Tencent Holdings Ltd

Tencent Holdings spent HK$300.4 million repurchasing 672,000 shares on Wednesday, as the stock rose 0.8% to $56.77, with an average price of HK$447.02 per share. The repurchased shares will be cancelled, and the company has now bought back about 41.46 million shares under its current mandate, representing 0.455% of the original share count. This buyback activity follows strong second-quarter results, where revenue increased 11% to RMB204.8 billion and fintech and business-services sales rose 9% to RMB60.3 billion. At $56.77, Tencent trades 16.72% below its GF Value estimate of $68.17, suggesting the buybacks are value-accretive. The challenge ahead is whether buybacks can consistently offset employee stock awards and the cash needs of Tencent's AI investments.

Chinese tech and automotive company Xpeng has raised over US$900 million for its robotics business, achieving a post-money valuation of over US$6.3 billion, in what it claims is the largest single-round private financing ever recorded in China's embodied AI industry. The funding round was led by IDG Capital and joined by Gaorong Ventures, with Tencent and Alibaba participating as strategic investors. Xpeng's 'Iron' humanoid robot, which features 76 degrees of freedom and three Turing AI chips, is slated for large-scale deliveries in 2027. The company also reported Q2 revenues of RMB19.74 billion and a gross margin of 20.7%, with overseas deliveries surpassing 20,000 units.

Tencent Holdings has joined Alibaba as a lead investor in Dogotix, the humanoid robotics spin-out from Xpeng, backing a US$900 million funding round. The deal marks Tencent's entry into a standalone humanoid robotics venture outside its existing software, platform and cloud operations. Tencent's move highlights growing interest from large Chinese tech companies in AI-enabled hardware and robotics projects. The company earns most of its money from value added services, marketing, and fintech, so backing Dogotix gives it exposure to humanoid robotics that sits outside its traditional software and platform focus. Tencent's latest quarterly revenue was CNY 204,785 million with net income of CNY 56,022 million.

Enflame Technology, a Chinese AI chipmaker, will begin accepting subscriptions on September 2 for its initial public offering on the Shanghai Stock Exchange's STAR Market for high-tech companies. The company is expected to raise 6 billion yuan, or 892.21 million dollars, according to documents filed with regulators on the night of the 24th. Chinese internet giant Tencent Holdings has invested in the company, which will issue 43.04 million new shares as part of the IPO. That represents 10 percent of the post-offering total share count of about 430 million shares, and an investor demand survey to help set the price will begin on August 28. Of the newly issued shares, 8.61 million will be allocated to strategic investors, 27.54 million to institutional investors, and 6.89 million to retail investors. Founded in 2018 and headquartered in Shanghai, Enflame is considered one of China's four domestic GPU startups, alongside Moore Threads, MetaX, and Biren Technology.

XPeng stock sank 7% after its Q3 revenue guidance missed Wall Street consensus by roughly 15%, dragging NIO down 4% in sympathy. XPeng reported Q2 2026 revenue of RMB19.74 billion, up 8% year over year but below expectations, and guided Q3 revenue to RMB21.7 billion to RMB23.4 billion versus a RMB25.88 billion consensus. The company's IRON humanoid robotics unit raised over $900 million at a post-money valuation above $6.3 billion, the largest single-round private financing in China's embodied AI industry, with Tencent and Alibaba joining as strategic investors. Tesla slipped 2% and Lucid fell 1%, while Rivian rose 0.7% against the trend.

Shein Global Holdings Limited launched its global offering on Monday, selling approximately 280 million Class B shares at between HK$47.60 and HK$49.50 per share, valuing the company at close to $27 billion at the top of that range. Total proceeds could reach HK$13.86 billion, or about $1.77 billion, with the final price expected August 31 and trading on the Hong Kong Stock Exchange set to begin September 1 under stock code 00625. The valuation is down roughly 70% from the $98.2 billion private-market valuation Shein carried in 2022 and less than half the $64 billion figure from 2023 and April 2024. Cornerstone investors including Boyu Capital, Tiger Global, and General Atlantic committed about $383 million, while Tencent, Greenwoods, Taikang Life, and UBS Asset Management will also take stock. Revenue growth slowed to 8% in 2025 from 20.7% the prior year and to 1.1% in the first quarter of 2026, when Shein posted a $99 million net loss after the U.S. eliminated a duty exemption on small packages from China. The four co-founders will collectively hold 90% of voting power, and the listing is the biggest new share issuance on the Hong Kong exchange this year, topping Momenta Global's $751 million raise in July.

