Robotics Ecosystem Outperforms, IPOs Are On The Rise In Hong Kong
5 Min. Read Time
Key News
Asian equities were mixed but mostly higher overnight as Thailand and Taiwan outperformed while Malaysia and Singapore underperformed.
Markets opened lower in Hong Kong, only to swing sharply higher following positive comments from the National Development and Reform Commission (NDRC) on high-quality development and supporting consumption and employment. Unfortunately, the Hang Seng ended the session close to flat.
Mainland China-based restaurant chain Green Tea Group will go public on the Hong Kong Stock Exchange after its fifth attempt in four years. The company has no business outside of China, so it does not expect any impact from trade tensions. We have seen some IPOs of China-based companies in Hong Kong and New York, after and despite “Liberation Day” tariffs. This shows how consumer-oriented China’s economy has become, enabling these firms to weather the tariff storm. Meanwhile, the Hong Kong Stock Exchange is amending its rules to make it easier for firms to list there, especially US listed firms that are seeking a secondary listing on the exchange.
Internet earnings reports for Q1 are due to start in mid-May. However, TAL Education already reported, as it tends to be early in the cycle, and missed estimates on revenue, net income, and earnings per share. The private tutoring and educational technology company has idiosyncratic risks, so we do not think its results are indicative of the internet sector overall.
Health care was a top-performing sector in both Mainland China and Hong Kong overnight. The industry continues to rally, with significant improvements in regulatory posture and government support.
Humanoid robot plays outperformed in Hong Kong. Jiangsu Guomao Reducer Inc., which makes small motors used for robots, gained +3.37% in Mainland China. The humanoid robotics theme has become a hot topic in China’s markets after robots were displayed dancing during the CCTV Gala, a massive TV event celebrating Lunar New Year, and ran in the Beijing Half Marathon.
Mainland investors were net sellers of Hong Kong-listed stocks and ETFs via Southbound Stock Connect, which may have led to the market’s decline in the second half of the session.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.2% |
| Hang Seng Tech | HSTECH Index | 0.6% |
| Hong Kong Turnover | HKTurn Index | 5.1% |
| Hong Kong Short Sale Turnover | HKSST Index | -17.4% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 12.6% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -491.9 |
| China (Shanghai) | SHCOMP Index | -0.1% |
| China (Shenzhen) | SZCOMP Index | 0.2% |
| China (STAR Board) | Star50 Index | 0.1% |
| Mainland Turnover | .chturn Index | -3.3% |
| Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0% |
| Japan | NKY Index | 0.4% |
| India | SENSEX Index | 0.1% |
| Indonesia | JCI Index | 0.4% |
| Malaysia | FBMKLCI Index | -0.4% |
| Pakistan | KSE100 Index | 0.7% |
| Philippines | PCOMP Index | 0% |
| South Korea | KOSPI Index | 0.6% |
| Taiwan | TWSE Index | 1% |
| Thailand | SET Index | 1% |
| Singapore | STI Index | -0.2% |
| Australia | AS51 Index | 0.9% |
| Vietnam | VNINDEX Index | 0% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 99 | Not Available |
| Advancing Stocks | 47 (Hang Seng) | 114 (CSI 300) |
