On the evening of the 26th, US stocks rose sharply, and more importantly, Chinese stocks went crazy, with Baidu, Inc. and BABA up more than 10%! Today, the Hang Seng Technology Index soared nearly 5%, and BABA soared nearly 14%. What happened?

Chinese stocks soared.The Hang Seng Technology Index soared.

On the evening of the 26th, Chinese stocks generally rose by more than 10%, including BABA by more than 13% and Baidu, Inc. by more than 12%.

In early trading today, the Hang Seng Science and Technology Index rose more than 4%. As of press time, BABA rose more than 12%, Baidu, Inc. even rose 14%, Meituan rose more than 4%, and Kuaishou Technology, NetEase, Inc and JD.com collectively rose.

What happened? BABA's financial results exceeded expectations! And the big news.

Market analysis, the disclosure of BABA, Baidu, Inc. financial data on the evening of the 26th exceeded expectations, and Chinese stocks may have bottomed out.

According to the latest financial report released by BABA Group, Aliyun's total annual income before and after offsetting inter-segment transactions was 100.18 billion yuan and 74.568 billion yuan respectively, and achieved its first annual profit in 13 years. Aliyun EBITA's profit improved sharply from a loss of 2.251 billion yuan last year to 1.146 billion yuan this year, making it the only cloud service provider in China to break even.

Zhang Yong, chairman and chief executive of BABA Group, said: under the epidemic, the sustained and stable operation of business is the common core concern of all businesses. Under the uncertain epidemic situation, the stability and smooth flow of supply chain and logistics can be guaranteed with certainty, so that business can operate stably and consumer sentiment and willingness can be better restored.

In addition, Baidu, Inc. released his unaudited financial report for the first quarter ended March 31, 2022 on May 26. The company achieved revenue of 28.411 billion yuan in that quarter, and net profit (non-GAAP) reached 3.879 billion yuan, exceeding market expectations. According to the financial report, Baidu, Inc. 's core R & D expenditure reached 5.134 billion yuan in the first quarter, accounting for more than 20% of Baidu, Inc. 's core income for six consecutive quarters.

From a business point of view, Baidu, Inc. 's core revenue grew 4 per cent year-on-year to 21.4 billion yuan in the first quarter. Driven by cloud and artificial intelligence business, non-advertising revenue grew 35% year-on-year to 5.7 billion yuanAdvertising revenue fell 4 per cent year-on-year to 15.7 billion yuan. In terms of mobile ecology, Baidu, Inc. App's MAU (the number of monthly active users) grew 13% year-on-year to 632 million in March.

Lincoln: the United States is determined to avoid a "new cold war" with China

In addition, there is another big piece of news in the market. according to the World wide Web, at 10:00 local time on May 26th, US Secretary of State Abraham Lincoln delivered a speech on China policy at George Washington University. The US media just got the news that Brin Lincoln said in his speech that the United States is determined to avoid a "new cold war" with China.

Agence France-Presse subsequently updated the report on Lincoln's speech. According to the report, Brin Lincoln declared in his speech that he would engage in fierce competition with China to maintain the so-called "existing global order," but at the same time said that the United States did not seek a "new cold war" with China.

The speech was originally scheduled for May 5, but had to be postponed because Brynn was infected with COVID-19. Bloomberg previously reported that the speech was intended to pave the way for Biden's trip to Asia, but now it is after Biden ends his visit to South Korea and Japan. On the speech, Agence France-Presse quoted Blinken's aides as saying on the 24th that it would be the most comprehensive statement of the US government's policy towards China, a rising Asian power, so far.

With regard to Sino-US relations, Chinese State Councilor and Foreign Minister Wang Yi said in March this year that the United States spared no effort to carry out zero-sum game-style "fierce competition" against China, constantly attacking and provoking troubles on issues related to China's core interests, and successively piecing together to suppress China's "coterie" in the international arena, not only harming the overall situation of bilateral relations, but also impacting international peace and stability. This is not what a responsible big country should look like, nor is it what a credible country should do. Wang Yi pointed out that China believes that competition among great powers is not the theme of the times, and zero-sum game is not the right choice. In an interdependent era of globalization, how to find the right way for China and the United States to get along correctly is not only a problem that human society has never encountered, but also an equation that the two countries must solve together.

In response, brokerage China analysts saidSome people attribute the root cause to Lincoln's speech on Sino-US relations last night. However, from the point of view of the full text, it has not changed much from the previous statement. Moreover, the Democratic Party has always been "two-faced". We have to listen to his words and observe his deeds. The key is to be yourself. And last night's outbreak of Chinese stocks is indeed because of their own: BABA, Baidu, Inc. and iQIYI, Inc. 's performance greatly exceeded expectations.

Shanghai has taken key steps

The resumption of work and production in China is also the focus of the market.

According to the news released by Shanghai last night, according to the operation and passenger flow after the resumption of the first phase of bus lines in the Pudong New area, in order to further facilitate the travel of citizens, the Construction and Transportation Commission of the Pudong New area plans to restore another 115 bus lines, such as 85 roads, tomorrow. Together with the 48 bus lines that have been restored before, the total number of restored bus lines will reach 163.

On May 26, according to thepaper.cn, it was learned from the Shanghai Greening City appearance Bureau that as of May 26, 31 city parks had been reopened in Shanghai, mainly in Fengxian and Jinshan; on May 27, 41 city parks in Minhang District will be opened, and by May 31, the number of city parks in Shanghai will reach 101. According to the epidemic prevention and control situation and requirements of the whole city and various districts, the urban parks in the central urban area have been reopened one after another on the basis of ensuring the epidemic prevention and control requirements since June 1.

According to CCTV news, at a news conference on epidemic prevention and control in Shanghai on the 26th, the Shanghai Education Commission announced the relevant arrangements for returning to primary and secondary schools in Shanghai. It is decided that the students of the third and second grades of senior high school in Shanghai will return to school from June 6, and the students of the third grade of junior high school will return to school from June 13; students of other grades in primary and secondary schools will continue to study at home until the end of the semester. The school can arrange a return to school activity before the end of the semester (including a graduation ceremony for fifth graders, etc.); kindergartens, nurseries, nurseries, etc., will no longer be arranged to return to school.

It can be said that with the passage of time, the epidemic situation is developing in a good direction, which will also lay a good foundation for economic development in the second half of the year, which is also the fundamentals expected by the capital market.