Electric Vehicle & Robotics Heavyweight Xpeng Beats Estimates In Q3 Earnings
5 Min. Read Time
Key News
Asian equities were mixed overnight as the Philippines and Korea outperformed, while Hong Kong and Mainland China underperformed.
US Treasury Secretary Scott Bessent is said to be targeting significant progress on trade deals with China in certain sectors by Thanksgiving. Meanwhile, Trump has confirmed that China has begun buying soybeans and expects the country to fulfill its commitment by the end of the first quarter of 2026.
Hong Kong’s volumes were light, below the one-year average, overnight. There could have been a lack of buyers, apart from Southbound Stock Connect, which contributed to the market’s underperformance.
Alibaba was flat after its US listing fell -3.78% on Friday after the Financial Times reported the White House provides technology support to the Chinese army for use against the US. The headline got a lot of attention, though the company’s response was great, stating “The claims purportedly based on US intelligence that was leaked by your source are complete nonsense. This is plainly an attempt to manipulate public opinion and malign Alibaba.” I couldn’t agree more! It also confirms the benefits of our decision to hold the Hong Kong shares over the US shares. Mainland investors bought a net $266 million worth of Alibaba’s Hong Kong-listed stock via Southbound Stock Connect for the third day in a row.
Net purchases of Alibaba from Mainland investors have been strong over the past few days, after going into net sells in September and October. This is a strong indication that Mainland investors may have been buying the headline volatility. Alibaba will report third quarter earnings just before Thanksgiving, next week on the 25th.
Alibaba: Southbound Stock Connect Net Flow
Overall, Mainland investors purchased a healthy net $1 billion+ worth of Hong Kong-listed stocks and ETFs overnight on weakness.
The People’s Bank of China (PBOC), China’s central bank, will issue an interest rate decision on Thursday. We expect the central bank to leave most rates unchanged for the rest of 2025 while targeting other measures to stimulate the economy and the stock market.
Online travel booking site Trip.com fell -3.56% on China’s travel advisory for Japan. Airlines are providing refunds for Japan trips following the new Prime Minister Takaichi’s comments on a Taiwan invasion threatening Japan.
Electric vehicle (EV) and soon-to-be humanoid robotics maker Xpeng reported third quarter earnings results overnight.
- Revenue increased +101.8% to RMB 20.38 billion ($2.86B) versus analyst expectations of RMB 20.45 billion
- Revenues from vehicle sales were RMB 18.05 billion ($2.54 billion) for the third quarter of 2025, representing an increase of 105.3% from the same period in 2024.
- Adjusted Net Income was RMB -0.15 billion, as losses narrowed from RMB -1.53 billion in the third quarter of 2024 versus analyst expectations of RMB -0.54 billion.
- Adjusted earnings per share (EPS) increased to RMB -0.08 from RMB -1.67 versus analyst expectations of RMB -0.70
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.7% |
| Hang Seng Tech | HSTECH Index | -1% |
| Hong Kong Turnover | HKTurn Index | -6.5% |
| Hong Kong Short Sale Turnover | HKSST Index | 27.5% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 20.3% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 1,079 |
| China (Shanghai) | SHCOMP Index | -0.5% |
| China (Shenzhen) | SZCOMP Index | 0% |
| China (STAR Board) | Star50 Index | -0.5% |
| Mainland Turnover | .chturn Index | -2.3% |
| Northbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | -0.9% |
| Japan | NKY Index | -0.1% |
| India | SENSEX Index | 0.5% |
| Indonesia | JCI Index | 0.6% |