InnovestX Securities views AI as still a key driver for Chinese tech, as hyperscalers accelerate capital spending to support data centers and AI computing, while foreign chip technology restrictions push China to build a domestic supply chain. The firm expects the share of AI server system production in China to reach more than 90% by 2030, up from about 70% in 2025, and the share of chip production for AI inference to rise to more than 50% from below 10% over the same period. Capital expenditure estimates for Chinese hyperscalers Alibaba, Tencent, ByteDance and Baidu have been revised up by 28%, 74%, 67% and 82% respectively, reflecting an acceleration in expanding AI and data processing capabilities. Mr. Sittichai Duangrattanachaya, Head of Investment Strategy at InnovestX Securities, said at the economic and investment seminar "Final Call 2026" that the next phase of the AI game is not about investing in the trend, but about finding winners in each layer of the ecosystem, from chips to data centers and energy. Investors should shift from buying the AI theme to selecting companies that genuinely benefit from AI. He recommended three groups of Chinese stocks: China Internet and Tech such as Tencent, Alibaba and GDS; China Semiconductor such as SMIC, Hua Hong and NAURA; and China Non-Tech such as CATL, HKEX and AIA.

Tencent Holdings is receiving shipments of Nvidia H200 AI chips under a new Chinese policy that permits limited deliveries to domestic tech giants. The H200 processors are expected to support Tencent's domestic AI projects within its cloud, advertising and consumer platforms. Chinese authorities are using controlled access to advanced Nvidia chips to back local AI development while keeping export rules in view. The move may influence how Tencent allocates capital to data centres and AI infrastructure alongside local chip alternatives.

Chinese humanoid robot maker Unitree surged about 600% on its market debut, valuing the company at around $50 billion as retail investors flocked to the IPO on the tech-focused STAR Market. The startup, which competes with Hyundai Motor Group-owned Boston Dynamics and Tesla, has backing from Tencent, Alibaba and DeepSeek, and at least a half dozen other Chinese humanoid robotics firms are preparing to go public. Meanwhile, U.S. Treasury yields remain near multi-decade highs but got some relief after a below-forecast industrial production report, with attention turning to the 20-year bond auction and minutes from the Federal Reserve's July meeting. Analysts point to a rising term premium on long bonds, near its highest in a decade, as investors demand compensation for debt sustainability uncertainties. Crude oil prices stayed elevated amid the Iran conflict, while the crack spread between crude and diesel futures hit a record high, signaling higher fuel costs ahead.

Tencent Cloud announced it will establish its first Cloud Region in Malaysia, comprising up to three availability zones in Johor. The new region will join Tencent Cloud International's global infrastructure network, which currently spans 66 Availability Zones across 23 regions. Tencent Cloud also announced a collaboration with Universiti Teknologi Malaysia to train more than 1,000 digital and AI talents over the coming years. The announcement was made at Tencent Cloud C-Suite Dialogue 2026, where the company showcased AI solutions including Tencent WorkBuddy, Agent Development Platform, and TokenHub. Tencent Cloud also revealed new collaborations with Boost and Genting Plantations Group to explore AI agent integration.

Tencent published its Carbon Neutrality Mid-Term Report, detailing progress toward achieving carbon neutrality across its own operations and supply chain by 2030. The report highlights that renewable electricity consumption increased from 22.0% in 2024 to 48.5% in 2025, while owned data centers achieved an 82.9% renewable electricity share. Since announcing its carbon neutrality commitment, Tencent has procured more than 6.5 billion kWh of green electricity. The company also outlined AI-era priorities, including its T-AIDC next-generation data center architecture designed for high-density computing with power-supply efficiency of up to 98%, and initiatives like the CarbonX Program and TanLIVE climate intelligence platform to support decarbonization beyond its own operations.

China will soon lift travel restrictions imposed on founders of Manus after the AI startup and Meta agreed to unwind their $2 billion buyout deal following regulatory pushback, The Financial Times reported on Saturday. Xiao Hong, chief executive and co-founder of Manus, recently told employees he expects to return soon to Singapore, where the agentic platform was headquartered before its acquisition by Meta. Earlier this week, Manus said it will soon resume operating as an independent company after China’s state planner, the National Development and Reform Commission, in April demanded Meta unwind the 2025 deal. As part of the unwinding, which still requires NDRC approval, most of Manus’s former shareholders, including Tencent, are set to buy the company from Meta at a valuation similar to the initial buyout. Tencent, which has agreed to acquire shares held by non-participating investors including American venture capital fund Benchmark, will become the largest shareholder of Manus, holding a minority stake while the company continues to operate independently in Singapore.

