Jinwu Financial News | US stocks continued to improve last Friday. The economic data performed well. The market expects corporate profits to continue to improve. The three major indices all recorded gains and closed. The trend of the US dollar was strong. Interest on US 10-year bonds remained at 4.41 percent, and the price of gold and oil rebounded sharply. Hong Kong stock depository securities are generally weak, and it is expected that the market will open lower in the early stages. The mainland stock market fell last Friday. The Shanghai Composite Index opened high and went low. The decline continued to expand, and closed at a low level throughout the day, falling 3.1%. The turnover of the Shanghai and Shenzhen markets also increased slightly. Hong Kong stocks followed the pressure on the mainland stock market. The index was lower at 19,100 points. The decline narrowed slightly at the end of the market, and there was also an increase in market transactions. The market atmosphere is cautious. Investors are concerned about the RMB exchange rate trend and corporate profit performance. It is expected that the index will test support by 18,800 points, and the upward resistance is at the level of 19,700 points.

Industry news
Kuaishou (01024)'s net adjusted profit for the third quarter was RMB 3.948 billion, up 24.4% year-on-year. Revenue for the period was RMB 31.131 billion, up 11.4% year on year. Among them, revenue from online marketing services was RMB 17.63 billion, up 20% year over year; revenue from live streaming was RMB 9.34 billion, down 3.9% year on year. The average daily active users and average monthly active users of the Kuaishou app reached 0.408 billion and 0.714 billion respectively in the third quarter, up 5.4% and 4.3% year-on-year respectively. The average daily active users of the Kuaishou app spent 132.2 minutes per day. The total usage time of users of the Kuaishou app increased by 7.3% year on year, and the average number of live broadcasts and short video broadcasts per day was nearly 110 billion. The e-commerce business GMV increased 15.1% year-on-year to 334.2 billion yuan in the third quarter, while the GMV of the short video e-commerce increased by more than 40% year-on-year. In the first nine months of this year, adjusted net profit was RMB 13.015 billion, an increase of 1.2 times year-on-year; revenue was RMB 91.514 billion, an increase of 13.1% year-on-year. Kuaishou's performance is generally in line with expectations, but the market is worried that live streaming e-commerce is becoming more mature and market competition is fierce. Kuaishou needs to expand shelves to promote GMV growth. Direct competition with traditional e-commerce platforms will reduce future profit margin levels, leading to pressure on stock price performance.

(The author is a licensee of the Securities Regulatory Commission. I and related parties do not hold the above shares)

Author: Guo Jiayao, Director of Business Development, Harbour Family Office