China Last Night powered by KraneShares is a daily note produced by KraneShares research team led by Chief Investment Officer Brendan Ahern. The note covers top news and events that moved China’s capital markets last night while you were probably sleeping.
What you will receive every day
Daily color on what drove China’s equity, fixed income, and currency markets' performance last night
Aggregated local broker insights
Daily analysis of important policy, trade, public company news / announcements
Sector level performance analysis across Mainland, Hong Kong, and US stock exchanges
Alibaba & Baidu Selected As Apple Intelligence Partners
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Key News
Asian equities were mostly lower overnight, though India and the Philippines managed gains, while Korea and Japan underperformed.
Mainland China and Hong Kong were both lower overnight, though the latter outperformed. Both markets experienced weakness in growth stocks, especially the AI hardware supply chain, mirroring Korea's sharp -7% decline overnight. Defensive stocks and value stocks, especially banks, outperformed. Mainland investors did not support prices in Hong Kong, as they sold a net -$649 million worth of Hong Kong-listed stocks and ETFs via Southbound Stock Connect overnight.
Southbound net outflows were led by Yangtze Optical Fiber & Cable as the communication equipment subsector underperformed in Mainland China and Hong Kong. However, outflows were offset by flows into the internet sector. Tencent, Hong Kong's most heavily traded stock by value, experienced strong inflows from Mainland investors of over $100 million.
Alibaba and Baidu were both selected as partners for Apple's rollout of Apple Intelligence AI in China. Alibaba will provide core model capabilities under a new dual-partner strategic model. Meanwhile, Baidu will handle Siri and visual intelligence functions.
Health care was a relative outperformer in both Hong Kong and Mainland China overnight, after a strong pullback yesterday. WuXi Apptec fell -0.69% despite BlackRock announcing an increased stake in the company, according to regulatory filings.
The South China Morning Post reported that China's exports of integrated circuits increased 136% year-over-year in September to over $300 billion worth of exports in the first three months of the year. The recent downdraft in semiconductor stocks, especially those within the STAR (Science & Technology) Market, came as exports continue to achieve new record highs.
Last Night's Performance
India shines as Asia slips broadly
3 of 17 markets were up; India was the standout gainer.
+2.1%
India (best)
-7.6%
South Korea (worst)
-649
Southbound Connect (US$ mn)
Market
Change
1-Day
India
SENSEX Index
+2.1%
Philippines
PCOMP Index
+0.8%
Pakistan
KSE100 Index
+0.5%
Australia
AS51 Index
-0.1%
Malaysia
FBMKLCI Index
-0.2%
Thailand
SET Index
-0.2%
Singapore
STI Index
-0.4%
Vietnam
VNINDEX Index
-0.4%
China (Hong Kong)
HSI Index
-1.0%
Indonesia
JCI Index
-1.3%
China (STAR Board)
STAR50 Index
-1.5%
China (Shanghai)
SHCOMP Index
-1.6%
China (Shenzhen)
SZCOMP Index
-2.6%
Hang Seng Tech
HSTECH Index
-2.7%
Taiwan
TWSE Index
-3.4%
Japan
NKY Index
-4.9%
South Korea
KOSPI Index
-7.6%
Hong Kong and Mainland China Liquidity (1-Day Change)
Hong Kong Turnover
HKTurn Index
+15.9%
Hong Kong Short Sale Turnover
HKSST Index
+14.2%
Short Turnover as % of HK Turnover
19.7%
Southbound Connect Net Buy/Sell (US$ mn)
-649
Mainland Turnover
