Government Work Report Released, JD & Bilibili Report Earnings
7 Min. Read Time
JD.com Q4 Earnings Overview
JD.com (JD US, 9618 HK) reported earnings after the close in Hong Kong. The company acknowledged “high comparable base in the electronics and home appliances categories” due to trade-in subsidies in comparing sales in Q4 2024.
- Revenue increased +1.5% YoY to RMB 352.3B ($50.4B) from RMB 346.9B, versus expectations of RMB 350.3B
- Adjusted Net Income declined to RMB 1.1B ($200mm) from RMB 11.29B, versus expectations of RMB 547.3mm
- Adjusted EPS declined to RMB 0.57 ($0.08) from RMB 7.42, versus expectations of RMB 0.30
- The company will pay a $1 per ADR dividend on April 9th
- The company repurchased 6.3% of shares outstanding/approximately 183.2 million Class A ordinary shares (equivalent to 91.6 million ADSs) for a total of approximately US$3.0 billion in 2025
Bilibili Q4 Earnings Overview
Bilibili (BILI US, 9626 HK) reported earnings after the close in Hong Kong. This line sums things up nicely: “2025 was a landmark year for Bilibili, marked by resurgent community growth and our first full year of GAAP profitability,” said Rui Chen, Chairman and Chief Executive Officer of Bilibili.
- Revenue increased +8% to RMB 8.32B ($1.189B) from RMB 7.73B, versus expectations of RMB 8.14B
- Adjusted Net Income increased +94% to RMB 878.4B ($125.6MM) from RMB 453mm versus expectations of RMB 796mm
- Adjusted EPS increased to RMB 1.94 ($0.28) from RMB 1.07 versus expectations of RMB 1.82
- As of December 31, 2025, the Company had cash and cash equivalents, time deposits, and short-term investments of RMB24.15 billion (US$3.45 billion).
- As of December 31, 2025, the Company had repurchased a total of 7.0 million of its listed securities for a total cost of US$131.2 million.
Key News
Premier Li delivered the Government Work Report, which articulated 2025 economic highlights, including GDP growth of 5% to 140.19 trillion, 12.67 million new urban jobs created, and electric vehicle (EV) production reaching 16 million cars, as EV charging facilities exceeded 20 million.
From Sina Finance, the 2026 goals are:
- Economic growth of 4.5%-5%; we will strive for even better results in our practical work.
- This year's deficit ratio is planned to be around 4%, and a moderately loose monetary policy will continue to be implemented.
- 250 billion yuan of ultra-long-term special treasury bonds will be allocated to support the trade-in of old consumer goods.
- A special fund of 100 billion yuan will be established to promote domestic demand through fiscal and financial synergy.
- 200 billion yuan of ultra-long-term special treasury bonds will be allocated to support large-scale equipment upgrades.
- Carbon dioxide emissions per unit of GDP have decreased by 17% cumulatively, and green and low-carbon transformation in key sectors continues to be promoted.
- The urbanization rate of the permanent resident population reached 67.9%.
- Strengthen housing security for families getting married and having their first child, and support the housing improvement needs of families with multiple children.
- The policy of providing one year of free preschool education has benefited 14 million children.
- The childcare subsidy system has been fully implemented, benefiting more than 30 million infants and young children.
The 4% deficit ratio indicated in the report is the same as in 2025, though one could argue that it is higher due to the special bond issuance.
A press conference will be held tomorrow with the heads of several government agencies tasked with implementing the new Five-Year Plan.
Both Hong Kong and Mainland China faded throughout the trading day as Premier Li confirmed stimulus numbers in line with expectations. I am not sure who was expecting a policy bazooka, as the steady drip is clearly the course of action.
Mainland investors reacted to the Government Work Report, making technology the top-performing sector in Mainland China. Mainland-listed semiconductors and technology hardware stocks were top-performers, and the technology-heavy STAR Market gained +1.72% on the line "China will accelerate efforts to achieve greater self-reliance and strength in science and technology in 2026". The report's on the "silver economy", i.e. the elderly, lifted healthcare stocks in both Hong Kong, where they gained +1.80%, on average, and Mainland China, where they gained +0.59%. The emphasis on clean tech and green energy lifted CATL, which gained +3.35% in Mainland China and +4.30% in Hong Kong.
The China equity ETFs listed in Mainland China and favored by the "National Team", i.e., investment firms associated with sovereign wealth, had below-average volumes, though inflows followed the massive drawdown in January and February. While Mainland investors embraced growth stocks and tecnollogy play, offshore investors in Hong Kong dipped their toes back into the markets, favoring conservative value and high-dividend plays. Banks outperformed in Hong Kong as AIA gained +5.06%.
Hong Kong was pulled down by MSCI China's two biggest weights: Alibaba, which fell -2.77%, as Mainland investors were net sellers following the departure of a key AI executive at Qwen, and Tencent, which fell -0.79%. However, Tencent had yet another strong net buy session from Mainland investors via Southbound Stock Connect and a large call option block trade. Tencent has 11.65% of its holdings held by Mainland investors, which is rising year-to-date (YTD). Meanwhile, Alibaba has 11.70% held by Mainland investors, though that ownership level has flatlined.
