Core Viewpoint - The performance of Hong Kong and A-shares has outperformed their U.S. counterparts in the first two weeks of 2026, with expectations that this trend will continue due to lower valuations, RMB appreciation, and favorable policies [1][5]. Group 1: Market Performance - As of January 14, 2026, the CSI 300 index has risen approximately 2.4% year-to-date, while the Hang Seng Index has increased about 5.3%, both surpassing the S&P 500's gain of around 1.2% during the same period [1][5]. - In 2025, the CSI 300 and Hang Seng indices rose by 18% and 28%, respectively, compared to a 16% increase in the S&P 500 [1][5]. Group 2: Valuation and Investment Sentiment - Analysts indicate that the revaluation of Chinese stocks is ongoing, as their relatively low valuations compared to U.S. stocks are becoming increasingly hard for global investors to ignore [1][5]. - Tiger Securities suggests that while the U.S. market may not have peaked, it is at a cyclical high, making it more susceptible to negative macroeconomic factors [6]. Group 3: Future Projections - Tiger Securities forecasts that the average annual return for U.S. stocks will decline to a range of 3% to 5% over the next five to seven years due to high valuations, persistent inflation risks, and uncertainty regarding the Federal Reserve's interest rate cuts [6]. - In contrast, Tiger Securities is optimistic about the Chinese stock market, setting a target price of 30,000 for the Hang Seng Index and 5,000 for the Shanghai Composite Index by the end of 2026, representing increases of 11% and 21% from current levels, respectively [6]. Group 4: Institutional Support - Major international investment banks, including Goldman Sachs and UBS, are bullish on Chinese stocks, citing attractive valuations, strong industry policy support, and optimistic corporate earnings outlooks [6][7]. - Goldman Sachs has raised its year-end target for the CSI 300 index to 5,200, a 9% increase from the previous closing price, and has upgraded its earnings growth forecast for Chinese companies from 4% in 2025 to 14% in 2026 and 2027, driven by factors such as AI monetization and policy stimulus [6].

2026年前两周，港股和A股的表现优于美国同行。分析师预计，中国股票今年剩余时间将保持这一势 头，这主要得益于相对较低的估值、人民币升值以及政策利好等因素。 此外，地缘政治因素正促使更多全球投资者将目光转向中国，以对冲美国资产所面临的不断上升的风 险。 截至周三（1月14日）收盘，沪深300指数今年以来累计上涨约2.4%，恒生指数上涨约5.3%，两者均超 过了标普500指数同期约1.2%的涨幅。2025年，沪深300指数和恒生指数分别上涨了18%和28%，而标普 500指数则上涨了16%。 相比之下，老虎证券认为，中国股市的估值倍数已回升至历史中位数水平，这意味着中国股票"虽不算 便宜，但也算不上昂贵"；若企业盈利能如预期复苏，股价仍有进一步上行空间。 老虎证券预计，在未来五至七年的时间里，受估值过高、通胀风险持续以及美联储降息节奏不明朗等因 素影响，美股的平均年化回报率将回落至3%至5%区间。 而对于中国股市，老虎证券的看法要乐观得多。该机构将恒生指数2026年底的目标价设定在30000点， 较当前水平高出11%；将上证指数的目标价设定在5000点，较当前水平高出21%。 近日，包括高盛集团、瑞银在内的多家 ...

Core Viewpoint - The report from Credit Lyonnais indicates that Weibo's revenue for the second quarter reached $445 million, with adjusted net profit at $143 million, exceeding the bank's expectations by 1% and 23% respectively [1] Financial Performance - Weibo's Q2 revenue of $445 million and adjusted net profit of $143 million surpassed expectations [1] - The bank anticipates a 3% year-on-year decline in Q3 revenue, primarily due to high base effects from last summer's Olympics, particularly in food advertising, gaming, and smartphones [1] - Despite the expected revenue slowdown in the second half, the bank believes it is negligible and forecasts an adjusted operating profit margin of over 30% for the full year [1] Future Outlook - The bank has raised its adjusted net profit forecasts for Weibo by 3% for this year and 2% for next year [1] - The target price for Weibo has been increased from $8.8 to $11.5, with the rating upgraded from "Hold" to "Outperform" [1]

Core Viewpoint - Meta's AI technology has significantly enhanced advertising economic benefits and improved user engagement and content quality, becoming a major growth engine for the overall business. Zuckerberg stated that Meta is now equipped to achieve "super intelligence," with substantial capital expenditure growth expected in 2026 [1][2][3]. Financial Performance - In Q2, Meta reported revenue of $47.52 billion, exceeding analyst expectations of $44.83 billion, with advertising revenue of $46.5 billion also surpassing forecasts. The Reality Labs division incurred a loss of $4.5 billion, which was better than market expectations. The company raised its 2025 capital expenditure lower limit from $64 billion to $66 billion, leading to a 10% increase in stock price post-announcement [2][3][4]. - The operating profit margin for the quarter was 43%, with a net income of $18.3 billion, translating to earnings per share of $7.14. Total expenses for the quarter were $27.1 billion, a 12% year-over-year increase [24][25]. AI Monetization and User Engagement - AI has become the core driver of Meta's current business growth, with a significant efficiency boost in the advertising system. The new AI-driven advertising recommendation model improved ad conversion rates by approximately 5% on Instagram and 3% on Facebook. The use of generative AI creative tools has also expanded, particularly among small advertisers with limited budgets [3][4][21]. - User engagement metrics improved, with Facebook's user time increasing by 5% and Instagram's by 6%. Video engagement saw a year-over-year increase of over 20% [4][28]. Investment in AI and Infrastructure - Meta plans to continue investing heavily in computing power and talent resources, establishing the "Meta Super Intelligence Lab" to develop next-generation models. The company is building multiple gigawatt-level computing clusters to provide "personal super intelligence" for billions of users [3][6][12]. - Capital expenditures for 2025 are projected to be between $66 billion and $72 billion, with expectations for significant growth in 2026 as well. The CFO emphasized that infrastructure costs will be the primary driver of expense growth in 2026, including depreciation and operational costs [5][6][38]. Talent Acquisition and Team Structure - The company is focusing on building a "small but elite" team of top talent in AI, with a particular emphasis on recruiting industry-leading experts. The structure of the team is designed to facilitate cutting-edge research in super intelligence [9][10][11]. - Employee compensation is expected to be the second-largest driver of expense growth in 2026, primarily due to investments in technical talent [11][36]. Future Outlook and Strategic Focus - Meta's future strategy includes enhancing the freshness of original content and improving the recommendation system to better match user interests. The company aims to leverage AI advancements to further improve user engagement and monetization efficiency [4][28][49]. - The company is optimistic about the long-term potential of AI technologies and their ability to reshape its systems and operations, with a focus on self-improvement capabilities in AI [42][48].

