Core Insights - Google and Sea Ltd have formed a strategic partnership to develop AI tools for e-commerce and gaming, specifically focusing on creating an AI agentic shopping prototype for Sea's Shopee platform [1] - This collaboration is part of a broader trend among global tech firms to monetize AI capabilities beyond basic functions, aiming to enhance various tasks including shopping and workflow management [1] - Shopee holds a dominant position in Southeast Asia's e-commerce market with a 52% market share in 2024, indicating significant competitive strength [1] E-commerce Developments - The partnership will explore the development of AI tools specifically for Shopee, enhancing the shopping experience through advanced AI capabilities [1] - Competitor Alibaba has also introduced a new AI model aimed at the e-commerce sector, highlighting the competitive landscape in Southeast Asia [1] Gaming Sector Innovations - Google and Sea's gaming unit, Garena, will leverage AI solutions to improve productivity in game development, indicating a focus on innovation within the gaming industry [1] - This collaboration follows a previous partnership between Shopee and YouTube, emphasizing the ongoing integration of technology and e-commerce [1]

In this articleWHDISFUNEXPEHTSLAIHG-GBHLTMARBKNGCQQQCMCSAGOOGL1698-HK9988-HK1179-HKBILI9626-HK700-HKThis report is from this week's CNBC's The China Connection newsletter, which brings you insights and analysis on what's driving the world's second-largest economy. You can subscribe here.The big storyThere's nothing quite like the holiday rush in China for the Lunar New Year. The Beijing city streets start emptying out several days in advance as the majority of residents return to their hometowns or travel e ...

Core Insights - Billionaire David Tepper's Appaloosa Management has made significant adjustments to its investment portfolio, focusing on semiconductor recovery while taking profits from Chinese tech and major tech stocks [1] Group 1: Investment Strategy - Appaloosa has aggressively increased its position in Micron Technology, Inc. (NASDAQ:MU), with a 250% increase in shares, adding 1,000,000 shares during the quarter, bringing the total to 1.5 million shares valued at over $428 million [2] - Tepper is shifting focus towards hardware components that support AI, rather than investing in chip designers [2] Group 2: Portfolio Adjustments - Despite reducing its stake, Alibaba remains the largest holding in Appaloosa's portfolio, now representing 10.88%, down from 15.61% in the previous quarter [3] - The fund has also reduced its positions in other major tech companies, including Amazon (NASDAQ:AMZN) by 12.8% (approximately 320,000 shares) and Nvidia (NASDAQ:NVDA) by 10.5% (liquidating 200,000 shares) [3]

We're talking Alibaba and more. The company is scheduled to release its third quarter earnings a week from today. Our panel is standing by.Olivier Blanchard is with us. Research director Futurum and Henry Green, senior investment strategist at Crane Shares. Good to see you both.Henry, some of your thoughts quickly on the Baba earnings for next week. >> Hi Nicole, thank you for having me. Yeah, so I'm looking for two things from Alibaba. I'm looking for number one, uh, profit improvement. I'm looking for tha ...

Core Insights - Chinese tech giants, including Alibaba, ByteDance, and Kuaishou, have launched new AI models that demonstrate significant advancements in robotics and video generation, positioning them competitively against U.S. counterparts [2][4][12] Group 1: Alibaba's RynnBrain - Alibaba's DAMO Academy introduced RynnBrain, an AI model aimed at enhancing robots' ability to understand and interact with their environment, showcasing capabilities such as counting and picking up objects [4][6] - RynnBrain features built-in time and space awareness, allowing robots to track task progress and remember past events, making them more reliable in complex environments [6][7] - This innovation places Alibaba in direct competition with Nvidia and Google, who are also developing advanced AI models for robotics [6] Group 2: ByteDance's Seedance 2.0 - ByteDance's Seedance 2.0 is a video generation AI model that can create realistic videos from text prompts, including the ability to incorporate other videos and images [7][8] - Users have noted significant improvements in AI video generation technology over the past two years, with Seedance 2.0 being recognized for its controllability, speed, and production efficiency [10] - Despite its advancements, Seedance 2.0 faced challenges, including the suspension of a feature that generated voices based on uploaded images due to consent concerns [11] Group 3: Kuaishou's Kling 3.0 - Kuaishou launched Kling 3.0, a video generation model that boasts upgrades in consistency, photorealistic output, and extended video duration, with native audio generation capabilities [12] - The success of Kuaishou's Kling models has contributed to a more than 50% increase in its share price over the past year [13] Group 4: Other AI Model Releases - Zhipu AI released GLM-5, an open-source large-language model that reportedly approaches Anthropic's Claude Opus 4.5 in coding benchmarks [13][14] - MiniMax also launched its updated M2.5 open-source model, enhancing AI agent tools designed for task automation, leading to a surge in its shares [14]

