Huatai Securities Co., Ltd. – Strategic Outlook Amid a Resurgent Media Landscape
Huatai Securities Co., Ltd., a leading Chinese securities firm listed on the Hong Kong Stock Exchange, has issued a forward‑looking commentary on the media sector for 2026, underscoring the firm’s confidence in the confluence of gaming, artificial intelligence (AI) and film‑production synergies. The announcement, dated 9 December 2025, follows a broader market revival in China’s equity markets, with A‑share indices posting robust gains and a return to two‑trillion‑yuan‑level trading volumes.
Key Takeaways from the 2026 Media Outlook
Gaming – “Bottom‑up” Alpha Selection Huatai maintains a disciplined investment philosophy, targeting firms that demonstrate sustained performance in the gaming arena. The firm forecasts that industry scale will continue to grow, while certain operating products are expected to maintain or even climb their revenue trajectories in 2026. New releases from a portfolio of key players are projected to enter the market, potentially generating incremental upside for both the sector and Huatai’s research mandates.
AI‑Enabled Commercialization The report identifies AI as a catalyst for accelerated commercial deployment, driven by the convergence of large‑model capabilities and falling inference costs. Huatai highlights the emergence of AI agents as a pivotal inflection point, with particular emphasis on AI‑augmented advertising and e‑commerce. The firm anticipates that these applications will penetrate deeper into media supply chains, creating new revenue streams and enhancing the value proposition of media conglomerates.
Film‑Industry Policy‑Backed Growth A favourable policy environment is expected to sustain content optimisation and production efficiency. Huatai stresses that AI technologies are already embedded in the film‑production pipeline, enabling rapid monetization of AI‑driven animated series. The firm views the sector as a key driver of long‑term media revenue growth.
Market Context and Huatai’s Positioning
Capital Markets Momentum The Chinese equity market has recently experienced a “super‑rescue” episode, with the Shanghai Composite, Shenzhen Component and ChiNext indices posting gains of 0.54 %, 1.39 % and 2.60 % respectively on 8 December. Trading volumes exceeded 2 trillion yuan for the first time in more than a month, signaling a return of liquidity and investor confidence. This backdrop provides a conducive environment for Huatai’s media‑related investment strategies.
Industry‑Wide Implications The firm’s focus on AI and gaming aligns with broader sectoral trends that have attracted significant institutional capital. As AI becomes increasingly ingrained in media production and distribution, the opportunity cost of overlooking such themes escalates. Huatai’s research pipeline is therefore likely to capture upside across both traditional media entities and tech‑enabled content platforms.
Forward‑Looking View
With a market capitalization of HKD 187.12 billion and a price‑to‑earnings ratio of 8.61, Huatai Securities appears well‑positioned to leverage its research capabilities in the evolving media ecosystem. The firm’s guidance for 2026 signals a proactive stance toward high‑growth sub‑sectors, while remaining attuned to macro‑economic shifts in China’s financial markets.
In a period of renewed market vitality, investors can expect Huatai to continue deploying disciplined, data‑driven strategies that capitalize on the intersection of gaming, AI and film production—sectors poised to deliver sustained alpha in the coming years.
