The recent surge in precious metals had electrified the market, yet what goes up must come down. As prices reversed from their peaks, market sentiment took a sharp downturn. Hong Kong stocks experienced a gap-down unilateral decline today, closing down 2.08%. On the evening of January 29th EST, former President Trump indicated he would announce his nominee for Federal Reserve Chair on Friday morning (tonight Beijing time). All signs point to a high probability of Kevin Warsh being nominated. Known for his hawkish stance, Warsh's potential policy approach could feature a unique combination of "interest rate cuts alongside balance sheet reduction," which naturally spurred a US dollar rebound. The temporary easing of geopolitical tensions, coupled with a strengthening dollar, led to a rollercoaster ride for international gold and silver prices. Spot gold had initially broken through the $5,500 per ounce barrier yesterday, even approaching $5,600 intraday. However, this morning witnessed significant declines in both spot gold and silver, with spot gold falling below the $5,200 per ounce level. Related gold stocks collectively tumbled, with Chifeng Gold (06693) and Shandong Gold (01787) both falling over 14%. Other resource sectors followed suit in the decline, such as Jiangxi Copper (00358) and MMG (01208), both dropping over 9%. Risks for gold and copper were highlighted yesterday; in fact, without Trump's offhand remark about not caring if the dollar weakened, which gave an extra push, gold should have corrected earlier. Investors therefore need to discern the underlying logic clearly. As for the future outlook for gold, another surge is anticipated when the US potentially initiates action against Iran, though the timing remains uncertain but likely not too distant. Investors currently holding positions might consider waiting for the next upward spike.
Another concerning development emerged today. On January 29, 2026, the full bench of Panama's Supreme Court unanimously ruled that the concession contracts for the Balboa Port (Pacific end) and Cristobal Port (Atlantic end), operated by a subsidiary of CKH HOLDINGS (00001), are unconstitutional and void, allowing only for applications for clarification of the ruling with no right to appeal. This comes just as CKH is advancing the sale of a global port asset package worth $22.8 billion. In a move seen as undermining the deal, the US appears to have pulled the rug out from underneath. However, the matter is not concluded. The Chinese Foreign Ministry responded to the Panama port-related ruling, stating that measures will be taken to safeguard the rights and interests of Chinese enterprises. The resolution is crucial as it pertains to the security and interests of overseas Chinese assets. CKH HOLDINGS (00001) shares fell sharply on the news, dropping over 5.7% at their worst, marking the largest recent decline. Capital flight is a certainty, particularly among foreign investors in the Hong Kong market. Beyond the high-risk precious and base metals, the real estate and consumer sectors, which strengthened yesterday, were also impacted.
Today's strength was primarily concentrated in the AI investment theme. OpenAI is accelerating plans for a potential listing in the fourth quarter of this year. The AI giant, valued at $500 billion, is engaged in informal talks with Wall Street investment banks and expanding its finance team in preparation for an IPO. Domestically, reports suggest Alibaba is considering raising its AI and cloud computing investment to 480 billion yuan over the next three years. This provided a significant boost to the optical communications sector, with beneficiary YOFC (06869) rising over 6% again; HuiJu Tech (01729) and Fit Hon Teng (06088) both gained over 4%. Yesterday's sector focus mentioned the State Council's release of the "Work Plan for Accelerating the Cultivation of New Growth Points in Service Consumption," promoting innovative development across the entire automotive circulation and consumption chain and supporting pilot initiatives in key aftermarket areas. Auto aftermarket concept stock Meidong Auto (01268) rose over 7%.
Sodium-ion batteries are gaining traction, offering two distinct advantages over lithium-ion: firstly, sodium batteries can maintain over 92% of cell energy capacity at -20°C, compared to around 80% for lithium-ion; secondly, sodium batteries exhibit superior high-rate discharge performance, with a temperature rise not exceeding 5 degrees Celsius even at a 5C charging rate, eliminating the need for extra cooling. Second-generation sodium batteries also demonstrate excellent safety, resisting fire or explosion even when cut or pierced. On January 22, CATL officially launched its Tianxing II light commercial vehicle solution and related mass-produced sodium-ion battery products. On January 30, media reported that CATL's (03750) sodium battery brand "Na Xin" will soon conduct public winter testing in the passenger vehicle sector. Models participating include Changan Oshan, with GAC and JAC passenger vehicles to follow, primarily testing plug-and-charge capability and full-load hill climbing in extreme cold of -30°C, addressing low-temperature operation challenges. CATL (03750) rose nearly 3%. Positive test data could signal a shift from lithium-ion to sodium batteries in the low-to-mid-end market, covering A00/A0 BEVs, mini-vehicles, commercial vehicles, and energy storage (especially in low-temperature scenarios). Lithium battery companies are under significant pressure; Ganfeng Lithium (01772) and Tianqi Lithium (09696) both fell over 10% today.
