Holiday Spirit Lifts Growth Stocks
5 Min. Read Time
Key News
Asian equities were feeling the holiday spirit overnight, as multiple markets exceeded 1% gains despite light volumes, including Shenzhen, Taiwan, South Korea, Thailand, the Philippines, and Vietnam.
China's currency, the renminbi (CNY) hit another 52-week high versus the US dollar, closing at only 7.03 per USD overnight. Meanwhile, Hong Kong and China bounced around the room on light volumes but managed small gains by the end of the session, as growth stocks outperformed.
Investors paid some attention to Republican lawmakers' efforts to make the Defense Department add more China-based companies to its list of companies affiliated with the military. Don’t they know their boss wants to do a deal with China? They must have missed the memo.
Non-ferrous metals had another strong day in both markets. Mainland-listed semiconductor and technology hardware stocks were mostly higher. One catalyst was rumors that Moore Threads could be releasing a new chip in the coming weeks.
There was a Mainland media article noting that the 106 initial public offerings (IPOs) in Hong Kong this year raised HKD 274 billion ($35 billion). There was also an article that blamed Hong Kong's market decline since October on liquidity issues. The piece cites lower Southbound Stock Connect volumes, light foreign investor flows, and IPOs increasing supply as potential factors weighing on liquidity. This was a slight vindication, since we made a similar argument last week. Southbound Connect was 26% of Hong Kong's turnover overnight. But, the market appeared to be more driven by light holiday volumes than the $401 million worth of net buying from Mainland investors.
AI company MiniMax, which is backed by Tencent, Alibaba, and Xiaomi, and semiconductor company Biren Intelligent Technology are both headed toward Hong Kong IPOs. Baidu gained +1.26% in Hong Kong overnight.
Mainland-listed banks were mixed, despite their margins not being pressured further as the 1 and 5-Year Loan Prime Rates were left unchanged, as expected, at 3.0% and 3.5%, respectively.
Premier Li and the State Council had a meeting to review the draft of the 15th Five-Year Plan. However, the meeting was announced after the close, so there was no impact on sentiment. The release appeared to focus more on social issues than economic issues, apart from a simple reiteration of “expanding domestic demand”.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.4% |
| Hang Seng Tech | HSTECH Index | 0.9% |
| Hong Kong Turnover | HKTurn Index | -23.2% |
| Hong Kong Short Sale Turnover | HKSST Index | -42.6% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 15.2% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 399.15 |
| China (Shanghai) | SHCOMP Index | 0.7% |
| China (Shenzhen) | SZCOMP Index | 1.1% |
| China (STAR Board) | Star50 Index | 2% |
| Mainland Turnover | .chturn Index | 8.2% |
| 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 | 1.8% |
| India | SENSEX Index | 0.8% |
| Indonesia | JCI Index | 0.4% |
| Malaysia | FBMKLCI Index | 0.3% |
| Pakistan | KSE100 Index | -0.1% |
| Philippines | PCOMP Index | 2% |
| South Korea | KOSPI Index | 2.1% |
| Taiwan | TWSE Index | 1.6% |
| Thailand | SET Index | 1.4% |
| Singapore | STI Index | 0.9% |
| Australia | AS51 Index | 0.9% |
| Vietnam | VNINDEX Index | 2.7% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume as % of 1-Year Average | 73 | 100 |
