京东股价创上市以来最大跌幅，营收首次下滑

And it's 9 a.m. here in Hong Kong and also Shanghai and Shenzhen. You're watching The China Show. I'm Stephen Engle and my partner here, David Ingles. It's the Ingles and Engle show this Friday. Happy Friday to all of you ahead of the weekend, on to the markets in Greater China. The approach is this Asian stocks extending gains as moderating U.S. inflation and a pullback in energy prices, reinforcing bets that the fed will hold rates next month.

The Crosby is heading for a fifth day of gains, potentially testing the 7000 level now. Judy dot coms Hong Kong listed shares in focus as after a massive tumble in 80 hours on its first quarterly revenue decline since it listed in 2014. Meanwhile, chip maker kimchi topping ten set as China's most valuable company. Now, Lenovo stock also hit a record on a forecast of 00 billion in revenue this fiscal year. That's driven by AI.

And we'll get the outlook with the CFO, Winston Cheng, Plus MTR CEO Jenny Young will be joining us as well on shows after first half net income, doubling on strength in the Hong Kong property business. Dave, so much for having a slow Friday. It's a busy one. It's earnings season in full swing of course midweek Wednesday we got Tencent the market punish that even though they're talking about massive more spending in the AI space.

Other companies though are really being rewarded up for their I spend. Lenovo I think is the one that we're really circling right now. No longer just a legacy PC maker. They are going headlong into AI infrastructure and they are being rewarded. Look at their stock price so far this year, massively rewarded. And I think the afternoon session when they reported during the lunch break was really clear that the market had already made up its mind what type of company Lenovo was, right?

Still trying to figure out what Tencent is. Is it more on the consumer side of the weakness? Has it done and told us enough about the AI story? I think to the point we just talked about. I just started the show. JD.com is another one which is still clearly a consumption story that's showing up in numbers. So we'll see what happens with that stock as we go into the open today. A lot of earnings to get into. Let's have a look at where we are in equity market.

So you have the likes of Commoditized Jeans coming out. Samsonite also came out sick China's biggest brokerage by some measures also coming up with earnings today. So the old AI winners and giants remain the winners so far. Nasdaq futures are pulling back a little bit. Of course it's a memory story which we'll get to in a moment here. When you look at some of these big names across the Asia Pacific, the macro picture dollar yen inching ever closer to 160, we're halfway back.

We've talked about that around midweek. Uh, terrible 30 year option. Well, they got it through. But at a quarter the highest yield back to 2001. The approach to the open today again we talked about JD.com going the opposite way where China practice overnight. This is what we had going into this morning. Alibaba was also down two and a half. JD.com punished over 7% A50 futures coming up on your screens. The ten year ten year yield and dollar China has relatively been in a very tight range, uh, the last ten days or so.

But as you can see, the ten year yield has now peaked again. Uh, testing that's 1.7% hadn't put it down. I mean, there are just so many companies that are proxies to the Chinese economy, whether it's the consumption side of the story, the I build out that we're going to be talking about from yesterday and today going into the weekend, uh, results season looks like it's driving further dispersion within Chinese tech. Semiconductors are booming while the consumer internet space struggles.

Let's bring in market reporter Anthony Stevens to discuss this dynamic and what lies ahead. So what are we watching? Let's start specifically with Chinese tech. Yeah, we had that big data point yesterday passing. Tencent has China's biggest listed company. And you see the leads into today. And it's more of the same right. We saw memory do really well in the US. Sanders Cup double figures dragging the entire ecosystem with it.

Korea is looking a bit more tentative than I would have expected this morning. And that's because local retail is selling. But the leads into memory, into XMP and into the other Chinese memory players are super strong. This compares with a 1.6% discount. Ten areas traded overnight in line with the general weakness around the China Internet space. Right. So Tencent, if anything, is at least a little bit better position than the JD's and mate ones of the well, given that they have already put the foot into the eye though.

But investors, as you say, are not giving them credibility of a complete pure play air name. Right? So that dispersion continues to grow. There is a lot more earnings momentum around the semiconductor space, despite valuations being pretty extreme even by global standards. Right. So the fact that these Chinese companies are coming through on the earnings front, in the case of SM, ICI and have very strong global leads, and that's where SanDisk, the guidance was so impressive.

There's like the cycle is over. There is no cycle. This is structural and it's huge. And we have new contracts that are going to uh, actually solidify pricing and demand here. Right. So it'll be very interesting to see how many trades. And then going into that where we talk about, you know, the JDS, uh, and, and the Babas and the major ones of the world. Yeah. What did Sanders say? Let's get into that. And what's the read through we're seeing currently now?

So they see double digit growth into 2030 that that is a level of visibility that, you know, it's very rare. Um, they've also they also S&P is like top performing on them at 500% plus. And so for them to come out and be that confident. The second thing was their estimated demand on flash, right. That it was on another level. There's literally a slide where they gray out all the years before 2025 as irrelevant. And the next thing is that they've pioneered what they call not very, uh, creatively, the new business model in M, where they look to lock down prices for multiple years.

This is a very different vibe change. Lastly, they are moving on to high bandwidth flash and they have meters partnership with that. So the space is not only earning a lot of money now the technology progress is very rapid and that's got people really excited. Let's shift that then to like the chip makers that you mentioned, Smic as well as Hwa. There's some dispersion there between the two in their earnings. What can you see.

And that speaks to where valuations are versus expectation. Right. So as bullish as the story is you can't afford to miss right. And we saw that in the US as well. We had Celebrezze miss massive drop. Uh Cisco came in a little bit light on the top. And it also dropped. And we're probably going to see a little bit of that versus in human grace. You know how hungry this is. Probably not going to get much grace from the market today.

In in in missing the top end of estimates. But the picture is great. You just need to execute. There we go. Maybe a fall from grace. We'll see. We'll see. As far as the market reaction is concerned there. The dispersion the nuance between the two. Anthony Stevens fantastic there. As we go into the session today, 23 minutes away of one stock, where of course tracking as well as JD.com over 7% drop in 80 hours overnight.

Get this since becoming a public company in 2014, the company reported the first quarterly year in year decline on the top line in revenue that's coming up on your screens very shortly. In terms of the visual iteration of how it actually looks is growing divide between improving profits and really subdued underlying demand in China. Catherine Lim, our senior consumer and tech analyst, Bloomberg Intelligence, joining us right now, uh, for her take, uh,