Moonshot AI Signs Up For Alibaba Cloud
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Key News
Asian equities were mixed overnight on light summer volumes, as the AI supply chain, i.e. "picks and shovels" were largely lower following Friday’s surge, except for Taiwan.
Last week’s Politburo release continues to garner attention, as fiscal support language evolved from “using" fiscal tools "fully” to “strengthening and enhancing” fiscal support. The potential for stronger domestic consumption policy makes sense as the economy has become highly reliant on exports while the domestic economy remains tepid. That view was reinforced by the “private” Rating Dog Manufacturing purchasing managers' index (PMI), which is a survey conducted by S&P, was 50.9 versus expectations of 52.0 and June’s 51.7, as output and new orders fell month-over-month (MoM).
BYD’s July auto sales also reinforced this view, as they sold 419,211 hybrid and fully electric vehicles, representing growth of +21.76% year-over-year (YoY), though exports accounted for 43% of sales, or 179,841 units, representing growth of +124% year-over-year (YoY) versus domestic sales of 239,370, which is -9% YoY.
Hong Kong and Mainland-listed AI stocks were off. Mainland-listed semiconductor stocks were very weak, as the Science and Technology (STAR) Board fell -5.08% except for the newly listed ChangXin Memory (CXMT), which gained+1.89%. Alibaba gained +7.01%, becoming Hong Kong's most heavily traded stock on high volumes, after releasing the Qwen 3.8-Max, which only ranks behind Anthropic’s Claude in capabilities. The Hong Kong-listed stock had $531 million (HKD 4.17 billion) worth of net buying via Southbound Stock Connect. Tencent gained +3.2%, also on high volumes, with $310 million (HKD 2.43 billion) worth of net buying via Southbound Stock Connect. The strength in Alibaba and Tencent likely indicates foreign demand, as they are very large weights in the MSCI China Index. Southbound Connect’s healthy $1.4 billion worth of net buying ended seven straight days of outflows
Minimax gained +7.19%, after launching a new open-source AI large language model (LLM). Meanwhile, Z.ai fell -4.81% following DeepSeek’s recent model release. There was chatter that AI model maker Moonshot, which is one-third owned by Alibaba, will file for a Hong Kong IPO, and is looking to raise $3 billion. This is after the company announced it will be using Alibaba Cloud for its computing needs.
Clean technology was driven by Xinyi Solar, which gained +13.41% following its weak 1st half results, though the worst could be behind us following last week’s solar anti-involution efforts in Jiangsu Province and the news that four new nuclear plants have been approved.
Other than internet stocks, Hong Kong had a very mixed day. Mainland China took a breather following Friday’s surge with profit taking in semiconductors, electronic equipment, and technology hardware. Coal, non-ferrous metals, and oil & gas were weak. The Mainland-listed China equity ETFs favored by the National Team had light volumes and small net inflows though inflows have picked up in the past month.
Premier Li signed “The Regulations on the Protection of Integrated Circuit Layout Design” which will “strengthen the protection of exclusive rights” and “promote the use of layout design”. CSRC Chairman Wu Qing spoke on strengthening Hong Kong and Mainland China’s financial connections at a ceremony launching Chinese government bond futures at the Hong Kong Exchange. China's highest leaders will meet at the annual Beidaihe meetings.
Wuxi AppTec gained +1.37% in HK and +0.05% in Mainland China before announcing that second-half profits increased +29% to RMB 11.1 billion and revenue increased +47.71% to RMB 16.4 billion, while raising full year 2026 guidance.
