Metals & Growth Stocks Dip While Autos Gain
5 Min. Read Time
Key News
Asian equities were mixed, as South Korea and Vietnam outperformed while the US dollar was flat overnight versus most Asian currencies.
The National Financial Work Conference was held over the weekend. Policymakers emphasized that economic policy will focus on a proactive fiscal approach in support of six key objectives, including boosting domestic consumption. Mainland-listed oil futures rose, though stocks failed to get the message.
The Shanghai Composite managed to close with a small gain, extending its winning streak to nine days on the back of stronger bank and oil stocks. Hong Kong opened higher, but slid throughout the trading session, led lower by growth stocks.
Precious metals futures had a wild day, as local futures on the Shanghai and Guangzhou futures exchanges slid. Gold fell -1.16%, silver fell by -2.09%, and platinum and palladium both fell by around -10%. Mainland China and Hong Kong-listed precious metals and base metal stocks were hit, as Zijin Mining fell -3.01% in Hong Kong and -2.62% in Mainland China. New energy material futures also were hit, as lithium carbonate fell -7.89% and polycrystalline silicon futures pulled back hard today, falling -4.84% after breaking out above recent consolidation. Just prior to the anti-involution’s focus on the solar industry, futures hit a low of 30,934 versus the recent high of 61,985 and today’s close of 56,500.
Battery maker Contemporary Amperex Technology (CATL) was off -2.1% in Hong Kong and -1.37% in Mainland China, while solar stocks were weaker. Autos had a good day on market expectations that trade-in subsidies will continue in 2026. The Hong Kong-listed BYD gained +3.74%, NIO gained +4.89%, XPeng gained +3.88% on a new model with a range of 1,550 km and investment from FAW Group, and Great Wall Motors gained +1.95%.
Internet large caps were mainly lower. Alibaba fell -1.85%, Tencent fell -1.08%, and Xiaomi fell -1.63% after the co-founder Lin Bin announced his intention to sell $2 billion worth of stock. Bucking the growth stock slump was UB Tech Robotics, which gained +9.13%.
Mainland investors sold a net -$439 million via Southbound Stock Connect, a rare net sale day for the program.
The State Council Tariff Commission announced it will release the 2026 Tariff Adjustment Plan soon. The plan could include sheltering 935 key commodity inputs to support technology self-reliance and the development of green technology.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.7% |
| Hang Seng Tech | HSTECH Index | -0.3% |
| Hong Kong Turnover | HKTurn Index | 142.6% |
| Hong Kong Short Sale Turnover | HKSST Index | 151.1% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 14.3% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -436.03 |
| China (Shanghai) | SHCOMP Index | 0% |
| China (Shenzhen) | SZCOMP Index | -0.3% |
| China (STAR Board) | Star50 Index | 0% |
| Mainland Turnover | .chturn Index | -0.9% |
| 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 | -0.4% |
| India | SENSEX Index | -0.4% |
| Indonesia | JCI Index | 1.2% |
| Malaysia | FBMKLCI Index | 0.2% |
| Pakistan | KSE100 Index | 0.8% |
| Philippines | PCOMP Index | -0.2% |
| South Korea | KOSPI Index | 2.2% |
| Taiwan | TWSE Index | 0.9% |
| Thailand | SET Index | -0.4% |
| Singapore | STI Index | -0.1% |
| Australia | AS51 Index | -0.4% |
