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Earnings reports from Chinese giants raise concerns! Is it a good time to buy on dips？
港股窩輪Jenny
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After Tencent's earnings, it broke below multiple moving averages. Are there hidden rebound signals on the short-term technical side?

$TENCENT (00700.HK)$
After the earnings announcement, the market reaction was muted, with the stock price dropping by 4.09% to open at 528 yuan, followed by continued pressure. Observing the current trend, the stock price has clearly broken below several important moving averages such as the 10-day, 30-day, and 60-day lines, forming a bearish pattern. This indicates significant short-term adjustment pressure, and subsequent movements will require time to consolidate in search of a new equilibrium.
Earnings data shows that the group achieved a net profit attributable to shareholders of 224.842 billion yuan (RMB) in 2025, growing 15.9% year-on-year. Calculated under non-International Financial Reporting Standards (non-IFRS), annual net profit increased 16.6% year-on-year to 259.626 billion yuan. The board simultaneously declared a final dividend of 5.3 yuan per share.
At the earnings conference held on March 18, Tencent President Martin Lau revealed that due to factors like GPU supply constraints, the group’s capital expenditure for 2025 was lower than expected. If supply conditions allow in 2026, the company plans to increase capital expenditures, particularly doubling investments in artificial intelligence and large models. As a result, the scale of stock repurchases may be appropriately reduced, while the existing dividend policy will remain consistent. The group will dynamically balance long-term business investments with shareholder returns.
After Tencent's earnings, several major banks lowered their target prices but maintained positive ratings for Tencent. BNP Paribas cut its target price from 825 yuan to 800 yuan, maintaining an 'Outperform' rating; Bernstein reduced its target price from 820 yuan to 790 yuan, maintaining an 'Outperform' rating; Credit Suisse cut its target price from 770 yuan to 750 yuan, maintaining a 'Buy' rating; J.P. Morgan lowered its target price from 750 yuan to 690 yuan, maintaining an 'Overweight' rating; Morgan Stanley cut its target price from 735 yuan to 650 yuan, maintaining an 'Overweight' rating; only Citi slightly raised its target price from 783 yuan to 787 yuan, also maintaining a 'Buy' rating.
Affiliate company $TME-SW (01698.HK)$ has faced both a downgrade in its rating and target price. HSBC lowered the target price significantly from 91.65 yuan to 52.65 yuan, maintaining a 'Hold' rating; J.P. Morgan cut the target price from 120 yuan to 48 yuan, and downgraded the rating from 'Overweight' to 'Neutral'.
In terms of key price levels, Tencent’s primary support is currently at 529 yuan, with secondary support at 502 yuan. If the stock price can stabilize after retreating to these areas, it will form a short-term defensive base. On the upside resistance, the first resistance level is at 566 yuan, followed by a secondary resistance at 599 yuan. If the stock price can break through the 566-yuan mark, coupled with increased trading volume, it may open up further upside potential, challenging higher resistance levels.
In terms of technical indicators, the Relative Strength Index (RSI) is currently at 53 in the neutral zone, while stochastic oscillators, Williams %R, and other oscillation indicators are issuing neutral signals, reflecting that the stock price will likely remain in a consolidation phase in the short term, lacking one-sided breakout momentum. However, it is worth noting that the Moving Average Convergence Divergence (MACD) has issued a buy signal. The overall signal from comprehensive technical indicators clearly points to 'Buy' with a strength score of 8, indicating potential upward momentum brewing. Additionally, momentum oscillators and Rate of Change indicators also show buy signals, further strengthening the short-term bullish pattern. Although indicators like ADX and Psychological Line remain neutral, the resonance signal from core momentum indicators deserves market attention.