Mainland investors were net sellers of Hong Kong-listed stocks and ETFs. There were some green shoots on things stabilizing following the relentless grind lower since October. Today looks like a down day in US ADRs, though the rate of decline has slowed dramatically.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.3% |
| Hang Seng Tech | HSTECH Index | -0.7% |
| Hong Kong Turnover | HKTurn Index | -11.6% |
| Hong Kong Short Sale Turnover | HKSST Index | -22.2% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 16% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -3,542.12 |
| China (Shanghai) | SHCOMP Index | 0.6% |
| China (Shenzhen) | SZCOMP Index | 1.2% |
| China (STAR Board) | Star50 Index | 1.7% |
| Mainland Turnover | .chturn Index | 0.9% |
| Japan | NKY Index | 1.9% |
| India | SENSEX Index | 1.1% |
| Indonesia | JCI Index | 1.8% |
| Malaysia | FBMKLCI Index | 0.9% |
| Pakistan | KSE100 Index | 3.3% |
| Philippines | PCOMP Index | 1.2% |
| South Korea | KOSPI Index | 9.6% |
| Taiwan | TWSE Index | 2.6% |
| Thailand | SET Index | 2.4% |
| Singapore | STI Index | 0.7% |
| Australia | AS51 Index | 0.4% |
| Vietnam | VNINDEX Index | -0.5% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 125 | 126 |
| Advancing Stocks | 284 | 2849 |
| Declining Stocks | 204 | 1215 |
| Outperforming Factors | Dividend Yield, Value, Low Volatility | Momentum, Liquidity, Large Caps |
| Underperforming Factors | Growth, Liquidity, Quality | |
| Top Sectors | Healthcare, Industrials, Utilities | Tech, Industrials, Communication |
| Bottom Sectors | Materials, Discretionary, Staples | |
| Top Subsectors | Electrical Equipment, Machinery, Pharmaceuticals | Power Generation Equipment, Education, Electrical Power |
| Bottom Subsectors | Consumer Staples Distribution, Construction Materials, Consumer Discretionary Distribution | Agricultural, Gas/Oil, Gas |
| Southbound Connect Buys | Tencent (Large), CNOOC (Small) | N/A |
| Southbound Connect Sells | HK Tracker ETF, HS China Enterprise ETF (Massive), HK Tracker ETF (Very Large), Alibaba (Large) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | -0.62 |
| Communication Services | 11 | -0.7 |
| Consumer Discretionary | 28 | -1.89 |
| Consumer Staples | 13 | -1.43 |
| Energy | 6 | -0.14 |
| Financials | 25 | 0.2 |
| Health Care | 16 | 1.79 |
| Industrials | 22 | 1.32 |
| Information Technology | 12 | 0.51 |
| Materials | 14 | -2.05 |
| Real Estate | 7 | 0.14 |
| Utilities | 11 | 0.98 |
| Mainland China Listed | 386 | 1.22 |
| Communication Services | 8 | 2 |
| Consumer Discretionary | 26 | 0.26 |
| Consumer Staples | 19 | 0.19 |
| Energy | 12 | -0.41 |
| Financials | 64 | 0.91 |
| Health Care | 31 | 0.75 |
| Industrials | 58 | 2.02 |
| Information Technology | 95 | 2.32 |
| Materials | 52 | 0.38 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.8 |
| Alibaba HK | 9988 HK Equity | -2.8 |
| JD.com HK | 9618 HK Equity | -1.1 |
| NetEase HK | 9999 HK Equity | -1 |
| Yum China HK | 9987 HK Equity | -0.6 |
| Baozun HK | 9991 HK Equity | -0.8 |
| Baidu HK | 9888 HK Equity | 0.8 |
| Autohome HK | 2518 HK Equity | -2.5 |
| Bilibili HK | 9626 HK Equity | 1.2 |
| Trip.com HK | 9961 HK Equity | -1.8 |
| EDU HK | 9901 HK Equity | -0.7 |
| Xpeng HK | 9868 HK Equity | 2.4 |
| Weibo HK | 9898 HK Equity | -0.1 |
| Li Auto HK | 2015 HK Equity | -0.4 |
| Nio Auto HK | 9866 HK Equity | 2.9 |
| Zhihu HK | 2390 HK Equity | -0.2 |
| KE HK | 2423 HK Equity | 0.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1.1 |
| Meituan HK | 3690 HK Equity | -1.2 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | -2.8 |
| TENCENT HOLDINGS LTD | -0.8 |
| CNOOC LTD-H | -1.9 |
| SHANDONG MOLONG PETROLEUM-H | -12.9 |
| XIAOMI CORP-CLASS B | 1.3 |
| BYD CO LTD-H | -2.6 |
| SHANGHAI DAZHONG PUBLIC UT-H | -21.6 |
| HSBC HOLDINGS PLC | -3.7 |
| AIA GROUP LTD | 5.1 |
| MEITUAN-CLASS B | -1.2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| EOPTOLINK TECHNOLOGY INC L-A | -3.4 |
| ZHONGJI INNOLIGHT CO LTD-A | -4.4 |
| BIWIN STORAGE TECHNOLOGY C-A | 8.8 |
| TBEA CO LTD-A | 4 |
| HGTECH CO LTD-A | 6 |
| VICTORY GIANT TECHNOLOGY -A | -0.6 |
| GEO-JADE PETROLEUM CORP-A | 5.3 |
| SUZHOU TFC OPTICAL COMMUNI-A | 0.3 |
| CONTEMPORARY AMPEREX TECHN-A | 3.3 |
| CAMBRICON TECHNOLOGIES-A | 4.6 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.89 versus 6.89 yesterday
- CNY per EUR 8.00 versus 8.02 yesterday
- Yield on 10-Year Government Bond 1.78% versus 1.78% yesterday
- Yield on 10-Year China Development Bank Bond 1.92% versus 1.93% yesterday
- Copper Price +0.09%
- Steel Price +0.26%
