CATL & NIO Power Higher On Q4 Results
5 Min. Read Time
Key News
Asian equities were largely higher except for India, as Japan, Taiwan, Korea, and Vietnam outperformed despite a stronger US dollar, as Middle East tensions and oil prices remain front-page news.
It was a fairly quiet night, though positive momentum seems to be percolating. Government regulators looked to tap the brakes on OpenClaw adoption among state-owned enterprises (SOEs) due to cybersecurity concerns, leading to a quick round of profit-taking in some technology stocks. The announcement took some of the momentum out of the Hong Kong market, which faded after yesterday’s strong move. Meanwhile, the oil & gas sector outperformed in both Hong Kong and Mainland China.
Tencent fell by -0.27% on very high volumes, again, following yesterday’s 7% gain, as Mainland investors took profits and were net sellers via Southbound Stock Connect. There was some discussion among brokers about Tencent's AI agent for WeChat, to be released later this year. Meanwhile, large language model (LLM) stocks Minimax and Knowledge Atlas fell by -6.48% and -6.09%, respectively.
Yesterday’s better-than-expected post-close financial results powered battery giant CATL higher by +9% in Hong Kong and +5% in Mainland China. Electric vehicle maker NIO gained +14.05% following yesterday’s financial results. Results from both CATL and NIO led electrical equipment and electric vehicle stocks to outperform in both Mainland China and Hong Kong. CATL lifted the ChiNext Board up +1.3%. However, Mainland semiconductor stocks weighed on the STAR Market, which fell by -1.37%, as Cambricon fell -4.19%.
Mainland China exhibited a value bias overnight, as banks, energy companies, utilities, coal, and telecommunication stocks all outperformed. There were no signs of activity from the "National Team", i.e. investment firms associated with China's sovereign wealth, based on light trading volumes in their favorite Mainland-listed China ETF. However, the dramatic selling from this unique group of investors that occured in January and slowed the Mainland's bull market appears to have stopped.
The "Dual Sessions" important policy meetings rolled on with the conclusion of the NCCPPC’s fourth meeting. The China Development High-Level Forum will run for two days beginning March 22nd in Beijing.
India appears to be loosening investment rules for Chinese companies after a six-year freeze, which is interesting.
Shockingly, there was little positive coverage of the meeting between Treasury Secretary Bessent and Vice Premier He Lifeng, which is meant as a prelude to the meeting between the big bosses, Trump and Xi.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -0.2% |
| Hang Seng Tech | HSTECH Index | -0.1% |
| Hong Kong Turnover | HKTurn Index | -23.1% |
| Hong Kong Short Sale Turnover | HKSST Index | -28.2% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 14.7% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 440.41 |
| China (Shanghai) | SHCOMP Index | 0.2% |
| China (Shenzhen) | SZCOMP Index | 0.5% |
| China (STAR Board) | Star50 Index | -1.4% |
| Mainland Turnover | .chturn Index | 4.6% |
| Japan | NKY Index | 1.4% |
| India | SENSEX Index | -1.7% |
| Indonesia | JCI Index | -0.7% |
| Malaysia | FBMKLCI Index | 0.4% |
| Pakistan | KSE100 Index | -0.3% |
| Philippines | PCOMP Index | 0.5% |
| South Korea | KOSPI Index | 1.4% |
| Taiwan | TWSE Index | 4.1% |
| Thailand | SET Index | 0.1% |