$TENCENT (00700.HK)$ After the earnings announcement, the market reaction was muted, with the stock price dropping by 4.09% to open at 528 yuan, followed by continued pressure. Observing the current trend, the stock price has clearly broken below several important moving averages such as the 10-day, 30-day, and 60-day lines, forming a bearish pattern. This indicates significant short-term adjustment pressure, and subsequent movements will require time to consolidate in search of a new equilibrium. Earnings data shows that the group achieved a net profit attributable to shareholders of 224.842 billion yuan (RMB) in 2025, growing 15.9% year-on-year. Calculated under non-International Financial Reporting Standards (non-IFRS), annual net profit increased 16.6% year-on-year to 259.626 billion yuan. The board simultaneously declared a final dividend of 5.3 yuan per share. At the earnings conference held on March 18, Tencent President Martin Lau revealed that due to factors like GPU supply constraints, the group’s capital expenditure for 2025 was lower than expected. If supply conditions allow in 2026, the company plans to increase capital expenditures, particularly doubling investments in artificial intelligence and large models. As a result, the scale of stock repurchases may be appropriately reduced, while the existing dividend policy will remain consistent. The group will dynamically balance long-term business investments with shareholder returns. After Tencent's earnings report, several major banks lowered their target prices but maintained positive ratings for Tencent. BNP Paribas cut its target price from 825 yuan to 800 yuan, maintaining an 'Outperform' rating; Bernstein reduced its target price from 820 yuan to 790 yuan, maintaining an 'Outperform'...
$TENCENT (00700.HK)$ After the earnings announcement, the market reaction was muted, with the stock price dropping by 4.09% to open at 528 yuan, followed by continued pressure. Observing the current trend, the stock price has clearly broken below several important moving averages such as the 10-day, 30-day, and 60-day lines, forming a bearish pattern. This indicates significant short-term adjustment pressure, and subsequent movements will require time to consolidate in search of a new equilibrium. Earnings data shows that the group achieved a net profit attributable to shareholders of 224.842 billion yuan (RMB) in 2025, growing 15.9% year-on-year. Calculated under non-International Financial Reporting Standards (non-IFRS), annual net profit increased 16.6% year-on-year to 259.626 billion yuan. The board simultaneously declared a final dividend of 5.3 yuan per share. At the earnings conference held on March 18, Tencent President Martin Lau revealed that due to factors like GPU supply constraints, the group’s capital expenditure for 2025 was lower than expected. If supply conditions allow in 2026, the company plans to increase capital expenditures, particularly doubling investments in artificial intelligence and large models. As a result, the scale of stock repurchases may be appropriately reduced, while the existing dividend policy will remain consistent. The group will dynamically balance long-term business investments with shareholder returns. After Tencent's earnings report, several major banks lowered their target prices but maintained positive ratings for Tencent. BNP Paribas cut its target price from 825 yuan to 800 yuan, maintaining an 'Outperform' rating; Bernstein reduced its target price from 820 yuan to 790 yuan, maintaining an 'Outperform'...
Within two trading days after March 12, Tencent's underlying stock accumulated an increase of 1.1%, with corresponding products recording gains across the board as the underlying rose. $GJTENCT@EC2607A.C (23121.HK)$ An increase of 19%, $BI#TENCTRC2612K.C (62650.HK)$ 、 $UB#TENCTRC26076.C (59949.HK)$ The increase was 16% for both, $BITENCT@EC2608E.C (26418.HK)$ and a 14% increase,
$TENCENT (00700.HK)$ After the earnings announcement, the market reaction was muted, with the stock price dropping by 4.09% to open at 528 yuan, followed by continued pressure. Observing the current trend, the stock price has clearly broken below several important moving averages such as the 10-day, 30-day, and 60-day lines, forming a bearish pattern. This indicates significant short-term adjustment pressure, and subsequent movements will require time to consolidate in search of a new equilibrium. Earnings data shows that the group achieved a net profit attributable to shareholders of 224.842 billion yuan (RMB) in 2025, growing 15.9% year-on-year. Calculated under non-International Financial Reporting Standards (non-IFRS), annual net profit increased 16.6% year-on-year to 259.626 billion yuan. The board simultaneously declared a final dividend of 5.3 yuan per share. At the earnings conference held on March 18, Tencent President Martin Lau revealed that due to factors like GPU supply constraints, the group’s capital expenditure for 2025 was lower than expected. If supply conditions allow in 2026, the company plans to increase capital expenditures, particularly doubling investments in artificial intelligence and large models. As a result, the scale of stock repurchases may be appropriately reduced, while the existing dividend policy will remain consistent. The group will dynamically balance long-term business investments with shareholder returns. After Tencent's earnings report, several major banks lowered their target prices but maintained positive ratings for Tencent. BNP Paribas cut its target price from 825 yuan to 800 yuan, maintaining an 'Outperform' rating; Bernstein reduced its target price from 820 yuan to 790 yuan, maintaining an 'Outperform'...
