A-share pre-market report | Trump arrived in Beijing to begin his visit to China, two major Internet giants collectively increasing their investment in AI capital.

Pre-market news 1. US President Trump arrives in Beijing to begin his visit to China Type: Macro Sentiment impact: Positive On the evening of May 13th, US President Trump arrived in Beijing by special plane for a state visit to China from May 13th to 15th. This is the second face-to-face meeting between the leaders of China and the US since they met in Busan last October, and it is also the first visit by a US president to China in 9 years. It is worth mentioning that Huang Renxun, CEO of NVIDIA, the world's leading AI chip company, boarded "Air Force One" in Alaska at the last minute to visit China with Trump. 2. Mining power industry heralds good news! Tencent and Alibaba collectively announce further increase in AI capital spending this year Type: Industry Sentiment impact: Positive Tencent's revenue in the first quarter increased by 9% year-on-year, while Alibaba's revenue increased by 3%. The two tech giants released new signals on AI capital expenditures at the performance meeting. Tencent stated that the demand for AI-related services is continuing to grow, and capital spending this year will increase compared to last year, with more domestic chips being put into use in the second half of the year. Alibaba CEO Wu Yongming said that looking at the future five-year goal, the future investment in AI infrastructure will far exceed 380 billion. 3. Tech giants support new highs in US stocks, chip stocks rebound strongly, NVIDIA, Google, Apple all hit new highs Type: Market Sentiment impact: Positive On Wednesday, driven by the strong rebound of chip stocks, both the S&P 500 and Nasdaq indices hit new historical highs. The world's top three companies, NVIDIA, Google, and Apple all hit new highs. Tech companies such as NVIDIA and Tesla's CEOs accompanied Trump's business delegation to China, boosting market expectations for related business prospects. Popular Chinese concept stocks rose across the board, with the Nasdaq Golden Dragon Index rising by nearly 4% and Alibaba up more than 8%. 4. Morgan Stanley raises China stock index target price across the board, maintaining overweight ratings on real estate and essential consumer goods Type: Market Sentiment impact: Positive Morgan Stanley released its outlook on the Chinese stock market. The newly set target prices for the second quarter of 2027 are as follows: Hang Seng Index 28,400 points, MSCI China Index 91 points, Hang Seng H-Share Index ETF 9,900 points, and Shanghai and Shenzhen 300 Index 5,400 points, with implied upside potential of 8%, 12%, 11%, and 11% respectively. In terms of industry preferences, the institution strongly recommends industries with core assets in the upstream, such as materials and energy. Maintain a moderate allocation to financial and high dividend stocks, and maintain an overweight rating on real estate and essential consumer goods.