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Qwen’s ordering feature quietly processed millions of orders over Lunar New Year and much of February, turning text and voice prompts into a direct channel for food delivery, ride-hailing, and other services. Now, <a href="/company/alibaba">Alibaba</a> is looking to take that experience beyond the smartphone and into hardware people can wear throughout the day.
According to 36Kr, citing sources familiar with the matter, Qwen is preparing to enter the hardware space. In 2026, Alibaba plans to launch a lineup of consumer devices embedded with <a href="/industry/ai">artificial intelligence</a>, including glasses, earbuds, and rings, with a global rollout strategy.
Among them, Qwen AI glasses debuted at the 2026 Mobile World Congress, with preorders scheduled to begin today.
To deepen cross-device integration, Alibaba plans to migrate functions currently embedded in the Qwen app, such as food ordering and ride-hailing, onto these wearables, 36Kr reported. The goal is continuity: accessing services with minimal friction, regardless of device.
Alibaba is not alone. Meta, after gaining early traction with its Ray-Ban Meta smart glasses, is reportedly building a broader wearable ecosystem centered on AI glasses. Media reports suggest its pipeline includes earbuds, neural wristbands, and smartwatches.
<a href="/company/openai">OpenAI</a> has also reportedly assembled a hardware team of more than 2,000 people. It is said to be planning multiple consumer hardware releases either later this year or in 2027, spanning categories such as smart glasses, voice recorders, and wearable pins.
In China, <a href="/company/bytedance">ByteDance</a> is also preparing its own glasses and earbuds.
Alibaba has already tested the waters. In 2025, its Quark team released AI glasses, while its DingTalk unit launched an AI-powered voice recording device, DingTalk A1. The next phase, however, appears more centralized and strategic.
That shift is reflected in internal restructuring. In December 2025, Alibaba merged its intelligent information and intelligent connectivity business groups to form a new consumer business group focused on Qwen. The unit now oversees the Qwen app, Quark, AI-driven hardware, and other consumer-facing operations under a unified structure.
Alongside these changes, Alibaba has been optimizing its AI models for on-device deployment.
On February 16, it open-sourced a next-generation large model, Qwen 3.5 Plus. The model reportedly uses 60% less memory while increasing maximum inference throughput by up to 19 times. On pricing, Qwen 3.5 Plus charges as little as RMB 0.8 (USD 0.11) per million tokens in API fees, about one-eighteenth the cost of Gemini 3 Pro, according to company disclosures. Memory footprint and operating cost are key constraints for edge devices, making such improvements strategically significant.
For Alibaba, the move appears to be about more than launching a few new gadgets.
Over the past decade, it has built a broad ecosystem of software, from Alipay to Amap, Taobao, Freshippo (also known as Hema), and Fliggy. What it has arguably lacked is a unifying interface that connects these services through Qwen.
That interface could remain an app. But it could also take the form of wearables that serve as a persistent gateway to Alibaba’s digital ecosystem. Glasses, earbuds, rings, and pendants are established wearable formats. They are lightweight, personal, and potentially always on.
There is also a data dimension. Devices worn throughout the day provide a channel to collect first-person, multimodal data from real-world interactions. For companies like Alibaba, such data could feed back into model training and refinement, creating a self-reinforcing feedback loop that strengthens Qwen over time.
Alibaba may also have structural advantages in hardware. On the infrastructure side, it operates Tongyi, one of the largest open-source model families. It has developed its own chip subsidiary, T-Head Semiconductor, which produces the Zhenwu 810E processor, and runs Alibaba Cloud, one of the world’s largest cloud computing platforms by scale.
On the software side, Alibaba controls platforms across payments, mobility, <a href="/industry/e-commerce">e-commerce</a>, grocery retail, and travel. In theory, AI agents could operate across these verticals within a unified ecosystem.
As Alibaba CEO Eddie Wu has previously noted, AI’s potential may lie less within the confines of a smartphone screen and more in how it navigates and manages the digital world. If Qwen becomes that gateway, Alibaba may be positioned to shape the next dominant interface in everyday life.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3702628151751046">article</a> was written by Qiu Xiaofen for 36Kr.

