Hong Kong & Mainland China Grind Higher, Renminbi Rises
5 Min. Read Time
Key News
Asian stocks were mixed overnight as the US dollar weakened, with China’s Renminbi (CNY) closing below the psychological level of 7 at 6.99 per USD (remember, CNY is quoted USD/CNY, so appreciating is a lower price).
Hong Kong and Mainland China grinded higher, despite decliners outpacing advancers, as large-cap growth stocks lifted indices. Contributors to the growth stock/sector outperformance today started pre-market with Meta’s $2B purchase of former Chinese AI firm Manus, which is now located in Singapore.
The Ministry of Industry and Information Technology (MIIT) released the “Standardization Technical Committee for Humanoid Robotics and Embodied Intelligence,” which is expected to accelerate the rollout of humanoids within safety standards. UBTech Robotics gained +8.28% as their CEO promised not to sell shares for a year. Semiconductor stocks were higher following news that SMIC, up +4.24% in Hong Kong and +2.27% in Mainland China, is consolidating production through the purchase of SMIC North with the support of the national chip fund. My sleeper stock for 2026, Baidu, gained +8.9% as investors recognize its Kunlun semi chip unit is a beneficiary of consolidation.
While Southbound Stock Connect was another rare net sell today with -$439 million, big tech plays such as Alibaba (+0.84%), Tencent (+0.59%), Xiaomi (+2.02%), and Meituan (+0.1%) indicate that foreign investors might have been adding China tech to their portfolios, with quarter and year-end holding disclosures coming.
Oil and non-ferrous metal stocks had a good day in both Hong Kong and Mainland China. Shanghai was weighed down by bank and insurance stocks, although the STAR Board gained +1.01%, led by semiconductor stocks such as Cambricon, which rose +4.22%.
Premier Li and the State Council signed “The Implementation Regulation of the Value-added Tax Law of the People's Republic of China,” with real estate transactions as a beneficiary. The Ministry of Economic Forecast stated that consumer subsidies for electric vehicles (EVs), household appliances, and “digital products” will continue in 2026. The NDRC announced “The Notice on Implementing the Policy of Large-scale Equipment Upgrade and Consumer Goods Exchange in 2026,” with equipment upgrades in healthcare facilities and shopping centers/malls highlighted.
December PMIs will be released tomorrow.
Chinese military drills off of Taiwan are occurring following the US’s sale of military equipment. It is not garnering much attention, as the announcements from two Chinese airlines placing large orders for Airbus planes at a loss to Boeing have overshadowed it.
A consequence of the Hong Kong market’s rebound is an increase in IPOs. While not necessarily bad, ECON 101 taught us that increasing supply while keeping demand constant results in lower prices. Funding IPOs requires money, which might come from one’s current holdings, ie, selling what you own to participate in an IPO. In 2025, Hong Kong had a total of 118 IPOs, which raised approximately HK$284 billion (US$36 billion). The trend is expected to continue in early 2026 with AI firm MiniMax’s IPO, which is anticipated to raise $600 million from investors, including Alibaba. Something to keep an eye on IMO.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.9% |
| Hang Seng Tech | HSTECH Index | 1.7% |
| Hong Kong Turnover | HKTurn Index | -11% |
| Hong Kong Short Sale Turnover | HKSST Index | -7.1% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 15% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -439 |
| China (Shanghai) | SHCOMP Index | 0% |
| China (Shenzhen) | SZCOMP Index | 0.2% |
| China (STAR Board) | Star50 Index | 1% |
| Mainland Turnover | .chturn Index | 0% |
| Northbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0.2% |
