A-shares evening hot topic | Tencent disclosed its performance in 2025: management clearly stated that investment will be increased, with AI investment doubling.

1. Extend for another 30 years! Our country is fully implementing the province-wide pilot program for the extension of rural land contracts after the second round of expiration March 18, "Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on the further extension of the second round of land contracts for another 30 years" was released to the public, making specific arrangements for the pilot program for extending land contracts for another 30 years after the second round of land contracts expire. The opinions mainly include overall requirements, prudent and orderly implementation of the extension pilot, strengthening the protection of farmers' land contract rights, strengthening the management of rural land contract contracts, strengthening organizational leadership, and other 5 parts, a total of 15 specific measures. In terms of overall requirements, the opinions emphasize adhering to collective ownership, insisting on farmers' household contracting operations, maintaining the status of farmers as the main body, and maintaining rural social stability. 2. CSRC: Resolutely eliminate "roadblocks" and "stumbling blocks" that impede the reform and development of the capital market On March 17, the China Securities Regulatory Commission (CSRC) held a meeting on comprehensive and strict governance of the party and discipline inspection work in 2026, deploying six key tasks. The meeting clearly stated that it will strengthen supervision around the implementation of major decisions and deployments of the CPC Central Committee and the capital market tasks during the "Fifteenth Five-Year Plan" to ensure the effectiveness of reforms. The meeting proposed to carry out correct performance view education, resolutely rectify deviations in work related to serving the real economy, and continue to thoroughly rectify problems such as the "four winds", inaction, and misconduct. The meeting emphasized the further deepening of corruption governance in key areas, intensifying the handling of cases, earnestly investigating and dealing with behaviors that disrupt market order and harm the interests of investors, and resolutely eliminating the "roadblocks" and "stumbling blocks" that affect the reform and development of the capital market. The meeting also required the improvement of the supervision and restraint mechanism for public power operation, focusing on plugging regulatory loopholes, and continuing to deepen the standardized, legal, and regular construction of discipline inspection and supervision work to forge a strong team. 3. Tencent reveals 2025 performance management clearly increases investment: AI investment will double On March 18, Tencent released the fourth quarter and full-year performance report for 2025. The full-year revenue increased by 14% year-on-year, and the non-IFRS net profit attributable to equity holders increased by 17% year-on-year, with significantly faster growth than the previous year. The profitability continued to improve, with the full-year gross profit margin rising from 53% to 56%, mainly benefiting from the increase in the proportion of high-margin businesses and cost optimization. In the fourth quarter, Tencent achieved revenue and net profit growth for the fifth consecutive quarter: revenue of 194.4 billion yuan, a 13% increase year-on-year; non-IFRS net profit attributable to equity holders of 64.694 billion yuan, a 17% increase year-on-year. The growth rates exceeded market expectations, providing strong support for AI strategic layout. Regarding Tencent's future investment in AI, Tencent President Liu Chiping stated that Tencent invested 18 billion yuan in new AI products last year and will double it this year. "Our core business is very stable and continues to grow, which can support increased investment." 4. The highest price increase of 30%! After Alibaba Cloud announced a price increase, Baidu also issued an announcement about adjusting AI computing power prices On March 18, Alibaba Cloud and Baidu Intelligent Cloud announced price increases on the same day. The core reason for the price increase for both parties is the global surge in demand for AI, mismatch between supply and demand for computing power, and significant increases in core hardware costs such as chips and servers, leading to necessary price adjustments to ensure service stability and prevent degradation. In addition, it is reported that ByteDance's cloud provider Volcano Engine has not disclosed a price increase action yet, but to reasonably allocate resources to ensure the user experience of its subscription users, the Volcano Engine Coding Plan has made phased adjustments to some promotional activities, suspending first-purchase benefits. Since the beginning of this year, several cloud providers have announced price increases, including AWS, Google Cloud, Tencent Cloud, among others. This wave of price increases by multiple global manufacturers is the result of a comprehensive impact of factors such as industry demand, cost, supply, and is also a turning point for the maturing commercial use of AI infrastructure. 