Group 1 - The core focus of the discussions at the 2025 China Technology Network Conference was on Beisen's artificial intelligence strategy, including new AI learning platforms and AI monetization [1] - Management expressed a positive outlook on the accelerated development of AI applications in human resources this year, anticipating that AI monetization will accelerate from 2026 due to enhanced foundational model capabilities and deep collaboration with industry clients [1] - There is a consensus between management's comments on industry demand and spending on AI and Goldman Sachs' view that enterprises prefer to allocate spending to AI software that yields higher returns on investment [1] Group 2 - Beisen is a leader in the domestic human resources software-as-a-service sector, offering integrated cloud-based human capital management solutions covering core HR, recruitment, performance, succession, and assessment modules [2] - The company is expanding its AI HR applications with the support of third-party AI foundational models, including features like AI learning, AI interviews, and AI recruitment [2] - In May 2025, Beisen launched an AI learning platform equipped with five AI agents, which significantly enhance learning efficiency, with the AI teacher improving material generation efficiency by 4-5 times and the AI learning assistant increasing learning efficiency by 300% [2] Group 3 - Beisen began monetizing its AI interview feature in the second half of 2024, integrating the deep learning AI foundational model in October 2025 [3] - The AI interview function has already started monetization by penetrating multiple enterprise clients, assisting in candidate screening, sending interview invitations, conducting interviews, and generating candidate evaluation reports [3] - Management noted that AI functionalities attract enterprises to pay more for software compared to traditional interview methods [3]

Summary of Conference Call Notes Industry Overview - **Industry**: Technology and Communications in China - **Key Focus Areas**: Tariff impacts on Apple and Nvidia supply chains, China's semiconductor localization, AI development, and Xiaomi's market position Key Points and Arguments Tariff Impact - Investors discussed the impact of reciprocal tariffs announced on April 2, focusing on Apple and Nvidia supply chains [1][2] - The majority of iPhones for the US market will be shipped from India, while other iOS devices will come from Vietnam, indicating a shift in supply chain dynamics [2][3] - Nvidia's supply chain is largely compliant with USMCA, making tariff impacts manageable [2][3] - Investors believe that tariffs are primarily borne by customers rather than suppliers, with US manufacturing costs significantly higher than those in China or Southeast Asia [3][4] China’s Retaliatory Tariffs - China announced a 34% retaliatory tariff on all US imports on April 4, which was later increased to 125% on April 11 [4][5] - This move is expected to disadvantage US integrated device manufacturers (IDMs) like Intel and Texas Instruments while benefiting domestic semiconductor companies in China [5][6] - Concerns about the localization progress in automotive and industrial sectors were raised, with consumer electronics seen as easier to replace [6] AI Chain Developments - Global investors expect the H20 ban to be implemented later in Q2 2025, which poses risks to China's AI capital expenditure [7] - There is a noted decline in investor interest in the AI supply chain, particularly in optical transceivers and data centers [7] - Upstream components like PCBs are expected to have better earnings support compared to downstream infrastructure plays due to ongoing delivery delays [7] Xiaomi's Market Position - Foreign investors are less concerned about Xiaomi's recent car crash incident, viewing it as a key pick due to its lack of US tariff exposure [8][9] - Some investors added positions in Xiaomi when shares pulled back to a 20x 2025 P/E ratio, with expectations of range-bound trading around 25x [8][9] - Despite rising memory spot prices, the overall demand for global consumer electronics is not strong, mitigating short-selling risks [9] Smartphone Market Insights - There are doubts regarding the launch schedule of the foldable iPhone due to past delays, but visibility for a 2H26 launch is considered higher [10] - Concerns about muted smartphone shipments in China for 2025 were expressed, with potential handset subsidies anticipated before major product launches [10] Software Sector - European investors showed more interest in Chinese software companies compared to US investors, with Kingdee identified as having strong fundamentals and AI monetization opportunities [11] Other Important Insights - The interest in Nvidia's supply chain and optical transceivers has decreased since previous marketing trips, indicating a shift in investor focus [1][2] - The potential for another round of handset subsidies in China could stimulate demand, particularly around major shopping festivals [10] - The performance of companies like Cowell, AAC, and BYD in the Apple supply chain is highlighted, with Cowell noted for its high earnings visibility [3][10]