Tencent Holdings is ramping up its global AI efforts with a significant investment in Swedish AI coding startup Lovable. The company is extending its AI product reach through the Hy3 large language model, aimed at international users. Tencent is also pushing its cloud services abroad, including a partnership with Saudi retailer Alsaif Gallery to support AI powered applications. Investors may want to track Hy3's commercial traction after free access ends on 31 August 2026, along with how Tencent's reported cloud and AI related revenues evolve in upcoming earnings relative to the CNY 204.8b second quarter 2026 revenue base.

Tencent Holdings reported second-quarter 2026 total revenue of RMB204.8 billion, up 11% year-on-year, with gross profit up 13% to RMB118.4 billion and non-IFRS net profit attributable to equity holders up 9% to RMB68.4 billion. The company's AI investments, including the Hunyuan 3 model and WorkBuddy and CodeBuddy productivity tools, drove growth in marketing services revenue, which rose 22% to RMB44 billion, while domestic games revenue increased 17% year-on-year. However, operating capital expenditure surged 190% to RMB51.8 billion, leading to negative free cash flow of RMB13.8 billion and a sharp drop in net cash position from RMB146.9 billion to RMB58.2 billion. Management noted that AI compute orders made months ago can already be sold at over 30% profit, providing downside protection, and that the AI capital expenditure is a lump-sum investment for this year and next rather than a recurring annual expense.

Swedish coding startup Lovable has raised $400 million in a Series C round at a $13.3 billion valuation. The round was led by Menlo Ventures and the Scaleup Europe Fund, a European Union investment vehicle run by EQT AB, with participation from Tencent Holdings Ltd. and other investors. Lovable, founded in 2023, provides AI tools that let non-programmers build websites and apps, and counts Adidas AG, Deutsche Telekom AG, and Hearst among its corporate customers. The financing is one of the first disclosed investments from the EU's €5 billion startup fund.

Tencent Cloud has announced a collaboration with Saudi retailer Alsaif Gallery to support the company's enterprise AI transformation. Alsaif Gallery has deployed a self-developed enterprise AI agent platform on Tencent Cloud's local cloud infrastructure in Saudi Arabia, aiming to enhance operational efficiency and customer experiences across its omnichannel business. The AI agent supports internal management and customer-facing scenarios, and the companies have deepened their collaboration across AI, cloud, and software services following the successful deployment. Tencent Cloud provides stable and cost-effective cloud services from its local infrastructure, helping Alsaif Gallery meet data compliance requirements and reduce latency. The partnership underscores Tencent Cloud's commitment to supporting Saudi Arabia's digital economy and Vision 2030 goals.

Tencent’s WorkBuddy has become China’s most popular AI workplace assistant, attracting 20.97 million monthly visits as of June and beating rivals from ByteDance and Alibaba, according to local media citing data provider Analysys. The early success of the desktop agent, launched in March, could help the Chinese internet giant catch up in the artificial intelligence race and serve as a catalyst for its stock, which has trailed pure-play AI firms and remains near a record low valuation. Barclays Capital analyst Jiong Shao said encouraging metrics on WorkBuddy could change perceptions about Tencent, which recently became his top pick for the first time in five years. Morningstar analyst Ivan Su highlighted the agent’s integration into WeChat as a key advantage making it stickier and harder to replace. Tencent is expected to report nearly 10% revenue growth and a 5% profit increase for the June quarter when it releases earnings on Wednesday.

Thryve.Earth has secured its first corporate offtake commitments totaling 635,000 tonnes of carbon removal to restore 6,000 hectares of degraded land in Sulawesi, Indonesia. Symbiosis Coalition members Google and McKinsey committed to over 335,000 tonnes over 10 years, marking Symbiosis' first agroforestry offtake, while Tencent committed to 300,000 tonnes, its first offtake agreement outside China. The project will use a layered agroforestry system with fruit and timber trees to sequester carbon and provide lasting income for local communities. Thryve.Earth's model builds on decades of field-tested work by the Masarang Foundation, with long-term offtake commitments enabling the upfront financing needed to clear invasive grasses and establish new trees at scale.

