Jack Ma Returns to Alibaba Campus, President Xi Highlights “Purchase In China” Campaign

Key News

Asian equities advanced yesterday as the U.S. dollar weakened overnight.

The Ministry of Foreign Affairs in Mainland China confirmed Friday’s call between U.S. President Trump and President Xi Jinping.

Following President Xi’s article outlining the development of a “unified national market”, the domestic consumption market, the Chinese bureaucracy swiftly enacted new policy measures. The Ministry of Commerce, together with nine agencies, issued “Several Measures for Expanding Service Consumption.” These policies encourage consumers to “purchase in China,” echoing the "Buy American" mantra, and assert “greater efforts to boost consumption and expand domestic demand.” This comes amid weak August data, after consumer subsidy funds were depleted and not fully replenished.

Nineteen specific proposals were listed, including support for foreign and domestic tourism, cultural activities, sporting events, and subsidies for childcare, all with financial backing. Increased adoption of long-term care insurance reduces one driver of the nation’s high savings rate. Notably, authorities aim to “expand digital service consumption, encourage E-Commerce platforms to innovate online and offline integrated scenarios.”

Trip.com Group Limited (TCOM) rose +4.09%, while Meituan (3690 HK) gained +3.03% as clear beneficiaries of increased domestic spending circulation. In contrast, JD.com (JD US) fell -1.29%, and Hong Kong-listed restaurant and hotel chains declined. The overall reaction remained muted, as the release omitted the total financial support value.

Alibaba Group Holding Limited was the most heavily traded stock by value in Hong Kong, declining -0.71% after announcing a $60 million investment in the AI video generation startup Aishi Technology. Southbound Stock Connect flows extended their buying streak to eighteen trading days, marked by another large net purchase from Mainland investors. Bloomberg reported that Jack Ma has returned to the Alibaba campus and is taking a more active management role. However, Hong Kong equities saw a small net sell from Mainland investors, as the Hong Kong Tracker ETF experienced significant outflows.

Tencent Holdings Limited (0700 HK) gained +0.23%, as its artificial intelligence initiatives delivered results: daily average users of its AI assistant Yuanbao increased notably, and QQ Browser’s AI monthly active users grew 17.8 times since April.

Electric vehicle (EV) stocks had a strong session: BYD Company Limited (1211 HK) rose +1.67% after unveiling its third-generation EV buses, Li Auto Inc. (LI US) climbed +2.61% ahead of its i6 SUV launch on September 26th, and CATL (Contemporary Amperex Technology Co. Limited) added +2.58%. In contrast, insurance and brokerage sectors, along with several high-flying biotech stocks, declined.

The Hong Kong High Court permitted Evergrande’s liquidators access to founder Xu Jiayin’s $7.7 billion in assets, as offshore bondholders seek restitution from the company’s default. Mainland markets rallied into the afternoon, led by growth sectors such as robotics, as private robot maker Unitree announced it would open source its “world model-action architecture” to foster a larger developer ecosystem. Tech hardware, semiconductors, and software stocks outperformed, while banks, insurance, energy, metals, mining, and autos lagged. Shanghai and Shenzhen indices closed near the top of their recent ranges, while Hong Kong took a breather, having reached overbought conditions recently.

Quarter-end reporting is approaching, when active managers must disclose their top ten holdings. This rally has likely been unwelcome for managers who remain underweight in Chinese stocks.

Last Night's Performance

Country / Index	Ticker	1-Day Change
China (Hong Kong)	HSI Index	0%
Hang Seng Tech	HSTECH Index	0.6%
Hong Kong Turnover	HKTurn Index	1.3%
Hong Kong Short Sale Turnover	HKSST Index	-25.8%
Short Turnover as a % of Hong Kong Turnover	N/A	10.8%
Southbound Stock Connect Net Buy/Sell (US $ Millions)	N/A	-407.32
China (Shanghai)	SHCOMP Index	0%
China (Shenzhen)	SZCOMP Index	0.7%
China (STAR Board)	Star50 Index	1.3%
Mainland Turnover	.chturn Index	2.9%
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	0.3%
India	SENSEX Index	0.7%
Indonesia	JCI Index	0.3%
Malaysia	FBMKLCI Index	1.1%
Pakistan	KSE100 Index	0.5%
Philippines	PCOMP Index	1.5%
South Korea	KOSPI Index	1.2%
Taiwan	TWSE Index	1.1%
Thailand	SET Index	0.6%
Singapore	STI Index	0%
Australia	AS51 Index	0.3%
Vietnam	VNINDEX Index	-0.2%

