China Last Night powered by KraneShares is a daily note produced by KraneShares research team led by Chief Investment Officer Brendan Ahern. The note covers top news and events that moved China’s capital markets last night while you were probably sleeping.
What you will receive every day
Daily color on what drove China’s equity, fixed income, and currency markets' performance last night
Aggregated local broker insights
Daily analysis of important policy, trade, public company news / announcements
Sector level performance analysis across Mainland, Hong Kong, and US stock exchanges
Middle East Cool Off Heats Up Hong Kong, Week in Review
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Week in Review
On Monday, Alibaba rose +1.68% following the release of its updated Qwen3 AI model, which is believed to power Apple AI on iPhones sold in China.
On Tuesday, Mainland investors bought the Hong Kong dip with $158 million of net buying via Southbound Stock Connect, which accounted for 53% of Hong Kong turnover.
On Wednesday, JD.com announced smartphone sales between RMB 4k and RMB 6k rose +50% year-over-year (YoY), while international sales via JD Global Sales rose by +236% YoY.
On Thursday, Alibaba announced that Tmall sales across consumer-subsidized products—including mobile phones, appliances, and digital goods—rose by +283% YoY.
Key News
Asian equities were mixed overnight following yesterday’s Trump’s Middle East escalation language, which sent risk assets down the elevator. President Trump appears to be giving the Iranian government time to negotiate. The US dollar was mixed versus Asian currencies, though the renminbi/CNY closed below at 7.17 as the PBOC kept the 1 and 5 Year Loan Prime Rate at 3% and 3.5% as expected.
Summer is officially here for traders as S&P and FTSE indices rebalance today, with the latter experiencing elevated volumes across the region as Hong Kong, South Korea, and India outperformed. FTSE’s decision to upgrade South Korea to developed markets creates a significant performance disparity from MSCI’s emerging markets index. Long MSCI EM and short FTSE EM would be a fun trade to play South Korea’s massive rebound.
Alibaba +1.55% was Hong Kong’s most heavily traded stock as the company saw its FTSE weight increase, as volumes doubled from yesterday. Alibaba announced 453 brands sold more than RMB 100mm worth of goods during the 618 (June 18th) E-Commerce event. There was a lot of chatter about the government replenishing local government consumer subsidy funds after strong demand, which led to depletion in several cities. Horizon Robotics (9960 HK) fell by 1.86% despite being added to the FTSE indices, though the intraday chart shows the power of passive as massive block trades occurred at the close.
Competitor Unitree appears closer to an Hong Kong IPO after another funding round. Mainland-listed soy sauce maker Foshan Haitian Flavouring & Food Co. relisted on the Hong Kong Exchanges today after raising HK $10.1B ($1.3B). High flyer Pop Mart -3.62% was clipped. While Hong Kong had a strong day following yesterday's debacle, Mainland China was off with index heavyweights such as banks, insurance, liquor, and telecom outperforming, which kept indices from falling further. Shipping and port stocks rebounded in hopes that Middle Eastern tensions would cool off. Otherwise, relatively quiet!
Last Night's Performance
Country / Index
Ticker
1-Day Change
China (Hong Kong)
HSI Index
1.3%
Hang Seng Tech
HSTECH Index
0.9%
Hong Kong Turnover
HKTurn Index
1.1%
Hong Kong Short Sale Turnover
HKSST Index
13.4%
Short Turnover as a % of Hong Kong Turnover
N/A
16.2%
Southbound Stock Connect Net Buy/Sell (US $ Millions)
N/A
357.6
China (Shanghai)
SHCOMP Index
-0.1%
China (Shenzhen)
SZCOMP Index
-0.6%
China (STAR Board)
Star50 Index
-0.5%
Mainland Turnover
.chturn Index
-14.6%
Nouthbound Stock Connect Net Buy/Sell (US $ Millions)
N/A