Tencent Cloud has been named a Leader in the Omdia Market Radar: Cloud Platforms for Games 2026 report for the second consecutive year. The company received the highest rating of Advanced in four key areas: Game Servers, Multiplayer Services, AI & Machine Learning, and LiveOps. Omdia highlighted Tencent Cloud's unique position built on infrastructure originally developed for Tencent's own game portfolio, along with its deep gaming expertise and continued investment in AI-powered technologies. Over the past three months, Tencent Cloud's gaming AI solutions have supported more than 150 game developing companies, while AI Agent usage across the gaming industry has increased by more than three times year-over-year. Tencent Cloud's global infrastructure now spans 23 geographic regions and 66 availability zones, serving more than 98% of China's leading game companies.

Major internet companies have recently been intensively adjusting the organizational structures of their AI office divisions and accelerating product integration. The office AI agent industry has officially bid farewell to the scattered trial-and-error horse-race model and entered the gateway battle phase. Tencent has transferred the related businesses and some teams from its QClaw product center to the Cloud Product Division Six, where the AI office agent WorkBuddy is located. ByteDance has merged the Feishu product team with the Doubao product team. Baidu has initiated the integration of its internal office agent Dodo with the Baidu Dazi team. Alibaba has consolidated three agent products—QoderWork, Wukong, and MuleRun—into Qianwen Office, which began public testing on August 3. In mid-July, Kingsoft Office released two AI office agents in quick succession, covering individual-level and organization-level scenarios respectively. NetEase Youdao's office agent LobsterAI launched a points campaign on August 6. Interviewees pointed out that the focus of competition has shifted from simply comparing model parameters to vying for the primary interactive gateway on the desktop. However, challenges such as insufficient reliability in executing complex tasks, internal enterprise data silos, token cost management, and data leakage risks remain unresolved. An Analysys report shows that as of June this year, the combined visits to 17 mainstream desktop-native AI office agent platforms in China exceeded 60 million in June 2026. Among them, WorkBuddy recorded 20.97 million monthly visits, the domestic version of TRAE IDE recorded 12.79 million monthly visits, and QoderWork recorded 7.88 million monthly visits. Kingsoft Office expects a net profit attributable to the parent company of 2.316 billion to 2.719 billion yuan in the first half of 2026, representing a year-on-year increase of 209.98% to 263.89%. Emdoor Information expects a net profit attributable to the parent company of 176 million to 216 million yuan in the same period, a year-on-year surge of 1442.02% to 1792.48%. Kingdee International expects to turn losses into profits in the first half of the year. Yonyou Network expects a net loss attributable to the parent company of 800 million to 930 million yuan, but AI-related contract signings reached 910 million yuan, a rapid year-on-year increase. Analysts believe that the proliferation of office agents will drive demand for cloud-based inference computing power and boost the growth of on-device local AI computing power. Upstream inference chip, server, and high-speed storage manufacturers will benefit directly, though the computing power consumption per task is limited, and demand is characterized by a steady upward trend.

Tencent has announced broader international access to its Tencent Hy3 large language model, making it available through WorkBuddy, Tencent Design Miora and Tencent Cloud TokenHub. Users can try Hy3 on WorkBuddy free of charge until 31 August 2026 Pacific Time, while developers can connect via API and integrate with platforms such as Hermes, Kilo, Cline, OpenClaw, OpenCode and Cherry Studio. The model, built on a hybrid fast-and-slow-thinking Mixture-of-Experts architecture with 295 billion total parameters and 21 billion active parameters, recorded more than 68 times as many API calls as its predecessor and ranked first globally on OpenRouter's usage leaderboard within one week of launch. In internal evaluations, Hy3 delivered a task success rate exceeding 90% in WorkBuddy and reduced average task completion time by 34% compared with the previous iteration. API access on OpenRouter starts at 0.1288 US dollars per million input tokens and 0.5336 US dollars per million output tokens.

Tencent Holdings has launched Digital Jingdezhen, an AI-powered game that revives porcelain craft traditions through immersive digital experiences. Players explore digitally recreated historical sites and learn traditional porcelain-making techniques, highlighting Tencent's application of gaming and AI technology in cultural preservation. The project uses AI-assisted procedural generation, digital humans, and 3D asset creation, technology that could be reused for other cities, museums, or themed experiences, pointing to a broader market opportunity in government and institutional contracts. While cultural projects may have unclear monetization paths and heavier AI use in games could attract regulatory attention, the launch showcases Tencent's AI capabilities and may support future contracts in education, tourism, and smart city projects. Investors will watch for distribution across channels like WeChat Mini Programs and whether similar heritage projects follow, as signs of repeat use would suggest the technology is finding commercial traction.

