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
CATL’s Mine Closure Represents Step To Reduce EV Overcapacity
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Key News
Asian equities were mostly higher overnight, as Japan and Mainland China outperformed, while the Philippines and Thailand underperformed.
Both Hong Kong and Mainland markets were higher overnight, though the Mainland outperformed, as investors remained optimistic about the longevity of the US-China trade truce, especially with the news that Nvidia and Intel will be able to sell AI chips in China, albeit the less-advanced ones, while paying the US government 15% of their China revenues. This shows the importance of China revenue to these companies. Charging companies to export and extracting "golden shares" from US Steel, as a condition of approving Nippon Steel's takeover, are making the US look more like a state-capitalist model, like China. There was an interesting op-ed in the Wall Street Journal on this very topic. Anyway, there are green shoots for the US-China relationship.
Tencent was flat despite expectations of slowing profit growth for the second quarter. The company has seen gaming revenue increase substantially on an increase in the frequency and volume of game approvals by China's regulators. AI spending is named as the culprit for the slowing profit growth, though the company needs to continue to stay relevant in the AI space.
CATL will be closing a key lithium mine in China. This is part of the government's anti-involution campaign against oversupply, especially in the electric vehicle space. The news sent lithium prices higher and is likely to slow the new supply of vehicles to the domestic and international markets. We have discussed previously that China's electric vehicle manufacturers and solar panel makers are going to start acting like an OPEC, discussing and deciding when to cut or increase production. This vision became real overnight with the announcement of the mine's closure. The slowing of production and the material step will be useful in trade negotiations, especially with the EU.
Value slightly outperformed growth in both Mainland China and Hong Kong. Internet stocks were mixed as Alibaba gained, Tencent was flat, and Meituan was lower.
Country / Index
Ticker
1-Day Change
China (Hong Kong)
HSI Index
0.2%
Hang Seng Tech
HSTECH Index
0%
Hong Kong Turnover
HKTurn Index
-2.8%
Hong Kong Short Sale Turnover
HKSST Index
2%
Short Turnover as a % of Hong Kong Turnover
N/A
14.7%
Southbound Stock Connect Net Buy/Sell (US $ Millions)
N/A
140.3
China (Shanghai)
SHCOMP Index
0.3%
China (Shenzhen)
SZCOMP Index
1.4%
China (STAR Board)
Star50 Index
0.6%
Mainland Turnover
.chturn Index
6.9%
Northbound Stock Connect Net Buy/Sell (US $ Millions)
N/A
Not Available
Jing Daily China Global Luxury Index
CHINALUX Index
-0.2%
Japan
NKY Index
1.9%
India
SENSEX Index
0.9%
Indonesia
JCI Index
1%
Malaysia
FBMKLCI Index
0.4%
Pakistan
KSE100 Index
0.9%
Philippines
PCOMP Index
-1.3%
South Korea
KOSPI Index
-0.1%
Taiwan
TWSE Index
0.5%
Thailand
SET Index
-0.5%
Singapore
STI Index
-0.2%
Australia
AS51 Index
0.4%
Vietnam
VNINDEX Index
