Mei Ri Jing Ji Xin Wen·2025-11-13 06:15Core Viewpoint - The Hong Kong stock market indices are experiencing a decline, with the Hang Seng Technology Index dropping over 0.5%, and major ETFs following suit, particularly the Hang Seng Technology Index ETF [1] Group 1: Market Performance - The Hang Seng Technology Index ETF (513180) has seen a slight decline, with only a few holdings like BYD rising, while Tencent Music, Kingdee International, Sunny Optical Technology, Kuaishou, Lenovo Group, and Li Auto are leading the losses, with Tencent Music dropping over 11% [1] - High-profile companies such as Tencent and JD.com are set to release their Q3 earnings soon, with Alibaba, Meituan, and Pinduoduo following later in the month, indicating a mixed outlook for large-cap internet stocks [1] Group 2: Company Insights - Goldman Sachs projects that Tencent has the strongest profit outlook among large-cap internet stocks in China, with potential growth in gaming and advertising, and plans to expand into external AI cloud services [1] - Concerns exist among investors regarding Tencent's potential investments in AI and inference costs, which may suppress profit margin improvements, reminiscent of its previous short video investment cycle [1] - Alibaba's cloud business and capital expenditure outlook could be favorable, similar to the strong stock performance seen after earnings releases from Google and Amazon, while its customer management revenue shows steady growth [1] - However, Alibaba's instant retail business has significantly impacted group profits, with investments in this area expected to continue into the December quarter [1] Group 3: Valuation Perspective - Goldman Sachs believes that Tencent and Alibaba's valuations remain attractive compared to global peers, emphasizing Tencent as a key AI application stock and Alibaba's unique full-stack AI capabilities [2]