| Advancing Stocks | 314 | 3460 |
| Declining Stocks | 157 | 1496 |
| Outperforming Factors | Liquidity, Momentum, EPS Revision | Momentum, EPS Revision, Liquidity |
| Underperforming Factors | Value | Value |
| Top Sectors | Industrials, Consumer Staples, Real Estate | Utilities, Information Technology, Consumer Discretionary |
| Bottom Sectors | Energy, Consumer Discretionary, Information Technology | Energy, Communication Services, Consumer Staples |
| Top Subsectors | Consumer Durables/Apparel, Non Ferrous Metals, Semis | Communication Equipment, Fertilizer, Electronic Components |
| Bottom Subsectors | Environmental Protection, National Defense, Commercial/Professional Services | Forest, Water, Aerospace |
| Southbound Connect Buys | Xiaomi (Large), Alibaba, Hang Seng Tech ETF, Meituan, Tencent, YOFC (Moderate), SMIC (Small) | N/A |
| Southbound Connect Sells | CNOOC (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 151 | 0.39 |
| Communication Services | 9 | -0.3 |
| Consumer Discretionary | 28 | 0.09 |
| Consumer Staples | 13 | 0.22 |
| Energy | 7 | 0.3 |
| Financials | 23 | -0.74 |
| Health Care | 13 | 0.87 |
| Industrials | 20 | 4.04 |
| Information Technology | 10 | -0.98 |
| Materials | 10 | 0.07 |
| Real Estate | 6 | 0.07 |
| Utilities | 12 | 0.81 |
| Mainland China Listed | 404 | 1.06 |
| Communication Services | 6 | 1.83 |
| Consumer Discretionary | 31 | -0.38 |
| Consumer Staples | 24 | 0.94 |
| Energy | 13 | -0.57 |
| Financials | 64 | -0.02 |
| Health Care | 31 | 1.04 |
| Industrials | 64 | -0.05 |
| Information Technology | 91 | 2.14 |
| Materials | 58 | 0.52 |
| Real Estate | 6 | -0.18 |
| Utilities | 16 | 3.26 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.1 |
| Alibaba HK | 9988 HK Equity | 0.8 |
| JD.com HK | 9618 HK Equity | 0.9 |
| NetEase HK | 9999 HK Equity | -0.1 |
| Yum China HK | 9987 HK Equity | 0.2 |
| Baozun HK | 9991 HK Equity | -2.2 |
| Baidu HK | 9888 HK Equity | 1.3 |
| Autohome HK | 2518 HK Equity | -4 |
| Bilibili HK | 9626 HK Equity | 0.6 |
| Trip.com HK | 9961 HK Equity | 2.7 |
| EDU HK | 9901 HK Equity | 0.1 |
| Xpeng HK | 9868 HK Equity | 0.7 |
| Weibo HK | 9898 HK Equity | 0.1 |
| Li Auto HK | 2015 HK Equity | 0.9 |
| Nio Auto HK | 9866 HK Equity | -0.8 |
| Zhihu HK | 2390 HK Equity | 1.4 |
| KE HK | 2423 HK Equity | -0.3 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.9 |
| Meituan HK | 3690 HK Equity | 0.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | 0.8 |
| TENCENT HOLDINGS LTD | 0.1 |
| XIAOMI CORP-CLASS B | -1.8 |
| SEMICONDUCTOR MANUFACTURI-H | 5.9 |
| MEITUAN-CLASS B | 0.1 |
| YANGTZE OPTICAL FIBRE AND-H | 11.2 |
| HSBC HOLDINGS PLC | 1.7 |
| POP MART INTERNATIONAL GROUP | 4.6 |
| ZIJIN MINING GROUP CO LTD-H | 5.3 |
| HUA HONG SEMICONDUCTOR LTD-H | 5.2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 8 |
| EOPTOLINK TECHNOLOGY INC L-A | 6.6 |
| SUZHOU TFC OPTICAL COMMUNI-A | 4.2 |
| FOXCONN INDUSTRIAL INTERNE-A | 4 |
| VICTORY GIANT TECHNOLOGY -A | 3.4 |
| ADDSINO CO LTD -A | 2.5 |
| SEMICONDUCTOR MANUFACTURIN-A | 6 |
| SUNGROW POWER SUPPLY CO LT-A | 2.1 |
| CONTEMPORARY AMPEREX TECHN-A | -0.6 |
| CHINA AEROSPACE TIMES ELEC-A | -3.7 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 7.04 versus 7.04 Friday
- CNY per EUR 8.27 versus 8.25 Friday
- Yield on 10-Year Government Bond 1.84% versus 1.83% Friday
- Yield on 10-Year China Development Bank Bond 1.91% versus 1.90% Friday
- Copper Price 0.18%
- Steel Price 0.48%
