Poolside Gossip As Mainland Remains Closed Until Wednesday
4 Min. Read Time
Key News
Asian markets were largely higher, led by Japan’s post-election exuberance and Vietnam, following its 8.23% GDP growth print and potential upgrade to Emerging Market by index provider FTSE Russell, expected on Wednesday.
Mainland China remains closed for the National Holiday, while South Korea was closed for Chuseok, which is Thanksgiving Day, and Taiwan was closed for the Mid-Autumn Festival.
Hong Kong’s volumes and breadth slumped even further than Friday, as the market was led lower by growth stocks, as Hong Kong traders remained poolside. The Hang Seng Index closed just below the 27,000 level, while the Hang Seng Tech Index closed above 6,500. Non-ferrous metals were one of the few bright spots, as gold continued to shine, led by Zijin Gold International, which was up +8.24%. Bucking the downdraft were insurance and semiconductors, which should benefit from today’s AMD and OpenAI announcement, and Tencent, which gained +0.59%.
Growth stocks and subsectors were off, led by Alibaba, which fell -2.49%, Meituan, which fell -0.47%, Xiaomi, which fell -2.09%, and Kuiashou, which fell -1.13%. Contemporary Amperex Technology (CATL) fell -2.29% on a broker downgrade to neutral.
Typhoon Matmo’s timing could not be worse as flights to and from the popular vacation destination Hainan Island were impacted. The storm appeared to weigh on tourism and travel stocks, while Macau was off on reports that high-end gaming numbers will be weak. MGM China fell -4.7% and Sands China fell -2.44%.
Yesterday, Mainland media reported that there were 299 million instances of the hard-to-decipher “cross-regional personnel flow,” which represents a 6.3% year-over-year (YoY) increase. Very quiet overnight!
When it comes to the US government shutdown, I have little insight. We have spent time in Washington, D.C., trying to inform Congress that delisting U.S.-listed Chinese stocks would not harm the Chinese government but would harm U.S. and global investors. Following our spring visit with a senior member of a congressperson’s staff, my takeaway was that whatever position one party takes or policy the other party implements, the other party will take the opposite position. The two sides really can’t stand each other, as the fringes of both parties make concessions difficult, and moderates don’t make it through the election primaries. On that happy note……
Hong Kong is closed tomorrow, so we will not be publishing China Last Night. Your inbox will be spared!
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.7% |
| Hang Seng Tech | HSTECH Index | -1.1% |
| Hong Kong Turnover | HKTurn Index | -10% |
| Hong Kong Short Sale Turnover | HKSST Index | -12.3% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 15.7% |
| 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 | -0.5% |
| Japan | NKY Index | 4.8% |
| India | SENSEX Index | 0.7% |
| Indonesia | JCI Index | 0.3% |
| Malaysia | FBMKLCI Index | 0.2% |
| Pakistan | KSE100 Index | -0.6% |
| Philippines | PCOMP Index | -1.8% |
| South Korea | KOSPI Index | 2.7% |
| Taiwan | TWSE Index | 1.5% |
| Thailand | SET Index | -0.6% |
| Singapore | STI Index | 0.2% |
| Australia | AS51 Index | -0.1% |
| Vietnam | VNINDEX Index | 3% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume as % of 1-Year Average | 0.51 | Closed |
| Advancing Stocks | 129 | Closed |
| Declining Stocks | 340 | Closed |
| Outperforming Factors | Closed | |
| Underperforming Factors | Growth, EPS Revision, Quality | Closed |
| Top Sectors | Materials, Communication, Healthcare | Closed |
| Bottom Sectors | Discretionary, Tech, Staples | Closed |
| Top Subsectors | Non Ferrous Metals, Chemical Industry, Healthcare Equipment | Closed |
| Bottom Subsectors | Household Appliances, Electrical Equipment, Consumer Discretionary Distribution | 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 | -0.75 |
| Communication Services | 9 | 0.26 |
| Consumer Discretionary | 28 | -1.93 |
| Consumer Staples | 13 | -1.43 |
| Energy | 7 | -0.12 |
| Financials | 23 | -0.45 |
| Health Care | 13 | 0.11 |
| Industrials | 20 | -0.78 |
| Information Technology | 10 | -1.58 |
| Materials | 10 | 1.54 |
| Real Estate | 6 | -0.61 |
| Utilities | 12 | -0.5 |
| 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 | 0.6 |
| Alibaba HK | 9988 HK Equity | -2.5 |
| JD.com HK | 9618 HK Equity | -2.1 |
| NetEase HK | 9999 HK Equity | -1.6 |
| Yum China HK | 9987 HK Equity | -0.7 |
| Baozun HK | 9991 HK Equity | -1.5 |
| Baidu HK | 9888 HK Equity | 0.7 |
| Autohome HK | 2518 HK Equity | -1.1 |
| Bilibili HK | 9626 HK Equity | -2.5 |
| Trip.com HK | 9961 HK Equity | -2.2 |
| EDU HK | 9901 HK Equity | -1.9 |
| Xpeng HK | 9868 HK Equity | -1.8 |
| Weibo HK | 9898 HK Equity | -1 |
| Li Auto HK | 2015 HK Equity | -3.3 |
| Nio Auto HK | 9866 HK Equity | -0.2 |
| Zhihu HK | 2390 HK Equity | -1.3 |
| KE HK | 2423 HK Equity | -0.9 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.1 |
| Meituan HK | 3690 HK Equity | -0.5 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | -2.5 |
| TENCENT HOLDINGS LTD | 0.6 |
| SEMICONDUCTOR MANUFACTURI-H | 0.2 |
| MEITUAN-CLASS B | -0.5 |
| XIAOMI CORP-CLASS B | -2.1 |
| HUA HONG SEMICONDUCTOR LTD-H | 4.6 |
| ZIJIN GOLD INTERNATIONAL CO | 8.2 |
| HSBC HOLDINGS PLC | 0.9 |
| ZIJIN MINING GROUP CO LTD-H | 2.5 |
| BAIDU INC-CLASS A | 0.7 |
