PMIs & Prosus’ Meituan Sale Weigh On Markets
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Key News
Asian equities were mostly lower overnight, as Japan and Pakistan outperformed while Hong Kong and Mainland China underperformed.
China released its manufacturing purchasing managers’ index overnight in July, which weighed on markets. The reading came in at 49.3, indicating a contraction in manufacturing activity for the fourth consecutive month, a decrease from June's reading of 49.7 and lower than the median forecast of 49.7. However, the Non-Manufacturing (i.e., services) PMI was 50.1, lower than in June but still indicating an expansion in activity. The numbers are not that great, though an expansion in non-manufacturing is what we want to see. While consumption growth has been slow, we have seen consistently higher PMIs for services (non-manufacturing) compared to manufacturing in recent months.
Alibaba and Meituan were lower overnight. Amsterdam-listed South African technology investment firm Prosus announced it would be selling its $4 billion stake in Meituan. It sold $250 million overnight in Hong Kong. The firm first purchased Meituan shares for the first time as Naspers, a South African media company, and has also had historical stakes in Alibaba. Meituan’s shares were -4.55% lower overnight. The share sale comes at a time when Meituan is experiencing extreme competition in the food delivery space that is its specialty. However, the company has a strong moat, and competition is becoming more measured, at the request of market regulators.
Mainland investors were net buyers of Meituan and Alibaba on weakness overnight, for the second day in a row. The dip-buying is good to see! Mainland investors consistently account for over 50% of Hong Kong's turnover, which has been a key development in 2025. They bought another net $1.7 billion worth of Hong Kong-listed stocks and ETFs overnight. While it is good to see the support and interest, foreign investors likely need to come in as well for the Hang Seng to see a new support level.
The People’s Bank of China (PBOC), China’s central bank, took major steps to stabilize the Yuan, keeping it above a higher bar of exchange rate versus the US dollar, overnight, though the currency has remained relatively stable, maintaining its value since tariffs were first announced.
Volumes continued to be high, which has been a trend all week. Insurance companies continued to sell off after a rally earlier in the week on lower interest rates for policies. Alibaba and Meituan were Hong Kong's most heavily traded stocks by value overnight.
| Country/Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -1.6% |
| Hang Seng Tech | HSTECH Index | -0.7% |
| Hong Kong Turnover | HKTurn Index | 0.3% |
| Hong Kong Short Sale Turnover | HKSST Index | 13.4% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 16% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 1,681 |
| China (Shanghai) | SHCOMP Index | -1.2% |
| China (Shenzhen) | SZCOMP Index | -1.4% |
| China (STAR Board) | Star50 Index | -1% |
| Mainland Turnover | .chturn Index | 5% |
| Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | -0.9% |
| Japan | NKY Index | 1% |
| India | SENSEX Index | -0.4% |
| Indonesia | JCI Index | -0.9% |
| Malaysia | FBMKLCI Index | -0.7% |
| Pakistan | KSE100 Index | 0.6% |
| Philippines | PCOMP Index | -1% |
| South Korea | KOSPI Index | -0.3% |