| Vietnam | VNINDEX Index | 1.4% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume as % of 1-Year Average | 90 | 126 |
| Advancing Stocks | 136 | 1942 |
| Declining Stocks | 363 | 3072 |
| Outperforming Factors | Value | Growth, Large Caps, Value |
| Underperforming Factors | Momentum, Buyback, Liquidity | EPS Revision, Momentum, Quality |
| Top Sectors | Energy, Financials | Energy, Tech, Financials |
| Bottom Sectors | Staples, Materials, Utilities | Materials, Utilities, Healthcare |
| Top Subsectors | Paper/Packaging, Auto, Healthcare Equipment | Chemical Fiber, Forest, Oil/Gas |
| Bottom Subsectors | Household/Personal Products, Non Ferrous Metals. Household Appliances | Precious Metals, Base Metals, Retail |
| Southbound Connect Buys | (None, low volume) | N/A |
| Southbound Connect Sells | Alibaba, China Mobile (Large), Zijin Mining (Moderate), Meituan, SMIC, Tencent, UBTech Robotics, Xiaomi (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 151 | -0.7 |
| Communication Services | 9 | -0.92 |
| Consumer Discretionary | 28 | -0.63 |
| Consumer Staples | 13 | -2.6 |
| Energy | 7 | 0.6 |
| Financials | 23 | 0.37 |
| Health Care | 13 | -1.36 |
| Industrials | 20 | -0.38 |
| Information Technology | 10 | -1.42 |
| Materials | 10 | -2.4 |
| Real Estate | 6 | -0.33 |
| Utilities | 12 | -1.52 |
| Mainland China Listed | 404 | -0.29 |
| Communication Services | 6 | -0.83 |
| Consumer Discretionary | 31 | -0.18 |
| Consumer Staples | 24 | -0.53 |
| Energy | 13 | 1.06 |
| Financials | 64 | 0.35 |
| Health Care | 31 | -1.15 |
| Industrials | 64 | -0.75 |
| Information Technology | 91 | 0.43 |
| Materials | 58 | -1.68 |
| Real Estate | 6 | -0.61 |
| Utilities | 16 | -1.66 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -1.1 |
| Alibaba HK | 9988 HK Equity | -1.8 |
| JD.com HK | 9618 HK Equity | -0.7 |
| NetEase HK | 9999 HK Equity | 1.4 |
| Yum China HK | 9987 HK Equity | -1.2 |
| Baozun HK | 9991 HK Equity | -3 |
| Baidu HK | 9888 HK Equity | -0.3 |
| Autohome HK | 2518 HK Equity | 0.3 |
| Bilibili HK | 9626 HK Equity | -0.4 |
| Trip.com HK | 9961 HK Equity | -0.7 |
| EDU HK | 9901 HK Equity | -1.8 |
| Xpeng HK | 9868 HK Equity | 3.9 |
| Weibo HK | 9898 HK Equity | -0.7 |
| Li Auto HK | 2015 HK Equity | 1.6 |
| Nio Auto HK | 9866 HK Equity | 4.9 |
| Zhihu HK | 2390 HK Equity | 0 |
| KE HK | 2423 HK Equity | 2 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.2 |
| Meituan HK | 3690 HK Equity | 1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| SEMICONDUCTOR MANUFACTURI-H | -2.1 |
| TENCENT HOLDINGS LTD | -1.1 |
| ALIBABA GROUP HOLDING LTD | -1.8 |
| CHINA MOBILE LTD-H | -1.2 |
| HUA HONG SEMICONDUCTOR LTD-H | 1.4 |
| XIAOMI CORP-CLASS B | -1.6 |
| HSBC HOLDINGS PLC | -1.5 |
| MEITUAN-CLASS B | 1 |
| PING AN INSURANCE GROUP CO-H | 0.3 |
| YANGTZE OPTICAL FIBRE AND-H | -7.6 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | -1.4 |
| CAMBRICON TECHNOLOGIES-A | 4.2 |
| CHINA SPACESAT CO LTD -A | 10 |
| SUNGROW POWER SUPPLY CO LT-A | -3 |
| FOXCONN INDUSTRIAL INTERNE-A | 2.2 |
| ZIJIN MINING GROUP CO LTD-A | -2.6 |
| CHINA AEROSPACE TIMES ELEC-A | -1 |
| VICTORY GIANT TECHNOLOGY -A | 2.5 |
| EOPTOLINK TECHNOLOGY INC L-A | -0.2 |
| ADDSINO CO LTD -A | 10 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 7.01 versus 7.01 Friday
- CNY per EUR 8.24 versus 8.25 Friday
- Yield on 10-Year Government Bond 1.86% versus 1.84% Friday
- Yield on 10-Year China Development Bank Bond 1.94% versus 1.91% Friday
- Copper Price 2.40%
- Steel Price 0.93%
