【Zhenzhuo Institutional View】Tech Industry's AI Cash Burn in Focus, S&P Edges Up, Stock Connect Sees Net Outflow of HKD 1.89 Billion on Monday

The S&P 500 index recently closed at 6,964 points, up 0.47%. The hottest topic in the current market is undoubtedly the white-hot "AI arms race" among tech giants. This wave of cash-burning reflects companies' anxiety about losing their leading positions, and investor sentiment has shifted from tech frenzy to strict scrutiny of profit margins and payback periods. With the tech industry's total spending this year expected to reach $650 billion, surpassing Sweden's GDP, investors need to be wary of short-term valuation pressure from overbuilding. This indicates that U.S. stocks will enter a period of high volatility, as the market reassesses the long-term value and potential reshuffling risks of AI infrastructure investments.

Stock Connect (for Hong Kong) recorded a net outflow of HKD 1.89 billion on Monday. Among them, $TENCENT(00700.HK) recorded the largest net inflow, reaching HKD 1.8 billion, followed by $CSOP HS TECH(03033.HK); $TRACKER FUND(02800.HK) recorded the largest net outflow, reaching HKD 4.55 billion, followed by the Hang Seng China Enterprises Index (02828.HK).

Source: KGI Securities