A Strong Start For Alibaba’s Singles Day
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Key News
Asian equities had a strong day before TSMC’s post-close financial results, as US-China tensions eased on Treasury Secretary Bessent’s truce comments, and the US dollar resumed its decline. Having pulled off the Israel-Gaza peace agreement, I suspect the US’s increased pressure on China is to help President Trump resolve the Ukraine war. Makes sense, right?
It was a quiet night in Hong Kong and Mainland China with light volumes as traders wait for further clarity on the US-China geopolitical situation. Hong Kong and especially Hong Kong growth, technology, and internet names have worked off their overbought situation, as their Relative Strength Index (RSI) declines, and their 50-day moving averages have been acting as support.
Alibaba fell -0.25% as its Singles Day (November 11th) pre-sales kicked off last night. In the first hour, 35 brands achieved RMB 100 million in sales, 1,802 orders were received, and the number of active users exceeded last year's. Cosmetics and sports apparel were in vogue, as brands including Estee Lauder, Nike, and Anta reported strong demand out of the gate. Cosmetics company Giant Biogene (2367 HK) fell -15.21% on concerns its products weren’t doing well during Singles Day, though the company’s controlling shareholder bought 760,000 shares on the dip.
NIO fell -8.99% after it was revealed that GIC, a well-respected Singapore sovereign wealth fund, filed a lawsuit in August in a New York City court, accusing the electric vehicle (EV) brand of inflating revenue. GIC is accusing NIO of recognizing revenues from sales to its battery swap affiliate, although the batteries hadn’t yet been sold to end clients. The news weighed on the EV and battery space, impacting names including Xiaomi, which fell -3.6%, CATL, which fell -1.2%, and Xpeng, which fell -3.5%.
Xpeng CEO He Xiaopeng announced that production of flying cars will begin in 2026. He also announced at the 2025 Sustainable Global Leaders Conference in Shanghai that a new AI visual and language system could enhance the performance of their humanoid robots.
The National Development & Reform Commission (NDRC) announced a three-year plan to increase the number of EV charging stations across China, which likely explains the outperformance of clean technology companies, such as Sungrow, which gained +7.66%, LONGi, which gained +2.61%, and many of the Hong Kong and Mainland-listed stocks within the electricity and coal subsectors. If power generation is the key to AI, doesn’t China have a significant advantage due to its massive solar (12% of electrical output), wind (13%), nuclear (5%), and hydroelectric power (16%) sources? I am surprised that this has yet to hit investors' radars.
Coincidentally, a Mainland media source noted “the world’s first onshore commercial modular small reactor… has passed the safety review of the International Atomic Energy Agency”.
Mainland investors bought a healthy $2.04 billion worth of Hong Kong-listed stocks and ETFs today, accounting for 25% of Hong Kong volumes via Southbound Stock Connect. Zijin Gold International gained +3.8% after being added to the Southbound Stock Connect.
Interestingly, Mainland-listed precious metals and mining stocks had another down day. The Mainland precious metals subsector has doubled since January 2024. That could be a signal for the red-hot global gold and mining space.
Mainland China exhibited a significant value bias, as banks, insurance, and utilities all outperformed, while growth stocks, such as semiconductors and those listed on the STAR Board, underperformed.
The "National Team" refers to investment firms associated with China's sovereign wealth. They often step in as buyers to support the market, similar to the Bank of Japan's equity market operations. The National Team’s favored ETFs had slightly above-average volumes. Could this have been from a little dip buying by the National Team? It is hard to know for sure, but it is certainly possible.
The China Federation of Logistics & Purchasing released the E-commerce Logistics Index, which increased month-over-month to a new high. I’ll have to dig into this further and report back. Stay tuned!
