity | 0.1 |
| KE HK | 2423 HK Equity | -2 |
| Tencent Music Entertainment HK | 1698 HK Equity | 1.1 |
| Meituan HK | 3690 HK Equity | -2.3 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | -0.9 |
| ALIBABA GROUP HOLDING LTD | -2.4 |
| XIAOMI CORP-CLASS B | 1.5 |
| SEMICONDUCTOR MANUFACTURING | -5 |
| MEITUAN-CLASS B | -2.3 |
| KUAISHOU TECHNOLOGY | -3.9 |
| BYD CO LTD-H | 1.6 |
| XPENG INC - CLASS A SHARES | 0.3 |
| PING AN INSURANCE GROUP CO-H | -1.2 |
| HONG KONG EXCHANGES & CLEAR | -1.5 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| SHIJIAZHUANG CHANGSHAN BEI-A | 6.1 |
| SHANGHAI STONEHILL TECHNOL-A | -6.8 |
| TALKWEB INFORMATION SYSTEM-A | -1.2 |
| EAST MONEY INFORMATION CO-A | -1.1 |
| HANGZHOU IRON & STEEL CO-A | 4.9 |
| ZTE CORP-A | -4.2 |
| ZHEJIANG DAHUA TECHNOLOGY-A | 2.2 |
| INESA INTELLIGENT TECH INC-A | -6.8 |
| ZHEJIANG WANMA CO LTD -A | 4.7 |
| VICTORY GIANT TECHNOLOGY -A | 2.7 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per EUR 7.25 versus 7.24 yesterday
- CNY per USD 7.85 versus 7.88 yesterday
- Yield on 10-Year Government Bond 1.86% versus 1.83% yesterday
- Yield on 10-Year China Development Bank Bond 1.87% versus 1.86% yesterday
- Copper Price -0.30%
- Steel Price +0.25%
