Airplane Diplomacy, Week In Review
5 Min. Read Time
Week in Review
- Major Asian equity indexes all logged gains this week, except for Vietnam, as Mainland China's STAR Market outperformed significantly before closing for the week-long "Golden Week" national holiday on Wednesday.
- According to a Monday data release, China's industrial profits increased 20% year-over-year in August, compared to a decline of -1.5% in July.
- Hong Kong's markets continued their uptrend this week on several positive catalysts including the formulation of the 15th Five Year Plan and AI and technology optimism stemming from many corporate developments including Alibaba's enhancements of its mapping application just before the "Golden Week" travel season.
- Zijin Gold International's IPO Tuesday was the largest globally this year, and saw shares rise over 60% on their debut in Hong Kong.
Friday's Key News
Asian equities ended a positive week with a strong day, except Hong Kong, while Mainland China remains on holiday until Thursday, and South Korea was closed for National Day.
It was a quiet night as Tesla’s stock decline on Thursday was the most significant financial news in Asia! As next Tuesday will be a market holiday, Hong Kong traders appear to have headed to the airport on Thursday night, considering volumes slumped to just 56% of the 1-year average, despite a strong day regionally. Breadth was weak, as decliners beat advancers nearly 2 to 1, though the Hang Seng closed above its recent breakout level of 27,000.
The growth subsectors that outperformed yesterday and year-to-date were hit with profit-taking, as autos, pharmaceuticals, biotech, non-ferrous metals, and tourism were all lower. Tourism-related stocks were off despite 290 million people reportedly traveling yesterday, including 19 million by rail. There was some chatter that Golden Week tourism numbers might be weak.
My highlighting Kuaishou yesterday perfectly jinxed the stock, which was down -3.43% today. There were not many places to hide, as high dividend and value plays were weak as well. The few bright spots today were Alibaba, which gained +1.09%, CATL, which gained +0.83%, and Semiconductor Manufacturing International (SMIC), which gained +1.39%.
Real estate was the worst performer in Hong Kong overnight, down -1.07% despite reports that Shanghai property sales were up +77.44% from last month in the week before Golden Week.
Recent IPO Zijing Gold International, which fell -1.09% overnight, will be added to the Hang Seng Composite at the market’s close on Wednesday, October 15th.
Flights between India and China resumed for the first time in five years. The US media has been highlighting the situation and plight of US farmers as the Chinese government uses soybeans as a trade negotiating tool. I think that a soybean and Boeing airplane deal could be in the works for the US and China as Trump and Xi are supposed to meet next month.
The Philippines’ massive earthquake on Wednesday barely registered on Western media despite the significant loss of life. Our condolences to all those affected, having enjoyed the good food and hospitality of our friends in Manila on numerous occasions.
Enjoy the weekend!
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.5% |
| Hang Seng Tech | HSTECH Index | -0.9% |
| Hong Kong Turnover | HKTurn Index | -39.4% |
| Hong Kong Short Sale Turnover | HKSST Index | -30.6% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 16.1% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Closed |
| China (Shanghai) | SHCOMP Index | Closed |
| China (Shenzhen) | SZCOMP Index | Closed |
| China (STAR Board) | Star50 Index | Closed |
| Mainland Turnover | .chturn Index | Closed |
| 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 | 1.9% |
| India | SENSEX Index | 0.3% |
| Indonesia | JCI Index | 0.6% |
| Malaysia | FBMKLCI Index | -0.2% |
| Pakistan | KSE100 Index | 0.4% |
| Philippines | PCOMP Index | 1.1% |
| South Korea | KOSPI Index | 2.7% |
| Taiwan | TWSE Index | 1.5% |
| Thailand | SET Index | 0.4% |
| Singapore | STI Index | 0.4% |
| Australia | AS51 Index | 0.5% |
| Vietnam | VNINDEX Index | -0.4% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume as % of 1-Year Average | 56 | Closed |
| Advancing Stocks | 175 | Closed |
| Declining Stocks | 303 | Closed |
| Outperforming Factors | Value | Closed |
| Underperforming Factors | Growth | Closed |
| Top Sectors | Utilities, Energy, Consumer Discretionary | Closed |
| Bottom Sectors | Real Estate, Information Technology, Consumer Staples | Closed |
| Top Subsectors | Electrical Equipment, Semiconductors, Healthcare Equipment | Closed |
| Bottom Subsectors | Autos, Media & Entertainment, Conglomerates | Closed |
| Southbound Connect Buys | Closed | N/A |
| Southbound Connect Sells | Closed | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 151 | -0.49 |
| Communication Services | 9 | -0.7 |
| Consumer Discretionary | 28 | -0.15 |
| Consumer Staples | 13 | -0.86 |
| Energy | 7 | -0.12 |
| Financials | 23 | -0.49 |
| Health Care | 13 | -0.67 |
| Industrials | 20 | -0.36 |
| Information Technology | 10 | -1.04 |
| Materials | 10 | -0.32 |
| Real Estate | 6 | -1.07 |
| Utilities | 12 | 0.12 |
| Mainland China Listed | 404 | Closed |
| Communication Services | 6 | Closed |
| Consumer Discretionary | 31 | Closed |
| Consumer Staples | 24 | Closed |
| Energy | 13 | Closed |
| Financials | 64 | Closed |
| Health Care | 31 | Closed |
| Industrials | 64 | Closed |
| Information Technology | 91 | Closed |
| Materials | 58 | Closed |
| Real Estate | 6 | Closed |
| Utilities | 16 | Closed |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.4 |
| Alibaba HK | 9988 HK Equity | 1.1 |
| JD.com HK | 9618 HK Equity | -1.8 |
| NetEase HK | 9999 HK Equity | -1.6 |
| Yum China HK | 9987 HK Equity | -1.1 |
| Baozun HK | 9991 HK Equity | -4.5 |
| Baidu HK | 9888 HK Equity | -0.7 |
| Autohome HK | 2518 HK Equity | -1.7 |
| Bilibili HK | 9626 HK Equity | -1.2 |
| Trip.com HK | 9961 HK Equity | -1.9 |
| EDU HK | 9901 HK Equity | -2.3 |
| Xpeng HK | 9868 HK Equity | -2.8 |
| Weibo HK | 9898 HK Equity | -0.8 |
| Li Auto HK | 2015 HK Equity | -2.4 |
| Nio Auto HK | 9866 HK Equity | -2.1 |
| Zhihu HK | 2390 HK Equity | -1.6 |
| KE HK | 2423 HK Equity | -0.6 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1.5 |
| Meituan HK | 3690 HK Equity | 0.3 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | 1.1 |
| TENCENT HOLDINGS LTD | -0.4 |
| MEITUAN-CLASS B | 0.3 |
| KUAISHOU TECHNOLOGY | -3.4 |
| XIAOMI CORP-CLASS B | -1.4 |
| BYD CO LTD-H | -4 |
| SEMICONDUCTOR MANUFACTURI-H | 1.4 |
| BAIDU INC-CLASS A | -0.7 |
| ZIJIN GOLD INTERNATIONAL CO | -1.1 |
| POP MART INTERNATIONAL GROUP | 0.3 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD
- CNY per EUR
- Yield on 10-Year Government Bond
- Yield on 10-Year China Development Bank Bond
- Copper Price
- Steel Price