Investors who are optimistic about Tencent's future performance can pay attention to two call warrants. Among them, $BITENCT@EC2608E.C (26418.HK)$ offers approximately 8.6 times leverage with a strike price of 629.38 yuan, characterized by relatively low premium, making it suitable for investors looking for a mid-term rebound while aiming to control costs. Another option is $GJTENCT@EC2607A.C (23121.HK)$ , which offers about 10 times leverage with a strike price of 622.72 yuan. Its premium and implied volatility are the lowest among similar products, effectively reducing time value decay and volatility impact, making it more attractive for bullish strategies seeking leveraged efficiency.
If investors are bearish on the market outlook, they may consider put warrants for hedging or as a bearish deployment strategy.$UBTENCT@EP2606A.P (21984.HK)$ and $BITENCT@EP2606A.P (23122.HK)$Both offer approximately 9.6x leverage, with the same strike price of HKD 499.8, and relatively low premiums, providing investors with a cost-effective tool to hedge against downside risk.
For investors seeking lower premiums, direct tracking of the underlying stock’s performance, and stop-loss mechanisms, bull-bear certificates are another option. For short-term rebound strategies, attention can be focused on$BI#TENCTRC2612P.C (58270.HK)$ and $UB#TENCTRC2608Y.C (55855.HK)$, which have respective stop-loss levels at HKD 510 and HKD 508, offering leverage of approximately 10.4x and 11x, with relatively low premiums. This suits investors who anticipate the stock price will stabilize within the support range of HKD 502 to HKD 510 before rebounding. Conversely, for those bearish on the outlook,$UB#TENCTRP2812L.P (58047.HK)$ and $BI#TENCTRP2812D.P (57847.HK)$with stop-loss levels at HKD 580 and HKD 585 respectively, provide high leverage of about 19.7x and 15.7x, allowing investors to efficiently capture adjustment movements when the stock price faces resistance.
$TENCENT (00700.HK)$ After the earnings announcement, the market reaction was muted, with the stock price dropping by 4.09% to open at 528 yuan, followed by continued pressure. Observing the current trend, the stock price has clearly broken below several important moving averages such as the 10-day, 30-day, and 60-day lines, forming a bearish pattern. This indicates significant short-term adjustment pressure, and subsequent movements will require time to consolidate in search of a new equilibrium. Earnings data shows that the group achieved a net profit attributable to shareholders of 224.842 billion yuan (RMB) in 2025, growing 15.9% year-on-year. Calculated under non-International Financial Reporting Standards (non-IFRS), annual net profit increased 16.6% year-on-year to 259.626 billion yuan. The board simultaneously declared a final dividend of 5.3 yuan per share. At the earnings conference held on March 18, Tencent President Martin Lau revealed that due to factors like GPU supply constraints, the group’s capital expenditure for 2025 was lower than expected. If supply conditions allow in 2026, the company plans to increase capital expenditures, particularly doubling investments in artificial intelligence and large models. As a result, the scale of stock repurchases may be appropriately reduced, while the existing dividend policy will remain consistent. The group will dynamically balance long-term business investments with shareholder returns. After Tencent's earnings report, several major banks lowered their target prices but maintained positive ratings for Tencent. BNP Paribas cut its target price from 825 yuan to 800 yuan, maintaining an 'Outperform' rating; Bernstein reduced its target price from 820 yuan to 790 yuan, maintaining an 'Outperform'...
Despite Tencent's dual revenue growth, its share price plummeted. What do you think the market is concerned about? Tencent plans to at least double its AI investment. Do you believe the AI business could become its next growth driver? Feel free to share your thoughts in the comment section. For more market analysis, stay tuned to 'HK Stock Warrants Jenny' for daily updates!
Reminder: This article does not constitute any investment advice.
This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We are not responsible for any loss or damage caused by reliance on the information in this article. Technical analysis only shows whether certain technical conditions are met; a comprehensive assessment of asset performance should be conducted using additional data. Decisions to trade should not be based solely on this article. Please note that past performance is not indicative of future results.
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