Index Performance - The Hang Seng Index (HSI) closed at 26,564, down 1.0% for the day and up 3.6% year-to-date (YTD) [2] - The HSCEI closed at 9,134, down 0.9% for the day and up 2.5% YTD [2] - The MSCI China index closed at 86, down 1.0% for the day and up 3.6% YTD [2] Commodity Price Performance - Brent Crude remained stable at US$64 per barrel, with a YTD increase of 5.4% [3] - Gold prices rose to US$4,671 per ounce, reflecting an 8.1% increase YTD [3] - Copper prices fell to US$12,803 per ton, down 2.3% for the day but up 3.1% YTD [3] Economic Indicators - China's GDP growth moderated to 4.5% YoY in Q4 2025, slightly above expectations, with a full-year growth of 5% for 2025 [6] - Industrial profits in China decreased by 13.1% YoY as of January 27, 2026 [4] - The 1-Year Loan Prime Rate in China remained stable at 3.0% as of January 20, 2026 [4] Sector Insights - The OTA sector is under pressure due to an antitrust probe involving Trip.com, which saw a stock price drop of over 20% [10] - Despite the probe, long-term earnings impact on Trip.com is expected to be limited, with investor confidence potentially returning by August 2026 [10] - The property market in China is showing marginal improvement, but underlying pressures persist, with expectations for stabilization by late 2026 or early 2027 [13]

Group 1 - The Asia's Power Businesswomen list features 20 influential leaders driving growth in various sectors across the region [1][2] - Many of these leaders are involved in the AI and advanced technology sectors, including data centers, semiconductors, and rare earths [2] - Over half of the featured women are high-performing managers with strong backgrounds in banking, consumer goods, and transportation [3] Group 2 - Mybelle V. Aragon-Gobio, the first woman CEO of Robinsons Land, has initiated a five-year expansion plan worth 125 billion pesos ($2.2 billion) [5][6] - Sarena Cheah, executive deputy chairman of Sunway, is leading the company's overseas expansion, with a significant acquisition of MCL Land for nearly S$740 million ($573 million) [8][9] - Chung Yoo-Kyung, chairman of Shinsegae Inc., is focusing on reviving growth amid a 40% drop in net income, with a strategic shift towards K-beauty products [10][11] Group 3 - Lani Darmawan, CEO of Bank CIMB Niaga, has achieved record net profits for four consecutive years, with a focus on small and midsized businesses [13][14] - Emily Hong, chair of Wiwynn, has driven a 166% revenue increase to NT$391.4 billion ($12.9 billion) in the first half of 2025, capitalizing on the AI server market [16][17] - Kattiya Indaravijaya, CEO of Kasikornbank, has led the bank to a market cap increase of over 100% since her appointment, despite a slight dip in net profit [19][20] Group 4 - Ruchi Kalra, CFO of Oxyzo Financial Services, has overseen the company's profitability and unicorn status, reporting after-tax profits of 3.4 billion rupees ($38.5 million) [22][23] - Margaret Kao, CEO of Marketech International, has seen sales rise 8% to NT$60.7 billion ($2 billion) amid strong demand for semiconductor manufacturing equipment [25][26] - Jamie Khoo, CEO of DayOne Data Centers, is expanding the company's capacity to over 800MW by early 2027, with significant funding raised for growth [27][28] Group 5 - Manasi Kirloskar Tata, vice chairperson of Toyota Kirloskar Motor, has led the company to record sales of 649 billion rupees ($7.4 billion), a 28% increase [30][31] - Kuok Hui Kwong, CEO of Shangri-La Asia, is expanding the hotel group's portfolio despite challenges in the Chinese market, which contributed nearly a third of its $2.2 billion revenue [33][34] - Amanda Lacaze, CEO of Lynas Rare Earths, is navigating opportunities in the rare earth industry, with shares tripling this year amid a 20% sales increase to A$556.5 million ($368 million) [36][38] Group 6 - Priya Nair, the first woman CEO of Hindustan Unilever, is driving a digital transformation strategy to boost sales growth in a slowing market [40][41] - Maggie Ng, CEO of HSBC Hong Kong, has led digital initiatives that contributed to a 6% revenue increase to $21 billion [42][43] - Png Chin Yee, incoming president of Temasek Singapore, will oversee a portfolio with a combined revenue of S$200 billion ($154 billion) [44][45] Group 7 - Jane Sun, CEO of Trip.com Group, has successfully navigated the company through the pandemic, achieving a market cap of over $45 billion [48][49] - Jeny Yeung, incoming CEO of MTR, will manage significant projects worth HK$140 billion ($18 billion) as the company continues to grow [51][53] - Alyssa Yoneyama, CEO of Yonex, has driven a 20% increase in revenue to ¥138.3 billion ($922 million) through strategic marketing and athlete endorsements [54][55] Group 8 - Zhou Chaonan, founder of Range Intelligent Computing Technology Group, has seen a 15% revenue increase to 2.5 billion yuan ($351 million) amid the AI boom [56][57] - Mariana Zobel de Ayala, managing director of Ayala Corp., is leading a $1.5 billion program to refresh the company's property portfolio [58][59]

