[ET Net News Agency, 02 June 2026] Last night, news emerged that Iran would temporarily suspend negotiations with the US. US President Donald Trump immediately posted on social media stating that negotiations with Iran were still progressing rapidly, driving the three major US stock indexes to record highs. Asia-Pacific stock markets generally pulled back this morning, but Hong Kong stocks benefited from the gains of heavyweight shares such as Alibaba (09988), Tencent (00700) and Meituan (03690). The HSI rose by more than 400 points at most during the half-day session, reaching a high of 25,812, and closed up 370 points or 1.5% at 25,768 for the half-day, with main board turnover approaching HKD 200.1 billion. The HSCEI stood at 8,676, up 169 points or 2%. The HSTECH rose 172 points or 3.5% to 5,137.
"Kwok Ka Yiu: HSI plays catch-up but chasing high carries risks"
US President Donald Trump expressed optimism about reaching an agreement with Iran, stating that a deal would be reached within a week to extend the ceasefire and open the Strait of Hormuz. However, the two sides have not actually opened the door to negotiations. Overnight, the three major US stock indexes all hit new highs, but major Asia-Pacific stock markets showed signs of fatigue this morning, with Japanese, Korean, Australian and New Zealand stock markets pulling back together. The HSI stood out alone, surging by over 400 points at most during intraday trading, temporarily reclaiming the 250-day line and the 50-day line. Kwok Ka Yiu, the Director of Business Development at Harbour Family Office, told ET Net News Agency that foreign stock markets had previously hit consecutive new highs, whilst Hong Kong stocks not only failed to fully keep pace with the gains, but even experienced a wave of decline. Currently, Hong Kong stocks are performing relatively sluggishly. Driven by leading tech companies today, the HSI surged to catch up. Tencent and Alibaba individually contributed over a hundred points to the HSI at one point, which, combined with Meituan being sought after post-earnings, became the driving forces behind the HSI's gains today.
However, Kwok stated that investors currently have a more short-term mindset and worry that if they chase the high, they could be "harvested like leeks" at any time. It is expected that there is still pressure at the HSI's high levels. In the short term, the possibility of testing 26,000 points cannot be ruled out, but the external geopolitical situation remains uncertain. Although US stocks have continually hit new highs recently, their gains are gradually slowing down; if a high-level correction occurs, the possibility that Hong Kong stocks will follow the decline cannot be ruled out. The market's recent focus is on AI business. Recently, Lenovo's (00992) share price has risen by about double, mainly due to the rapid increase in the proportion of its AI business. Currently, the AI proportion of leading tech companies remains small, making it difficult to imagine that share prices can sustain massive rallies. Therefore, it is suggested that investors should pay attention to the risks of chasing highs.
"Meituan turned from profit to loss in Q1 but still beat expectations; outlook remains dim and Tencent is preferred"
Meituan recorded a net loss of RMB 6.827 billion for the first quarter, compared to a net profit of RMB 10.057 billion in the same period of the previous year. During the period, the adjusted loss recorded was approximately RMB 4.97 billion, better than the market estimate of a RMB 6.83 billion loss, whilst an adjusted profit of RMB 10.949 billion was recorded in the same period last year.
During the period, revenue was RMB 91.039 billion, up 5.6% year-on-year; gross profit was RMB 25.97 billion, down 19%. The adjusted EBITDA loss recorded was RMB 3.049 billion, compared to an adjusted EBITDA of RMB 12.302 billion in the same period last year.
Meituan stated that during the first quarter, it accelerated the rollout of its AI layout to comprehensively enhance its service capabilities for consumers and merchants. The group's "Smart Shopkeeper" has served over 700,000 catering merchants, with service targets including national and regional chain brands. The group's "Digital Employees" have provided support for over 300,000 service retail merchants across the industry. For hotel merchants, it launched a specialized AI solution named "Jibai", which has been fully validated in low-star and high-star hotels.
Kwok stated that although Meituan's first-quarter loss was lower than market expectations, its food delivery business maintained its market leadership position after fierce competition. However, the group's main business easily attracts competition. When facing powerful rivals, the group's profitability naturally suffers, making it not easy to sustain profits. In the past, the market had a preference for e-commerce platform stocks, believing that even if the number of users peaked, they could still develop market value beyond food delivery, such as delivering medicine or other goods. However, the current view is no longer as optimistic as before. Taking the development of Meituan Flash Sale as an example, he pointed out that this development model has begun to fail. Because competitors will not sit idly by, to occupy a place in a fierce market, it is inevitable to invest more capital, entering a vicious cycle of competition with rivals where ultimately it is difficult for both sides to make a profit.
Furthermore, although Meituan claims to be advancing its AI layout, the group's AI still revolves around the level of e-commerce services, and its contribution to the group's profitability is expected to be limited. Kwok believes that the group lacks new growth points in the future, and it is also difficult to expect a turnaround in terms of profitability. Although the vicious competition among food delivery platforms has temporarily stopped, returning to the past profitable state is not easy. After Meituan's share price fell sharply last week, it rebounded strongly for two consecutive days this week, but Kwok does not recommend chasing the high. He believes that compared to other leading tech companies, Meituan's outlook is still full of uncertainty. On the contrary, Tencent's outlook is more worth looking forward to. After all, Tencent's earnings are guaranteed, and its current price-to-earnings ratio remains low. Moreover, Tencent's business is diversified, and it is reported that Tencent is about to launch an AI assistant on WeChat, which is expected to bring a better outlook for future share price increases.
