HK Stock Market Move | GDS-SW(09698) rose by over 5%, the company clarifies overseas business IPO rumors, Daiwa significantly raises the company's H share target price.

GDS-SW (09698) rose by over 5%, with an increase of 5.67% to HK$34.5 at the time of publication, with a trading volume of HK$87.05 million. On the news front, GDS-SW (09698) announced that the company has learned from media reports speculating that DayOne (or GDS International) is considering an initial public offering. The company stated that as of the date of this announcement, DayOne has no specific or final plans to conduct an initial public offering. Daiwa released a research report stating that the launch of DeepSeek is a turning point for GDS, as pricing has stabilized. They believe that GDS's monthly service revenue may bottom out and rebound within one to two years. According to estimates, the company's total trading volume in the past six months has reached HK$6 billion. If GDS changes its main listing location to Hong Kong, it may be eligible for inclusion in the Stock Connect program, bringing in more funds. Daiwa upgraded the company's rating from "hold" to "buy" and raised the H-share target price from HK$20 to HK$39.