| Singapore | STI Index | 0.1% |
| Australia | AS51 Index | 0.6% |
| Vietnam | VNINDEX Index | 3.1% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 98% | 131% |
| Advancing Stocks | 287 | 1734 |
| Declining Stocks | 244 | 3402 |
| Outperforming Factors | Growth, Dividend Yield, Large Cap | Value, Dividend Yield, Low Volatility |
| Underperforming Factors | Momentum, Liquidity, EPS Revision | |
| Top Sectors | Energy, Utilities, Industrials | Industrials, Utilities, Discretionary |
| Bottom Sectors | Healthcare, Financials, Staples | Communication, Tech, Healthcare |
| Top Subsectors | Electrical Equipment, Coal, Auto | Petrochemical, Chemical Fiber, Coal |
| Bottom Subsectors | Consumer Staples Distribution, Semis, Technology Hardware | Aerospace/Military, Energy Equipment, Internet |
| Southbound Connect Buys | CNOOC (Large), Alibaba (Moderate), SMIC, Xiaomi (Small) | |
| Southbound Connect Sells | Tencent (Large), YOFC (Small) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | -0.06 |
| Communication Services | 11 | -0.34 |
| Consumer Discretionary | 28 | 0.22 |
| Consumer Staples | 13 | -0.53 |
| Energy | 6 | 2.71 |
| Financials | 25 | -0.65 |
| Health Care | 16 | -1.53 |
| Industrials | 22 | 1.23 |
| Information Technology | 12 | -0.43 |
| Materials | 14 | 0.48 |
| Real Estate | 7 | 0.74 |
| Utilities | 11 | 2.46 |
| Mainland China Listed | 386 | 0.52 |
| Communication Services | 8 | -1.01 |
| Consumer Discretionary | 26 | 0.9 |
| Consumer Staples | 19 | 0.2 |
| Energy | 12 | 0.72 |
| Financials | 64 | 0.68 |
| Health Care | 31 | -0.45 |
| Industrials | 58 | 1.94 |
| Information Technology | 95 | -0.48 |
| Materials | 52 | 0.68 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.3 |
| Alibaba HK | 9988 HK Equity | -0.2 |
| JD.com HK | 9618 HK Equity | 0.1 |
| NetEase HK | 9999 HK Equity | -1.9 |
| Yum China HK | 9987 HK Equity | 0.4 |
| Baozun HK | 9991 HK Equity | 4.4 |
| Baidu HK | 9888 HK Equity | 0.8 |
| Autohome HK | 2518 HK Equity | 1.5 |
| Bilibili HK | 9626 HK Equity | -0.1 |
| Trip.com HK | 9961 HK Equity | -1.1 |
| EDU HK | 9901 HK Equity | 1 |
| Xpeng HK | 9868 HK Equity | 3.9 |
| Weibo HK | 9898 HK Equity | -0.2 |
| Li Auto HK | 2015 HK Equity | 1.2 |
| Nio Auto HK | 9866 HK Equity | 14.1 |
| Zhihu HK | 2390 HK Equity | -0.5 |
| KE HK | 2423 HK Equity | 3.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1.9 |
| Meituan HK | 3690 HK Equity | -2.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | -0.3 |
| YANGTZE OPTICAL FIBRE AND-H | -7.2 |
| ALIBABA GROUP HOLDING LTD | -0.2 |
| CNOOC LTD-H | 3.7 |
| XIAOMI CORP-CLASS B | -0.8 |
| SHANDONG MOLONG PETROLEUM-H | 17.3 |
| CONTEMPORARY AMPEREX TECHN-H | 9 |
| AIA GROUP LTD | 0.9 |
| MINIMAX GROUP INC | -6.5 |
| MEITUAN-CLASS B | -2.1 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| VISUAL CHINA GROUP CO LTD-A | -2.6 |
| SHANTUI CONSTRUCTION MACHI-A | -0.8 |
| SUNGROW POWER SUPPLY CO LT-A | 9.5 |
| CONTEMPORARY AMPEREX TECHN-A | 5.4 |
| HGTECH CO LTD-A | 9.2 |
| BEIJING TEAMSUN TECHNOLOGY-A | 2.7 |
| EOPTOLINK TECHNOLOGY INC L-A | -1 |
| ZHONGJI INNOLIGHT CO LTD-A | 1.4 |
| GOLDWIND SCIENCE & TECHNOL-A | 6.2 |
| TALKWEB INFORMATION SYSTEM-A | -1.6 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.87 versus 6.87 yesterday
- CNY per EUR 7.97 versus 7.99 yesterday
- Yield on 10-Year Government Bond 1.81% versus 1.81% yesterday
- Yield on 10-Year China Development Bank Bond 1.97% versus 1.95% yesterday
- Copper Price +0.38%
- Steel Price +0.03%
