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Alibaba (BABA.US)  shares have come under pressure, declining  nearly 30% since October highs  and about  6% year-to-date , as investors turn cautious ahead of its upcoming fiscal third-quarter earnings. Weak Earnings Outlook Clouds Sentiment Alibaba is expected to report results this week, with consensus estimates pointing to  US$42.2 billion in revenue  and  US$1.59 earnings per ADR . While revenue is projected to grow  over 9% year-on-year , profitability tells a different story. Earnings are expected to  drop sharply by 46% , reflecting margin pressures and a more challenging operating environment. Notably,  analyst sentiment has deteriorated , with  11 out of 15 analysts cutting earnings forecasts  during the quarter, and none revising estimates upward — a clear sign of weakening confidence. Technical Signals Mixed but Improving From a technical perspective, Alibaba’s chart suggests a market in transition. The stock initia...

Quick Summary US official says  DeepSeek trained its latest AI model on Nvidia’s Blackwell chips Blackwell exports to China are  currently banned under US export controls Chips allegedly clustered in  Inner Mongolia data centre Could intensify US-China tensions over AI semiconductor restrictions What Happened A senior Trump administration official said Chinese AI start-up  DeepSeek  trained its upcoming AI model using  Nvidia ’s most advanced chip,  Blackwell , despite US restrictions. Key points: US policy states:  “We are not shipping Blackwells to China.” Blackwell exports to China are barred under Commerce Department controls The chips are believed to be located in DeepSeek’s  Inner Mongolia data centre Nvidia declined to comment. DeepSeek and the US Commerce Department did not respond to requests. Why This Is Significant The  Blackwell  is Nvidia’s top-tier AI chip — central to training frontier AI models. If confirmed, this de...

Alibaba Group Holding Ltd  is preparing to spin off and potentially list its AI chipmaking unit  T-Head , tapping into rising investor appetite for companies seen as local alternatives to  Nvidia Corp  in the fast-growing AI accelerator market. According to people familiar with the matter, Alibaba plans to first  restructure T-Head into a partially employee-owned business , before exploring an initial public offering. While the timing and valuation remain unclear, interest in Chinese chipmakers has surged amid Beijing’s push to reduce reliance on US technology. The move comes as Alibaba steps up its ambition to become a  leading AI powerhouse , investing heavily in infrastructure, chips and consumer-facing AI services. CEO  Eddie Wu  has pledged more than  US$53 billion  toward AI and infrastructure, with room to scale further. Why T-Head Matters T-Head plays a strategic role in Alibaba’s ecosystem, supplying chips that support its ...

China has taken a  decisive step toward technology self-reliance , ordering domestic organisations to  stop using cybersecurity products from leading US and Israeli firms  and replace them with local alternatives by  1H 2026 , according to a government directive seen by Bloomberg. What Happened Chinese authorities instructed companies to  identify and phase out foreign cybersecurity products , citing risks that sensitive data could be transmitted overseas or expose customers to security vulnerabilities. Firms named in the directive include major global cybersecurity players such as: Palo Alto Networks Fortinet Check Point Software Technologies The advisory also alleged links between these companies and foreign intelligence agencies, though  no evidence was provided . Scope of the Ban Beyond the headline names, the directive also covers a broad list of cybersecurity and software firms, including: CrowdStrike Holdings SentinelOne Rapid7 CyberArk Broadcom ...

China’s major tech players are set to kick off Q2 2025 earnings season this week, with  AI and cloud services driving growth , while  food delivery losses weigh on profitability . Earnings Calendar Tencent  – Aug 13 JD.com  – Aug 14 Xiaomi  – Aug 19 Bilibili  &  Kuaishou  – Aug 21 Alibaba, Meituan, PDD Holdings  – Dates TBD Company Highlights & Expectations 🔹 Tencent (00700.HK)  –  Gaming & AI Cloud Growth Revenue: +10–11% YoY to ~CNY 177B Adj. EBIT: +10–15% Gaming boost : Project Delta now Tencent’s 2nd-biggest domestic game (20M DAUs); Valorant mobile launching Aug 19 (CNY 7B annualized revenue est.). Advertising & cloud segments seeing AI-driven momentum, with cloud expected to return to double-digit growth. 🔹 JD.com (JD.US)  –  Retail Profits Up, Food Delivery Losses Deepen Revenue: +15% to CNY 335B EPS: -57% YoY to CNY 3.48 Food delivery unit loss: >CNY 10B in Q2, likely to persist into Q3. Retail...