Alibaba aims to take Qwen from app to wearable interface

East Asia

China

Artificial Intelligence

Deep Tech

<a href="/company/luckin-coffee">Luckin Coffee</a> ended 2025 with another quarter of rapid revenue growth and continued store expansion. The December period also highlighted the tradeoff in its growth model. Delivery-led volume and rapid footprint expansion lifted sales, while higher delivery costs and a weaker subsidy environment compressed margins.
Total net revenues rose 32.9% year-on-year (YoY) to RMB 12.8 billion (USD 1.8 billion) in the fourth quarter, and GMV (gross merchandise value) increased 32.8% to RMB 14.8 billion (USD 2.1 billion).
Growth was broad-based across channels. Revenue from self-operated stores increased 32.0% to RMB 9.6 billion (USD 1.3 billion), while revenue from partnership stores rose 39.2% to RMB 2.9 billion (USD USD 406 million), lifting the partnership contribution to 22.3% of total net revenues.
Luckin’s expansion momentum continued. The company ended the year with 31,048 stores, after 1,834 net new openings in the fourth quarter and 8,708 net new stores for the full year 2025. It also reported 98.4 million average monthly transacting customers in Q4, up 26.5% YoY.
<h3>Margin compression was the quarter’s central tension</h3>
Despite the strong topline, profitability weakened in Q4. GAAP operating income fell 18.5% YoY to around RMB 800 million (USD 112 million), and operating margin declined to 6.4% from 10.5% a year earlier. On a non-GAAP basis, operating margin declined to 7.5% from 11.5%, and non-GAAP net margin fell to 5.5% from 9.8%.
The shift was clear in the cost lines. Luckin’s biggest swing came from delivery. Delivery expenses rose 94.5% YoY to RMB 1.6 billion (USD 224 million), lifting the delivery expense ratio to 13% of net revenues from 9% in the same quarter of the previous year. The company attributed the increase primarily to higher delivery volumes through third-party platforms.
That sensitivity is not company-specific. China’s branded coffee market remains highly promotional, shaped in part by rivals such as Cotti Coffee, which have kept effective pricing aggressive. In this environment, the level of third-party delivery subsidies can quickly affect conversion and determine who absorbs fulfillment costs, either consumers through higher fees or merchants through lower margins. Luckin’s Q4 cost lines suggest more of that burden fell on the merchant side.
There is also broader cost pressure in the background, including higher coffee bean prices, tariffs, and labor-related expenses. Luckin’s disclosure, however, suggests that Q4 pressure was driven more by delivery economics, as its materials cost ratio remained flat. Cost of materials rose 33.2% YoY to RMB 5.1 billion (USD 714 million) but held steady at 40% of net revenues. Store rental and other operating costs increased 32.8% YoY to RMB 3.2 billion (USD 448 million), in line with the company’s larger footprint and higher operating scale.
whereRelatedArticle
The margin pressure was visible in unit economics. Luckin reported self-operated store-level operating profit of RMB 1.4 billion (USD 196 million), described as largely flat YoY, but the self-operated store-level operating margin fell to 15% from 19.8%. In simple terms, Luckin sold substantially more but retained less profit per RMB of sales during the quarter.
One constructive signal was that same-store sales for self-operated stores turned positive. Same-store sales grew 1.2%, improving from a 3.4% decline a year earlier.
In practical terms, that suggests the existing store base stabilized. But the low single-digit rate also implies that most of Luckin’s Q4 growth still came from new store openings, more transacting customers, and channel mix, rather than stronger growth from stores that were already open.
<h3>Strong full-year results help explain the Q4 picture</h3>
For the full year, the business appeared healthier than the Q4 margin alone suggests. For financial year 2025, net revenues increased 43% YoY to RMB 49.3 billion (USD 6.9 billion), and GAAP operating income rose 42.1% YoY to RMB 5.1 billion (USD 714 million), with an operating margin of 10.3%, roughly steady from 2024.
Self-operated same-store sales growth for the year was 7.5%, reversing a steep decline in 2024. Average monthly transacting customers rose 31.1% YoY to 94.2 million.
Those full-year figures suggest Q4 was not a broad demand breakdown. It appears more like a seasonal quarter in which delivery economics and subsidy dynamics had a greater impact.
Luckin reported net cash from operating activities of RMB 600 million (USD 84 million) in Q4, down from RMB 1.6 billion a year earlier.
At the same time, its liquidity buffer expanded. Cash and cash equivalents, restricted cash, term deposits, and short-term investments totaled RMB 9 billion (USD 1.3 billion) at December 31, 2025, up from RMB 5.9 billion (USD 826 million) a year earlier.
<h3>What to watch next</h3>
Investors may spend the coming quarters seeking clarity on whether Q4’s margin compression was largely seasonal and subsidy-related, or whether it reflects a more persistent shift in costs and competition.
Three indicators stand out: whether Luckin’s delivery expense as a percentage of revenue declines from the Q4 level, whether store-level margins at self-operated stores stabilize, and whether same-store sales growth moves beyond the low single digits, which would signal that the expanded store base is generating stronger repeat demand rather than relying primarily on new openings.
Note: RMB figures are converted to USD at a rate of RMB 1 = USD 0.14 for reference, unless otherwise stated. Company disclosures may apply different exchange rates.