Core Viewpoint - The article discusses the competitive landscape of the AI industry, particularly focusing on the advancements in China and the potential implications for the US market, emphasizing that while US companies like Nvidia and OpenAI assert there is no AI bubble, the dynamics in China could challenge this perspective [2]. Group 1: AI Developments in China - China's AI industry is gearing up for significant developments, with reports of new models emerging that could rival US technologies, such as Alibaba's Qwen-3.5 and Zhipu's GLM-5 [4]. - DeepSeek's AI models were developed at a fraction of the cost compared to US leaders, indicating a potential competitive advantage for Chinese firms [3]. - The pace of AI model releases in China may accelerate, suggesting a shift in the competitive landscape [4]. Group 2: Chip Technology and Infrastructure - Nvidia's Blackwell chips are considered state-of-the-art, with rumors suggesting that some may have been made available to Chinese companies, potentially impacting the competitive balance [5]. - China may have access to Nvidia's H200 chip, but the future of this access is uncertain due to the ongoing US-China trade tensions [5]. - China's electricity capacity is double that of the US, which could provide a significant advantage for AI data centers, especially as energy infrastructure becomes a critical factor in AI development [6].

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the Asia ex Japan market, particularly highlighting the performance of various sectors and companies within this region, including China, Taiwan, Korea, and ASEAN countries [1][2][3]. Core Insights 1. **Style Rotation in China**: In early February, there was a notable style rotation in China, with a rebound in Low Risk and Value stocks, while Momentum stocks began to unwind from their peaks [1]. 2. **Earnings Revision Trends**: Earnings revisions are increasing in Taiwan, while Korea experienced a dip in mid-January but has since rebounded. In China and ASEAN, earnings revisions have plateaued after declining from their peaks [2]. 3. **Market Concentration**: The top five companies in the MSCI AC Asia ex Japan index now account for 33% of the index weight, the highest concentration since 2000. This high concentration could lead to increased volatility in Value and Price Momentum as these holdings unwind [3][52]. 4. **Sector Performance**: The Information Technology sector shows the best earnings momentum across the region, while the performance of Value and Price Momentum remains volatile [2][24]. 5. **Crowding Scores**: The report highlights crowding scores for various sectors, indicating that defensive sectors are less crowded compared to cyclical sectors, which are more crowded on the long side [38][39][48]. Additional Important Insights 1. **Earnings Momentum**: Year-to-date, both price and earnings momentum have performed well compared to other factors, although Price Momentum faced volatility in late January and early February [1][18]. 2. **Regional Contributions**: Korea and Taiwan were significant contributors to the total return in MSCI AxJ, accounting for 84% of the +8.2% total return in January [30]. 3. **Stock Connect Flows**: There was a net inflow of US$8.9 billion into Hong Kong via Southbound Connect in January, indicating renewed interest in the market [77]. 4. **Sector Contributions**: The report provides detailed sector contributions to long-short factor returns, with Financials and Consumer Discretionary showing notable performance in the Asia ex Japan region [19][21]. 5. **Investment Strategies**: The report discusses the effectiveness of AH Pairs Trading strategies, indicating that a relative approach can yield robust performance [81][84]. Conclusion The Asia ex Japan market is experiencing significant shifts in style and sector performance, with a focus on the implications of market concentration and earnings revisions. Investors should be aware of the potential volatility stemming from concentrated holdings and the performance of key sectors like Information Technology and Financials.