| Japan | NKY Index | -0.4% |
| India | SENSEX Index | 0% |
| Indonesia | JCI Index | 0% |
| Malaysia | FBMKLCI Index | 0.2% |
| Pakistan | KSE100 Index | 0.4% |
| Philippines | PCOMP Index | -0.2% |
| South Korea | KOSPI Index | -0.2% |
| Taiwan | TWSE Index | -0.4% |
| Thailand | SET Index | 0.4% |
| Singapore | STI Index | 0.5% |
| Australia | AS51 Index | -0.1% |
| Vietnam | VNINDEX Index | 0.7% |
| Indicator | Hong Kong | Mainland |
|---|---|---|
| Today's Volume % of 1-Year Average | 80% | 126% |
| Advancing Stocks | 203 | 1830 |
| Declining Stocks | 284 | 31279 |
| Outperforming Factors | Liquidity, Large Caps, Dividend Yield | Momentum, Growth, Liquidity |
| Underperforming Factors | Low Volatility, Dividend Yield, Value | |
| Top Sectors | Materials, Tech, Energy | Materials, Communication, Energy |
| Bottom Sectors | Utilities, Healthcare, Staples | Real Estate, Utilities, Healthcare |
| Top Subsectors | Semis, Machinery, Petroleum/Petrochemical | Petrochemical, Auto Parts, Oil/Gas |
| Bottom Subsectors | Consumer Durables/Apparel, Environmental Protection, Household/Personal Products | Power Generation Equipment, Retail, Education |
| Southbound Connect Buys | CNOOC, SMIC (Moderate), Sanhua, Xiaomi (Small) | |
| Southbound Connect Sells | Tencent (Large), Alibaba (Moderate) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | 0.7 |
| Communication Services | 11 | 1.08 |
| Consumer Discretionary | 28 | 0.55 |
| Consumer Staples | 13 | -0.24 |
| Energy | 6 | 1.41 |
| Financials | 25 | 0.32 |
| Health Care | 15 | -0.58 |
| Industrials | 21 | 0.74 |
| Information Technology | 12 | 1.62 |
| Materials | 10 | 2.1 |
| Real Estate | 7 | 0.17 |
| Utilities | 12 | -0.91 |
| Mainland China Listed | 386 | 0.45 |
| Communication Services | 8 | 0.69 |
| Consumer Discretionary | 28 | 0.57 |
| Consumer Staples | 21 | -0.14 |
| Energy | 12 | 0.68 |
| Financials | 66 | -0.05 |
| Health Care | 33 | -0.38 |
| Industrials | 57 | 0.49 |
| Information Technology | 91 | 0.68 |
| Materials | 49 | 2.18 |
| Real Estate | 6 | -1.87 |
| Utilities | 14 | -0.85 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.6 |
| Alibaba HK | 9988 HK Equity | 0.8 |
| JD.com HK | 9618 HK Equity | 1.4 |
| NetEase HK | 9999 HK Equity | 2.6 |
| Yum China HK | 9987 HK Equity | -1.4 |
| Baozun HK | 9991 HK Equity | 0.4 |
| Baidu HK | 9888 HK Equity | 8.9 |
| Autohome HK | 2518 HK Equity | -2.2 |
| Bilibili HK | 9626 HK Equity | 0.7 |
| Trip.com HK | 9961 HK Equity | 2.1 |
| EDU HK | 9901 HK Equity | 1.2 |
| Xpeng HK | 9868 HK Equity | 1.3 |
| Weibo HK | 9898 HK Equity | 1.4 |
| Li Auto HK | 2015 HK Equity | -0.5 |
| Nio Auto HK | 9866 HK Equity | 2.2 |
| Zhihu HK | 2390 HK Equity | -1.2 |
| KE HK | 2423 HK Equity | 0 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.5 |
| 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 | 0.6 |
| SEMICONDUCTOR MANUFACTURI-H | 4.2 |
| XIAOMI CORP-CLASS B | 2 |
| MEITUAN-CLASS B | 0.1 |
| BAIDU INC-CLASS A | 8.9 |
| POP MART INTERNATIONAL GROUP | -4.6 |
| CHINA MOBILE LTD-H | 0.4 |
| IND & COMM BK OF CHINA-H | 0.6 |
| CHINA CONSTRUCTION BANK-H | 1.3 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ADDSINO CO LTD -A | -3.1 |
| CHINA SPACESAT CO LTD -A | -1.9 |
| ZHONGJI INNOLIGHT CO LTD-A | 2.3 |
| GOLDWIND SCIENCE & TECHNOL-A | -6.7 |
| ZHEJIANG SANHUA INTELLIGEN-A | 10 |
| CHINA AEROSPACE TIMES ELEC-A | 0.5 |
| CAMBRICON TECHNOLOGIES-A | 4.2 |
| CHINA SATELLITE COMMUNICAT-A | 8.3 |
| EOPTOLINK TECHNOLOGY INC L-A | 0.3 |
| SHENZHEN SUNWAY COMMUNICAT-A | 3.2 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.99 versus 7.01 yesterday
- CNY per EUR 8.22 versus 8.24 yesterday
- Yield on 10-Year Government Bond 1.86% versus 1.86% yesterday
- Yield on 10-Year China Development Bank Bond 1.96% versus 1.94% yesterday
- Copper Price -3.03%
- Steel Price +0.00%
