Xinhua Editorial Highlights Domestic Consumption Increase
5 Min. Read Time
Key News
Asian equities were mixed but mostly higher overnight as Pakistan and Malaysia outperformed and Hong Kong underperformed.
Xinhua had an editorial on China’s expanding domestic demand, stating that it is an important factor in overall economic growth. The editorial also noted that sales of household appliances surged by +30.2% year-over-year in October, driven by the trade-in subsidies. The editorial did not say that this would lead to an uptick in GDP growth, which the bears highlighted along with a Bloomberg article citing the piece.
Investors are awaiting the Central Economic Work Conference (CEWC) next week for more clarity on stimulus policies. The conference is expected to lay out the economic policy priorities for 2025, but it is a closed-door conference so we will not hear the conclusions until the press conference at its conclusion.
Mainland investors reversed course from the rare net selling from yesterday, to become net buyers of Hong Kong-listed stocks and ETFs once again. Mainland investors poured $477 million into Hong Kong overnight.
Vice Premier He Lifeng spoke to a US financial institution overnight. He is said to have highlighted that China still seeks to deepen cooperation on financial markets between the US and China.
Blue Focus Group, an advertising agency, surged +17% in Shanghai and was one of the Mainland’s top ten most traded stocks by value. Advertising revenues have been surging since last year, which is a great sign for the consumer. The stock’s rise dovetails nicely with the Xinhua editorial from last night.
Korea continued to trade lower on the political situation as opposition leaders and the public called for Yoon’s resignation.
The Hang Seng and Hang Seng Tech indexes fell -0.92% and -0.77%, respectively, on volume that decreased -16.65% from yesterday which is 85% of the 1-year average. 159 stocks advanced while 322 declined. Main Board short turnover increased +0.84% from yesterday which is 75% of the 1-year average as 14% of turnover was short turnover (Hong Kong short turnover includes ETF short volume, which is driven by market makers’ ETF hedging). The value factor and large caps fell less than the growth factor and small caps. Technology and communication were the only positive sectors, up +0.76% and +0.46%, respectively, while Consumer Discretionary fell -2.2%, Consumer Staples fell -1.85%, and Real Estate fell -1.53%. The top-performing subsectors were technology hardware, construction materials, and software. Meanwhile, consumer services, household products, and consumer staples were among the worst-performing. Southbound Stock Connect volumes were light as Mainland investors bought a net $477 million worth of Hong Kong-listed stocks and ETFs, including Alibaba, China Mobile, CNOOC, Kingsoft Cloud, and Robosense, which were very small net buys. Meanwhile, Meituan and Tencent were moderate net sells.
Shanghai, Shenzhen, and the STAR Board gained +0.13%, +0.74%, and +0.25%, respectively, on volume that decreased -9.93% from yesterday, which is 151% of the 1-year average. 3,671 stocks advanced while 1,298 declined. The growth factor and small caps fell less than large caps and the value factor. The top-performing sectors were Communication Services, which gained +1.68%, Information Technology, which gained +0.54%, and Financials, which gained +0.23%. Meanwhile, the worst-performing sectors were Energy, which fell -0.91%, Materials, which fell -0.69%, and Health Care, which fell -0.53%. The top-performing subsectors were education, cultural media, and internet while office supplies, precious metals and oil & gas were among the worst-performing. Northbound Stock Connect volumes were just above average. CNY and the Asia Dollar Index gained versus the US dollar. Treasury bonds were rallied. Copper gained while steel fell.