The Hang Seng Index in Hong Kong closed up 124.97 points, or 0.48 percent, at 26,009.40 points, as investors eased concerns over the Middle East situation after US President Donald Trump announced the cancellation of plans to attack Iran and said talks would take place today, raising hopes that tensions will de-escalate and lead to the reopening of the Strait of Hormuz. Tencent shares surged 3.20 percent, while Meituan rose 1.03 percent and Kingboard Laminates gained 1.97 percent. Kuaishou jumped 3.02 percent, Minmax soared 7.20 percent, and Lenovo surged 3.69 percent. The market also got a boost from signals by Hong Kong's finance minister that the government is likely to raise its GDP growth forecast for 2026 within this month, after the economy proved stronger than expected.

The latest weekly large model call rankings from global multi-model aggregation platform OpenRouter show that the top five products are all developed by Chinese companies. Xiaomi's MiMo-V2.5 topped the list with 10.5 trillion tokens called in a single week, up 12 percent week-on-week. Two DeepSeek models ranked second and fifth, forming a high-low mix. Tencent's Hunyuan 3, online for just one month, saw a weekly surge of over 999 percent, making it the fastest-growing model. At the industry level, Guolian Minsheng Securities believes that accelerating AI application development is key to generating positive industrial capital returns from current AI capital expenditure. The leap in open-source model capabilities is greatly boosting application development. ByteDance's Doubao, Tencent's WorkBuddy, and Alibaba's Qwen are rapidly accumulating traffic, and the commercialisation of AI applications is about to begin. In the secondary market, the AI application index has fallen more than 30 percent from its high on 13 January, but rebounded violently by nearly 10 percent in the past week, with a single-day gain of over 5 percent on 31 July. The trio of Yidian Tianxia, Chinese Online, and Tianlong Group, dubbed the Yi Zhong Tian combination, has drawn attention. On the funding side, 28 AI application concept stocks saw net inflows of over 100 million yuan from major funds. BlueFocus topped the list with 2.419 billion yuan and hit the daily limit up, while Kunlun Tech saw net inflows exceeding 1 billion yuan and also hit the daily limit up. As of 2 August, among brokerages' August golden stock picks, Kunlun Tech received two recommendations, while Fengzhushou, Century Huatong, and Zhipu each received one. Century Huatong expects first-half net profit of 4.3 billion to 4.77 billion yuan, a year-on-year increase of 61.87 percent to 79.57 percent.

A fund manager at Janus Henderson Investors has revealed that global investors are beginning to diversify their portfolios away from US stocks, turning to increase weightings in European, Japanese, South Korean, and Chinese equities to reduce the risk of concentration in the Magnificent Seven mega-cap technology stocks. Julian McManus, a portfolio manager at Janus Henderson, which has around 480 billion dollars in assets under management, noted that the MSCI ACWI ex-US index has risen more than 8% since the start of the year, while the S&P 500 has gained 6.8%. He recommends bank stocks in Europe and Japan, as well as Samsung Electronics, Tencent, and CATL, among others. Meanwhile, Polka Mishra from Javelin Wealth Management continues to favour US stocks, citing the still-strong US economy and its leadership in AI technology.

During China Joy, industry experts held in-depth discussions on topics such as AI reshaping the game industry ecosystem, and several leading companies disclosed their AI application implementation paths. Zhang Yijun, First Vice Chairman of the China Audio-Video and Digital Publishing Association, pointed out that AI is bringing three structural changes: lowering the creative threshold, promoting technology sharing, and giving rise to entirely new interactive gameplay. Ao Ran, Executive Vice Chairman of the association, stated that the application rate of AI in the research and development processes of domestic game companies has reached 86.36 percent, but small and medium-sized developers still face the challenge of transforming creative prototypes into commercial-quality products. Wang Chuanpeng, Vice President of Data at 37 Interactive Entertainment's Technology Center, introduced that the company uses its self-developed Xiaoqi large model as the core, with AI-assisted 2D art output accounting for over 80 percent and AI-generated advertising materials exceeding 70 percent. Hou Jie, Algorithm Expert at NetEase Fuxi AI Lab, said that NetEase has deeply embedded AI into the entire production pipeline of art assets, achieving quality and efficiency improvements. Lyu Huiwei, Senior Game AI Engineer at Tencent, shared practices of reinforcement learning-driven NPC combat, with the relevant solution having been launched in "Rock Kingdom: World" in March 2026.

