
EU Vehicles Tariffs Lower Than Expected, Week in Review
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Week in Review
- Asian equities were mostly higher this week as Japan outperformed the region, Hong Kong saw modest gains, and Mainland China was lower.
- China released mixed purchasing managers’ index (PMI) readings this week as Manufacturing outpaced Non-Manufacturing (Services), though the private and official surveys for both showed expansion month-over-month.
- Real estate stocks were higher this week as online real estate brokerage platform “Beike”, operated by KE Holdings, reported its highest monthly transaction volume in three years in June.
- Alibaba announced Tuesday that the company repurchased $5.8 billion worth of shares in the first quarter with $26.1 billion remaining in the current program, which extends through the first quarter of 2027.
Friday’s Key News
Asian equities were mixed overnight as investor’s awaited the US jobs report this morning, which indicated that the US economy added more jobs than expected though unemployment increased, making for a complex, but still strong case for rate cuts towards the end of the year. Happy belated 4th of July!
The EU announced provisional new tariff rates for China-made electric vehicles that were slightly lower than expected. BYD, one of the largest exporters, will see its rate remain unchanged at 17%. Th average duty paid will be near 20%. The electric vehicle ecosystem was mostly lower overnight.
Internet stocks were mostly lower. NetEase delayed a title release, which weighed on its shares. Meanwhile, buyback champions Alibaba and JD.com were lower though Alibaba is up for the week.
Tourism stocks were higher on positive policy developments. The central government released a pledge to improve tourism infrastructure. Domestic tourism is roaring back in China. Our team visited tourism hotspot Xian last month, where we were told that visitors to the famous terra-cotta warriors were 10 million in 2023, up from only 2 million in 2019.
International tourism is coming back too, albeit slowly. According to the South China Morning Post, foreigners entering the country more than doubled from last year in the first six months of this year. This is mainly due to increased visitors from countries that have been granted visa-free access to China, which include multiple EU countries such as France and Germany.
Financials were underperformers overnight. The PBOC announced multiple long-term government borrowing mechanisms with key partners, which could help fund support for the consumer going into the Third Plenum meetings in ten days. The theme among analysts regarding the meeting has been preparing for a “post-property” China. What does this mean? An economy that is more concentrated in domestic consumption and innovation, rather than real estate speculation.
The Hang Seng and Hang Seng Tech indexes both closed lower by -1.27% and -1.45%, respectively, overnight on volume that was basically flat from yesterday. Mainland investors bought a net $45 million worth of Hong Kong-listed stocks and ETFs overnight via Southbound Stock Connect. The top-performing sectors overnight were Health Care, which gained +2.67%, Materials, which gained +1.80%, and Utilities, which fell -0.19%. Meanwhile, the worst-performing sectors were Financials, which fell -2.46%, Information Technology, which fell -1.61%, and Real Estate, which fell -1.50%.
Shanghai, Shenzhen, and the STAR Board diverged to close -0.26%, 0.52%, and 1.23%, respectively, on volume that decreased -2% from yesterday. The top-performing sectors overnight were Health Care, which gained +2.57%, Materials, which gained +1.42%, and Communication Services, which gained +0.51%. Meanwhile, the worst-performing sectors were Financials, which fell -1.47%, Consumer Staples, which fell -1.25%, and Energy, which fell -0.60%.
Last Night's Performance
Country/Index | Ticker | 1-Day Change (%) |
---|---|---|
China (Hong Kong) | HSI Index | -1.3 |
Hang Seng Tech | HSTECH Index | -1.5 |
Hong Kong Turnover | HKTurn Index | -0.5 |
HK Short Sale Turnover | HKSST Index | 11.5 |
Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -0.6 |
China (Shanghai) | SHCOMP Index | 0.3 |
China (Shenzhen) | SZCOMP Index | 0.5 |
China (STAR Board) | Star50 Index | 1.2 |
Mainland Turnover | .chturn Index | 4.8 |
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 | 0 |
India | SENSEX Index | -0.1 |
Indonesia | JCI Index | 0.5 |
Malaysia | FBMKLCI Index | -0.4 |
Pakistan | KSE100 Index | -0.1 |
Philippines | PCOMP Index | -0.2 |
South Korea | KOSPI Index | 1.3 |
Taiwan | TWSE Index | 0.2 |
Thailand | SET Index | 0.8 |
Singapore | STI Index | -0.8 |
Australia | AS51 Index | -0.1 |

US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
---|---|---|
Tencent HK | 700 HK Equity | -0.7 |
Alibaba HK | 9988 HK Equity | -0.3 |
JD.com HK | 9618 HK Equity | -0.7 |
NetEase HK | 9999 HK Equity | -1.4 |
Yum China HK | 9987 HK Equity | -1 |
Baozun HK | 9991 HK Equity | -3.3 |
Baidu HK | 9888 HK Equity | -1 |
Autohome HK | 2518 HK Equity | 0.2 |
Bilibili HK | 9626 HK Equity | 0.2 |
Trip.com HK | 9961 HK Equity | -2.6 |
EDU HK | 9901 HK Equity | 0.3 |
Xpeng HK | 9868 HK Equity | -3 |
Weibo HK | 9898 HK Equity | -0.6 |
Li Auto HK | 2015 HK Equity | -1.9 |
Nio Auto HK | 9866 HK Equity | -0.8 |
Zhihu HK | 2390 HK Equity | 0.4 |
KE HK | 2423 HK Equity | -1.2 |
Noah HK | 6686 HK Equity | -1.6 |
Tencent Music Entertainment HK | 1698 HK Equity | -0.2 |
Meituan HK | 3690 HK Equity | -0.5 |


Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.27 versus 7.27 yesterday
- CNY per EUR 7.87 versus 7.86 yesterday
- Yield on 1-Day Government Bond 1.24% versus 1.24% yesterday
- Yield on 10-Year Government Bond 2.28% versus 2.25% yesterday
- Yield on 10-Year China Development Bank Bond 2.36% versus 2.34% yesterday
- Copper Price +0.39%
- Steel Price -0.89%