Summary of Key Points from the Travel & Leisure Industry Expert Call Industry Overview - The travel industry in China is experiencing healthy demand, particularly during the recent Golden Week holidays, with notable activity in both first-tier and lower-tier cities [1][3] - The hotel industry is seeing positive trends in Average Daily Rate (ADR) and Revenue Per Available Room (RevPar), with increases in the mid to high-single digits during the holidays [1][3] Core Insights - **Travel Demand**: Overall travel demand remains robust, with significant participation from families in lower-tier cities during the Mid-Autumn Festival [3] - **Hotel Performance**: Average occupancy rates for Jinjiang's hotels in tier-3 and below cities reached 91.7%, indicating strong performance in these areas [3] - **Supply Growth**: There is ongoing pressure on hotel RevPar due to continued supply growth, particularly from franchisees in the mid-to-upscale segments [1][9] - **OTA Competition**: The competition among Online Travel Agencies (OTAs) is described as benign, with smaller operators struggling to compete against larger players like TCOM, which holds a ~55% market share in hotel bookings [9] Recommendations - **Preferred Stocks**: The report recommends investments in hotel stocks such as H World and Atour, anticipating better RevPar trends due to reduced competition and slower supply growth [2] - **Macau Market**: Stocks like Sands China and Galaxy are favored due to expected benefits from wealth effects and low base comparisons for Gross Gaming Revenue (GGR) until the end of Q1 2026 [2] - **Air Travel**: Buy ratings are also given to TCOM and Air China, which are expected to benefit from an increase in long-haul outbound travel and rising airfares [2] Additional Insights - **Market Dynamics**: The expert noted a shift in outbound travel preferences from "tick-box travel" to more personalized small-group experiences, typically involving 9-12 people [8] - **Future Outlook**: The expert does not foresee the typical seasonal decline in travel demand post-Labor Day, attributing this to a modest recovery in business travel since September [8] - **OTA Market Share**: Fliggy has seen significant growth in market share, particularly in outbound travel, with a 48% increase in GMV and a 78% increase in domestic hotel room nights year-over-year during the Golden Week [9] Conclusion - The travel and leisure industry in China is poised for continued growth, supported by healthy demand and evolving consumer preferences. Investment opportunities exist in hotel stocks and OTAs, particularly those that can adapt to changing market dynamics and consumer behaviors [1][2][9]

Summary of Key Points from the Asia Leaders Conference Day 1 Industry and Companies Involved - **Consumer Sector**: Anta, Laopu Gold, Yum China, Guming, Miniso, CR Beer, Xtep, Galaxy Entertainment, Melco, Hindustan Unilever - **Technology Sector**: Baidu, Didi, Tencent Music, Trip.com - **Financial Sector**: AIA, HKEx - **Healthcare Sector**: CSPC Pharma - **Materials Sector**: Elite Material, Nidec Core Insights and Arguments Anta - Anta is expected to achieve long-term sustainable growth through solid multi-brand operations, with a target price of HK$121. The company is confident in reaching operating profit margin (OPM) targets across brands, showcasing strong cost control capabilities. Management is exploring new M&A opportunities globally in various sports verticals [1][1][1]. Laopu Gold - The company has seen robust demand following a 12.5% price hike, with gross profit margin (GPM) reaching approximately 40%. Repeat purchases have increased from 30% to 40% of sales in 1H25, with average spending rising to RMB100k. Laopu Gold plans for 2-3 price hikes annually, maintaining a normalized GPM of around 40% [1][1][1]. Yum China - Management reiterated guidance for a mid-single-digit percentage system sales growth in 2H25, with stable margins for KFC and slight improvements for PH restaurants. The company is focused on cost savings and operating leverage to support OPM expansion [1][1][1]. Guming - Guming is focusing on sustainable growth through rapid store expansion, aiming for around 13,000 stores by year-end. The company is not altering its store opening plans despite food delivery subsidies impacting dine-in trends [1][1][1]. Miniso - Miniso and Guming are experiencing structural growth opportunities driven by increased consumer demand and expansion into new markets, despite overall fluid demand in China [1][1][1]. China Resources Beer - The company is seeing steady volume trends and is focused on improving operational efficiency. There is potential for growth in the Heineken brand, particularly in Eastern China and Sichuan [1][1][1]. Xtep International - Xtep is on track with its full-year plan, showing