Tencent has started internal testing of an AI content creation platform for individuals. In addition, Tencent has updated WorkBuddy, introducing a collaborative editing feature between humans and AI. Meanwhile, BOCI has maintained a buy rating on Tencent, indicating that it will also maintain a cautious stance on expanding AI investments.

The domestic gaming industry's first-half report card is officially out, with market revenue and user scale reaching new highs. Zhang Yijun, First Vice Chairman of the China Audio-Video and Digital Publishing Association, released a report at the 2026 China International Digital Entertainment Industry Conference, showing that actual sales revenue of the domestic gaming market reached 188.45 billion yuan in the first half of 2026, up 12.17% year-on-year, while the user base hit 684 million, up 0.82% year-on-year, both record highs. Mobile game revenue was 135.21 billion yuan, up 7.9% year-on-year, and client game revenue was 45.288 billion yuan, surging 27.92% year-on-year, with cross-platform titles and long-running PC games becoming core growth drivers. Lightweight mini-program games continued their explosive trend, with revenue of 31.657 billion yuan, a sharp 36.01% year-on-year increase, of which in-app purchase revenue was 21.137 billion yuan and ad monetization revenue was 10.52 billion yuan. Web game revenue was 2.016 billion yuan, down 8.47% year-on-year, and console game revenue was 961 million yuan, down 7.06% year-on-year. Attendees widely noted that AI technology is permeating the entire gaming industry chain. Sun Shoushan, Chairman of the China Audio-Video and Digital Publishing Association, pointed out that AI has become a normalized infrastructure empowering industry development, with the global adoption rate of AI technology among gaming companies reaching 86%, over ten thousand games on Steam labeled as AI-assisted creations, and domestic companies such as Tencent, Shengqu Games, and Giant Network ramping up their AI technology deployment.

Asian technology stocks faced continued selling pressure in Wednesday trading, with semiconductor shares leading the market lower. Investors remain concerned about elevated valuations, intensifying competition in artificial intelligence, and the drag from a weaker US stock market overnight. In South Korea, SK Hynix, the world's major memory chip maker, tumbled more than 10% even after reporting record quarterly profit and revenue. The figures fell short of analyst expectations, triggering heavy selling. The pressure spread to other domestic tech names, with Samsung Electronics down over 4%, LG Innotek plunging more than 9%, and Seoul Semiconductor losing over 6%. In Japan, Kioxia dropped as much as 10%, Tokyo Electron fell 8.5%, and SoftBank Group declined more than 7%. In Taiwan, TSMC slipped 1.32%. In China, the ChiNext 300 Index lost 1.83% and the Hang Seng China Semiconductor Chips Index sank more than 5%, underscoring the broad regional sell-off. Bucking the trend, Chinese internet stocks listed in Hong Kong moved higher, with Tencent up 3.6% and Meituan gaining 2.7%, while Alibaba, Baidu, and Kuaishou also traded in positive territory.

The Hang Seng Index in Hong Kong closed up 103.67 points, or 0.41%, at 25,310.85 today, bucking the trend of most Asian markets which fell on a tech sell-off. Xiaomi rose 2.0%, Tencent added 1.0%, Meituan edged up 0.9%, and Horizon Robotics surged 8.9%. Investors are closely watching the US Federal Reserve's monetary policy meeting this week, with CME Group's FedWatch Tool indicating a 62% probability that the Fed will hold rates at 3.50% to 3.75% at the July 28-29 meeting, and a 38% chance of a 0.25% rate hike. In addition, the US June personal consumption expenditures price index, due on Thursday, will be a key data point shaping rate expectations for the rest of the year. Meanwhile, Shein, the online fast-fashion giant, disclosed financial information ahead of its initial public offering, reporting a net loss of 99 million US dollars in the first quarter of 2026, compared with a net profit of 395 million US dollars in the same period a year earlier, as sales slowed sharply after the US ended a duty-free exemption for small parcels. This comes as the company prepares for its investor roadshow and official IPO subscription on the Hong Kong stock exchange.

Tencent Cloud is expanding its overseas infrastructure investment, more than doubling its annual spending. The company plans to significantly increase investment in data centers and network equipment to accelerate the global expansion of its cloud services. Specific investment amounts and target regions have not been disclosed, but the move comes in response to rising global demand for cloud services.