Weibo Reports Mixed Q4 Results, Recent Outperformers Sell Off

**Key News**

Earlier today, Asian markets experienced a mix of ups and downs, with Malaysia and Pakistan seeing gains, while Vietnam and Taiwan struggled. The uncertainty surrounding U.S. tariffs continues to impact global markets, causing China’s markets to follow the downward trend from yesterday. However, mainland investors continued their buying spree, albeit at a slower pace compared to the near-record levels seen yesterday. There was a slight shift in investments as value sectors saw gains, particularly in gold miners and oil, driven by geopolitical tensions and positive outlooks on commodity and rare earth prices. Government bonds saw a sell-off, leading to slightly higher yields.

**Weibo Q4 Earnings Overview**

Weibo, the prominent social media and online advertising platform, released its Q4 and full-year 2025 results. The company reported a slight miss on revenue, which came in at $456 million, a 1.5% drop. However, net income exceeded expectations at $92.8 million, with earnings per share (EPS) at $0.39. While user growth was a bright spot, advertising revenue declined year over year, reflecting the challenging macroeconomic environment that’s also affecting companies like Baidu. Increased competition from short video platforms and AI-driven firms like Alibaba adds to the pressure. Despite these challenges, Weibo announced a significant dividend of $0.82 per share, representing a payout ratio of over 40%.

**Electric Vehicle and Market Trends**

The electric vehicle (EV) sector saw a downturn overnight, with Chinese EV stocks sliding in U.S. markets. This comes after a recent rally fueled by positive sales data in China. Other high-performing sectors like AI, robotics, and consumer plays also experienced sell-offs. This correction appears to be driven by profit-taking, a common phenomenon in Chinese markets compared to the U.S. and Europe. Meanwhile, the Securities Daily highlighted the potential for the Chinese yuan (CNY) to strengthen against the U.S. dollar, countering the long-term tariff pressures. This could hint at rising domestic consumption boosting demand for Chinese assets despite trade tensions.

**Hang Seng and Shanghai Performance**

The Hang Seng and Hang Seng Tech indexes ended the day lower, with declines of 0.58% and 1.67%, respectively, on reduced volume. Mainland investors purchased $698 million worth of Hong Kong-listed stocks via Southbound Stock Connect. Energy, Materials, and Information Technology were the top-performing sectors, while Consumer Staples, Consumer Discretionary, and Real Estate lagged. In mainland markets, Shanghai, Shenzhen, and the STAR Board also closed lower, with Energy, Utilities, and Materials leading gains, while Information Technology, Communication Services, and Real Estate underperformed.

**Upcoming Events and Insights**

Join us today, March 13, 2025, at 10 am EDT, for a live webinar on “The Future of Carbon in the Trump Era.” Additionally, don’t miss our latest article, “2025 China Outlook: A Recipe For Re-Rating,” for in-depth analysis on China’s economic prospects. Stay updated on market movements with our insights and expert analysis.

**Market Data Overview**

Yesterday’s market data showed slight fluctuations in currency exchange rates, with the CNY strengthening against the EUR and USD. Government bond yields edged higher, and commodities saw mixed movements, with copper prices dipping and steel prices rising. These factors reflect the ongoing dynamics in global markets, influenced by economic indicators, geopolitical developments, and investor sentiment.