Key News

Asian equities were mixed but mostly higher overnight as Hong Kong outperformed Mainland China and most Asian markets.

Mainland-listed shares rebounded following a significant downdraft over the past two days as high hopes for the National Development & Reform Commission (NDRC) led to some disappointment. As we have said before, it is important to remember that the NDRC does not make fiscal spending decisions, they only decide what to do with the money when it comes to issues such as infrastructure development.

The Ministry of Finance (MoF) today announced plans to issue a sixth round of ultra-long-dated bonds tomorrow (October 11th) at a yield of 2.19% for 30 years. Liquidity will stay sufficient in the system, and the timing is interesting, too. Tomorrow’s issuance will come only one day before the finance minister holds his conference on Saturday. Policymakers are working overtime (this weekend) to account for the weeklong holiday.

The PBOC kicked off the first round of its swap program, worth RMB 500 billion, overnight. Securities firms, asset management firms, and insurance companies can all now apply for the additional liquidity to fund their stock purchases.

All sectors were higher except for Technology and Real Estate on the Mainland. Meanwhile, all sectors were higher in Hong Kong.

Meituan was the second most-traded stock in Hong Kong, based on the Hang Seng index constituents, and gained +5% as Morgan Stanley raised its price target and growth forecasts for the local services giant. Meituan saw a jump in activity on its platforms during the National Holiday or “Golden Week”. This is the latest in a parade of analyst upgrades for China’s internet stocks, which could continue depending on the consumer fiscal policies to be announced.

The Hang Seng and Hang Seng Tech indexes both closed higher by +2.98% and +2.05% overnight, respectively, on volume that decreased -23% from yesterday. The top-performing sectors were Energy, which gained +4.64%, Financials, which gained +4.40%, and Consumer Staples, which gained +4.32%. Meanwhile, the worst-performing sectors were Communication Services, which gained +1.00%, Health Care, which gained +1.40%, and Information Technology, which gained +1.90%.

Shanghai, Shenzhen, and the STAR Board diverged to close +1.32%, -0.37%, and -4.38%, respectively, on volume that decreased -27% from yesterday. The top-performing sectors were Energy, which gained +4.45%, Utilities, which gained +2.52%, and Industrials, which gained +2.50%. Meanwhile, the worst-performing sectors were Information Technology, which fell -2.25%, Real Estate, which fell -1.55%, and Health Care, which gained +0.03%.

Last Night’s Performance

Country/Index	Ticker	1-Day Change
China (Hong Kong)	HSI Index	3%
Hang Seng Tech	HSTECH Index	2.1%
Hong Kong Turnover	HKTurn Index	-23.8%
HK Short Sale Turnover	HKSST Index	-16.9%
Short Turnover as a % of HK Turnovr	N/A	12.2%
Southbound Stock Connect Net Buy/Sell (US $ Millions)	N/A	0
China (Shanghai)	SHCOMP Index	1.3%
China (Shenzhen)	SZCOMP Index	-0.4%
China (STAR Board)	Star50 Index	-4.4%
Mainland Turnover	.chturn Index	-27.1%
Nouthbound Stock Connect Net Buy/Sell (US $ Millions)	N/A	Not Available
Jing Daily China Global Luxury Index	CHINALUX Index	0.1%
Japan	NKY Index	0.3%
India	SENSEX Index	0.2%
Indonesia	JCI Index	-0.3%
Malaysia	FBMKLCI Index	0.4%
Pakistan	KSE100 Index	-0.3%
Philippines	PCOMP Index	-0.2%
South Korea	KOSPI Index	0.2%
Taiwan	TWSE Index	0.2%
Thailand	SET Index	0.8%
Singapore	STI Index	-0.3%
Australia	AS51 Index	0.4%

MSCI China All Shares Index	# of Stocks	Average 1-Day Change (%)
Hong Kong Listed	154	3.13
Communication Services	9	1
Consumer Discretionary	29	4.14
Consumer Staples	13	4.32
Energy	7	4.64
Financials	24	4.4
Health Care	14	1.4
Industrials	18	3.65
Information Technology	11	1.9
Materials	11	3.48
Real Estate	6	3.29
Utilities	12	4.1
China Listed	487	0.96
Communication Services	13	1.4
Consumer Discretionary	41	1.57
Consumer Staples	32	2.24
Energy	17	4.46
Financials	68	0.52
Health Care	45	0.03
Industrials	74	2.5
Information Technology	93	-2.25
Materials	80	1.55
Real Estate	7	-1.55
Utilities	17	2.52

US & Hong Kong Dually Listed	Ticker	1-Day Change (%)
Tencent HK	700 HK Equity	1.1
Alibaba HK	9988 HK Equity	2.8
JD.com HK	9618 HK Equity	3.4
NetEase HK	9999 HK Equity	-0.9
Yum China HK	9987 HK Equity	3.4
Baozun HK	9991 HK Equity	4.6
Baidu HK	9888 HK Equity	1.9
Autohome HK	2518 HK Equity	4.7
Bilibili HK	9626 HK Equity	1.7
Trip.com HK	9961 HK Equity	8.5
EDU HK	9901 HK Equity	1.9
Xpeng HK	9868 HK Equity	8
Weibo HK	9898 HK Equity	3.4
Li Auto HK	2015 HK Equity	2.9
Nio Auto HK	9866 HK Equity	4.6
Zhihu HK	2390 HK Equity	-2.1
KE HK	2423 HK Equity	3.1
Tencent Music Entertainment HK	1698 HK Equity	3.2
Meituan HK	3690 HK Equity	5

Hong Kong's Most Heavily Traded by Value	1-Day Change (%)
TENCENT HOLDINGS LTD	1.1
MEITUAN-CLASS B	5
ALIBABA GROUP HOLDING LTD	2.8
SEMICONDUCTOR MANUFACTURING	-6.3
HONG KONG EXCHANGES & CLEAR	3.8
PING AN INSURANCE GROUP CO-H	5.9
CHINA MOBILE LTD	3.3
CNOOC LTD	4.1
CHINA CONSTRUCTION BANK-H	4.9
XIAOMI CORP-CLASS B	1.9

Shanghai and Shenzhen's Most Heavily Traded by Value	1-Day Change (%)
EAST MONEY INFORMATION CO-A	-17.5
CITIC SECURITIES CO-A	-8.6
CONTEMPORARY AMPEREX TECHN-A	1.2
PING AN INSURANCE GROUP CO-A	5
KWEICHOW MOUTAI CO LTD-A	2.8
ISOFTSTONE INFORMATION TEC-A	-20
WULIANGYE YIBIN CO LTD-A	2.9
HITHINK ROYALFLUSH INFORMA-A	-17.4
BYD CO LTD -A	3.3
CHINA YANGTZE POWER CO LTD-A	2.2

Last Night's Exchange Rates, Prices, & Yields

• CNY per USD 7.08 versus 7.08 yesterday
• CNY per EUR 7.74 versus 7.74 yesterday
• Yield on 10-Year Government Bond 2.14% versus 2.18% yesterday
• Yield on 10-Year China Development Bank Bond 2.23% versus 2.27% yesterday
• Copper Price +0.03%
• Steel Price +0.29%