Not Available
Jing Daily China Global Luxury Index
CHINALUX Index
0.6%
Japan
NKY Index
-0.2%
India
SENSEX Index
1.3%
Indonesia
JCI Index
-0.9%
Malaysia
FBMKLCI Index
0.1%
Pakistan
KSE100 Index
0.2%
Philippines
PCOMP Index
-0.3%
South Korea
KOSPI Index
1.5%
Taiwan
TWSE Index
0.2%
Thailand
SET Index
-0.1%
Singapore
STI Index
-0.3%
Australia
AS51 Index
-0.2%
Vietnam
VNINDEX Index
-0.2%
Indicator
A
Mainland China
Today's Volume % of 1-Year Average
115
115
Advancing Stocks
294
1646
Declining Stocks
166
3218
Outperforming Factors
EPS Revisions, Momentum, Buybacks
Value, Dividend Yield, Low Volatility
Underperforming Factors
Growth, Low Volatility, Quality
Liquidity, Momentum, EPS Revisions
Top Sectors
Financials, Tech, Communication
Financials, Staples, Real Estate
Bottom Sectors
Utilities
Tech, Utilities, Communication
Top Subsectors
Consumer Services, Financial Services, Banks
Insurance, Marine, Port
Bottom Subsectors
Consumer Durables/Apparel, Petroleum, Construction Materials
Energy Equipment, Leisure Products, Office Supplies
Southbound Connect Buys
SMIC (Large)
Southbound Connect Sells
Tencent (Large), Alibaba, Pop Mart (Moderate), Hua Hong Semi, Shandong Molong, Xiaomi (Small)
MSCI China All Shares Index
# of Stocks
Average 1-Day Change (%)
Hong Kong Listed
152
1.31
Communication Services
9
1.32
Consumer Discretionary
28
0.92
Consumer Staples
13
0.8
Energy
6
0.09
Financials
24
2.59
Health Care
12
0.35
Industrials
21
1.2
Information Technology
10
1.62
Materials
10
0.73
Real Estate
7
0.12
Utilities
12
-0.05
Mainland China Listed
395
0.27
Communication Services
7
-0.42
Consumer Discretionary
29
0.13
Consumer Staples
24
0.91
Energy
13
-0.02
Financials
64
1.06
Health Care
32
0.2
Industrials
61
0.14
Information Technology
90
-0.63
Materials
54
-0.12
Real Estate
6
0.26
Utilities
15
-0.54
US & Hong Kong Dually Listed
Ticker
1-Day Change (%)
Tencent HK
700 HK Equity
1.5
Alibaba HK
9988 HK Equity
1.5
JD.com HK
9618 HK Equity
0.7
NetEase HK
9999 HK Equity
0.4
Yum China HK
9987 HK Equity
1.4
Baozun HK
9991 HK Equity
0.7
Baidu HK
9888 HK Equity
0.9
Autohome HK
2518 HK Equity
-0.4
Bilibili HK
9626 HK Equity
1.4
Trip.com HK
9961 HK Equity
0.4
EDU HK
9901 HK Equity
2.4
Xpeng HK
9868 HK Equity
1
Weibo HK
9898 HK Equity
0.7
Li Auto HK
2015 HK Equity
0.1
Nio Auto HK
9866 HK Equity
2.7
Zhihu HK
2390 HK Equity
0.7
KE HK
2423 HK Equity
0.5
Tencent Music Entertainment HK
1698 HK Equity
0.2
Meituan HK
3690 HK Equity
0.2
Hong Kong's Most Heavily Traded by Value
1-Day Change (%)
ALIBABA GROUP HOLDING LTD
1.5
TENCENT HOLDINGS LTD
1.5
POP MART INTERNATIONAL GROUP
1.6
MEITUAN-CLASS B
0.2
BANK OF CHINA LTD-H
1.6
XIAOMI CORP-CLASS B
-0.4
CHINA CONSTRUCTION BANK-H
0
HORIZON ROBOTICS INC
-1.9
PING AN INSURANCE GROUP CO-H
2.9
BYD CO LTD-H
-1.2
Shanghai and Shenzhen's Most Heavily Traded by Value
1-Day Change (%)
ZHONGJI INNOLIGHT CO LTD-A
4.8
SHENZHEN FORMS SYNTRON INF-A
0.5
KWEICHOW MOUTAI CO LTD-A
0.2
VICTORY GIANT TECHNOLOGY -A
5.3
EOPTOLINK TECHNOLOGY INC L-A
4.8
PING AN INSURANCE GROUP CO-A
2.9
LAKALA PAYMENT CO LTD-A
-6.1
LUXSHARE PRECISION INDUSTR-A
1.5
WUS PRINTED CIRCUIT KUNSHA-A
10
HENGBAO CO LTD-A
5.9
Last Night’s Exchange Rates, Prices, & Yields
CNY per USD 7.17 versus 7.18 yesterday
CNY per EUR 8.25 versus 8.25 yesterday
Yield on 10-Year Government Bond 1.64% versus 1.64% yesterday
Yield on 10-Year China Development Bank Bond 1.71% versus 1.71% yesterday
Copper Price -0.40%
Steel Price +0.30%
Featured Tweets:
SAP, the world’s largest enterprise resource planning software vendor and Europe’s most valuable company, has partnered with Alibaba to help the Chinese tech giant improve AI capabilities in its core business processes. pic.twitter.com/6U4wRXj2gm
On June 3, TSMC said that while U.S. tariffs were having some impact on the company, AI’s strong demand continues to outpace available supply. pic.twitter.com/rPCI7a7g3Z
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