Market watchers are waiting for the inflation data to be released in the USA tonight. The Hang Seng Index fell after losing 19,700 points earlier, but the drop narrowed. The Dow and Nasdaq fell 0.9% and 0.1% respectively the night before. At the time of writing, the yield on the 2-year US Treasury bond rose to 4.34%, the yield on the 10-year US Treasury bond rose to 4.412%, and the US Dollar Index rose to 106.18, hitting a six-month high. Dow futures fell 109 points or 0.3%, while Nasdaq futures fell 0.08%. The Japanese Yen broke through the 155 level for the first time today (13th) since the end of July. The spot RMB rose 126 points to 7.2252 against the US Dollar. The Shanghai Composite Index rose 17 points or 0.5% to close at 3,439 points, the Shenzhen Component Index rose 0.4%, the Chinext Price Index rose 1.1%, and the combined turnover of Shanghai and Shenzhen exceeded 2 trillion RMB.

The Hang Seng Index opened lower by 174 points, briefly dropped 238 points to a low of 19,608 points, then mainland A-share indices rebounded in the afternoon. The decline in the Hong Kong stock market narrowed significantly, with the Hang Seng Index closing down 23 points or 0.12% at 19,823 points, marking four consecutive days of decline (a total drop of 1,129 points or 5.4%). The H-share Index reversed to close up 3 points or 0.05% at 7,130 points. The Hang Seng Tech Index dropped 1 point to close at 4,455 points. Total market turnover for the day was 184.618 billion yuan. China Unicom and China Mobile rose by 3.5% and 1.3% respectively, while Wuxi Apptec and Wuxi Bio stocks each declined by 4.1% and 3.4%.

【Telecom Stocks Perform Well Tencent's Strong Quarterly Results】

Following the market close, Tencent (00700.HK) announced its financial results, with the stock closing flat at 403.8 yuan for the day. Tencent reported a third-quarter net profit of 53.23 billion yuan, up 47% year-on-year, exceeding the upper limit of a range of 42.5 billion to 45.668 billion yuan estimated by 7 brokerage firms compiled by this portal, far surpassing expectations. Earnings per share were 5.762 yuan, with a net profit calculated according to non-International Financial Reporting Standards growing by 33.2% year-on-year to 59.813 billion yuan, also exceeding the upper limit of a range of 51.341 billion to 57 billion yuan estimated by 12 brokerage firms compiled by this portal, outperforming expectations. Earnings per share according to non-International Financial Reporting Standards were 6.475 yuan.

Tencent's third-quarter revenue was 167.193 billion yuan, up 8.1% year-on-year. Among these, revenue from value-added services increased by 9% year-on-year to 82.7 billion yuan. International gaming revenue increased by 9% year-on-year to 14.5 billion yuan. Domestic gaming revenue increased by 14% year-on-year to 37.3 billion yuan. Social network revenue increased by 4% year-on-year to 30.9 billion yuan. Revenue from marketing services increased by 17% year-on-year to 30 billion yuan. Meanwhile, revenue from fintech and enterprise services increased by 2% year-on-year to 53.1 billion yuan. Tencent recorded a net investment income in the third quarter of 3.066 billion yuan, nearly a 3.96-fold increase compared to the same period last year when it was reclassified at 0.618 billion yuan.

【Falling Stocks Totaling a Thousand Zhongsheng Showing a Rebound】

The primary market improved slightly today, with a stock price ratio of 17:25 for main board stocks (compared to 10:36 the previous day). There were 1,050 declining stocks (a 2.5% decrease). Among the Hang Seng component stocks today, 23 stocks rose, 52 fell, with a ratio of 28:63 (compared to 7:92 the previous day). The total short positions in the market today amounted to 24.412 billion yuan, accounting for 15.09% of the turnover of short positions of 161.777 billion yuan (down from 17.843% the previous day).

Geely (00175.HK) fell by 1.8%, with the company strongly denying the sale of shares in Faraday Future. As for other automobile stocks, BYD (01211.HK) rose by 0.4%, Xiaopeng Motors (09868.HK) fell by 4.5%. It was reported that the Xiaopeng G6 officially listed in Nepal and began deliveries. Nio (09866.HK) fell by 4.2%. Li Auto (02015.HK) fell by 1.9%, and Leapmotor (09863.HK) fell by 0.9%.

Zhongsheng Hldg (00881.HK) rose 7.6% throughout the day to close at HKD 18.42, ranking as the best-performing blue chip. Bank of China International released a report pointing out that Zhongsheng held a conference call last Friday (8th), announcing a strategic cooperation with Chongqing Sokon Group, planning to open approximately 40 joint venture sales stores before the Chinese New Year in early 2025. Management indicated that Zhongsheng will open the joint venture stores through brand adjustments and integrations in some existing brand stores, with the basic principle being to minimize capital expenditure, revitalize existing property resources, and enhance store efficiency. Referring to the operational data of joint venture stores operated by Yunda in Shanghai, the bank estimates that the joint venture brand will bring Zhongsheng 50,000 to 60,000 new car sales in 2025.