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The Hang Seng Tech Index continued its upward trend in the final minutes of trading, rising more than 3%, while the Hang Seng Index is currently up 1.34%.On January 12th, Jefferies Research reported that its preview of Bilibilis (09626.HK) Q4 2025 results is in line with the banks forecasts, with total revenue expected to remain unchanged at approximately 5% year-on-year, reaching RMB 8.1 billion. Jefferies maintains its "Buy" rating on Bilibilis (BILI.O) US-listed shares at US$34 and its Hong Kong-listed shares at HK$267. By business segment, the bank expects mobile game revenue to increase by 1% quarter-on-quarter but decrease by 15% year-on-year to RMB 1.52 billion (accounting for 20% of total revenue); online advertising revenue is expected to increase by 21% year-on-year to RMB 2.9 billion (accounting for 36% of total revenue), primarily driven by several growth factors, including daily active users, traffic, and revenue per thousand impressions (rMI). The report also noted the success of "Escape from Dwarkov" in the gaming sector, highlighting the companys strategy of focusing on leading positions in vertical categories, long-term product operation, and targeting the younger generation. According to the banks 2026 outlook report, artificial intelligence is predicted to be a key area, while the entertainment industry is favored due to its defensive nature.On January 12th, the Shanghai Futures Exchange (SHFE) reported the following data on energy and chemical warehouse receipts and changes: 1. Pulp futures warehouse receipts: 130,363 tons, an increase of 5,874 tons compared to the previous trading day; 2. Pulp futures mill warehouse receipts: 12,000 tons, unchanged compared to the previous trading day; 3. Offset paper futures warehouse receipts: 0 tons, unchanged compared to the previous trading day; 4. Offset paper futures mill warehouse receipts: 2,040 tons, an increase of 40 tons compared to the previous trading day; 5. Fuel oil futures warehouse receipts: 0 tons, unchanged compared to the previous trading day. The previous trading day saw no change; 6. Petroleum asphalt futures warehouse receipts totaled 16,160 tons, an increase of 2,420 tons compared to the previous trading day; 7. Petroleum asphalt futures factory warehouse receipts totaled 16,660 tons, unchanged compared to the previous trading day; 8. Medium-sulfur crude oil futures warehouse receipts totaled 3,464,000 barrels, unchanged compared to the previous trading day; 9. Low-sulfur fuel oil futures warehouse receipts totaled 22,760 tons, unchanged compared to the previous trading day; 10. Low-sulfur fuel oil futures factory warehouse receipts totaled 0 tons, unchanged compared to the previous trading day.January 12th - It was learned today that the International Organization for Standardization (ISO) has officially released the international standard "Tribological properties of bearing materials for sliding bearings - Part 1: Testing of bearing alloys". This standard was led by my country, with experts from seven countries including Japan, Germany, the United Kingdom, France, and Austria participating in its development.On January 12th, Jefferies released a research report stating that it expects Lao Pu Gold (06181.HK) to achieve a net profit of RMB 2.3 billion in the second half of 2025, a year-on-year increase of 155%, with sales reaching RMB 15.3 billion, a year-on-year increase of 207%. Jefferies lowered its net profit forecasts for Lao Pu Gold for 2025, 2026, and 2027 by 14%, 6%, and 12% respectively, to reflect lower gross margins due to high gold prices and a return to normal growth in 2027. The bank lowered its target price for Lao Pu Gold from HKD 1,103 to HKD 981, corresponding to projected P/E ratios of 22x and 17x for 2026 and 2027 respectively. Despite profit margin pressures, Jefferies expects Lao Pu Gold to recover this year and reiterated its buy rating. Jefferies predicts that Lao Pu Gold will achieve a net profit of RMB 2.3 billion in the second half of 2025, with projected sales of RMB 13 billion in the mainland China market, a year-on-year increase of 188%; average sales per store are expected to increase by 130% year-on-year. Regarding overseas markets, overseas sales are projected to reach RMB 2.2 billion, representing a year-on-year increase of 295%. The gross profit margin is expected to be 36.4% during the period, compared to 38.1% in the first half of the year.

As China's Inflation Misses Forecasts, NZD/USD Sinks Below 0.6320

Alina Haynes

Feb 10, 2023 11:53

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As a result of China's National Bureau of Statistics (NBS) releasing weaker-than-anticipated Consumer Price Index (CPI) (Jan) data, the NZD/USD pair has dropped precipitously below 0.6320. The annual inflation rate is 2.1%, which is below the consensus estimate of 2.2% but above the prior figure of 1.8%. The monthly inflation rate declined by 0.8%, but inflationary pressures rose by 0.7%.

 

China's Producer Price Index (PPI) revealed a 0.8% deflation, which is 0.8% worse than the 0.5% predicted deflation and 0.7% previous deflation. It indicates that enterprises are aggressively discounting their goods and services at the facility gates. This is symptomatic of weak household demand.

 

The Chinese government and the People's Bank of China (PBOC) may pursue expansionary stimulus and monetary policies, respectively, as the Chinese economy recovers following the lifting of economic regulations.

 

There is little doubt that the Chinese economy will experience a rise in inflationary pressures as a result of further stimulus driving commodities in a bullish path. After overcoming the pandemic, western and other Asian nations have witnessed a similar circumstance.

 

Notably, New Zealand is one of China's most important trading partners, and lower inflation will require further assistance, which will benefit the New Zealand Dollar.

 

Meanwhile, the risk mood is negative as investors become anxious in advance of next week's release of Consumer Price Index (CPI) data in the United States. S&P500 futures ended Thursday's session on a negative note, as the market thinks that the Federal Reserve (Fed) will soon hike interest rates. The US Dollar Index (DXY) has difficulty maintaining a value greater than 103.00.

 

Following the release of January's good employment report, an unanticipated rise in inflation cannot be ruled out. Consumer spending can be stimulated by an increase in consumer expenditure, which may occur from a rise in employment.