0.8%
Indicator
Hong Kong
Mainland
Today's Volume as % of 1-Year Average
101
129
Advancing Stocks
50 (Hang Seng)
175 (CSI 300)
Declining Stocks
33 (Hang Seng)
114 (CSI 300)
Outperforming Factors
Value
Value
Underperforming Factors
Growth
Growth
Top Sectors
Real Estate, Health Care, Consumer Discretionary
Information Technology, Consumer Staples, Communication Services
Bottom Sectors
Materials, Industrials, Financials
Energy, Utilities, Financials
Top Subsectors
Construction Materials, Electrical Equipment, Paper & Packaging
Technology Hardware, Sofware & Services, Chemical Industry
Bottom Subsectors
Consumer Durables, Consumer Services, Household & Personal Products
Banks, Petroleum & Petrochemicals, Coal
Southbound Connect Buys
Xiaomi, Akeso, East Buy
N/A
Southbound Connect Sells
Xpeng, Innovent Bio, Tencent
N/A
MSCI China All Shares Index
# of Stocks
Average 1-Day Change (%)
Hong Kong Listed
151
0.04
Communication Services
9
-0.08
Consumer Discretionary
28
0.6
Consumer Staples
13
-0.04
Energy
7
-0.18
Financials
23
-0.48
Health Care
13
0.77
Industrials
20
-0.59
Information Technology
10
-0.34
Materials
10
-0.96
Real Estate
6
1.15
Utilities
12
-0.14
Mainland China Listed
404
0.45
Communication Services
6
1.1
Consumer Discretionary
31
0.76
Consumer Staples
24
1.3
Energy
13
-0.98
Financials
64
-0.23
Health Care
31
0.48
Industrials
64
0.17
Information Technology
91
1.64
Materials
58
0.24
Real Estate
6
0.47
Utilities
16
-0.75
US & Hong Kong Dually Listed
Ticker
1-Day Change (%)
Tencent HK
700 HK Equity
0
Alibaba HK
9988 HK Equity
1.9
JD.com HK
9618 HK Equity
-0.5
NetEase HK
9999 HK Equity
-1.2
Yum China HK
9987 HK Equity
-2.8
Baozun HK
9991 HK Equity
-2.3
Baidu HK
9888 HK Equity
0.2
Autohome HK
2518 HK Equity
2.8
Bilibili HK
9626 HK Equity
2.4
Trip.com HK
9961 HK Equity
-2.3
EDU HK
9901 HK Equity
0.8
Xpeng HK
9868 HK Equity
5.4
Weibo HK
9898 HK Equity
0.6
Li Auto HK
2015 HK Equity
-1.5
Nio Auto HK
9866 HK Equity
2.6
Zhihu HK
2390 HK Equity
1.2
KE HK
2423 HK Equity
0.7
Tencent Music Entertainment HK
1698 HK Equity
1.3
Meituan HK
3690 HK Equity
-1.3
Hong Kong's Most Heavily Traded by Value
1-Day Change (%)
TENCENT HOLDINGS LTD
0
XIAOMI CORP-CLASS B
-0.9
SEMICONDUCTOR MANUFACTURI-H
0.1
ALIBABA GROUP HOLDING LTD
1.9
MEITUAN-CLASS B
-1.3
XPENG INC - CLASS A SHARES
5.4
BYD CO LTD-H
0.3
INNOVENT BIOLOGICS INC
-1.4
HUA HONG SEMICONDUCTOR LTD-H
-3.7
CSPC PHARMACEUTICAL GROUP LT
1
Shanghai and Shenzhen's Most Heavily Traded by Value
1-Day Change (%)
EAST MONEY INFORMATION CO-A
2.6
CHINA NORTHERN RARE EARTH -A
-0.1
EOPTOLINK TECHNOLOGY INC L-A
5.8
ZHONGJI INNOLIGHT CO LTD-A
2.6
HITHINK ROYALFLUSH INFORMA-A
7.3
SUNGROW POWER SUPPLY CO LT-A
3.6
VICTORY GIANT TECHNOLOGY -A
5.2
FOXCONN INDUSTRIAL INTERNE-A
-0.7
KWEICHOW MOUTAI CO LTD-A
1.7
SUNWARD INTELLIGENT EQUIPM-A
3.3
Last Night's Exchange Rates, Prices, & Yields
CNY per USD 7.19 versus 7.18 yesterday
CNY per EUR 8.34 versus 8.37 yesterday
Yield on 10-Year Government Bond 1.72% versus 1.69% yesterday
Yield on 10-Year China Development Bank Bond 1.81% versus 1.78% yesterday
Copper Price 0.06%
Steel Price -0.03%
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