Alibaba, Tencent & Meituan Ring The ATM!
6 Min. Read Time
Key News
Asian equities were largely higher, led by the Hang Seng Tech Index, which gained +4.72%.
Singapore, Indonesia, and Thailand also closed up by more than 1%, while Malaysia was closed for the Harvest Festival, again. CNY hit another 52-week high versus the US dollar.
Tencent ripped higher, up +10.46%, and was Hong Kong’s most heavily traded stock by value. The strong reaction came after the Financial Times reported on the upcoming launch of their AI agent within the WeChat super app, which is used by 1.4 billion people. A sooner-than-expected AI monetization opportunity likely negates sentiment that AI agents might be a threat to some Tencent units, such as their online travel business.
Tencent also announced it would give away its DeepSeek-V4 AI model for customers using its cloud business. Tencent traded 101 million shares at a total value of $6.1 billion in Hong Kong overnight, versus $1.9 billion yesterday and a 1-year average of 21.8 million shares at a value of $1.5 billion. Tencent’s ambitious buyback drew attention, as well.
Mainland investors were net sellers of Hong Kong-listed stocks and ETFs via Southbound Stock Connect. Alibaba gained +6.6%, and was Hong Kong’s second-most heavily traded stock by value, after announcing that Chief Technology Officer Wu Zeming will join the Partner Committee as its fifth member. Alibaba traded 126 million shares today, at a total value traded of $2 billion, versus 64 million shares at a value of $1 billion yesterday and the 1-year average 96 million shares at $1.7 billion.
Meituan gained +9.27% after yesterday’s Q1 financial results, reported after the close in Hong Kong yesterday, which offered hope that the worst of the disastrous restaurant delivery price war is in the past and the company can once again grow its bottom line. Meituan traded 136 million shares today versus 72 million yesterday and the 1-year average of 54 million.
Electric vehicle ecosystem stocks had a strong day following yesterday’s post-Hong Kong close release of May auto sales. Xiaomi gained +3.13%, BYD gained +6.61%, Li Auto gained +5.72%, NIO gained +8.34%, Xpeng gained +6.19%, and battery giant CATL gained +3.45%.
Biotech giant Akeso fell by -8.11% following an appearance at a large healthcare conference.
Nvidia announced an open humanoid robot reference design built on the Nvidia Isaac GR00T platform, combining a Unitree H2 Plus humanoid robot, Sharpa five-fingered hands for dexterous manipulation, Nvidia Jetson Thor onboard compute for advanced reasoning and control, and Nvidia Isaac GR00T open software and models.
Humanoid robotics maker UB Tech gained +6.92% after launching a full-sized humanoid and the speedy STAR (Science & Technology) Board approval of peer Unitree's IPO.
Hong Kong-listed semiconductor and technology hardware stocks had a strong day as Nvidia’s Jensen Huang’s comments lifted the tech supply chain, including Mainland-listed growth stocks, which rebounded. This is after steep declines yesterday and Friday, with the STAR Board up +1.61% after losing nearly 10% in the previous two trading days. Leading sub-sectors such as technology hardware, electrical equipment, and communication equipment all rose, along with semiconductors, semiconductor equipment, and materials. Non-ferrous metals rebounded as well.
The China Index Academy reported that second-hand apartments in 100 cities declined by -0.32% month-over-month (MoM), or -7.99% year-over-year (YoY). Proving location is everything in real estate investing, Shanghai’s second-hand homes rose for the third consecutive month, up +0.13%, while prices in first-tier cities fell -0.01%, prices in second-tier cities fell -0.15%, prices in third-tier cities fell -0.34%, and prices in fourth-tier cities fell -0.38% in May.
NBA superstar Steph Curry signed a 10-year deal with China’s sports apparel and shoe company Li Ning. Basketball is popular in China, though I’ve not been to a game. Next visit!