Luckin Coffee’s strong Q4 growth offsets margin pressure

Luckin Coffee

Retail

Consumer Economy

Coffee

… Associates who advises on licensing applications.
"The majority were companies in traditional business sectors and had limited experience in crypto, or had no solid idea of what they wanted to do with the license," Ng said, adding that many simply thought of getting involved with stablecoins as a way to draw attention and boost their share price. Such behavior led to a warning to investors from the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission to "exercise caution" regarding corporate stablecoin announcements and rumors.
Three potential stablecoin issuers were ultimately allowed into the sandbox: a unit of Chinese online retailer <a href="/company/jd">JD.com</a>; a joint venture between Standard Chartered Bank, local telecommunications operator HKT and Hong Kong-based gaming and blockchain company Animoca Brands; and RD Technologies, a company founded by former HKMA CEO Norman Chan and backed by Chinese investors, including a unit of ZhongAn Online P&amp;C Insurance.
The full list of license hopefuls has not been made public. Local press reports, though, identified the local unit of Bank of China and Alipay operator <a href="/company/ant-group">Ant Group</a> as among the companies that were planning to submit applications.
Some Chinese companies got cold feet at the last minute after receiving discouraging signals from Beijing. Two and a half weeks before September's Hong Kong application deadline, Ant Group CEO Cyril Han declared at a conference in Shanghai that the company would not be issuing any kind of cryptocurrency. The fully prepared application of a Chinese state-owned bank was also held back, according to a person familiar with the matter.
JD.com's subsidiary in the Hong Kong sandbox is still officially in the running for a license, but it has all but given up, according to a person familiar with the company's decision-making. To some extent, this is the result of a feeling of suffocating oversight in the sandbox from Hong Kong regulators, the person said. Teddy Liu, CEO of the JD.com unit, Jingdong Coinlink Technology Hong Kong, declined to comment on the license application.
Adding to the anxiety of Chinese companies like JD.com, the People's Bank of China explicitly declared in December that <a title="" href="https://asia.nikkei.com/spotlight/cryptocurrencies/china-central-bank-s-crypto-warning-hits-related-hong-kong-shares" target="_blank" rel="noopener">stablecoins cannot be legally used</a> to settle payments, noting it "currently cannot effectively meet the requirements of customer identification and anti-money laundering."
Weeks ago, <a title="" href="https://asia.nikkei.com/spotlight/cryptocurrencies/china-bans-unapproved-issuance-of-yuan-linked-stablecoins-overseas" target="_blank" rel="noopener">the central bank went further</a> in a jointly issued statement with seven other Chinese government bodies:
<blockquote>"No entity or individual, whether domestic or foreign, may issue stablecoins pegged to the [Chinese yuan] overseas."</blockquote>
The two announcements suggest regulators in Beijing concerned about maintaining financial control have outflanked those who argue that China must offer an alternative to dollar-based stablecoins.
"Mainland Chinese authorities aim to rein in potential financial risk spillover from digital asset activities outside of China," Michael Huang, associate director of financial institution ratings at S&amp;P Global Ratings, said on February 13.
Highlighting the PBOC's concerns, Monique Taylor, a global political economy lecturer at the University of Helsinki, wrote after the bank's December announcement that stablecoins "can circulate beyond regulatory oversight, interfere with capital account management and complicate the central bank's control over money supply and settlement. Stablecoins also risk re-dollarizing the digital economy."
Some Chinese officials are also said to worry that stablecoins could distract from the <a title="" href="https://asia.nikkei.com/business/finance/china-starts-paying-interest-on-digital-yuan-in-latest-bid-to-extend-its-reach" target="_blank" rel="noopener">country's official digital currency</a>, the e-CNY, which has caught on less than authorities had hoped. Others remain wary of hidden risks with stablecoins, as reflected in incidents such as the 2022 collapse of South Korean entrepreneur Do Kwon's TerraUSD stablecoin, which had a market cap of USD 18 billion but was not backed by dollar reserves and lost more than 90% of its value when its peg gave way.
While Hong Kong's first stablecoins are now expected to be linked to the US and Hong Kong dollars rather than the yuan, the latest announcement has piled on uncertainty for Chinese companies looking to be involved in the city's rollout, such as RD Technologies' shareholders.
"Companies' stablecoin business plans are now in limbo, because they do not know if they are legal or illegal anymore," a blockchain executive said. "It will take some time before they can clarify with the regulators."
The Chinese regulators' statements also leave unclear the status of Astana-licensed AxCNH, which remains in circulation with a market cap of USD 5.52 million as of February 19. AnchorX, the Hong Kong-based issuer of the stablecoin, did not respond to requests for comment amid the Lunar New Year holidays.
CEO Hill Wang, previously a managing partner at Chinese private equity group Hony Capital, told interviewers last year that AnchorX would apply for a Hong Kong stablecoin license. The company secured rights to the "AxHKD" trademark in Hong Kong in 2024 but it is not clear whether AnchorX went through with filing a stablecoin license application in the city.
Meanwhile, AnchorX remains linked to Beijing-based Hony: Goldstream Investment, a Hony investment arm, holds preferred shares in the AxCNH issuer that can be converted into a 5% stake, according to a stock exchange filing. The stablecoin is based on a blockchain platform developed in China by Conflux Network, which has received funding from the Shanghai government and partnered with state-owned China Telecom.
In any case, even after the license winners are announced, industry players said it could take another four to six months for Hong Kong-issued stablecoins to hit the market, given the need to fix arrangements for custody, distribution and other matters.
There are still "a couple of moving pieces," said Dominic James, a partner with law firm Sidley Austin in Hong Kong.
This article first appeared on <a href="https://asia.nikkei.com/spotlight/policy-asia/hong-kong-s-stablecoin-drive-nears-quiet-climax">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Hong Kong's stablecoin drive nears quiet climax