The fate of TikTok’s U.S. operations could soon shift again, as  President Donald Trump confirmed  on Friday that formal negotiations with China are set to resume early next week. Speaking aboard Air Force One, Trump stated that discussions could begin as soon as  Monday or Tuesday , potentially involving Chinese President  Xi Jinping  or his representatives. “We pretty much have a deal,” Trump told reporters, referring to a long-awaited plan to  divest TikTok’s U.S. assets  from its Chinese parent,  ByteDance , into a new U.S.-controlled entity. A Deal Delayed — and Revived The TikTok restructuring deal had  stalled this spring  after China signaled resistance to approving any forced divestiture, especially amid escalating  U.S. tariff threats . The Biden-era negotiations were originally aimed at transferring TikTok’s U.S. operations into a majority  American-owned  and operated company — a structure designed to address d...

After a red-hot start to 2025,  China’s tech rally is losing steam . Despite big promises in artificial intelligence (AI), investors are demanding  real earnings growth and clear macro signals  to stay bullish. Hang Seng Tech Index Stalls The  Hang Seng Tech Index  came close to correction territory this week. Only  Alibaba  saw notable post-earnings gains, thanks to its  US$53 billion AI investment plan  over the next three years and continuous AI product rollouts. Other tech giants like  Tencent ,  Baidu ,  JD.com , and  Meituan  failed to impress, despite  beating earnings expectations . AI Hype Isn’t Enough (For Now) DeepSeek’s breakthrough had  sparked a 25% year-to-date gain , but now  markets want more than hype . “Share prices have run ahead of earnings,” noted Andy Wong of Solomons Group. Investors need  tangible AI monetization and sustained business improvement , especially as  core...

  Key Takeaways: China Tech Struggles Amid Tariff Worries:  Chinese tech stocks took a significant hit, with the  Hang Seng Tech Index  falling as much as  3.8% —the steepest drop in over three weeks.  Xiaomi  saw a major decline of  6.6%  following an upsized  $5.5 billion  share sale, while  Alibaba  and  Sunny Optical  also saw notable losses. These losses come after initial optimism spurred by signs that  US tariffs  might be more targeted rather than sweeping. US Tariff Update:   President Trump  has hinted that the upcoming  April 2 tariff announcement  will be more narrowly focused. The tariff strategy is still expected to affect global trade dynamics, but some investors are hopeful that the  US  will offer exemptions or adjustments, reducing the worst-case scenario. Corporate Caution and Market Volatility:   Xiaomi  and other Chinese companies are grapplin...

Citigroup  has shifted its outlook on global equities, downgrading  U.S. stocks  to  neutral  from  overweight , while upgrading  China tech stocks  to  overweight , citing several key factors that make Chinese technology stocks an attractive investment. Key Takeaways: U.S. Stocks Downgraded : Citi strategists, led by  Dirk Willer , noted that  U.S. exceptionalism  seems to be “pausing.” The  S&P 500  breaking its  200-day moving average  and the poor performance of  big tech stocks have signaled bearish momentum for U.S. equities. The “Magnificent Seven” tech giants lost a collective  $759 billion  in market cap on Monday, marking the  largest one-day loss  in history. Short-Term Caution : While Citi maintains a  neutral stance  on U.S. stocks for the next  three to six months , they remain cautious about the  AI bubble  and expect  negative U.S. da...

