Tax-hike rumors rattled the market; Dongpeng Beverage's debut was 'lukewarm' | Daily News Recap

0203 | Dolphin Research Focus:

🐬 Macro / Sector

1) Hong Kong stocks plunged intraday on unconfirmed chatter about tighter criteria for high-tech enterprise status and higher tax rates for internet and gaming, on top of the telecom VAT change already in effect. The rumor snowballed, triggering a broad selloff in tech, internet, and gaming, compressing multiples and amplifying panic, with capital rotating to safety in the near term. For our quick take, see 'China ADRs: Tax-hike rumor and the logic behind the false alarm'.

🐬 Single Stocks

1) SpaceX

SpaceX completed an all-stock acquisition of Musk's xAI, valuing the combined entity at approx. $1.25tn. The roll-up spans launch services, Starlink, xAI's Grok LLM, and the X social platform, pushing a 'space data center' strategy to tackle AI compute scaling constraints around power and cooling via LEO servers. This is a key step in building a vertically integrated innovation engine, though technical feasibility and capex intensity remain the core hurdles. Near term, the merger could accelerate SpaceX's path to IPO.

2) $EASTROC(09980.HK)

Eastroc Beverage debuted on HKEX at HK$248 per share, raising HK$10.141bn, becoming the first A+H listing in China's energy drink space. Dual listing validates global investor interest and provides capital for its overseas push, while localization could help break into foreign markets. However, the much-watched IPO failed to pop, with shares quickly breaking issue price post open. For our prior deep dives, see 'Eastroc: Taking on Red Bull and Monster — how did the local 'energy water' stage a comeback?' and 'Eastroc Beverage: After energy drinks, where is the next RMB 10bn playbook?'.

3) $Alphabet(GOOGL.US)

Waymo raised $16bn in a round led by top-tier institutions with Alphabet participating, nearly doubling its post-money valuation vs. the prior round. Proceeds will fund expansion, fleet deployment, and internationalization; its Robotaxi service now covers six U.S. cities, with plans to enter London and Tokyo in 2026. This is the largest financing in autonomous driving to date, underscoring capital markets' confidence in commercialization and accelerating global scale-up.

4) Dolphin Research on earnings and call Trans

PLTR: 'Palantir: Another strong print — can the AI apps leader reclaim its peak?'. 'Palantir (Trans): From 'dispelling doubts' to 'demanding faster deployment' vs. two years ago'.

Disney: 'Disney: Volatility during integration is normal — waiting for new growth to ignite'

🐬 Top Gainers

A-shares: Cloud & data centers, semi materials & equipment, construction machinery & heavy transport equipment.

HK: System software, diversified metals & mining, computer & electronics retailers.

U.S.: Trucking, storage hardware & peripherals, construction machinery & heavy transport equipment.

🐬 Watchlist for Tomorrow

1) AMD and Uber report earnings. Dolphin Research will track and publish analysis.

2) U.S. Jan S&P Global Services PMI (final). U.S. Jan ISM Non-Manufacturing PMI.

Risk disclosure and statements: Dolphin Research Disclaimer and General Disclosures