Fintech

Cryptocurrencies

Hong Kong

Chinese tech group <a href="/company/tencent">Tencent Holdings</a>, one of the world's biggest video game companies by revenue, has amassed a huge portfolio of studios that it is equipping with generative <a href="/industry/ai">artificial intelligence</a> and other tools for growth.
Tencent's game revenue grew to RMB 197.7 billion (USD 28.6 billion at current rates) in 2024, a fourfold increase over a decade earlier. This equals JPY 4.4 trillion, putting it within range of the JPY 4.67 trillion (USD 30.5 billion) in revenue at Sony Group's video game division, the creator of the PlayStation.
The company will continue to explore mergers and acquisitions and also work with overseas studios to bring Chinese games to global users, said James Mitchell, Tencent's chief strategy officer.
Tencent, founded in 1998, offers services including electronic payments, video sharing, video and music streaming, and AI centered around its WeChat app, used by 1.4 billion people.
The company entered <a href="/industry/gaming">gaming</a> about 20 years ago. Then in 2011, Tencent bought US-based Riot Games, famous for its League of Legends online game. This signaled a shift from a domestic, do-it-yourself strategy to a global and open one. Since then, Tencent has made acquisition after acquisition using the profits earned in the huge Chinese market. Games now make up roughly 30% of its revenue.
Tencent has acquired or invested in roughly 230 companies in the video game industry for a total of RMB 157.7 billion in deals, according to Chinese research firm ITjuzi. Its investments in US-based Epic Games and Finland's Supercell are two notable examples.
To get the most out of those investments, "each studio can tap into Tencent's collective knowledge while keeping its own creative independence," said Zhu Yong-yi, vice president of global game business strategy at Tencent. He said the strategy is to support investees in areas such as development and marketing.
"Over time, we see which ones can truly develop their own IPs and become sustainable," Zhu said.
Tencent has gained the knowledge to support these companies by making improvements based on user feedback analysis through its own services, including WeChat. Such insights can raise development efficiency while also increasing the likelihood of creating a hit game. This is partly why the company has teams scattered across China, Europe, and the US.
Tencent helps the studios with overseas expansion, user testing and other efforts. User testing is critical in game development to increase the odds of a hit by refining plots and gameplay. Some studios have their own expertise, Zhu said, while "others rely on [Tencent] for research, user-experience testing or tech support."
This often means in-house assessments in the early stages of development. Then, as the game approaches completion, it is also tested with casual gamers, dedicated fans and influencers.
Tencent also develops generative AI that can streamline tasks such as character creation for game companies. The tech group's AI tools have been used in around 40 games including the hit Game for Peace. One game development team member said the AI is capable of working basically at the same level as a human creator.
The tech group said using generative AI to create character designs can compress a month-long process into just a few hours. The team member said AI is being used solely to complement human creativity, but it lets developers focus on other aspects such as operability.
HSBC has noted Tencent's effective use of AI in attracting users.
