4th Plenum Concludes, Bessent Meeting Confirmed
5 Min. Read Time
Key News
Asian equities were mostly higher overnight as Indonesia and Thailand outperformed, while Japan and Pakistan underperformed.
Hong Kong and Mainland China initially followed Wall Street lower, but rose through the session to end with gains on decent volume, near the 1-year average for both markets. Mainland investors hit buy, pouring a net $683 million into Hong Kong-listed stocks and ETFs. Oil names outperformed as the commodity rose on increased sanctions for Russia's major producers.
It was confirmed that Secretary of the Treasury Scott Bessent will meet with China's Vice Premier He Lifeng in Malaysia tomorrow. This is likely in preparation for a potential Trump-Xi meeting, though the current narrative is that it is not happening.
The read-out from the 4th Plenum is positive, as expected. The document mentions self-reliance and continuing to make progress on existing goals, as well as "Great country diplomacy". The 15th Five Year Plan release will follow soon, so stay tuned as we will be covering the highlights. People often change their jobs to work in the industries highlighted by the plan, so it is a big deal every five years.
Alibaba gained 1.67% and was the most heavily traded stock in Hong Kong by value. The company continues to make progress on AI, fueling investor optimism as it is a leader in the space. China's internet companies, in general, are expanding into robotics and drones, particularly for logistics and distribution. Meituan has established a robotics research institute in Shenzhen. Will we see Amazon doing the same? It might take longer as the supply chain and design for drones and robotic machines are currently mostly in China. We could see an acquisition happen cross-border, though.
There was a slight value bias overnight as oil names surged. Consumer brands were mixed as Li Ning gained +7% on an analyst upgrade and its inclusion in a new shopping service from Meituan. Meanwhile, Pop Mart cratered -9% on concerns of slowing growth after a September quarter that saw revenue growth of +250%. Will the Labubu popularity trend end soon? Investors seem to think so, but we are not so sure.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.7% |
| Hang Seng Tech | HSTECH Index | 0.5% |
| Hong Kong Turnover | HKTurn Index | 7.8% |
| Hong Kong Short Sale Turnover | HKSST Index | 12.5% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 15.5% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 682.58 |
| China (Shanghai) | SHCOMP Index | 0.2% |
| China (Shenzhen) | SZCOMP Index | 0.2% |
| China (STAR Board) | Star50 Index | -0.3% |
| Mainland Turnover | .chturn Index | -1.5% |
| Northbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0.1% |
| Japan | NKY Index | -1.4% |
| India | SENSEX Index | 0.2% |
| Indonesia | JCI Index | 1.5% |
| Malaysia | FBMKLCI Index | 0.3% |
| Pakistan | KSE100 Index | -1.1% |
| Philippines | PCOMP Index | 0.4% |
| South Korea | KOSPI Index | -1% |
| Taiwan | TWSE Index | -0.4% |
| Thailand | SET Index | 0.9% |
| Singapore | STI Index | 0.5% |
| Australia | AS51 Index | 0% |
| Vietnam | VNINDEX Index | 0.5% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume as % of 1-Year Average | 103 | 98 |
| Advancing Stocks | 61 (Hang Seng) | 192 (CSI 300) |
| Declining Stocks | 27 (Hang Seng) | 96 (CSI 300) |
| Outperforming Factors | Value | Value |
| Underperforming Factors | Growth | Growth |
| Top Sectors | Energy, Consumer Discretionary, Communication Services | Materials, Energy, Utilities |
| Bottom Sectors | Health Care, Information Technology, Real Estate | Real Estate, Information Technology, Health Care |
| Top Subsectors | Petroleum & Petrochemicals, Retail, Environmental Protection | Petroleum, Fertilizer, Coal |
| Bottom Subsectors | Consumer Durables, Semiconductors, Pharmaceuticals | Communication Equipment, Construction Materials, Real Estate |
| Southbound Connect Buys | CNOOC, Pop Mart, Meituan | N/A |
| Southbound Connect Sells | Hua Hong Semiconductor, Innovent Biologics, Xiaomi | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 151 | 0.87 |
| Communication Services | 9 | 1.15 |
| Consumer Discretionary | 28 | 1.16 |
| Consumer Staples | 13 | 0.31 |
| Energy | 7 | 1.27 |
| Financials | 23 | 1.05 |
| Health Care | 13 | -1.17 |
| Industrials | 20 | 0.24 |
| Information Technology | 10 | 0.12 |
| Materials | 10 | 0.62 |
| Real Estate | 6 | 0.16 |
| Utilities | 12 | 0.37 |
| Mainland China Listed | 404 | 0.31 |
| Communication Services | 6 | 0.63 |
| Consumer Discretionary | 31 | 0.37 |
| Consumer Staples | 24 | 0.58 |
| Energy | 13 | 1.27 |
| Financials | 64 | 0.76 |
| Health Care | 31 | -0.12 |
| Industrials | 64 | 0.39 |
| Information Technology | 91 | -0.98 |
| Materials | 58 | 1.58 |
| Real Estate | 6 | -1.17 |
| Utilities | 16 | 0.94 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 1.5 |
| Alibaba HK | 9988 HK Equity | 1.7 |
| JD.com HK | 9618 HK Equity | 1.5 |
| NetEase HK | 9999 HK Equity | -0.6 |
| Yum China HK | 9987 HK Equity | 1.1 |
| Baozun HK | 9991 HK Equity | -1.1 |
| Baidu HK | 9888 HK Equity | 1.2 |
| Autohome HK | 2518 HK Equity | -1.1 |
| Bilibili HK | 9626 HK Equity | -1.3 |
| Trip.com HK | 9961 HK Equity | -0.1 |
| EDU HK | 9901 HK Equity | 0.8 |
| Xpeng HK | 9868 HK Equity | -0.8 |
| Weibo HK | 9898 HK Equity | 1.4 |
| Li Auto HK | 2015 HK Equity | 1.2 |
| Nio Auto HK | 9866 HK Equity | -0.3 |
| Zhihu HK | 2390 HK Equity | -0.5 |
| KE HK | 2423 HK Equity | 0.1 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.9 |
| Meituan HK | 3690 HK Equity | 4.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | 1.7 |
| POP MART INTERNATIONAL GROUP | -9.4 |
| MEITUAN-CLASS B | 4.1 |
| TENCENT HOLDINGS LTD | 1.5 |
| SEMICONDUCTOR MANUFACTURI-H | -1.1 |
| XIAOMI CORP-CLASS B | 0.9 |
| HUA HONG SEMICONDUCTOR LTD-H | -4.6 |
| CNOOC LTD-H | 2.2 |
| GIANT BIOGENE HOLDING CO LTD | 6.7 |
| CHINA MOBILE LTD-H | 0.8 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | -0.8 |
| VICTORY GIANT TECHNOLOGY -A | 2.7 |
| EOPTOLINK TECHNOLOGY INC L-A | -4.2 |
| CAMBRICON TECHNOLOGIES-A | -2.1 |
| ZHEJIANG SANHUA INTELLIGEN-A | -0.3 |
| CONTEMPORARY AMPEREX TECHN-A | 1 |
| SUNGROW POWER SUPPLY CO LT-A | 2.8 |
| SEMICONDUCTOR MANUFACTURIN-A | 1.2 |
| ZTE CORP-A | -3.5 |
| ZIJIN MINING GROUP CO LTD-A | 0.8 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 7.12 versus 7.13 yesterday
- CNY per EUR 8.27 versus 8.27 yesterday
- Yield on 10-Year Government Bond 1.84% versus 1.91% yesterday
- Yield on 10-Year China Development Bank Bond
- Copper Price
- Steel Price
