Internet Stocks Are AI Stocks!
4 Min. Read Time
Key News
Asian equities were mostly higher overnight as Pakistan and Indonesia outperformed, while the Philippines and Korea underperformed. Mainland China remains closed until Thursday in observance of the National Holiday, which is also known as "Golden Week".
Hong Kong stocks mostly followed their US-listed counterparts higher after yesterday's strong performance, though volumes remained extremely low, at just over one-third of the one-year average due to the Mainland's closure. Global macroeconomic catalysts benefited the entire market, including easing interest rate expectations after the rapid run-up in US treasury yields last week. Healthcare led, continuing strong momentum from recent international licensing deals for China's biotech firms. Meanwhile, internet stocks also had a good day, as Tencent gained +1.2% and was Hong Kong's most heavily-traded stock by value.
DeepSeek completed what was likely its final funding round as a private company overnight. The AI model maker raised nearly RMB 80 billion, which is significantly higher than its original target of only RMB 50 billion. Tencent and CATL both took part in the round.
Kuaishou gained +2.31% after announcing that its Kling AI video generation model will likely be spun off via a Hong Kong IPO in 2027, as the company began choosing investment banks to handle the listing. Meanwhile, AI model maker Z.AI gained +7.59% after announcing a deal with Amazon Web Services (AWS), which is integrating the company's GLM 5.3 model into its Amazon Bedrock platform. Z.AI's model will be offered among many other global, open-source models through the platform, which is geared towards AI developers.
Alibaba gained +2.7% on strong results from its cloud intelligence platform, which reported 45% year-over-year revenue growth in the third quarter, driven by accelerated adoption of the Qwen model ecosystem. It is refreshing to see internet stocks being recognized for their AI efforts. Baidu gained +3.3%, Meituan gained +0.3%, and JD.com gained +1.17%.
After the close, Tencent announced it bought back 235,000 shares, while KE Holdings (US Ticker: BEKE) announced that it bought back 637,425 shares.
Mainland media featured multiple articles about real estate sales rising during the holiday.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 1% |
| Hang Seng Tech | HSTECH Index | 0.9% |
| Hong Kong Turnover | HKTurn Index | 0.2% |
| Hong Kong Short Sale Turnover | HKSST Index | -5.2% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 24.64 |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Closed |
| China (Shanghai) | SHCOMP Index | Closed |
| China (Shenzhen) | SZCOMP Index | Closed |
| China (STAR Board) | Star50 Index | Closed |
| Mainland Turnover | .chturn Index | Closed |
| Japan | NKY Index | 1.1% |
| India | SENSEX Index | 0.9% |
| Indonesia | JCI Index | 1.2% |
| Malaysia | FBMKLCI Index | 0.1% |
| Pakistan | KSE100 Index | 1.6% |
| Philippines | PCOMP Index | -1.2% |
| South Korea | KOSPI Index | -0.9% |
| Taiwan | TWSE Index | 0.2% |
| Thailand | SET Index | 0.4% |
| Singapore | STI Index | 0.7% |
| Australia | AS51 Index | 0.6% |
| Vietnam | VNINDEX Index | 0.3% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 38 | Closed |
| Advancing Stocks | 69 (Hang Seng) | Closed |
| Declining Stocks | 22 (Hang Seng) | Closed |
| Outperforming Factors | Growth | Closed |
| Underperforming Factors | Value | Closed |
| Top Sectors | Health Care, Consumer Discretionary, Communication Services | Closed |
| Bottom Sectors | Consumer Staples, Energy, Utilities | Closed |
| Top Subsectors | Pharmaceuticals, Consumer Discretionary, Software | Closed |
| Bottom Subsectors | Construction, Textiles, Technology Hardware | Closed |
| Southbound Connect Buys | Closed | N/A |
| Southbound Connect Sells | Closed | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | 1.22 |
| Communication Services | 7 | 1.23 |
| Consumer Discretionary | 27 | 1.53 |
| Consumer Staples | 12 | -0.23 |
| Energy | 7 | 0.4 |
| Financials | 24 | 0.96 |
| Health Care | 15 | 3.05 |
| Industrials | 16 | 0.59 |
| Information Technology | 14 | 0.9 |
| Materials | 14 | 0.67 |
| Real Estate | 6 | 0.95 |
| Utilities | 10 | 0.57 |
| Mainland China Listed | 419 | 0.16 |
| Communication Services | 9 | 0.16 |
| Consumer Discretionary | 21 | 0.66 |
| Consumer Staples | 16 | 1.69 |
| Energy | 11 | 1.14 |
| Financials | 60 | 1.12 |
| Health Care | 26 | 3.03 |
| Industrials | 62 | 0.9 |
| Information Technology | 126 | -1.72 |
| Materials | 69 | 0.46 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 1.2 |
| Alibaba HK | 9988 HK Equity | 2.7 |
| JD.com HK | 9618 HK Equity | 1.2 |
| NetEase HK | 9999 HK Equity | 0 |
| Yum China HK | 9987 HK Equity | 2.2 |
| Baozun HK | 9991 HK Equity | 5.4 |
| Baidu HK | 9888 HK Equity | 3.3 |
| Autohome HK | 2518 HK Equity | 1.2 |
| Bilibili HK | 9626 HK Equity | 1.5 |
| Trip.com HK | 9961 HK Equity | -0.2 |
| EDU HK | 9901 HK Equity | 0.6 |
| Xpeng HK | 9868 HK Equity | 2.5 |
| Weibo HK | 9898 HK Equity | 0.9 |
| Li Auto HK | 2015 HK Equity | 0.5 |
| Nio Auto HK | 9866 HK Equity | -0.3 |
| Zhihu HK | 2390 HK Equity | 2.9 |
| KE HK | 2423 HK Equity | 1.9 |
| Tencent Music Entertainment HK | 1698 HK Equity | 1.4 |
| Meituan HK | 3690 HK Equity | 0.2 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 1.2 |
| ALIBABA GROUP HOLDING LTD | 2.7 |
| Z AI CO LTD | 7.6 |
| XIAOMI CORP-CLASS B | 1.6 |
| AIA GROUP LTD | -0.2 |
| HSBC HOLDINGS PLC | 1.9 |
| PING AN INSURANCE GROUP CO-H | -0.4 |
| LENOVO GROUP LTD | -1.4 |
| WUXI BIOLOGICS CAYMAN INC | 4.5 |
| CHINA CONSTRUCTION BANK-H | 1.5 |
Last Night's Exchange Rates, Prices, & Yields
Mainland China's bond, currency, and commodity markets were closed overnight.