The spread of smartphones helped expand the global video game market. Some Japanese startups such as Mixi and GungHo Online Entertainment once rode the same wave, but the combined net profit of Japan's top ten game startups has fallen by nearly 70% from nine years ago. The Japanese market was big enough at the time that they delayed expanding overseas.
Tencent has grown, but two-thirds of its gaming business is dependent on China, and it lacks global IP on par with Nintendo's Mario. That is why Tencent is working hard to build its network outside China.
The Chinese group's free cash flow for April-September totaled RMB 88.7 billion (USD 12.8 billion), leaving plenty for mergers and acquisitions. Zhu said the company plans to "diversify across genres and markets, supporting teams in different styles of games."
Tencent also faces competition from emerging rivals in China, including Chinese companies reaching the global gaming market. These include Century Games with its hit Whiteout Survival, and Mihoyo (Hoyoverse) with its flagship title Genshin Impact.
This article first appeared on <a href="https://asia.nikkei.com/business/companies/tencent-harnesses-m-a-ai-to-fast-track-video-game-development">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Tencent harnesses M&A, AI to fast-track video game development

Gaming

Creative

… a long-term anchor</h3>
Valuation sustainability depends on earnings growth and project sourcing capability. JD Property’s development pipeline is closely linked to JD.com’s ecosystem.
Incubated by JD Logistics in 2007 and operating independently since 2018, JD Property has spent more than a decade serving JD.com’s supply chain network. Through this relationship, it developed operational experience in commerce and logistics flows, resource integration, and regional industrial development.
In 2025, JD Property entered into a partnership with Ririshun Logistics, launching its first joint project in Beijing to improve warehousing, sorting, and distribution efficiency in North China. It also signed an agreement with Ronghui Logistics to support nationwide network expansion and operational upgrades.
As of September 30, 2025, more than 90% of its completed domestic assets recorded occupancy rates above 90%, approximately ten percentage points higher than the average in the new economy segment, according to JLL. Revenue from external customers accounted for 62.5% of its infrastructure solutions segment as of September 30, 2025, compared with negligible levels when it began independent operations in 2018.
The ecosystem linkage allows JD Property to provide services beyond rent collection. By coordinating with JD Industrials, it aggregates procurement demand for in-warehouse hardware facilities to reduce costs. Meanwhile, JD Technology provides traffic flow assessment, vehicle dispatch optimization, and artificial intelligence-driven warehouse monitoring to improve operational efficiency.
<h3>Outlook</h3>
Valuation ultimately depends on the visibility and sustainability of free cash flow.
As Chinese companies expand overseas, supply chain localization and local market integration have become more prominent. JD Property operates at the intersection of this shift, providing logistics and industrial infrastructure to enterprises seeking international growth.
In Hong Kong’s market, few listed platforms focus directly on supporting the global supply chain expansion of Chinese firms. JD Property’s long-term valuation will depend on whether its international footprint, capital recycling model, and ecosystem backing translate into consistent cross-border cash flow generation.
This <a href="https://xueqiu.com/2854806290/376742462">article</a> was adapted based on a feature originally written by Su Da and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.