| Malaysia | FBMKLCI Index | 0.1% |
| Pakistan | KSE100 Index | 0% |
| Philippines | PCOMP Index | 3.5% |
| South Korea | KOSPI Index | 1.9% |
| Taiwan | TWSE Index | 0.2% |
| Thailand | SET Index | 0.9% |
| Singapore | STI Index | -0.1% |
| Australia | AS51 Index | 0% |
| Vietnam | VNINDEX Index | 1.2% |
| Indicator | Hong Kong | Mainland |
|---|---|---|
| Today's Volume % of 1-Year Average | 78% | 114% |
| Advancing Stocks | 138 | 2494 |
| Declining Stocks | 341 | 2515 |
| Outperforming Factors | Liquidity | |
| Underperforming Factors | EPS Revision, Momentum, Liquidity | Quality, Low Volatility, Value |
| Top Sectors | Energy | Energy, Tech, Staples |
| Bottom Sectors | Materials, Healthcare, Tech | Healthcare, Financials, Industrials |
| Top Subsectors | Coal, Consumer Durables/Apparel, Petroleum | Forest, Internet, Aerospace/Military |
| Bottom Subsectors | Electrical Equipment, Non Ferrous, Pharmaceuticals | Motorcycle, Precious Metals, Soft Drink |
| Southbound Connect Buys | HK Tracker ETF (Very Large), Alibaba (Large),Xiaomi (Small), Hua Hong Semi, Tencent (Tiny) | |
| Southbound Connect Sells | Gengfeng Lithium, SMIC (Tiny) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 160 | -0.79 |
| Communication Services | 11 | -0.84 |
| Consumer Discretionary | 28 | -0.48 |
| Consumer Staples | 13 | -0.16 |
| Energy | 6 | 0.65 |
| Financials | 25 | -0.79 |
| Health Care | 15 | -1.92 |
| Industrials | 21 | -0.5 |
| Information Technology | 12 | -1.2 |
| Materials | 10 | -2.95 |
| Real Estate | 7 | -0.89 |
| Utilities | 12 | -0.11 |
| Mainland China Listed | 385 | -0.69 |
| Communication Services | 8 | -0.12 |
| Consumer Discretionary | 28 | -0.61 |
| Consumer Staples | 21 | -0.02 |
| Energy | 12 | 0.64 |
| Financials | 66 | -1.34 |
| Health Care | 33 | -1.63 |
| Industrials | 57 | -1.24 |
| Information Technology | 91 | 0.09 |
| Materials | 49 | -0.63 |
| Real Estate | 6 | -0.05 |
| Utilities | 14 | -0.74 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.7 |
| Alibaba HK | 9988 HK Equity | 0 |
| JD.com HK | 9618 HK Equity | -1.3 |
| NetEase HK | 9999 HK Equity | -0.5 |
| Yum China HK | 9987 HK Equity | 0.1 |
| Baozun HK | 9991 HK Equity | -3.6 |
| Baidu HK | 9888 HK Equity | -3 |
| Autohome HK | 2518 HK Equity | -2.8 |
| Bilibili HK | 9626 HK Equity | -1.9 |
| Trip.com HK | 9961 HK Equity | -3.6 |
| EDU HK | 9901 HK Equity | 0.4 |
| Xpeng HK | 9868 HK Equity | -2.7 |
| Weibo HK | 9898 HK Equity | -1.2 |
| Li Auto HK | 2015 HK Equity | -2.5 |
| Nio Auto HK | 9866 HK Equity | -0.1 |
| Zhihu HK | 2390 HK Equity | -3.5 |
| KE HK | 2423 HK Equity | -1.4 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.2 |
| Meituan HK | 3690 HK Equity | 0.3 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | 0 |
| TENCENT HOLDINGS LTD | -0.7 |
| XIAOMI CORP-CLASS B | -0.9 |
| SEMICONDUCTOR MANUFACTURI-H | -0.7 |
| HUA HONG SEMICONDUCTOR LTD-H | 0.4 |
| MEITUAN-CLASS B | 0.3 |
| POP MART INTERNATIONAL GROUP | 0.5 |
| GANFENG LITHIUM GROUP CO L-H | 9 |
| XPENG INC - CLASS A SHARES | -2.7 |
| HONG KONG EXCHANGES & CLEAR | -0.7 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| CONTEMPORARY AMPEREX TECHN-A | -3.3 |
| ZHONGJI INNOLIGHT CO LTD-A | 4.4 |
| SUNGROW POWER SUPPLY CO LT-A | -0.7 |
| EOPTOLINK TECHNOLOGY INC L-A | 0.4 |
| TIANQI LITHIUM CORP-A | 9.9 |
| GANFENG LITHIUM GROUP CO L-A | 7.5 |
| DO-FLUORIDE NEW MATERIALS -A | 6.2 |
| GUANGZHOU TINCI MATERIALS -A | 2.1 |
| CAMBRICON TECHNOLOGIES-A | -1.7 |
| ZHEJIANG HUAYOU COBALT CO -A | 3 |
Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.10 versus 7.10 Friday
- CNY per EUR 8.24 versus 8.26 Friday
- Yield on 10-Year Government Bond 1.81% versus 1.81% Friday
- Yield on 10-Year China Development Bank Bond 1.87% versus 1.88% Friday
- Copper Price -0.95%
- Steel Price +0.95%