STAR Market-listed semiconductor company Advanced Micro-Fabrication Equipment (AMEC) announced first-half profits will increase between 282% and 310% and revenue will increase approximately 34%.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.5% |
| Hang Seng Tech | HSTECH Index | 1% |
| Hong Kong Turnover | HKTurn Index | -22.2% |
| Hong Kong Short Sale Turnover | HKSST Index | -14.6% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 0.2 |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -61.37 |
| China (Shanghai) | SHCOMP Index | -0.6% |
| China (Shenzhen) | SZCOMP Index | -0.3% |
| China (STAR Board) | Star50 Index | -5.1% |
| Mainland Turnover | .chturn Index | -20.9% |
| Japan | NKY Index | -0.9% |
| India | SENSEX Index | 0.7% |
| Indonesia | JCI Index | 0% |
| Malaysia | FBMKLCI Index | 0% |
| Pakistan | KSE100 Index | 1.2% |
| Philippines | PCOMP Index | 1.6% |
| South Korea | KOSPI Index | -5.1% |
| Taiwan | TWSE Index | 0.6% |
| Thailand | SET Index | -0.1% |
| Singapore | STI Index | -0.3% |
| Australia | AS51 Index | 0.5% |
| Vietnam | VNINDEX Index | 0.00% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 93 | 80 |
| Advancing Stocks | 225 | 3660 |
| Declining Stocks | 296 | 1405 |
| Outperforming Factors | Value | Value |
| Underperforming Factors | Growth | Growth |
| Top Sectors | Consumer Discretionary, Communication Services, Industrials | Communication Services, Industrials, Utilities |
| Bottom Sectors | Energy, Materials, Health Care | Information Technology, Energy, Health Care |
| Top Subsectors | Consumer Discretionary Distribution, Paper/Packaging, Software | Power Generation Equipment, Forest, Environmental Protection |
| Bottom Subsectors | Semis, Household/Personal Products, Coal | Semis, Building Materials, Computer Hardware |
| Southbound Connect Buys | Alibaba, Tencent, HK Tracker ETF (Very Large), HS Tech ETF, Xiaomi (Small) | N/A |
| Southbound Connect Sells | SMIC (Large), Hua Hong (Moderate), Gigadevice, KB Laminates, Z AI (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | 1.34 |
| Communication Services | 11 | 2.88 |
| Consumer Discretionary | 28 | 3.24 |
| Consumer Staples | 13 | -0.63 |
| Energy | 6 | -1.32 |
| Financials | 25 | -0.43 |
| Health Care | 16 | -1.12 |
| Industrials | 22 | 0.82 |
| Information Technology | 12 | 0.03 |
| Materials | 14 | -1.24 |
| Real Estate | 7 | 0.52 |
| Utilities | 11 | -0.01 |
| Mainland China Listed | 386 | -1.05 |
| Communication Services | 8 | 0.45 |
| Consumer Discretionary | 26 | -1.13 |
| Consumer Staples | 19 | -0.13 |
| Energy | 12 | -1.8 |
| Financials | 64 | 0.2 |
| Health Care | 31 | -1.44 |
| Industrials | 58 | 0.43 |
| Information Technology | 95 | -3.06 |
| Materials | 52 | -0.83 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 3.2 |
| Alibaba HK | 9988 HK Equity | 7 |
| JD.com HK | 9618 HK Equity | 1.7 |
| NetEase HK | 9999 HK Equity | 0.1 |
| Yum China HK | 9987 HK Equity | 3.2 |
| Baozun HK | 9991 HK Equity | -0.8 |
| Baidu HK | 9888 HK Equity | 3.8 |
| Autohome HK | 2518 HK Equity | 2.4 |
| Bilibili HK | 9626 HK Equity | 1.4 |
| Trip.com HK | 9961 HK Equity | -0.8 |
| EDU HK | 9901 HK Equity | 4.7 |
| Xpeng HK | 9868 HK Equity | -3.1 |
| Weibo HK | 9898 HK Equity | 0.9 |
| Li Auto HK | 2015 HK Equity | -2.9 |
| Nio Auto HK | 9866 HK Equity | -1 |
| Zhihu HK | 2390 HK Equity | -0.1 |
| KE HK | 2423 HK Equity | 2.5 |
| Tencent Music Entertainment HK | 1698 HK Equity | -3.1 |
| Meituan HK | 3690 HK Equity | 1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | 7 |
| TENCENT HOLDINGS LTD | 3.2 |
| XIAOMI CORP-CLASS B | -2.8 |
| Z AI CO LTD | -4.8 |
| SEMICONDUCTOR MANUFACTURI-H | -1.7 |
| MEITUAN-CLASS B | 1 |
| HUA HONG GRACE SEMICONDUCTOR | -1.2 |
| KINGBOARD LAMINATES HLDG LTD | 2 |
| POP MART INTERNATIONAL GROUP | -1.7 |
| GIGADEVICE SEMICONDUCTOR I-H | -7.5 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| CXMT CORP-A | 1.9 |
| ZHONGJI INNOLIGHT CO LTD-A | 0.1 |
| GIGADEVICE SEMICONDUCTO-CL A | -10 |
| EOPTOLINK TECHNOLOGY INC L-A | -0.5 |
| CAMBRICON TECHNOLOGIES-A | -7.1 |
| SUZHOU DONGSHAN PRECISION-A | -5.1 |
| BLUEFOCUS INTELLIGENT COMM-A | 2.6 |
| ADVANCED MICRO-FABRICATION-A | -9.9 |
| CHINA JUSHI CO LTD -A | -10 |
| LUXSHARE PRECISION INDUSTR-A | -6.6 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.75 versus 6.75 Friday
- CNY per EUR 7.78 versus 7.79 Friday
- Yield on 10-Year Government Bond 1.72% versus 1.71% Friday
- Yield on 10-Year China Development Bank Bond 1.78% versus 1.78% Friday
- Copper Price 0.54%
- Steel Price -1.23%