Last Night's Performance
| Country/Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.9% |
| Hang Seng Tech | HSTECH Index | -0.8% |
| Hong Kong Turnover | HKTurn Index | -16.6% |
| HK Short Sale Turnover | HKSST Index | 0.8% |
| Short Turnover as a % of HK Turnovr | N/A | 13.7% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 475.8 |
| China (Shanghai) | SHCOMP Index | 0.1% |
| China (Shenzhen) | SZCOMP Index | 0.7% |
| China (STAR Board) | Star50 Index | 0.2% |
| Mainland Turnover | .chturn Index | -9.9% |
| Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0% |
| Japan | NKY Index | 0.3% |
| India | SENSEX Index | 1% |
| Indonesia | JCI Index | -0.2% |
| Malaysia | FBMKLCI Index | 0.1% |
| Pakistan | KSE100 Index | 3% |
| Philippines | PCOMP Index | -0.6% |
| South Korea | KOSPI Index | -0.9% |
| Taiwan | TWSE Index | 0.1% |
| Thailand | SET Index | -0.3% |
| Singapore | STI Index | 0.6% |
| Australia | AS51 Index | 0.1% |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | -0.85 |
| Communication Services | 9 | 0.46 |
| Consumer Discretionary | 30 | -2.2 |
| Consumer Staples | 13 | -1.85 |
| Energy | 7 | -0.95 |
| Financials | 23 | -0.55 |
| Health Care | 13 | -1.39 |
| Industrials | 19 | -1.18 |
| Information Technology | 10 | 0.77 |
| Materials | 10 | -0.53 |
| Real Estate | 6 | -1.53 |
| Utilities | 12 | -0.83 |
| Mainland China Listed | 432 | -0.12 |
| Communication Services | 9 | 1.68 |
| Consumer Discretionary | 31 | -0.29 |
| Consumer Staples | 27 | -0.51 |
| Energy | 16 | -0.91 |
| Financials | 63 | 0.23 |
| Health Care | 40 | -0.52 |
| Industrials | 69 | -0.29 |
| Information Technology | 85 | 0.54 |
| Materials | 68 | -0.68 |
| Real Estate | 7 | -0.33 |
| Utilities | 17 | -0.4 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.5 |
| Alibaba HK | 9988 HK Equity | -2.4 |
| JD.com HK | 9618 HK Equity | -0.1 |
| NetEase HK | 9999 HK Equity | 0.3 |
| Yum China HK | 9987 HK Equity | -0.7 |
| Baozun HK | 9991 HK Equity | -7.1 |
| Baidu HK | 9888 HK Equity | 0.2 |
| Autohome HK | 2518 HK Equity | -2.3 |
| Bilibili HK | 9626 HK Equity | -0.1 |
| Trip.com HK | 9961 HK Equity | -3.3 |
| EDU HK | 9901 HK Equity | -3 |
| Xpeng HK | 9868 HK Equity | -0.1 |
| Weibo HK | 9898 HK Equity | -2.8 |
| Li Auto HK | 2015 HK Equity | -1.8 |
| Nio Auto HK | 9866 HK Equity | -1.2 |
| Zhihu HK | 2390 HK Equity | -3.2 |
| KE HK | 2423 HK Equity | -3 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1.7 |
| Meituan HK | 3690 HK Equity | -3.6 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| MEITUAN-CLASS B | -3.6 |
| ALIBABA GROUP HOLDING LTD | -2.4 |
| TENCENT HOLDINGS LTD | 0.5 |
| XIAOMI CORP-CLASS B | 1.2 |
| JD.COM INC-CLASS A | -0.1 |
| AIA GROUP LTD | -1.6 |
| ROBOSENSE TECHNOLOGY CO LTD | 21.9 |
| CHINA CONSTRUCTION BANK-H | -0.3 |
| CNOOC LTD | -0.9 |
| BYD CO LTD-H | -1.8 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| EAST MONEY INFORMATION CO-A | 2 |
| BLUEFOCUS INTELLIGENT COMM-A | 16.7 |
| HITHINK ROYALFLUSH INFORMA-A | 4 |
| LEO GROUP CO LTD-A | 10 |
| 360 SECURITY TECHNOLOGY IN-A | 7 |
| YONGHUI SUPERSTORES CO LTD-A | -7.5 |
| SHENZHEN INFOGEM TECHNOLOG-A | 4.5 |
| DAWNING INFORMATION INDUST-A | -2.6 |
| SERES GROUP CO L-A | 2.3 |
| CCOOP GROUP CO LTD-A | 9.9 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 7.26 versus 7.26 yesterday
- CNY per EUR 7.65 versus 7.63 yesterday
- Yield on 10-Year Government Bond 1.95% versus 1.96% yesterday
- Yield on 10-Year China Development Bank Bond 2.03% versus 2.04% yesterday
- Copper Price -0.36%
- Steel Price -0.97%