Can JD Property’s overseas push reshape its IPO valuation story?

JD.com

… consistently outpace the drag from the legacy advertising base at the consolidated level.
Three issues merit attention:
<ol>
<li aria-level="1">First, whether AI cloud infrastructure growth remains durable as enterprise deployments deepen and computing costs fluctuate, especially given Baidu’s emphasis on accelerator subscriptions as a recurring driver.</li>
<li aria-level="1">Second, whether improvements in Baidu’s consumer AI products translate into clearer monetization within its mobile ecosystem.</li>
<li aria-level="1">Third, whether Apollo Go can scale while demonstrating sustained progress in unit economics, making the business more than a long-dated option.</li>
</ol>
For now, Baidu’s message is that its AI transition isn’t speculative. The durability of that thesis will, however, depend on whether its AI revenue compounds quickly enough to outweigh the legacy decline the company is still managing.
Note: RMB figures are converted to USD at a rate of RMB 1 = USD 0.14 for reference, unless otherwise stated. Company disclosures may apply different exchange rates.

Baidu Q4 results show legacy declines offset by AI growth

Baidu

AI Infrastructure

Trip.com Group is stepping up spending to expand its international footprint and inbound tourism strategy, even as it argues that the online travel agency (OTA) model can remain relevant in an era when <a href="/industry/ai">artificial intelligence</a> may reshape how travelers discover and plan trips.
The China-based travel platform reported fourth-quarter net revenue of RMB 15.4 billion (USD 2.2 billion), up 21% year-on-year (YoY), with growth across its core booking categories. Accommodation reservation revenue rose 21% to RMB 6.3 billion (USD 882 million), while transportation ticketing increased 12% to RMB 5.4 billion (USD 756 million). Packaged tours revenue climbed 21% to RMB 1.1 billion (USD 154 million), and corporate travel revenue grew 15% to RMB 808 million (USD 113.1 million).
The quarter also underscored the tradeoffs in Trip.com’s current strategy. Profitability remained solid but declined sequentially, partly due to seasonality. Income from operations was RMB 2.5 billion (USD 350 million), and adjusted EBITDA was RMB 3.4 billion (USD 476 million), implying an adjusted EBITDA margin of 22%, down from 35% in the September quarter.
A larger factor behind the margin shift was higher spending, particularly on marketing. Sales and marketing expenses rose 30% YoY to RMB 4.4 billion (USD 616 million), equivalent to 29% of net revenue. Management framed this not as weakening demand but as a deliberate decision to direct incremental marketing dollars toward international expansion, aiming to sustain user acquisition and bookings outside its home market.
The result is a quarter that reflects not post-pandemic normalization, but a scaling effort on two fronts: expanding cross-border travel flows and defending the platform’s role in the booking stack as technology evolves.
<h3>Building a larger funnel, not just taking share</h3>
Management characterized inbound tourism as a structural growth driver rather than a temporary reopening boost. In its earnings release, Trip.com said it served approximately 20 million inbound travelers in 2025, while overall bookings on its international OTA platform increased by around 60% YoY for the full year.
In practical terms, these metrics point to an effort to expand the platform’s addressable market by strengthening both demand and supply readiness. Management highlighted initiatives to onboard more hotels and attractions into “inbound-ready” services, positioning Trip.com less as a distributor of existing inventory and more as an organizer of inbound capacity.