resilience amid competitive pressures. The company is optimistic about future growth, particularly for its Saucony brand, with a target price of HK$7.10 [1][1][1]. Galaxy Entertainment - The company reported a GGR market share increase to approximately 21% in August, supported by the ramp-up of the Capella hotel and a busy event schedule. Galaxy is considering further capital returns after increasing its dividend payout to 58% [1][1][1]. Melco Resorts & Entertainment - Melco's GGR share improved in August, with a focus on achieving a Top-3 market position. The company is prioritizing debt reduction due to its leveraged balance sheet [1][1][1]. Hindustan Unilever - HUL is investing in future categories and channels, expecting FMCG growth revival in India, particularly with GST rate cuts. The company plans to shift its beauty segment towards premium products [1][1][1]. Baidu - Baidu's outlook for its Robotaxi and AI Cloud business is promising, with management focusing on unlocking asset value and shareholder returns [1][1][1]. Didi - Didi is experiencing healthy growth in mobility and profitability, with a focus on international food delivery investments [1][1][1]. Trip.com - Trip.com reported resilient domestic travel demand, gaining market share amid industry supply growth [1][1][1]. CSPC Pharma - CSPC is progressing smoothly in business development negotiations, with plans for clinical trials and a commitment to maintaining dividend payouts [1][1][1]. Elite Material - The company is expected to hold a significant share of the AI GPU CCL market, with estimates of around 40-45% by 2026E [1][1][1]. Nidec - Nidec announced the establishment of a third-party committee to investigate suspected accounting issues, which may negatively impact investor sentiment [1][1][1]. Other Important Insights - The overall sentiment at the conference was optimistic, with many companies focusing on growth strategies and operational efficiencies. The discussions highlighted the importance of adapting to market dynamics and consumer behavior changes, particularly in the context of e-commerce and premium product offerings [1][1][1].

Summary of Key Points from J.P. Morgan's Research on China's "Un-loneliness" Economy Industry Overview - The report focuses on the **"un-loneliness" economy** in China, driven by the rise of single-person households and changing demographics, particularly among young adults and the elderly [1][4][5]. Core Insights 1. **Increase in Solo Living**: - As of 2020, 8.9% of the Chinese population lived alone, a significant increase from 4.4% in 2010. Single-person households now account for 25% of all households in China [4][12][17]. 2. **Emerging Demand for Social Connection**: - Survey data indicates that 21% and 24% of people in China experience collective and relational loneliness, respectively, highlighting a growing demand for services that foster social connections [4][22]. 3. **Sector Opportunities**: - **Sports and Live Entertainment**: The need for community is driving growth in sports participation, with amateur leagues and events gaining popularity. Anta Sports is identified as a top pick in this sector [4][56]. - **Solo Travel**: The rise in solo living is boosting solo travel, particularly among women, with Trip.com highlighted as a key player [4][66]. - **Social Media**: Platforms like Tencent, Kuaishou, and Bilibili are well-positioned to benefit from the increasing need for social interaction [4][66][78]. - **Romance Narrative Games**: The growth of otome games reflects a shift in how intimate connections are formed, with Netease identified as a key player in this market [4][86][92]. 4. **Demographic Shifts**: - Family sizes in China are shrinking, with one and two-person households becoming the most common types. The average family size decreased from 4.41 in 1982 to 2.62 in 2020 [6][8]. 5. **Impact of Marriage Trends**: - The number of marriages in China has fallen by over 50% from its peak in 2013, contributing to the rise of single-person households. The average age of first marriage has also increased significantly [81][82]. Additional Insights - **Health Implications of Loneliness**: Loneliness is linked to poor health outcomes and is recognized as a public health concern by the WHO [34]. - **Community through Sports**: The sports industry contributed 1.15% to China's GDP in 2023, with a notable increase in participation in running and winter sports [35][43]. - **Cultural Events in Macau**: Macau is positioned to benefit from the growing demand for live entertainment, hosting over 2,000 large-scale performances in 2023 [63][64]. Conclusion - The report emphasizes the potential for growth in various sectors as a response to the increasing prevalence of single-person households and the associated demand for social connection. Companies in social media, travel, entertainment, and sports are identified as key beneficiaries of this trend [5][56][66].

