Ceasefire Lifts Risk Assets, Golden IPOs On Horizon
4 Min. Read Time
Key News
Asian equities were mostly higher as investors celebrated the tentative Israel-Iran ceasefire agreement, which removes a significant risk factor to energy shipments, which Asian nations tend to rely on heavily.
Starbucks said that it is not considering a full sale of its China business, contrary to media reports from Caixin and others. It will continue to own some of its operations in China's markets directly, as the CEO referred to a “great team” in China and a strong adoption and appreciation for its products. Starbucks rode the rising popularity of coffee in a culture that traditionally favored tea for fuel in the morning, selling not only a tea alternative but also a premium one.
Apple suppliers were higher overnight after the smartphone maker made a widget on its China website specifically to facilitate the application for rebates under the national subsidy program. The program was expanded to include smartphones only after it was initially established, so it took some time for smartphone makers to adapt their purchase process for their customers. Apple’s inclusion in the program is a good sign for the longevity of their business in China, which is seeing steep competition from Huawei and Xiaomi, which also sells vehicles.
Meituan will reduce the coverage of its “Meituan Select” discount grocery service to only the profitable provinces of Guangdong and Zhejiang. Despite the ongoing war for instant delivery wallet share, shares were up on the cost-cutting move.
Gold IPOs are on the horizon as the metal shines bright amid geopolitical tensions. Gold miner Shanjin International has picked banks for its Hong Kong IPO. Meanwhile, Zijin Mining is looking to spin off its overseas gold business in a listing.
China added two new chemicals to its fentanyl precursor export control list on June 20th, which should help in negotiations with Trump. Maybe a China deal is coming after Middle East peace? We will see.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 2.1% |
| Hang Seng Tech | HSTECH Index | 2.1% |
| Hong Kong Turnover | HKTurn Index | 21.1% |
| Hong Kong Short Sale Turnover | HKSST Index | 3% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 13.4% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 15.5 |
| China (Shanghai) | SHCOMP Index | 1.2% |
| China (Shenzhen) | SZCOMP Index | 1.8% |
| China (STAR Board) | Star50 Index | 1.8% |
| Mainland Turnover | .chturn Index | 26.1% |
| Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 1.2% |
| Japan | NKY Index | 1.1% |
| India | SENSEX Index | 0.2% |
| Indonesia | JCI Index | 1.2% |
| Malaysia | FBMKLCI Index | -0.2% |
| Pakistan | KSE100 Index | 4.6% |
| Philippines | PCOMP Index | 1.2% |
| South Korea | KOSPI Index | 3% |
| Taiwan | TWSE Index | 2.1% |
| Thailand | SET Index | 3.5% |
| Singapore | STI Index | 0.6% |
| Australia | AS51 Index | 1% |
| Vietnam | VNINDEX Index | 0.6% |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | 1.63 |
| Communication Services | 9 | 1.28 |
| Consumer Discretionary | 28 | 1.58 |
| Consumer Staples | 13 | 1.51 |
| Energy | 6 | -0.66 |
| Financials | 24 | 2.16 |
| Health Care | 12 | 1.68 |
| Industrials | 21 | 1.67 |
| Information Technology | 10 | 2.48 |
| Materials | 10 | 1.05 |
| Real Estate | 7 | 0.71 |
| Utilities | 12 | 0.46 |
| Mainland China Listed | 395 | 1.31 |
| Communication Services | 7 | 1.48 |
| Consumer Discretionary | 29 | 1.66 |
| Consumer Staples | 24 | 1.19 |
| Energy | 13 | -0.49 |
| Financials | 64 | 1.64 |
| Health Care | 32 | 0.14 |
| Industrials | 61 | 1.72 |
| Information Technology | 90 | 1.91 |
| Materials | 54 | 0.66 |
| Real Estate | 6 | 1.5 |
| Utilities | 15 | 0.04 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 1.1 |
| Alibaba HK | 9988 HK Equity | 1.7 |
| JD.com HK | 9618 HK Equity | 1.4 |
| NetEase HK | 9999 HK Equity | 2.4 |
| Yum China HK | 9987 HK Equity | 2.4 |
| Baozun HK | 9991 HK Equity | 0.6 |
| Baidu HK | 9888 HK Equity | 1.1 |
| Autohome HK | 2518 HK Equity | -0.8 |
| Bilibili HK | 9626 HK Equity | 2.4 |
| Trip.com HK | 9961 HK Equity | 1.9 |
| EDU HK | 9901 HK Equity | 8.7 |
| Xpeng HK | 9868 HK Equity | 3.2 |
| Weibo HK | 9898 HK Equity | -0.3 |
| Li Auto HK | 2015 HK Equity | 3.8 |
| Nio Auto HK | 9866 HK Equity | 0.7 |
| Zhihu HK | 2390 HK Equity | -0.5 |
| KE HK | 2423 HK Equity | 0 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1 |
| Meituan HK | 3690 HK Equity | -1.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| XIAOMI CORP-CLASS B | 3.7 |
| TENCENT HOLDINGS LTD | 1.1 |
| MEITUAN-CLASS B | -1.1 |
| ALIBABA GROUP HOLDING LTD | 1.7 |
| PING AN INSURANCE GROUP CO-H | 5.2 |
| POP MART INTERNATIONAL GROUP | 3.3 |
| HONG KONG EXCHANGES & CLEAR | 4 |
| CHINA CONSTRUCTION BANK-H | 2.6 |
| SEMICONDUCTOR MANUFACTURING | 1 |
| BYD CO LTD-H | 3.3 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| EAST MONEY INFORMATION CO-A | 4.2 |
| SHENZHEN FORMS SYNTRON INF-A | -4.8 |
| PING AN INSURANCE GROUP CO-A | 3.1 |
| CONTEMPORARY AMPEREX TECHN-A | 2.6 |
| LAKALA PAYMENT CO LTD-A | -5 |
| ZHONGJI INNOLIGHT CO LTD-A | -1.4 |
| HENGBAO CO LTD-A | 5.6 |
| CAMBRICON TECHNOLOGIES-A | 6.9 |
| KWEICHOW MOUTAI CO LTD-A | 1.2 |
| BYD CO LTD -A | 1.5 |
Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.17 versus 7.18 yesterday
- CNY per EUR 8.32 versus 8.31 yesterday
- Yield on 10-Year Government Bond 1.65% versus 1.64% yesterday
- Yield on 10-Year China Development Bank Bond 1.69% versus 1.68% yesterday