Chinese IT Firm Picks Banks for Second Listing Amid China’s Market Shift Unisplendour Corp, a Beijing-based IT services provider, is planning a second listing in Hong Kong  to raise around  US$1 billion (RM4.42 billion)  to fuel its overseas expansion. BNP Paribas SA, China Merchants Bank International, and CSC Financial Co  have been tapped as lead banks for the offering, with more banks potentially joining the deal. The company confirmed it is  exploring equity financing in Hong Kong  but has  not finalized the plan or a listing timeline. China’s IPO Shift to Hong Kong Chinese firms are increasingly  turning to Hong Kong  for capital as  China limits domestic stock sales to stabilize its equity market. Other major Chinese companies  seeking Hong Kong listings  include: Contemporary Amperex Technology Co Ltd (CATL) – the world’s largest battery maker Jiangsu Hengrui Pharmaceuticals Co – a major drugmaker Foshan Haitian Flavour...

Tencent Enters AI Speed Race Tencent has launched its latest AI model, Hunyuan Turbo S , claiming it can respond to queries  faster than DeepSeek’s R1 —one of the most widely adopted AI models globally. The tech giant says  Turbo S can generate answers in under a second , setting it apart from models like  DeepSeek R1 and Hunyuan T1 , which require more processing time before responding. Performance and Competition Turbo S reportedly matches DeepSeek-V3  in fields like  knowledge, mathematics, and reasoning . DeepSeek-V3 has already surpassed OpenAI’s ChatGPT in app store downloads , adding pressure on Tencent and other Chinese tech firms to accelerate AI advancements. DeepSeek did not immediately respond  to Tencent’s performance claims. China’s AI Arms Race Intensifies DeepSeek’s rapid global success, particularly  its adoption in Silicon Valley , has  forced Chinese tech giants into a race to enhance their AI models . Last month, Alibaba launch...

Asian markets surged on Friday , tracking Wall Street gains after  US President Donald Trump delayed immediate imposition of reciprocal tariffs , calming fears of a global trade war. Meanwhile,  US inflation data showed mixed signals , offering investors a brief reprieve from concerns over aggressive Federal Reserve rate hikes. 📈 Asian Markets Gain Momentum 🔹  Hong Kong’s Hang Seng Index rose 1.6% , marking its  fifth straight week of gains  and the  strongest weekly performance in four months . 🔹  MSCI’s Asia-Pacific Index gained 0.54% , hovering near a  two-month high . 🔹  Chinese tech stocks rallied , driven by  AI startup DeepSeek’s breakthrough , with the  Hang Seng Tech Index hitting a three-year high . 🔹  Japan’s Nikkei slipped 0.55%  but remained on track for  weekly gains . 💬  Barclays Analysts:   "While markets are relieved by the delay in tariffs, it’s uncertain whether this reflects a lower...

Tencent Holdings Ltd.  and  Honor Device Co.  have announced a  long-term strategic collaboration  focusing on  cloud infrastructure  and  artificial intelligence (AI)  development. The partnership strengthens Tencent’s position in cloud services while bolstering Honor’s technological capabilities as it expands its corporate and public footprint. Key Highlights of the Partnership 1. Cloud and AI Development Tencent will provide  Tencent Cloud infrastructure  to support Honor’s online services. The collaboration includes  big data analytics ,  search tools , and the joint creation of a  coding assistant  to improve software development efficiency for Honor’s engineers. 2. Honor’s Growth Plans Corporate Partnerships : Honor, a  Huawei Technologies Co. spin-off , has recently sold stakes to  China Mobile Ltd.  and  China Telecom Corp.  as it moves closer to a  public listing . As one of...

Chinese tech stocks have surged over the past few weeks following the announcement of a stimulus spree by the Chinese government, with the Hang Seng Tech Index rising more than 45% in less than four weeks . Notably, this rally appears to be fueled by fresh buying rather than short covering , according to S3 Partners and JPMorgan Chase & Co. . Major companies such as Alibaba Group Holding Ltd. , JD.com Inc. , and Baidu Inc. have seen their American Depositary Receipts (ADRs) rally, but short positions on these stocks have remained stable . Short interest for these companies has hovered around 2% to 3% of available shares , according to Ihor Dusaniwsky , managing director of predictive analytics at S3. This lack of aggressive short covering indicates that bearish bets have not been significantly closed despite the strong rally. Fund managers, such as Han Piow Liew from Maitri Asset Management , noted that the magnitude of the recent bounce usually forces shorts to cover their...