Indicator	Hong Kong	Mainland
Today's Volume % of 1-Year Average	125%	144%
Advancing Stocks	214	3404
Declining Stocks	266	1616
Outperforming Factors		Growth, Liquidity, Momentum
Underperforming Factors	Momentum, EPS Revisions, Value	Value, Dividend Yield, Low Volatility
Top Sectors	Discretionary, Tech, Communication	Tech, Real Estate, Discretionary
Bottom Sectors	Staples, Materials, Financials	Materials, Staples, Financials
Top Subsectors	Machinery, Electrical Equipment, Auto	Computer Hardware, Auto Parts, Leisure Products
Bottom Subsectors	Consumer Staples Distribution, Pharmaceuticals, Financials Services	Insurance, Heavy Machinery, Base Metals
Southbound Connect Buys	Alibaba (Very Large), Meituan (Moderate), Bayzed Health, Brain Auroroa, TYK Medicines (Small)
Southbound Connect Sells	HK Tracker ETF (Large), SMIC, TransThera, Xiaomi (Moderate)

MSCI China All Shares Index	# of Stocks	Average 1-Day Change (%)
Hong Kong Listed	152	-0.05
Communication Services	9	0.24
Consumer Discretionary	28	0.51
Consumer Staples	13	-1.43
Energy	6	-0.18
Financials	24	-1.01
Health Care	12	-0.73
Industrials	21	0.09
Information Technology	10	0.31
Materials	10	-1.24
Real Estate	7	-0.29
Utilities	12	-0.41
Mainland China Listed	395	-0.06
Communication Services	7	-0.52
Consumer Discretionary	29	0.35
Consumer Staples	24	-0.77
Energy	13	-0.43
Financials	64	-0.62
Health Care	32	-0.17
Industrials	61	0.14
Information Technology	90	1.17
Materials	54	-1.09
Real Estate	6	0.59
Utilities	15	-0.38

US & Hong Kong Dually Listed	Ticker	1-Day Change (%)
Tencent HK	700 HK Equity	0.2
Alibaba HK	9988 HK Equity	-0.7
JD.com HK	9618 HK Equity	-1.3
NetEase HK	9999 HK Equity	1.2
Yum China HK	9987 HK Equity	2.2
Baozun HK	9991 HK Equity	-3.8
Baidu HK	9888 HK Equity	0.8
Autohome HK	2518 HK Equity	0.2
Bilibili HK	9626 HK Equity	1.6
Trip.com HK	9961 HK Equity	4.1
EDU HK	9901 HK Equity	-1.6
Xpeng HK	9868 HK Equity	0.7
Weibo HK	9898 HK Equity	2.1
Li Auto HK	2015 HK Equity	2.6
Nio Auto HK	9866 HK Equity	2.5
Zhihu HK	2390 HK Equity	1.7
KE HK	2423 HK Equity	0.1
Tencent Music Entertainment HK	1698 HK Equity	-0.6
Meituan HK	3690 HK Equity	3

Hong Kong's Most Heavily Traded by Value	1-Day Change (%)
ALIBABA GROUP HOLDING LTD	-0.7
MEITUAN-CLASS B	3
TENCENT HOLDINGS LTD	0.2
BRAINAURORA MEDICAL TECHNOLO	16.5
XIAOMI CORP-CLASS B	0.4
BAYZED HEALTH GROUP INC	28
SEMICONDUCTOR MANUFACTURI-H	0.3
TRANSTHERA SCIENCES NANJIN-H	-53.7
BYD CO LTD-H	1.7
POP MART INTERNATIONAL GROUP	-1

Shanghai and Shenzhen's Most Heavily Traded by Value	1-Day Change (%)
VISUAL CHINA GROUP CO LTD-A	2.4
SHANTUI CONSTRUCTION MACHI-A	0.7
VICTORY GIANT TECHNOLOGY -A	5.3
CAMBRICON TECHNOLOGIES-A	0
ZHONGJI INNOLIGHT CO LTD-A	0.8
EOPTOLINK TECHNOLOGY INC L-A	-1.3
DAWNING INFORMATION INDUST-A	8.8
HYGON INFORMATION TECHNOLO-A	6.3
EAST MONEY INFORMATION CO-A	1.8
SUNGROW POWER SUPPLY CO LT-A	2.7

Last Night's Exchange Rates, Prices, & Yields

• CNY per USD 7.12 versus 7.12 yesterday
• CNY per EUR 8.37 versus 8.37 yesterday
• Yield on 10-Year Government Bond 1.87% versus 1.87% yesterday
• Yield on 10-Year China Development Bank Bond 1.95% versus 1.95% yesterday
• Copper Price +0.21%
• Steel Price +0.64%