| Declining Stocks | 33 (Hang Seng) | 178 (CSI 300) |
| Outperforming Factors | Value, Large Caps | Value, Large Caps |
| Underperforming Factors | Growth, Small Caps | Growth, Small Caps |
| Top Sectors | Health Care, Consumer Discretionary, Materials | Communication Services, Health Care, Information Technology |
| Bottom Sectors | Real Estate, Communicaton Services, Energy | Utilities, Energy, Consumer Staples |
| Top Subsectors | Household & Personal Products, Consumer Staples, Consumer Durables | Daily Chemical, Household Products, Chemical Fiber |
| Bottom Subsectors | Food/Beverage/Tobacco, Chemicals, Petroleum & Petrochemical | Port, Power, Office Supplies |
| Southbound Connect Buys | Meituan, Innovent Bio, SMIC | N/A |
| Southbound Connect Sells | CNOOC, Xiaomi, Tencent | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | -0.15 |
| Communication Services | 9 | -0.86 |
| Consumer Discretionary | 30 | 0.57 |
| Consumer Staples | 13 | 0.02 |
| Energy | 7 | -0.67 |
| Financials | 23 | -0.59 |
| Health Care | 13 | 0.76 |
| Industrials | 19 | 0.07 |
| Information Technology | 10 | 0.2 |
| Materials | 10 | 0.26 |
| Real Estate | 6 | -0.93 |
| Utilities | 12 | -0.66 |
| Mainland China Listed | 432 | 0.13 |
| Communication Services | 9 | 1.29 |
| Consumer Discretionary | 31 | 0.35 |
| Consumer Staples | 27 | -0.23 |
| Energy | 16 | -0.27 |
| Financials | 63 | 0.02 |
| Health Care | 40 | 0.57 |
| Industrials | 69 | 0.23 |
| Information Technology | 85 | 0.48 |
| Materials | 68 | 0.13 |
| Real Estate | 7 | 0.23 |
| Utilities | 17 | -0.87 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -1.1 |
| Alibaba HK | 9988 HK Equity | -0.2 |
| JD.com HK | 9618 HK Equity | 1.9 |
| NetEase HK | 9999 HK Equity | 0.2 |
| Yum China HK | 9987 HK Equity | 2 |
| Baozun HK | 9991 HK Equity | 2.3 |
| Baidu HK | 9888 HK Equity | -0.3 |
| Autohome HK | 2518 HK Equity | -0.3 |
| Bilibili HK | 9626 HK Equity | 1.7 |
| Trip.com HK | 9961 HK Equity | 2.9 |
| EDU HK | 9901 HK Equity | 3.2 |
| Xpeng HK | 9868 HK Equity | -4.5 |
| Weibo HK | 9898 HK Equity | 1 |
| Li Auto HK | 2015 HK Equity | 1.9 |
| Nio Auto HK | 9866 HK Equity | 4.9 |
| Zhihu HK | 2390 HK Equity | -0.2 |
| KE HK | 2423 HK Equity | 0.9 |
| Tencent Music Entertainment HK | 1698 HK Equity | 1.5 |
| Meituan HK | 3690 HK Equity | 2.9 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | -1.1 |
| ALIBABA GROUP HOLDING LTD | -0.2 |
| MEITUAN-CLASS B | 2.9 |
| XIAOMI CORP-CLASS B | -0.1 |
| BYD CO LTD-H | -2.6 |
| BRIGHT SMART SECURITIES AND | 31.5 |
| CHINA CONSTRUCTION BANK-H | -1.2 |
| HSBC HOLDINGS PLC | 3 |
| XPENG INC - CLASS A SHARES | -4.5 |
| POP MART INTERNATIONAL GROUP | 2.5 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TALKWEB INFORMATION SYSTEM-A | 1.8 |
| GIGADEVICE SEMICONDUCTO-CL A | 10 |
| BYD CO LTD -A | -1.4 |
| WUXI APPTEC CO LTD-A | 4.1 |
| CONTEMPORARY AMPEREX TECHN-A | -1.2 |
| SICHUAN CHANGHONG ELECTRIC-A | 5.4 |
| HONGBAOLI GROUP CORP LTD-A | 5.4 |
| BETTER LIFE COMMERCIAL CHA-A | 2.1 |
| MERIT INTERACTIVE CO LTD-A | 2.6 |
| WILL SEMICONDUCTOR CO LTD-A | 5 |
Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.27 versus 7.29 yesterday
- CNY per EUR 8.30 versus 8.29 yesterday
- Yield on 10-Year Government Bond 1.62% versus 1.65% yesterday
- Yield on 10-Year China Development Bank Bond 1.66% versus 1.69% yesterday
- Copper Price +0.30%
- Steel Price -1.21%