That strategy carries costs. The quarter’s expense profile shows that Trip.com is reinvesting rather than simply harvesting recovery demand. Product development expenses increased 19% YoY to about RMB 4 billion (USD 560 million) in the fourth quarter, while sales and marketing rose 30%. Together, these figures indicate that expansion is being supported by both product capability and customer acquisition spending.
<h3>Preparing for a shift in how trips are planned</h3>
The earnings call devoted significant attention to a risk that has not yet materially affected financials: the possibility that consumer-facing AI agents could become a primary entry point for travel planning, potentially reshaping traditional search funnels and altering where OTAs capture value.
Management’s argument was straightforward: inspiration may become easier with AI, but completing a bookable itinerary requires real-time inventory and pricing, secure payment systems, guaranteed fulfillment, and post-booking service. These functions depend on deep supply chain integration and operational infrastructure. Even if AI changes how travelers begin planning, Trip.com expects to retain a central role in executing and servicing bookings.
Economically, this amounts to a defense of its take rate. If AI becomes the front door for travel intent, Trip.com aims to remain the transaction and service layer that controls booking execution and customer support, rather than becoming a commoditized backend provider.
<h3>Factors to consider</h3>
Trip.com’s reported earnings were also influenced by investment-related gains, which can distort quarter-to-quarter comparisons. Net income attributable to shareholders was RMB 4.3 billion (USD 602 million) in the fourth quarter, compared with RMB 19.9 billion (USD 2.8 billion) in the third quarter. The company attributed the sequential decline primarily to investment gains recorded in “other income” in the prior quarter.
The key point is not that profits fell in the fourth quarter, but that headline net income can fluctuate significantly based on investment marks, even when underlying operating demand remains stable. Adjusted EBITDA, which grew YoY but reflected seasonality and heavier marketing investment, provides a clearer view of operating performance.
Management also disclosed that it had received notice of a regulatory investigation initiated by China’s State Administration for Market Regulation and said it is cooperating. The company did not specify potential outcomes or quantify the financial impact.
Trip.com ended 2025 with substantial liquidity, including RMB 105.8 billion (USD 14.8 billion) in cash, cash equivalents, restricted cash, short-term investments, and certain deposits and financial products as of December 31, 2025. This balance sheet provides capacity to fund a strategy that prioritizes expansion and technology investment.
The near-term question is whether that spending translates into durable advantages. Investors will likely watch whether international expansion begins to show improving profitability as marketing scales, whether inbound tourism broadens beyond a limited number of corridors through deeper supply integration, and whether Trip.com’s transaction-and-service layer remains defensible if AI-driven discovery accelerates and competition shifts toward fulfillment, service reliability, and partner integration.
Note: RMB figures are converted to USD at a rate of RMB 1 = USD 0.14 for reference, unless otherwise stated. Company disclosures may apply different exchange rates.