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 2.5% |
| Hang Seng Tech | HSTECH Index | 4.7% |
| Hong Kong Turnover | HKTurn Index | 12.9% |
| Hong Kong Short Sale Turnover | HKSST Index | 18.8% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 19.7% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 283.93 |
| China (Shanghai) | SHCOMP Index | 0.4% |
| China (Shenzhen) | SZCOMP Index | 0.8% |
| China (STAR Board) | Star50 Index | 1.6% |
| Mainland Turnover | .chturn Index | -2.8% |
| Japan | NKY Index | -0.3% |
| India | SENSEX Index | 0.5% |
| Indonesia | JCI Index | 1.1% |
| Malaysia | FBMKLCI Index | -0.1% |
| Pakistan | KSE100 Index | 0.3% |
| Philippines | PCOMP Index | 2% |
| South Korea | KOSPI Index | 0.1% |
| Taiwan | TWSE Index | 0.5% |
| Thailand | SET Index | 1.3% |
| Singapore | STI Index | 1.2% |
| Australia | AS51 Index | -0.1% |
| Vietnam | VNINDEX Index | -1% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 141% | 126% |
| Advancing Stocks | 294 | 1378 |
| Declining Stocks | 217 | 3690 |
| Outperforming Factors | Liquidity, Large Caps, Growth | Momentum, Large Caps, Growth |
| Underperforming Factors | Value, Low Volatility, Quality | |
| Top Sectors | Communication, Discretionary, Materials | Tech, Materials, Discretionary |
| Bottom Sectors | Healthcare, Energy, Utilities | Communication, Real Estate, Healthcare |
| Top Subsectors | Software, Consumer Discretionary Distribution, Auto | Communication Equipment, Precious Metasl, Electronic Components |
| Bottom Subsectors | Coal, Household/Personal Products, Paper/Packaging | Power Generation Equipment, Cultural Media, Leisure Products |
| Southbound Connect Buys | SMIC (Large), Akeso, Alibaba (Small) | N/A |
| Southbound Connect Sells | Tencent (Very Large), Xiaomi (Large), Meiutan (Moderate), Hua Hong Semi, YOFC (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | 4.05 |
| Communication Services | 11 | 8.65 |
| Consumer Discretionary | 28 | 5.52 |
| Consumer Staples | 12 | 0.49 |
| Energy | 6 | -1.23 |
| Financials | 25 | 1.21 |
| Health Care | 16 | -1.82 |
| Industrials | 19 | 2.14 |
| Information Technology | 15 | 3.4 |
| Materials | 14 | 3.45 |
| Real Estate | 1 | 0.62 |
| Utilities | 6 | -0.39 |
| Mainland China Listed | 11 | 1.43 |
| Communication Services | 11 | -2.35 |
| Consumer Discretionary | 26 | 1.1 |
| Consumer Staples | 18 | -0.95 |
| Energy | 11 | -0.92 |
| Financials | 64 | 0.43 |
| Health Care | 29 | -1.19 |
| Industrials | 60 | 0.55 |
| Information Technology | 113 | 3.68 |
| Materials | 58 | 2.11 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 10.5 |
| Alibaba HK | 9988 HK Equity | 6.6 |
| JD.com HK | 9618 HK Equity | 6.9 |
| NetEase HK | 9999 HK Equity | 1.2 |
| Yum China HK | 9987 HK Equity | 1.4 |
| Baozun HK | 9991 HK Equity | 4.2 |
| Baidu HK | 9888 HK Equity | 4.3 |
| Autohome HK | 2518 HK Equity | 3.2 |
| Bilibili HK | 9626 HK Equity | 4.8 |
| Trip.com HK | 9961 HK Equity | 3.1 |
| EDU HK | 9901 HK Equity | 4.1 |
| Xpeng HK | 9868 HK Equity | 6.2 |
| Weibo HK | 9898 HK Equity | 3.5 |
| Li Auto HK | 2015 HK Equity | 5.7 |
| Nio Auto HK | 9866 HK Equity | 8.3 |
| Zhihu HK | 2390 HK Equity | 8 |
| KE HK | 2423 HK Equity | 2 |
| Tencent Music Entertainment HK | 1698 HK Equity | 5.2 |
| Meituan HK | 3690 HK Equity | 9.3 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 10.5 |
| ALIBABA GROUP HOLDING LTD | 6.6 |
| MEITUAN-CLASS B | 9.3 |
| SEMICONDUCTOR MANUFACTURI-H | 3.1 |
| LENOVO GROUP LTD | 5.3 |
| HUA HONG SEMICONDUCTOR LTD-H | -2.9 |
| XIAOMI CORP-CLASS B | 3.1 |
| YANGTZE OPTICAL FIBRE AND-H | 10.8 |
| BYD CO LTD-H | 6.6 |
| KUAISHOU TECHNOLOGY | 5.2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 5.5 |
| FOXCONN INDUSTRIAL INTERNE-A | 8.5 |
| EOPTOLINK TECHNOLOGY INC L-A | 9.9 |
| GIGADEVICE SEMICONDUCTO-CL A | 1.4 |
| SUZHOU DONGSHAN PRECISION-A | 10 |
| SUZHOU TFC OPTICAL COMMUNI-A | 6.6 |
| JCET GROUP CO LTD-A | -0.4 |
| JIANGSU ZHONGTIAN TECHNOLO-A | 8.9 |
| LUXSHARE PRECISION INDUSTR-A | 4.7 |
| CONTEMPORARY AMPEREX TECHN-A | 3.3 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.76 versus 6.77 yesterday
- CNY per EUR 7.87 versus 7.88 yesterday
- Yield on 10-Year Government Bond 1.70% versus 1.70% yesterday
- Yield on 10-Year China Development Bank Bond 1.76% versus 1.76% yesterday
- Copper Price +1.26%
- Steel Price +0.13%