5. Shanghai Stock Exchange: Help further attract more overseas long-term funds into the market On March 16, the Shanghai Stock Exchange held the first event in this year's "Attracting Long-Term Capital" series online roadshow. This event focused on the "Two Sessions" of the National People's Congress and the Chinese People's Political Consultative Conference, sharing the latest outlook on the macro-economy and capital markets through enhanced communication with international investors. The event mainly targeted long-term allocation-oriented foreign investment, with representatives from nearly 40 foreign institutions such as asset management companies, custodian banks, and securities firms from Europe, America, Asia-Pacific, the Middle East, etc., actively participating. Given the complex and changing international situation recently, China's economic resilience has been highlighted, and the attractiveness and safety of Chinese asset investments continue to increase. Against this background, the Shanghai Stock Exchange held a special international roadshow event for the "Two Sessions", timely conveying positive signals released by the "Two Sessions" to international investors, showcasing the positive performance of China's macro economy and investment opportunities in the capital market, and helping to further attract more overseas long-term capital into the market. 6. Trump says visit to China confirmed to be postponed by five to six weeks, Ministry of Foreign Affairs responds On March 18, Foreign Ministry spokesperson Lin Jian presided over the routine press conference. A Reuters reporter asked about the confirmation by US President Trump to postpone his visit to China, saying that the meeting with the Chinese side will take place about five to six weeks later, and he mentioned that the Chinese side has accepted this. Does China agree to this timing arrangement? In addition, given that this moves have given both sides more time to prepare for the summit meeting, will China take this opportunity to push for more substantial discussions between the leaders of the two countries during the meeting? Lin Jian stated that summit diplomacy plays an irreplaceable strategic leading role in China-US relations, and both China and the US will continue to maintain communication on President Trump's visit to China. 7. Samsung strike confirmed, impact wave on chip market looming According to a report by Yonhap News Agency, the Samsung Electronics union announced on the 18th that the collective action resolution has been approved by a 93.1% majority vote since 9th of this month, and the union will hold a general strike in May. Zhu Keli, founding dean of the National Research Institute of New Economy, stated that the strike will undoubtedly have a significant impact on Samsung's chip production, especially affecting the release of capacity for DRAM and NAND flash memory chips. At the same time, its advanced process wafer foundry business may also experience capacity fluctuations due to factors such as human resource allocation and production coordination. Zhu Keli pointed out that Samsung's capacity fluctuations will directly affect the stocking pace of related supply chains, bringing some pressure to short-term procurement in downstream industries such as consumer electronics, servers, and artificial intelligence hardware. 8. Beijing: Support expansion of businesses such as star and rocket manufacturing and satellite operations The General Office of the Beijing Municipal People's Government issued "Several Measures to Promote Stable and Progressive Economic Development in Beijing by 2026," proposing to strengthen future industries. Deepen the growth mechanism of investment in future industries, with the proportion of funds allocated to future industries in key industries such as technology, economy, and information technology not less than 20%. Discover and cultivate more than 100 "Winning Future" companies and provide support through the "Changing to Investment" policy. Gradually enhance the competitiveness and standards of hot competitions such as the World Humanoid Siasun Robot & Automation Games to promote research and application through competition. Support the expansion of businesses such as star and rocket manufacturing, satellite operations, and provide insurance premium subsidies to commercial aerospace insurers according to relevant policies. Strengthen services for the declaration of new products in the field of synthetic bio-manufacturing such as new food ingredients and raw materials. Additionally, the market positively focuses on investment opportunities in the chemical industry. The announcements include a price increase from the chemical giant BASF, which may reach up to 30% for various products in Europe due to the surge in raw materials, energy, and logistics costs. The report highlights the impact of the global chip market, with a case study on Samsung's strike leading to disruptions in chip production. Mention of Beijing's support for businesses in the aerospace industry such as the re-flight mission of the Blue Arrow Aerospace's "Zhuque II" rocket on March 19 and a report on the rise in prices of titanium dioxide. Meanwhile, the investment by Huawei's Habo in consumer-level 3D printing developer Mochips Technology indicates a move towards embracing innovative technology in the market. Negative announcements in the market include shareholders reducing their stake in Wells Advanced Materials, Zbit Semiconductor, and Zhejiang Tenchen Controls, as well as legal freezes on stocks of Shijihengtong Technology and Smartgiant Technology. This article was originally published on "Tencent Self-selected Stock" and edited by GMTEight: Xu Wenqiang.