Trip.com margins narrow in Q4 as it steps up global expansion

Travel

… Templeton launch Qatar equity fund</h3>
QIA and global asset manager Franklin Templeton have launched a USD 200 million equity fund. It will adopt a daily subscription and redemption mutual fund structure for local and international institutional investors. It will invest in equities listed on the Qatar Stock Exchange, offering active management.
As a cornerstone investor, QIA is contributing capital in both cash and shares. The partners said the launch represents progress under QIA’s active asset management initiative and deepens their long-term cooperation across multiple asset classes, further advancing Qatar’s financial market development.
This <a href="https://mp.weixin.qq.com/s/V_Xo5pNyWgEHaG0utc6-uQ">article</a> was adapted based on a feature originally written and published by Al Shasia. KrASIA is authorized to translate, adapt, and publish its contents.

Middle East weekly: Aito enters the UAE, MGX invests in Anthropic, AED-backed stablecoin secures approval, and more

Saudi Arabia

Qatar

Middle East

Chinese authorities are cracking down on aggressive influencer marketing of investment products, signaling concerns over a stock market frenzy driven by an <a href="/industry/ai">artificial intelligence</a> boom and the government's high-tech ambitions.
Taming a market rally without denting investor appetite will require a delicate balancing act, especially since high hopes for tech breakthroughs are fueled by the government's own policy goals.
Multiple Chinese media reported in late January that the China Securities Regulatory Commission imposed penalties on a fund management company for paying online influencers without proper qualifications to promote their products.
The company, identified as Fund D, "induced investors with incompatible risk tolerance" to buy risky products, according to a CSRC document quoted by media reports. It added that the company "neglected professional compliance in pursuit of short-term growth." The CSRC did not respond to a request for comment.
The action was the latest sign that officials were concerned over excessive market volatility.
In January, 4.91 million accounts were opened to trade mainland-listed shares, the largest monthly increase since October 2024, according to data provider Wind. Investors have flocked to lesser-known <a title="" href="https://asia.nikkei.com/business/china-tech" target="_blank" rel="noopener">tech</a> stocks tied to themes like AI, semiconductors and commercial aerospace.
The benchmark CSI 300 Index, a gauge of heavyweight stocks listed on the Shanghai and Shenzhen stock exchanges, is up a modest 0.7% this year. But the CSI 500 Index, which tracks small and midsize stocks, is up 11.2%. The Science and Technology Innovation Board Composite Index, a benchmark of stocks listed on Shanghai's tech-focused Star Market, has gained 10.5%.
Shares of industrial equipment supplier Wuxi Autowell Technology have gained more than 120% since the start of the year. Those of chipmaker Puya Semiconductor and solar panel component maker Focuslight Technologies have more than doubled. Supcon Technology, a producer of automation equipment, is up by 65%.
An analyst at an international securities firm said the influx of capital into these stocks is partly driven by a lack of other investment options, with yields on government bonds low and property prices falling, rather than expectations of the companies' fundamentals.
Wild swings in commodity prices have also stirred market turmoil. Shenzhen-traded units of a fund investing in silver futures doubled in January, eventually driving up the units' price far above their value implied from silver futures prices. Online tutorials claiming that investors can make a quick profit by purchasing units from the management company and selling them on secondary markets spread online, fueling the frenzy.
The fund manager, UBS SDIC Fund Management, suspended new subscriptions on January 28 "to protect the interests of fund unitholders." The Shenzhen bourse suspended trading by investors it said were engaging in "abnormal trading behavior." Silver futures prices fell sharply around the same time. The fund's units dropped by their daily 10% limit for five straight days on the secondary market.
China's leaders have been supportive of the stock market as a platform to boost their ambitions of achieving greater self-reliance and strength in science and technology. Regulators eased listing requirements for companies in strategic industries and fast-tracked the screening process for companies like chip startup Moore Threads, whose shares jumped fivefold in their trading debut in December.
At the same time, officials have stepped up measures to curb volatility. During a January work conference attended by CSRC chairman Wu Qing, officials vowed to crack down on "excessive speculation and market manipulation" and "resolutely prevent drastic market fluctuations." A key task is managing the expectations of retail investors, who are estimated to account for over 80% of daily trading volume.
"One of the key objectives for the Chinese government is to achieve low volatility, because you want to have low volatility to encourage long-term investment," said Jason Lui, head of APAC equity and derivative strategy at BNP Paribas. "There is a perception that the Chinese equity market always goes through these boom-bust cycles, and when you have high volatility, you may end up attracting investors at the wrong time. Reducing volatility … is a foundation of attracting investors from different profiles and with different time horizons."
Before the crackdown on Fund D, the CSRC fined influencer Jin Yongrong and banned him for three years from the securities market after investigating him for alleged stock market manipulation. Regulators accused Jin of making an illegal profit of over RMB 41 million by using his influence to spread stock recommendations and drive up prices, before selling those shares.
Snowball Finance, a finance-focused social media app, quickly banned Jin's account as well as more than 20 others, although it did not detail how these users might have violated its rules.
In a more direct measure to cool trading activity, the Shanghai, Shenzhen, and Beijing stock exchanges last month raised the deposit ratio for margin trading, the practice of borrowing money to bet on a stock, from 80% to 100%.
Exchange-traded funds seen as favored by the so-called "national team" of government-backed investors also recorded large outflows last month, further fueling speculation over Beijing's intentions.
Provinces across the country have recently pledged to support emerging industries like commercial aerospace, the low-altitude economy and new materials over the next five years. A national five-year plan will be finalized at the annual legislative meetings in March. "Low-altitude economy" generally refers to drone-provided services like deliveries and crop spraying.
This article first appeared on <a href="https://asia.nikkei.com/business/markets/trading-asia/china-cracks-down-on-influencer-marketing-amid-stock-frenzy">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China cracks down on influencer marketing amid stock frenzy