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.1% |
| Hang Seng Tech | HSTECH Index | -1.2% |
| Hong Kong Turnover | HKTurn Index | -12.8% |
| Hong Kong Short Sale Turnover | HKSST Index | 3% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 16.5% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 2020.67 |
| China (Shanghai) | SHCOMP Index | 0.1% |
| China (Shenzhen) | SZCOMP Index | -0.6% |
| China (STAR Board) | Star50 Index | -0.9% |
| 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 | 0.4% |
| Japan | NKY Index | 1.3% |
| India | SENSEX Index | 1% |
| Indonesia | JCI Index | 0.9% |
| Malaysia | FBMKLCI Index | 0% |
| Pakistan | KSE100 Index | -0.4% |
| Philippines | PCOMP Index | 0% |
| South Korea | KOSPI Index | 2.5% |
| Taiwan | TWSE Index | 1.4% |
| Thailand | SET Index | 0.4% |
| Singapore | STI Index | -0.3% |
| Australia | AS51 Index | 0.9% |
| Vietnam | VNINDEX Index | 0.5% |
| Indicator | Hong Kong | Mainland |
|---|---|---|
| Today's Volume % of 1-Year Average | 116 | 115 |
| Advancing Stocks | 271 | 1073 |
| Declining Stocks | 216 | 3979 |
| Outperforming Factors | Quality, EPS Revision, Low Volatility | Large Caps, Dividend Yield, Low Volatility |
| Underperforming Factors | Momentum, Buybacks, Liquidity | |
| Top Sectors | Energy, Healthcare, Financials | Energy, Staples, Financials |
| Bottom Sectors | Tech, Materials, Communication | Materials, Communication, Real Estate |
| Top Subsectors | Consumer Durables/Apparel, Coal, Pharmaceuticals | Coal, Marine/Shipping, Banking |
| Bottom Subsectors | Household/Personal Products, Steel, Construction Materials | Power Generation, Fertilizer/Pesticides, Steel |
| Southbound Connect Buys | Xiaomi (Large), Alibaba, Pop Mart (Moderate), Hua Hong Semi (Small), Tencent, ZTE (Tiny) | |
| Southbound Connect Sells | Giant Biogene, SMIC (Small) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | -0.03 |
| Communication Services | 9 | -0.94 |
| Consumer Discretionary | 28 | -0.28 |
| Consumer Staples | 13 | -0.55 |
| Energy | 6 | 2.36 |
| Financials | 24 | 1.86 |
| Health Care | 12 | 2.35 |
| Industrials | 21 | 0.71 |
| Information Technology | 10 | -2.03 |
| Materials | 10 | -1.42 |
| Real Estate | 7 | 0.69 |
| Utilities | 12 | 0.81 |
| Mainland China Listed | 395 | 0.12 |
| Communication Services | 7 | -1.09 |
| Consumer Discretionary | 29 | -0.08 |
| Consumer Staples | 24 | 0.89 |
| Energy | 13 | 2.04 |
| Financials | 64 | 0.88 |
| Health Care | 32 | 0.32 |
| Industrials | 61 | 0.04 |
| Information Technology | 90 | -0.24 |
| Materials | 54 | -1.95 |
| Real Estate | 6 | -0.27 |
| Utilities | 15 | 0.58 |
| 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 | -0.7 |
| NetEase HK | 9999 HK Equity | 0.1 |
| Yum China HK | 9987 HK Equity | 0.9 |
| Baozun HK | 9991 HK Equity | -1.1 |
| Baidu HK | 9888 HK Equity | -1.7 |
| Autohome HK | 2518 HK Equity | -1.4 |
| Bilibili HK | 9626 HK Equity | 1.1 |
| Trip.com HK | 9961 HK Equity | -0.1 |
| EDU HK | 9901 HK Equity | 8.9 |
| Xpeng HK | 9868 HK Equity | -3.5 |
| Weibo HK | 9898 HK Equity | -1.4 |
| Li Auto HK | 2015 HK Equity | -1.5 |
| Nio Auto HK | 9866 HK Equity | -9 |
| Zhihu HK | 2390 HK Equity | -1.5 |
| KE HK | 2423 HK Equity | 0 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.6 |
| Meituan HK | 3690 HK Equity | -1.2 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| XIAOMI CORP-CLASS B | 1.8 |
| ALIBABA GROUP HOLDING LTD | -0.2 |
| TENCENT HOLDINGS LTD | -1.1 |
| POP MART INTERNATIONAL GROUP | 3.8 |
| SEMICONDUCTOR MANUFACTURI-H | 3.6 |
| HUA HONG SEMICONDUCTOR LTD-H | 5.3 |
| ZIJIN GOLD INTERNATIONAL CO | 3.8 |
| CHINA LIFE INSURANCE CO-H | 4.8 |
| GIANT BIOGENE HOLDING CO LTD | -15.3 |
| MEITUAN-CLASS B | -1.2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| SUNGROW POWER SUPPLY CO LT-A | 8.3 |
| ZTE CORP-A | 0.4 |
| LUXSHARE PRECISION INDUSTR-A | 5.8 |
| ZHONGJI INNOLIGHT CO LTD-A | 2.3 |
| CAMBRICON TECHNOLOGIES-A | 2.6 |
| EOPTOLINK TECHNOLOGY INC L-A | 1.9 |
| CONTEMPORARY AMPEREX TECHN-A | 3.2 |
| ZHEJIANG SANHUA INTELLIGEN-A | 10 |
| GIGADEVICE SEMICONDUCTO-CL A | 3 |
| ZIJIN MINING GROUP CO LTD-A | -1.6 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 7.12 versus 7.14 yesterday
- CNY per EUR 8.30 versus 8.25 yesterday
- Yield on 10-Year Government Bond 1.84% versus 1.84% yesterday
- Yield on 10-Year China Development Bank Bond 1.93% versus 1.94% yesterday
- Copper Price +0.09%
- Steel Price -0.26%