The earnings theme also performed well. On January 29, Tigermed (03347) announced that the group expects 2025 revenue of 6.66-7.68 billion yuan, up 1% to 16% year-on-year, and net profit attributable to shareholders of 830 million to 1.23 billion yuan, surging 105% to 204%, exceeding market expectations, coupled with continued strong new order growth. The stock rose over 8% today. Shanghai Fudan Microelectronics (01385) forecasted a 2025 revenue increase of approximately 9.46% to 12.25%, rising over 4% today. The logic mentioned yesterday for East Buy (01797) gained market recognition, with confidence in its ongoing development of high-margin self-operated products, leading to another gain of nearly 6% today. Yesterday's mention of Blackstone nearing an agreement to become the largest shareholder of NEW WORLD DEV (00017) saw the stock surge over 11% intraday before paring gains. The company responded that Chow Tai Fook Enterprises has been approached by several potential investors regarding a possible investment, but no agreement has been reached with any party. Simply put, discussions are ongoing but not finalized. This likely represents a short-term peak; close attention should be paid to subsequent developments.
On January 23, a plenary meeting of the National Film Development Special Fund Management Committee was held in Beijing. The meeting emphasized further leveraging the national film fund to vigorously promote the high-quality development of China's film industry and actively implement actions to boost consumption. The 2026 Spring Festival film season is approaching. Several new films are scheduled for release on the first day of the Lunar New Year (February 17), including "Starry Dream," "Silent Awakening," "The Blade: Storm in the Desert," "Pegasus 3," and "Boonie Bears: Forever." Key beneficiaries include: DAMAI ENT (01060): Principal producer of "Silent Awakening" and "The Blade"; co-producer of "Pegasus 3," "Boonie Bears," and "Starry Dream." Maoyan Entertainment (01896): Co-producer and ticketing platform for "Pegasus 3"; co-producer and ticketing platform for "Boonie Bears: Forever."
KUAISHOU-W (01024): Strong Growth Momentum for Kling AI, Core Business Poised for Revaluation The monthly active users for Kuaishou's Kling AI surpassed 12 million in January 2026. As of January 20, 2026, the paid user base on the Kling App increased by 350% month-on-month, with average daily revenue in January approximately 30% higher than the December average. Analysis: Kling AI demonstrates robust growth momentum, achieving over 10 million MAU and growing subscription revenue. For full-year 2025, Kling's revenue is projected to reach $140 million, significantly exceeding Kuaishou's initial $60 million target set early in the year. The rapid MAU growth is attributed to two main factors: 1) Model Updates: In December 2025, Kuaishou successively launched Kling o1, the world's first unified multimodal video model, and Kling 2.6 with audio-visual synchronous generation capabilities, enhancing model performance and enriching the video generation portfolio. 2) Motion Control Feature Gains Attention: The launch of the motion control feature in Kling 2.6, allowing video generation by uploading a reference image and selecting an action, sparked interest. Due to its ease of use and the social virality of the generated videos, Kling AI ranked first in the iOS download charts for graphics & design apps in nearly 40 countries and regions, including Brazil and Russia, in early 2026, and became the top-grossing app in its category on iOS in South Korea and Russia. Kling AI's breakthrough in user scale and revenue indicates substantial monetization potential and rapid growth. Backed by steady core business growth and a unique community ecosystem, Kuaishou is enhancing its commercial monetization potential. AI technology upgrades (such as OneRec and OneResearch) are further driving efficiency in its advertising and e-commerce operations. Kuaishou's core advertising and e-commerce revenue growth is forecast at 12% and 9% for 2026 and 2027 respectively, with ongoing AI upgrades and operational efficiency improvements expected to support further margin expansion. Kuaishou's core business is poised for a potential re-rating.
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