.CHTURN Index
+15.3%
Value and Defensive stocks outperform as markets sell off broadly
Communication EquipmentPower GenerationComputer Hardware
Southbound Connect Buys
Tencent, CNOOC, MiniMax
—
Southbound Connect Sells
Xiaomi, Lenovo, KB Laminates
—
Hong Kong and Mainland China trade broadly lower
-1.80%
Hong Kong listed (152)
-1.24%
Mainland listed (400)
Sector
# Stocks
Change
Avg. 1-Day
Hong Kong Listed · 152 stocks
-1.80%
Consumer Staples
12
+0.54%
Financials
24
+0.44%
Health Care
15
-0.68%
Real Estate
6
-0.72%
Utilities
10
-0.99%
Communication Services
7
-1.44%
Consumer Discretionary
27
-2.16%
Energy
7
-3.04%
Industrials
16
-3.05%
Materials
14
-3.75%
Information Technology
14
-4.96%
Mainland China Listed · 400 stocks
-1.24%
Consumer Staples
16
+0.94%
Health Care
26
+0.52%
Financials
60
+0.21%
Consumer Discretionary
21
-0.58%
Communication Services
9
-1.03%
Industrials
62
-1.99%
Energy
11
-2.89%
Materials
69
-3.17%
Information Technology
126
-3.18%
US & Hong Kong Dually Listed
3 / 16
Up / Down
+2.7%
Autohome (best)
-5.4%
Baozun (worst)
Company
Change
1-Day
Autohome
2518 HK Equity
+2.7%
Yum China
9987 HK Equity
+0.8%
Trip.com
9961 HK Equity
+0.7%
NetEase
9999 HK Equity
-0.5%
New Oriental (EDU)
9901 HK Equity
-0.6%
KE Holdings
2423 HK Equity
-1.0%
JD.com
9618 HK Equity
-1.1%
Tencent
700 HK Equity
-1.3%
Li Auto
2015 HK Equity
-1.9%
Meituan
3690 HK Equity
-2.1%
Tencent Music Ent.
1698 HK Equity
-2.3%
Zhihu
2390 HK Equity
-2.4%
Bilibili
9626 HK Equity
-3.0%
Weibo
9898 HK Equity
-3.0%
Nio
9866 HK Equity
-3.5%
Alibaba
9988 HK Equity
-3.7%
Xpeng
9868 HK Equity
-3.7%
Baidu
9888 HK Equity
-4.5%
Baozun
9991 HK Equity
-5.4%
Lenovo drops 14.5% as tech names weigh on Hong Kong's most-traded stocks
Value Traded Rank · Company
Change
1-Day
1Alibaba Group Holding
-3.7%
2Tencent Holdings
-1.3%
3Xiaomi
+2.7%
4Lenovo Group
-14.5%
5Semiconductor Manufacturing
-4.0%
6Yangtze Optical Fibre
-13.2%
7Contemporary Amperex
-3.9%
8Hua Hong Grace Semiconductor
-7.8%
9Z AI Co
-10.2%
10Kingboard Laminates
-9.6%
Semiconductors lead losses among Shanghai & Shenzhen's most-traded stocks
Value Traded Rank · Company
Change
1-Day
1Zhongji Innolight
-5.2%
2Eoptolink Technology
-7.5%
3CXMT Corp
-5.2%
4Contemporary Amperex
-0.6%
5Gigadevice Semiconductor
-4.9%
6Cambricon Technologies
-3.4%
7WUS Printed Circuit
+1.0%
8Suzhou Dongshan Precision
-5.5%
9Montage Technology
-6.2%
10Kweichow Moutai
+2.1%
Last Night's Exchange Rates, Prices, & Yields
CNY per USD 6.69 versus 6.79 yesterday
CNY per EUR 7.50 versus 7.47 yesterday
Yield on 10-Year Government Bond 1.66% versus 1.65% yesterday
Yield on 10-Year China Development Bank Bond 1.71% versus 1.71% yesterday
Copper Price -0.78%
Steel Price -0.03%
Featured Tweets:
$0.18 vs. around $4 per million tokens...
That’s the price gap between some China-based LLMs and leading U.S. models.
For coding assistants, customer service, enterprise search and internal automation, the
most expensive model may not be necessary for every workload.
It raises a simple question: do businesses need a Ferrari for every trip to the grocery store?
China’s LLM providers are offering open-weight models that can be customized, fine-tuned
internally and run on a company’s own infrastructure.
We caught @ahern_brendan before he headed to @CNBC to get a quick preview of what he’ll be discussing ahead of this week’s Trump-Xi meeting.
Here’s what’s on our CIO’s radar 👇 https://t.co/yxIhY4QBVv
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