
Hong Kong Rallies As Sense Time Launches AI Model
3 Min. Read Time
Key News
Asian equities were mostly higher overnight though on lower volumes as Hong Kong and technology stocks outperformed.
Internet stocks reversed most of yesterday’s losses as Alibaba outperformed on increased share buybacks. The electric vehicle ecosystem mostly built on gains from earlier in the week. Real estate was higher in both Mainland China and Hong Kong, building on positive momentum from broad-based policy support both locally and nationally.
The Caixin June services PMI was lower than expected, coming in at 51.2 versus an estimated 53.4 and May’s 54, though still showing expansion with a reading above 50. I may have called it too soon, but the feeling on the ground in China is that services are booming, especially tourism.
Li Ning’s founder is said to be considering a higher stake in his namesake apparel company. Shares of the local apparel favorite were up +1.62% in Hong Kong overnight. But, clothing company Bosideng International fell -18% after the Chairman sold shares. Nonetheless, consumer plays were up overall today. Trip.com gained +2% on positive travel trends. The travel booking site saw its revenue increase +29% in the first quarter.
OpenAI has exited China’s vast market, which is a significant catalyst for homegrown artificial intelligence (AI) players such as KWEB holdings Baidu, which has already offered free services to AI startups using its Ernie Bot large language model, and Alibaba. Meanwhile, technology giant SenseTime Group just launched a new large language model for Chinese users. SenseTime’s stock rallied +17% on the news.
The Cyberspace Administration of China (CAC) leaders spoke publicly in preparation for the Third Plenum. They called for a favorable environment for the internet economy, likely indicating to policymakers who will be present at the policy meeting that they need to prioritize the internet sector, having established the appropriate regulatory guardrails for the space.
The Hang Seng and Hang Seng Tech indexes both closed higher by +1.18% and +2.48%, respectively, on volume that decreased -4% from yesterday. Mainland investors bought a net $465 million worth of Hong Kong-listed stocks and ETFs via Southbound Stock Connect. The top-performing sectors were Real Estate, which gained +3.27%, Communication Services, which gained +2.51%, and Consumer Discretionary, which gained +2.32%. Meanwhile, the worst-performing sectors were Financials, which fell -0.16%, Industrials, which gained +0.57%, and Information Technology, which gained +1.10%.
Shanghai, Shenzhen, and the STAR Board diverged to close -0.49%, -0.78%, and 0.38%, respectively, on volume that decreased -10% from yesterday. The top-performing sectors were Real Estate, which gained +0.95%, Communication Services, which gained +0.22%, and Consumer Discretionary, which fell -0.13%. Meanwhile, the worst-performing sectors were Energy, which fell -1.49%, Health Care, which fell -0.78%, and Financials, which fell -0.47%.
Last Night's Performance
Country/Index | Ticker | 1-Day Change |
---|---|---|
China (Hong Kong) | HSI Index | 1.2% |
Hang Seng Tech | HSTECH Index | 2.5% |
Hong Kong Turnover | HKTurn Index | -4.1% |
HK Short Sale Turnover | HKSST Index | -11.6% |
Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -2.3 |
China (Shanghai) | SHCOMP Index | -0.5% |
China (Shenzhen) | SZCOMP Index | -0.8% |
China (STAR Board) | Star50 Index | 0.4% |
Mainland Turnover | .chturn Index | -10.2% |
Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
Jing Daily China Global Luxury Index | CHINALUX Index | 0.5% |
Japan | NKY Index | 1.3% |
India | SENSEX Index | 0.7% |
Indonesia | JCI Index | 1.0% |
Malaysia | FBMKLCI Index | 1.1% |
Pakistan | KSE100 Index | 1.0% |
Philippines | PCOMP Index | 1.4% |
South Korea | KOSPI Index | 0.5% |
Taiwan | TWSE Index | 1.3% |
Thailand | SET Index | 0.5% |
Singapore | STI Index | 1.4% |
Australia | AS51 Index | 0.3% |

US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
---|---|---|
Tencent HK | 700 HK Equity | 2.8 |
Alibaba HK | 9988 HK Equity | 2.5 |
JD.com HK | 9618 HK Equity | 2.1 |
NetEase HK | 9999 HK Equity | 0.1 |
Yum China HK | 9987 HK Equity | 1.3 |
Baozun HK | 9991 HK Equity | -5.4 |
Baidu HK | 9888 HK Equity | 2.7 |
Autohome HK | 2518 HK Equity | 0.0 |
Bilibili HK | 9626 HK Equity | 1.3 |
Trip.com HK | 9961 HK Equity | 2.1 |
EDU HK | 9901 HK Equity | 2.3 |
Xpeng HK | 9868 HK Equity | 0.9 |
Weibo HK | 9898 HK Equity | 3.1 |
Li Auto HK | 2015 HK Equity | 5.4 |
Nio Auto HK | 9866 HK Equity | 4.4 |
Zhihu HK | 2390 HK Equity | 5.0 |
KE HK | 2423 HK Equity | 3.5 |
Noah HK | 6686 HK Equity | 0.0 |
Tencent Music Entertainment HK | 1698 HK Equity | 2.6 |
Meituan HK | 3690 HK Equity | 4.4 |


Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.27 versus 7.27 yesterday
- CNY per EUR 7.86 versus 7.81 yesterday
- Yield on 1-Day Government Bond 1.22% versus 1.25% yesterday
- Yield on 10-Year Government Bond 2.24% versus 2.24% yesterday
- Yield on 10-Year China Development Bank Bond 2.34% versus 2.34% yesterday
- Copper Price +1.48%
- Steel Price +0.84%