PBOC conducted a CNY 10 bln 7-day reverse repo today, bids CNY 10 bln, allotment CNY 10 bln, rate 1.40%, unchanged.

Citigroup said it was surprised by Tencent Holdings (00700.HK) selling down its stake in Kuaishou (01024.HK), noting Tencent had earlier signalled it might use its investment portfolio to fund shareholder returns. The bank flagged Kuaishou’s low valuation and that Kuaishou portfolio company Keling recently completed a private round in which Tencent invested about $200m for a 1.12% stake, suggesting Tencent may be reallocating older holdings into new AI investments. Citigroup said the sell-down could hurt Kuaishou market sentiment and prompt concern about further disposals of Kuaishou or other investee stakes; nevertheless, with Kuaishou’s fundamentals unchanged and Keling showing potential, Citigroup maintains a Buy rating and PT HK$72.

日经225指数日内跌幅达1.00%。