CATL & HSBC Dominate Trading and Headlines
5 Min. Read Time
Key News
Asian equities were mixed amid rising tensions in the Middle East, as Vietnam and Indonesia outperformed, while China was closed for Labor Day.
Japan and South Korea were both closed for the National Sovereignty and Children’s Day, respectively. Even with South Korea closed, Taiwan hit a new all-time high as the AI "picks & shovels" trade continues to rise relentlessly.
Hong Kong volumes were exceedingly light, falling 30.9% from yesterday to just 47% of the 1-year average, with Southbound Stock Connect closed, compounded by two consecutive market closures for te Mainland. The Hang Seng Index closed below 26,000, though both the Hang Seng and Hang Seng Tech indexes closed well off intra-day lows.
It was a sea of red overnight, as decliners outpaced advancers, and HSBC fell by -5.16% after missing analyst expectations due to a $400 million charge related to the MFS fraud. HSBC is part of the MSCI Hong Kong Index, which rolls up to developed markets, and not part of MSCI China, which rolls up to emerging markets.
One glaring positive was that CATL gained +3.72% on an analyst upgrade and an increase in its price target. Alibaba fell -0.38%, despite the company buying a convertible bond that could lead to a 6% stake in Meitu, which has pivoted to AI video. Imagine the US market reaction if a US tech giant announced it was taking a stake in an AI video company? Meanwhile ByteDance’s AI assistant DouBao rolled out a subscription service. Internet-based large language model providers Knowledge Atlas and Minimax were both lower, falling by -3.92% and -2.55%, respectively.
Biotech company Jitai Technology has raised $500 million in funding ahead of its IPO. It has prominent backers that include BlackRock and Hillhouse. The National Social Security Fund’s Q1 positions were updated with the largest holdings of AgBank, ICBC, PICC, and the Bank of Communications. All told, it was a fairly quiet night!
I am somewhat skeptical of what I see in social media, as what’s real and what’s fake is hard to know with AI. I noticed that on X, there were photos and posts of US Air Force C-17s landing at Beijing’s airport in advance of President Trump’s trip late next week. It was a good confirmation that the trip will occur, despite ongoing Middle East tensions.
Montana Senator Steve Daines is headed to China with four Senate colleagues this week.
I caught Wilfred Frost’s The Master Investor Podcast interview with Gavekal’s Louis Gave on a range of topics, including Iran, global bond markets, and, of course, China. I’ve been pounding the table on the China clean technology opportunity, as, once the dust settles from Middle East tensions, I believe countries, companies, and individuals will look to insulate themselves from future oil shocks through clean technology and alternative energy solutions. Chinese companies have answers to those questions as the global leaders in solar, wind, nuclear, hydroelectric power, battery storage, and new energy vehicles. Louis articulated a similar thesis, though. Don’t take my word for it, but check it out.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.8% |
| Hang Seng Tech | HSTECH Index | -0.9% |
| Hong Kong Turnover | HKTurn Index | -30.9% |
| Hong Kong Short Sale Turnover | HKSST Index | -9.7% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 23.8% |
| 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 |
| Japan | NKY Index | Closed |
| India | SENSEX Index | -0.3% |
| Indonesia | JCI Index | 1.2% |
| Malaysia | FBMKLCI Index | 0.4% |
| Pakistan | KSE100 Index | 0.8% |
| Philippines | PCOMP Index | -0.7% |
| South Korea | KOSPI Index | Closed |
| Taiwan | TWSE Index | 0.2% |
| Thailand | SET Index | -0.2% |
| Singapore | STI Index | -0.1% |
| Australia | AS51 Index | -0.2% |
| Vietnam | VNINDEX Index | 1.1% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 47% | Closed |
| Advancing Stocks | 144 | Closed |
| Declining Stocks | 355 | Closed |
| Outperforming Factors | N/A | Closed |
| Underperforming Factors | Growth, Quality, EPS Revision | Closed |
| Top Sectors | Real Estate | Closed |
| Bottom Sectors | Tech, Discretionary, Healthcare | Closed |
| Top Subsectors | Electrical Equipment, Consumer Durables/Apparel, Industry Conglomerates | Closed |
| Bottom Subsectors | Household Appliances, Textiles/Apparel/Luxury Goods, Chemical Industry | Closed |
| Southbound Connect Buys | Closed | Closed |
| Southbound Connect Sells | Closed | Closed |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | -0.45 |
| Communication Services | 11 | -0.08 |
| Consumer Discretionary | 28 | -0.83 |
| Consumer Staples | 12 | -0.55 |
| Energy | 6 | -0.44 |
| Financials | 25 | -0.34 |
| Health Care | 16 | -0.79 |
| Industrials | 19 | -0.02 |
| Information Technology | 15 | -0.88 |
| Materials | 14 | -0.3 |
| Real Estate | 1 | 1.26 |
| Utilities | 6 | -0.59 |
| Mainland China Listed | 11 | Closed |
| Communication Services | 11 | Closed |
| Consumer Discretionary | 26 | Closed |
| Consumer Staples | 18 | Closed |
| Energy | 11 | Closed |
| Financials | 64 | Closed |
| Health Care | 29 | Closed |
| Industrials | 60 | Closed |
| Information Technology | 113 | Closed |
| Materials | 58 | Closed |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.2 |
| Alibaba HK | 9988 HK Equity | -0.4 |
| JD.com HK | 9618 HK Equity | -0.5 |
| NetEase HK | 9999 HK Equity | -0.4 |
| Yum China HK | 9987 HK Equity | -0.9 |
| Baozun HK | 9991 HK Equity | -0.8 |
| Baidu HK | 9888 HK Equity | 2.1 |
| Autohome HK | 2518 HK Equity | -0.8 |
| Bilibili HK | 9626 HK Equity | -0.9 |
| Trip.com HK | 9961 HK Equity | -1.5 |
| EDU HK | 9901 HK Equity | 0.2 |
| Xpeng HK | 9868 HK Equity | 0.3 |
| Weibo HK | 9898 HK Equity | 1.1 |
| Li Auto HK | 2015 HK Equity | -0.7 |
| Nio Auto HK | 9866 HK Equity | -0.7 |
| Zhihu HK | 2390 HK Equity | -0.7 |
| KE HK | 2423 HK Equity | 3.5 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.4 |
| Meituan HK | 3690 HK Equity | -1.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| STAR SPORTS MEDICINE CO LT-H | 118.3 |
| GUANGDONG HONG KONG GREATER | 30.3 |
| PEGBIO CO LTD-H | 13.1 |
| NUOBIKAN ARTIFICIAL INTEL-H | 9.3 |
| HONBRIDGE HOLDINGS LTD | 8.9 |
| HUAQIN CO LTD -H | 7.8 |
| WELLCELL HOLDINGS CO LTD | 7.1 |
| EASY SMART GROUP HLDG LT-H | 7 |
| KARRIE INTL HLDGS LTD | 6.9 |
| JIAXIN INTERNATIONAL RESOURC | 6.1 |
Last Night's Exchange Rates, Prices, & Yields
Mainland China's currency, fixed income, and commodity markets were closed overnight.
