HK Reopens, Trump Xi Meeting?, PDD Offering
TGIF! A concise China Overnight as the mainland market is still on holiday and light on the news front though Hong Kong did reopen. Next week is Inside ETFs though I hope get China Overnight out regardless.
The Hang Seng overcame a -1.01% open to end the day -0.16%/-43 index points on light volume and mixed breadth of 20 advancers and 29 decliners. Larry Kudlow’s announcement that Trump & Xi are unlikely to meet prior to March 1st weighed on the Hong Kong market (just as it did here in the US Thursday). Based on the market reaction, there appears to be limited understanding of how the administration uses the media as a negotiating tactic. The reality is the US trade team is headed to China next week in order to get a deal done. Insurance giant AIA gained +2.21%/+60 index points while China Mobile -1.26%/-19 pts, energy giant CNOOC -2.42%/-17 pts and Tencent -0.58%/-16 pts. Within the MSCI China All Shares Index’s HK stocks, tech gained +1.83% led by software company Meitu (1357 HK) +18.01% though no brokers provided color on the jump. Real estate +0.99% on reports mainland real estate prices were firm in January. Energy was an outlier to the downside -1.62%. Connect trading remains closed.
E-commerce company Pinduoduo (PDD) secondary offering of 51.8mm shares which will raise $1.3 billion as the company raises dry powder in its campaign against Alibaba. The $25 offering price is a discount to yesterday’s close of $26.51.
Shanghai & Shenzhen remain closed for Chinese New Year’s.
Early indicators show that Golden Week numbers for Macau look very strong year over year. This is despite the WSJ’s article that “High-Rollers Cool…”.
China Interbank Bond Market closed
Shanghai & Dalian commodity exchanges are closed