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Asian equities had been blended overnight despite a stronger US buck. Hong Kong and South Korea outperformed, whereas Thailand was as soon as closed for Chulalongkorn Day, a national vacation commemorating His Majesty King Chulalongkorn the Astronomical’s passing.
Bloomberg’s article, and therefore a South China Morning Post article, on an RMB 2 trillion stock market stabilization fund was as soon as cited as a truly perfect catalyst for this day’s Hong Kong rally and the day before this day’s rally in US-listed China stocks, though I’ll rob the below as this view is removed from “new”. It was as soon as spoken about a month within the past.
The market gave plenty of reasons for a Hong Kong rally with scoot financial results from Hong Kong Exchanges, up +1.22% on profit rising +7% 365 days over 365 days (YoY), toy maker Popmart, up +18.52% after a Hong Kong industry update regulatory submitting pointing out Q3 revenue will upward thrust by +120% to 125% YoY.
Hong Kong IPOs are coming succor in power. Bottled water firm China Sources Beverage had a extraordinarily successful IPO, up +15.07% with shares offered on the head of differ raising $649 million as the IPO was as soon as oversubscribed extra than 230 instances. Meanwhile, Horizon Robotics’ IPO, which is scheduled for the next day, is predicted to maintain stop $696 million for the firm and stories Hengrui Pharma might perchance per chance well well relist in Hong Kong with an IPO that might perchance per chance well well elevate $2 billion. There hold been also stories that Chinese electric car maker Chery will travel public in early 2025.
If of us can construct money in Mainland China and Hong Kong markets, they will come succor, which is arguably happening now. We continue to think that enhance stocks and sectors will lead the technique better , as evidenced by the make-up of this day’s most closely traded stocks by price in Hong Kong, which integrated Meituan, which was as soon as up +5.47%, Tencent, up +1.57%, Semiconductor Manufacturing (SMIC), which was as soon as down -1.85%, Alibaba, up +0.05%, and Xiaomi up +4%. Files superhighway stocks had a correct day, led by JD.com, up +2.98%, Kuaishou, up +0.96%, Time out.com, up +2.17%, Bilibili, up +3.7%, and Baidu, up +0.4%.
Electric car (EV) and auto stocks outperformed as Geely received +6.6%, Li Auto received +6.34%, BYD received +1.62%, XPeng received +4.25%, and NIO received +1.forty eight%. EV ecosystem stocks had been lifted by the Ministry of Replace and Data Technology (MIIT) press convention, declaring the “promotion of novel vitality autos in rural areas,” “taking a few measures to elongate car consumption” thru tax concessions, and enhance “global development” by responding to “commerce boundaries equivalent to anti-subsidy investigations and high tariffs.” 365 days to this level, thru Q3, 21.47 million autos had been made, with 21.57 million offered and 4.31 million exported, which is an lengthen of 27.3% YoY. The MIIT had a busy day as Apple CEO Tim Prepare dinner met with the company in Beijing along with an mesmerizing free up pointing out Tesla and a few different foreign companies would be allowed to fair “price-added telecommunications companies and products” with web data facilities cited as an illustration.
Mainland merchants offered a healthy $1.21 billion price of Hong Kong-listed stocks and ETFs, as Alibaba, GCL Tech, Tencent, and Xiaomi had been all diminutive secure buys. The Mainland market had a correct day, as the Shanghai closed above the 3,300 level. Photograph voltaic had a strong day on stories the US might perchance per chance well well decrease tariffs, which would be attention-grabbing if correct.
President Xi and President Modi are scheduled to meet on the BRICS convention, which is scoot!
Unique Oriental Education (EDU US) is trading decrease after asserting financial results this morning, indicating a cramped top line revenue omit, though adjusted secure profits and adjusted EPS beat analyst expectations.
As well to the NPC date and agenda coming soon, we might perchance per chance well well tranquil also accumulate the medium-term lending facility (MLF) rate, which is predicted to be 2%, though I’d wager this can be diminished extra than anticipated, equal to the loan high charges.
The Hang Seng and Hang Seng Tech indexes received +1.27% and +1.86%, respectively, on volume that increased +24.forty five% from the day before this day, which is 225% of the 1-365 days moderate. 297 stocks progressed, whereas 186 declined. Most important Board short turnover increased by +25.55% from the day before this day, which is 111% of the 1-365 days moderate, as 11% of turnover was as soon as short turnover (Hong Kong short turnover comprises ETF short volume, which is driven by market makers’ ETF hedging). Increase and diminutive capitalization stocks outperformed price and paunchy capitalization stocks. All sectors had been scoot, except for vitality, which fell -0.47%, and utilities, which fell -1.13%. Technology stocks received +3.Fifty three%, user discretionary received +2.25%, and communication companies and products received +1.42%. All sub-sectors had been scoot except for vitality and media, whereas auto, retailing, and insurance had been better. Southbound Stock Connect volumes had been high at 2X the moderate as Mainland merchants offered a healthy $1.21 billion of Hong Kong stocks and ETFs with Alibaba, GCL Tech, Meituan, Tencent, and Xiaomi had been diminutive secure buys whereas China Cell was as soon as a diminutive secure sell.
Shanghai, Shenzhen, and the STAR Board rose +0.52%, +0.15%, and -0.68%, respectively, on volume up +0.75% from the day before this day, which is 225% of the 1-365 days moderate. 2,463 stocks progressed, whereas 2,405 declined. Increase and diminutive capitalization stocks outperformed price and paunchy capitalization stocks. The highest sectors had been user staples, up +1.28%, user discretionary, up +0.87%, and industrials, up +0.86%, whereas communication companies and products fell -1.forty five%, technology fell -0.47%, and vitality fell -0.31%. The highest sub-sectors had been vitality technology equipment, aerospace/defense power, and auto, whereas education, cultural media, and instrument had been the worst. Northbound Stock Connect volumes had been high, perfect over 2X the moderate. CNY and the Asia buck index fell versus the US buck. Copper fell whereas steel rose.
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Closing Evening’s Performance
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Closing Evening’s Replace Charges, Costs, & Yields
- CNY per USD 7.12 versus 7.12 the day before this day
- CNY per EUR 7.68 versus 7.69 the day before this day
- Yield on 10-365 days Authorities Bond 2.16% versus 2.15% the day before this day
- Yield on 10-365 days China Construction Bank Bond 2.24% versus 2.22% the day before this day
- Copper Fee -0.19%
- Steel Fee +0.06%