| Taiwan | TWSE Index | 0.3% |
| Thailand | SET Index | -0.1% |
| Singapore | STI Index | -1.1% |
| Australia | AS51 Index | -0.2% |
| Vietnam | VNINDEX Index | -0.3% |
| Indicator | Hong Kong | Mainland |
|---|---|---|
| Today's Volume as % of 1-Year Average | 135 | 133 |
| Advancing Stocks | 10 (Hang Seng) | 29 (CSI 300) |
| Declining Stocks | 74 (Hang Seng) | 268 (CSI 300) |
| Outperforming Factors | Value | Growth |
| Underperforming Factors | Growth | Value |
| Top Sectors | Communication Services, Health Care, Financials | Information Technology, Financials, Energy |
| Bottom Sectors | Materials, Real Estate, Industrials | Real Estate, Materials, Industrials |
| Top Subsectors | Semiconductors, Media & Entertainment, Software | Internet Services, Office Supplies, Education |
| Bottom Subsectors | Steel, Electrical Equipment, Consumer Durables | Steel, Insurance, Real Estate |
| Southbound Connect Buys | Meituan, Kuaishou, Alibaba | N/A |
| Southbound Connect Sells | Laopu Gold, CSPC Pharmaceuticals, Shandong Molybdenum | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | -1.64 |
| Communication Services | 9 | 0.32 |
| Consumer Discretionary | 30 | -2.34 |
| Consumer Staples | 13 | -2.54 |
| Energy | 7 | -2.34 |
| Financials | 23 | -2.02 |
| Health Care | 13 | -1.41 |
| Industrials | 19 | -3.11 |
| Information Technology | 10 | -2.12 |
| Materials | 10 | -4.55 |
| Real Estate | 6 | -4.33 |
| Utilities | 12 | -2.24 |
| Mainland China Listed | 432 | -1.97 |
| Communication Services | 9 | -1.63 |
| Consumer Discretionary | 31 | -2.33 |
| Consumer Staples | 27 | -2.38 |
| Energy | 16 | -1.62 |
| Financials | 63 | -1.57 |
| Health Care | 40 | -2.14 |
| Industrials | 69 | -2.56 |
| Information Technology | 85 | -0.53 |
| Materials | 68 | -3.75 |
| Real Estate | 7 | -4.45 |
| Utilities | 17 | -2.38 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.2 |
| Alibaba HK | 9988 HK Equity | -1.2 |
| JD.com HK | 9618 HK Equity | -3.2 |
| NetEase HK | 9999 HK Equity | -0.4 |
| Yum China HK | 9987 HK Equity | -0.5 |
| Baozun HK | 9991 HK Equity | -3.3 |
| Baidu HK | 9888 HK Equity | -1.1 |
| Autohome HK | 2518 HK Equity | -4 |
| Bilibili HK | 9626 HK Equity | 0.3 |
| Trip.com HK | 9961 HK Equity | -0.4 |
| EDU HK | 9901 HK Equity | -4.1 |
| Xpeng HK | 9868 HK Equity | 1.4 |
| Weibo HK | 9898 HK Equity | -3.3 |
| Li Auto HK | 2015 HK Equity | -0.7 |
| Nio Auto HK | 9866 HK Equity | -3.2 |
| Zhihu HK | 2390 HK Equity | -2.4 |
| KE HK | 2423 HK Equity | -4.1 |
| Tencent Music Entertainment HK | 1698 HK Equity | -3 |
| Meituan HK | 3690 HK Equity | -4.6 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| MEITUAN-CLASS B | -4.6 |
| ALIBABA GROUP HOLDING LTD | -1.2 |
| TENCENT HOLDINGS LTD | 0.2 |
| XIAOMI CORP-CLASS B | -2.9 |
| BYD CO LTD-H | -4.5 |
| KUAISHOU TECHNOLOGY | 6.4 |
| PING AN INSURANCE GROUP CO-H | -4.2 |
| SEMICONDUCTOR MANUFACTURI-H | 1.8 |
| CSPC PHARMACEUTICAL GROUP LT | -1.8 |
| HSBC HOLDINGS PLC | -0.8 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| EOPTOLINK TECHNOLOGY INC L-A | -0.6 |
| ZHONGJI INNOLIGHT CO LTD-A | 3.3 |
| CONTEMPORARY AMPEREX TECHN-A | -4.5 |
| VICTORY GIANT TECHNOLOGY -A | 0 |
| CHINA NORTHERN RARE EARTH -A | -5.3 |
| FOXCONN INDUSTRIAL INTERNE-A | 6 |
| EAST MONEY INFORMATION CO-A | -2.4 |
| WUXI APPTEC CO LTD-A | -2.6 |
| INNER MONGOLIA BAOTOU STE-A | -7.9 |
| CAMBRICON TECHNOLOGIES-A | 3.6 |