Core Insights - Chinese technology stocks are gaining strategic momentum as the U.S.-China trade détente provides operational stability, with tariff rates stabilized at 31% and rare earth export controls suspended for another year, creating investment opportunities in 2026 [2][9] Semiconductor Sector - China's semiconductor consolidation accelerated with SMIC's $5.8 billion acquisition of SMIC Jingcheng and Hua Hong Semiconductor's acquisition of 97.5% of Shanghai Huali Microelectronics for $1.2 billion, consolidating domestic capacity at mature process nodes where Chinese foundries command over 25% of global capacity [4] Electric Vehicle Sector - BYD's January sales fell 30% year over year to 210,051 vehicles, the lowest since February 2024, while battery-electric passenger car sales dropped 33.6% to 83,249 units due to policy shifts; however, export momentum remained strong with a 51.4% increase to 100,482 vehicles [5] Artificial Intelligence Sector - Chinese AI advancements accelerated with multiple flagship releases, including Alibaba's Qwen3-Max-Thinking and Moonshot AI's Kimi K2.5, positioning Chinese companies competitively in the global AI landscape [6] Humanoid Robotics Sector - China holds 90% of global humanoid robot sales, with over 140 companies producing at scale; Morgan Stanley forecasts a 133% surge in sales to 28,000 units in 2026, with the domestic market reaching $1.4 billion [7] Other Strategic Sectors - COMAC targets 50 C919 units annually, the defense budget reached $249 billion with a 7.2% increase, and the medical device market approached $172.9 billion with over 33,000 enterprises [8] Company-Specific Insights - Agora is positioned for growth in conversational AI infrastructure, with strategic partnerships expanding its market beyond traditional communication [10] - Kingsoft Cloud is experiencing triple-digit growth in its intelligent computing cloud business, with gross billings reaching RMB782 million in Q3 2025 [11] - Tencent's growth is bolstered by AI integration and international cloud expansion, with significant revenue growth in marketing and gaming [12] - XPeng's strategic transformation includes the launch of the 2026 P7+ flagship and localized supply chain teams, enhancing operational efficiency and market reach [13]

Core Insights - NVIDIA Corporation (NASDAQ: NVDA) is recognized as one of the best stocks to buy according to the Ken Fisher Stock Portfolio [1] Group 1: Licensing and Market Demand - CEO Jensen Huang indicated that China is still in the process of finalizing a license for the H200 artificial intelligence chip, with expectations for a decision from the Chinese government [2] - There is significant consumer demand for the H200 chip, which Huang claims would benefit both the Chinese market and American technological superiority [2] - China has approved acquisitions of over 400,000 H200 chips by major companies like ByteDance, Alibaba, and Tencent, although NVIDIA has not received specific details regarding these approvals [3] Group 2: Competitive Landscape and Supply Chain - Huang emphasized the need for NVIDIA to compete vigorously due to the presence of powerful chip companies in China [4] - Despite limited packaging capacity, NVIDIA plans to collaborate with TSMC to ensure supply and timely delivery of the H200 chip if it receives authorization [4] Group 3: Stock Performance - As of January 29, 2026, NVIDIA's stock has increased by 1.94% year-to-date [4]

Core Insights - NVIDIA Corporation (NASDAQ: NVDA) is highlighted as one of the best stocks to buy according to the Ken Fisher Stock Portfolio [1] Group 1: Licensing and Market Demand - CEO Jensen Huang indicated that China is still in the process of finalizing a license for the H200 artificial intelligence chip, with expectations for a decision from the Chinese government [2] - There is significant consumer demand for the H200 chip, which Huang claims is beneficial for both the Chinese market and American technological superiority [2] - China has approved acquisitions of over 400,000 H200 chips by major companies like ByteDance, Alibaba, and Tencent, although NVIDIA has not received specific details regarding these approvals [3] Group 2: Competitive Landscape and Supply Chain - Huang emphasized the need for NVIDIA to compete vigorously due to the presence of strong chip companies in China [4] - Despite limited packaging capacity, NVIDIA plans to collaborate with TSMC to ensure supply and timely delivery of the H200 chip if it receives authorization [4] Group 3: Stock Performance - As of January 29, 2026, NVIDIA's stock has increased by 1.94% year-to-date [4]