Investment Rating - The report maintains a consistent sector preference, favoring sports brands, diversified retailers, dairy, beverages, and restaurants, while being less favorable towards apparel/footwear OEM, furniture, projectors, discretionary small kitchen appliances, jewelry, and non-super-premium spirits [11]. Core Insights - Consumption in China has shown signs of recovery, with retail sales growth improving to +4.6% year-over-year in 1Q25, and companies in the coverage reporting an average growth of 14% compared to 12% in 4Q24 [1]. - Despite the positive growth, companies remain cautious about the outlook due to ongoing volatility and external factors such as US-China tariff developments impacting consumer confidence [2][1]. - Margin performance in 1Q25 was mixed, with some companies benefiting from favorable raw material prices and cost control, while others faced risks from marketing investments and competition [1]. - Companies are generally maintaining disciplined pricing strategies and healthier inventory levels, although some categories like spirits and sportswear are experiencing challenges due to demand pressures [1]. - The impact of tariffs on earnings and consumer sentiment is significant, with companies cautious about the second half of 2025 amid uncertainties [2]. Summary by Sections Key Findings from 1Q25 Results - Retail sales growth improved to +4.6% year-over-year, with coverage companies reporting an average growth of 14% [1]. - Labor Day consumption growth accelerated, indicating a potential rebound in consumer spending [1]. Expectations for 2Q25 - Companies are cautious about the outlook for 2H25 due to tariff uncertainties, although those with market share gain opportunities may be more resilient [2]. Sector/Stock Preferences - Preferred sectors include sports brands, diversified retailers, dairy, beverages, and restaurants, while least preferred sectors include apparel/footwear OEM and furniture [11]. Macro Data Points - The report notes that macroeconomic data points are solid, but ongoing tariff developments and policy support need to be monitored [11]. Valuation Methodology - The report emphasizes the importance of understanding the valuation methodology and the potential risks associated with it [11].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Chinese equities experienced a significant outflow of US$5.3 billion from foreign long-only funds in April, reversing a two-month inflow trend since February [11] - The outflow was primarily driven by passive funds, which saw outflows of US$3.7 billion, and active funds, which had outflows of US$1.6 billion [11] - Cumulative foreign passive inflows since October 2022 have reverted to levels similar to late February 2025, with April outflows reversing approximately 50% of the inflows from March 2025 [11] - Active fund managers increased their underweight positions in China, with global funds down 1.3 percentage points, AxJ funds down 2.0 percentage points, and EM funds down 3.2 percentage points [11] - Domestic passive funds targeting China A-shares recorded a massive inflow of US$27 billion in April, marking the highest monthly inflow since 2024 [11] - The Southbound Stock Connect program maintained strong momentum with US$21 billion in April, bringing the net inflow for the first four months of 2025 to US$77 billion [11] Fund Flows - In April, foreign domiciled funds saw a total outflow of US$5.3 billion, with passive funds contributing US$3.7 billion and active funds contributing US$1.6 billion [11] - The report indicates that the northbound net flow data was terminated as of August 19, 2024, and suggests using foreign passive funds flow to CSI 300 as a proxy for historical northbound net flow [13] - As of April 30, 2025, US$0.4 billion in short interest was added in China offshore/HK equities, primarily in the Energy and Industrials sectors [13] Sector and Company Positioning - Active fund managers increased their positions in Household & Personal Products while reducing their holdings in Media & Entertainment and Insurance [11] - The most added companies by active fund managers included Alibaba, BYD, Trip.com, and China Construction Bank, while Tencent and Xiaomi were the most trimmed [11] - The report highlights that the top holdings among long-only EM and China active managers include Tencent Holdings, Alibaba Group, and Meituan, with notable changes in their active weights [42]