"Kwok Ka Yiu: HSI plays catch-up but chasing high carries risks"
US President Donald Trump expressed optimism about reaching an agreement with Iran, stating that a deal would be reached within a week to extend the ceasefire and open the Strait of Hormuz. However, the two sides have not actually opened the door to negotiations. Overnight, the three major US stock indexes all hit new highs, but major Asia-Pacific stock markets showed signs of fatigue this morning, with Japanese, Korean, Australian and New Zealand stock markets pulling back together. The HSI stood out alone, surging by over 400 points at most during intraday trading, temporarily reclaiming the 250-day line and the 50-day line. Kwok Ka Yiu, the Director of Business Development at Harbour Family Office, told ET Net News Agency that foreign stock markets had previously hit consecutive new highs, whilst Hong Kong stocks not only failed to fully keep pace with the gains, but even experienced a wave of decline. Currently, Hong Kong stocks are performing relatively sluggishly. Driven by leading tech companies today, the HSI surged to catch up. Tencent and Alibaba individually contributed over a hundred points to the HSI at one point, which, combined with Meituan being sought after post-earnings, became the driving forces behind the HSI's gains today.
However, Kwok stated that investors currently have a more short-term mindset and worry that if they chase the high, they could be "harvested like leeks" at any time. It is expected that there is still pressure at the HSI's high levels. In the short term, the possibility of testing 26,000 points cannot be ruled out, but the external geopolitical situation remains uncertain. Although US stocks have continually hit new highs recently, their gains are gradually slowing down; if a high-level correction occurs, the possibility that Hong Kong stocks will follow the decline cannot be ruled out. The market's recent focus is on AI business. Recently, Lenovo's (00992) share price has risen by about double, mainly due to the rapid increase in the proportion of its AI business. Currently, the AI proportion of leading tech companies remains small, making it difficult to imagine that share prices can sustain massive rallies. Therefore, it is suggested that investors should pay attention to the risks of chasing highs.
"Meituan turned from profit to loss in Q1 but still beat expectations; outlook remains dim and Tencent is preferred"
Meituan recorded a net loss of RMB 6.827 billion for the first quarter, compared to a net profit of RMB 10.057 billion in the same period of the previous year. During the period, the adjusted loss recorded was approximately RMB 4.97 billion, better than the market estimate of a RMB 6.83 billion loss, whilst an adjusted profit of RMB 10.949 billion was recorded in the same period last year.
During the period, revenue was RMB 91.039 billion, up 5.6% year-on-year; gross profit was RMB 25.97 billion, down 19%. The adjusted EBITDA loss recorded was RMB 3.049 billion, compared to an adjusted EBITDA of RMB 12.302 billion in the same period last year.
Meituan stated that during the first quarter, it accelerated the rollout of its AI layout to comprehensively enhance its service capabilities for consumers and merchants. The group's "Smart Shopkeeper" has served over 700,000 catering merchants, with service targets including national and regional chain brands. The group's "Digital Employees" have provided support for over 300,000 service retail merchants across the industry. For hotel merchants, it launched a specialized AI solution named "Jibai", which has been fully validated in low-star and high-star hotels.
Kwok stated that although Meituan's first-quarter loss was lower than market expectations, its food delivery business maintained its market leadership position after fierce competition. However, the group's main business easily attracts competition. When facing powerful rivals, the group's profitability naturally suffers, making it not easy to sustain profits. In the past, the market had a preference for e-commerce platform stocks, believing that even if the number of users peaked, they could still develop market value beyond food delivery, such as delivering medicine or other goods. However, the current view is no longer as optimistic as before. Taking the development of Meituan Flash Sale as an example, he pointed out that this development model has begun to fail. Because competitors will not sit idly by, to occupy a place in a fierce market, it is inevitable to invest more capital, entering a vicious cycle of competition with rivals where ultimately it is difficult for both sides to make a profit.
Furthermore, although Meituan claims to be advancing its AI layout, the group's AI still revolves around the level of e-commerce services, and its contribution to the group's profitability is expected to be limited. Kwok believes that the group lacks new growth points in the future, and it is also difficult to expect a turnaround in terms of profitability. Although the vicious competition among food delivery platforms has temporarily stopped, returning to the past profitable state is not easy. After Meituan's share price fell sharply last week, it rebounded strongly for two consecutive days this week, but Kwok does not recommend chasing the high. He believes that compared to other leading tech companies, Meituan's outlook is still full of uncertainty. On the contrary, Tencent's outlook is more worth looking forward to. After all, Tencent's earnings are guaranteed, and its current price-to-earnings ratio remains low. Moreover, Tencent's business is diversified, and it is reported that Tencent is about to launch an AI assistant on WeChat, which is expected to bring a better outlook for future share price increases.
