Daily Brief TMT/Internet: Tencent, Xiaomi, TSMC (Taiwan Semiconductor Manufacturing) – ADR, Meitu Inc, Contemporary Amperex Technology (CATL), Technology One and more

• HK$100bn a day of gross SOUTHBOUND activity with US$600mm+ of net buying on average. Net flows continue to be impressive. SOEs/Energy/Financials dominate.
• Watch for news on the Dual Counter (RMB) Trading eligibility for SOUTHBOUND near-term. That could up the pace of things.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• Context: Over the past five trading days, Xiaomi (1810 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Highlights: 55% of strategies exhibit a bullish bias, with diagonal spreads accounting for 25% of all trades.
• Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,

• TSMC (Taiwan Semiconductor Manufacturing) – ADR (TSM US)’s retired Senior Vice President Dr. Wei-Jen Lo has taken a position at Intel.
• Trump has been in power for less than a year, and the U.S.’s measures have fully revealed its purpose of confrontation between China and the United States. 
• TSMC’s Arizona fab profit dropped from NT$4.32 billion in 2Q25 to NT$410 million in 3Q25.

• Transition to AI-Driven Subscriptions Fueling Growth: Meitu is successfully transitioning its business model from advertising to a high-margin, AI-driven subscription service for its photo, video, and design products. This strategic shift is the primary driver behind significant revenue and profit growth, with paying subscribers reaching 15.4 million.
• Strategic Divestment from Cryptocurrency: The company has fully divested its cryptocurrency holdings, realizing a substantial net gain of nearly US$80 million. This move de-risks the balance sheet from the volatility of digital assets and allows management to refocus capital and attention on its core AI imaging business.
• Expanding Global Footprint and Enterprise Solutions: Meitu is aggressively expanding its international user base, which now accounts for 35% of total Monthly Active Users (MAUs). Concurrently, it is leveraging its core AI technology to launch productivity-focused tools for e-commerce and advertising, opening new avenues for enterprise revenue.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Context: Over the past five trading days, Tencent (700 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
• Highlights: Market sentiment is evenly balanced between bullish and bearish strategies, with diagonal spreads accounting for 25% of all trades.
• Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, most of the listings over the past week ended up doing well, irrespective of overall demand.
• On the placements front, there was a lockup release for Contemporary Amperex Technology (CATL) (3750 HK), along with a number of other placements.

• Shares in TechnologyOne reacted negatively on the release of a record FY25 performance, as not all metrics met elevated expectations as as the global technology sector is de-rated.
• -TechnologyOne delivers record FY25 metrics -Profit exceeds guidance, strong UK growth -Market concerns on softer than expected ARR and NRR -Global de-rating for the sector equally impacts on updated valuations/price targets