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The Hang Seng Index has been in an uptrend this year as global investors rotated to equities. It jumped to the year-to-date high of $25,750, much higher than the 2023 low of $14,515. Explore what to expect this week as the top companies publish their earnings.

Tencent (TCEHY)

The main catalyst for the Hang Seng Index will be the upcoming earnings that comes out this week. Tencent Holdings, the $666 billion company, will be the first one to watch. 

The Tencent stock price was trading at $560 on Friday, up by over 207% from the 2022 lows. It has jumped to the highest level since March 2021 as Chinese tech companies rebound. 

Tencent’s business has been booming, helped by its robust AI capabilities. Its most recent results showed that its revenue rose by 13% to $25.1 billion, while the gross profit jumped by 20% to $14 billion. Like other tech companies, Tencent’s capital expenditure rose by 91% in Q1.

Alibaba (BABA)

Alibaba is the other top Hang Seng company that will publish its financial results this week. Its numbers come at a time when its stock growth has stalled at $120, which is lower than the year-to-date high of $145. 

The most recent results showed that Alibaba’s revenue rose by 7% in the last quarter, helped by its Taobao and TMall Group, whose revenue jumped by 12% during the quarter. Alibaba International Digital Commerce revenue rose by 22% in Q1.

The main catalyst for the Alibaba stock price will be its Cloud Intelligence Group, which houses its artificial intelligence (AI) business. Its revenue rose by 18% in Q1 as the AI segment maintained a triple-digit growth momentum.

JD.com (JD)

JD is another top Hang Seng stock to watch as it publishes its numbers on August 14. These numbers come as the JD stock price remains under pressure after falling by 32% from its highest point this year.

The recent results revealed that JD’s net revenues rose by 15% in the first quarter. This revenue was driven by its products division, which made over RMB 958 billion, and its service, which made RMB 230 billion.

JD stock price has pulled back as investors reacted to its spending on the new food delivery industry, which has affected its profitability. Chinese regulators have been forced to intervene to reduce the price war in the industry. 

NetEase (NTES)

NetEase, a top Chinese gaming company worth over $84 billion, will be one of the Hang Seng stocks to watch. The company owns games like Mystic Mayhem, Once Human, Marvel Duel, and Lost Light. 

NetEase stock price has jumped by over 158% from its lowest level in 2022, making it one of the best-performing Hang Seng Index stock. 

The most recent numbers showed that its revenues rose by 7.4% in Q1 to RMB28.8 billion ($4 billion), with its games jumping to $3.3 billion and its Youdao and NetEase Cloud Music falling to $178 million and $256 million. 

The other top Hang Seng Index stocks to watch this week are Kweichow Moutai, Lenovo, Weibo, China Telecom, and Sands China. 

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