CATL Q3 Preliminary Results Impress
5 Min. Read Time
Key News
Asian equities had a strong day on easing US-China trade tensions as President Trump outlined his areas of focus and announced a 2026 China visit.
Did you read yesterday’s note on institutional investors underweight to China? Active fund managers are also underweight China, according to data from Copley Fund Research. That makes the pain trade higher! (Yes, knocking on wood). The renminbi (CNY) appreciated to 7.11 per USD from nearly 7.14 just a week ago.
Hong Kong had a strong day as well, though volume was light. The Hang Seng Index closed above the 26,000 level, while the Hang Seng Tech Index finished above 6,000, both led by growth stocks, especially internet names like Alibaba, which jumped +1.98% after Bloomberg reported a new AI initiative targeting ByteDance. Hardware technology stocks benefited from strong iPhone sales, supporting the Apple and Foxconn supply chains, as well as the Huawei ecosystem. Insurance names got a pop, too; China Life rose +6.04% to a ten-year high after its positive Q3 net income release.
Battery giant CATL gained +3.03% after reporting a preliminary Q3 net income increase of +41%, lifting electric vehicle (EV) ecosystem stocks. Bilibili rallied +8.88% thanks to a broker upgrade after a new online game launch. On the flip side, Pop Mart, the maker of the super-popular worldwide Labubu dolls (think Cabbage Patch), fell -8.08% ahead of its Q3 results, although management expects revenues to climb by 245–250% year-over-year. Precious metals were hit by profit-taking again, with Zijin Gold International down -4.29%.
Mainland China had an even stronger showing than Hong Kong, as advancers beat decliners, once again led by growth stocks despite slightly light volume. Investors expect the 15th Five-Year Plan draft to place a strong emphasis on science and technology. The Fourth Plenum is underway, where the document is being drafted. As in Hong Kong, the Apple ecosystem did well, led by Foxconn’s +9.57% gain. Shenzhen and the STAR Board outperformed the more value-driven Shanghai market. Mainland insurance stocks were strong, and precious metals ticked higher.
Morgan Stanley’s China strategists garnered attention in Mainland media with bullish comments on Mainland China and Hong Kong equities. Overall, a fairly quiet session.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.7% |
| Hang Seng Tech | HSTECH Index | 1.3% |
| Hong Kong Turnover | HKTurn Index | 10.7% |
| Hong Kong Short Sale Turnover | HKSST Index | 3.9% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 13.5% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 149.52 |
| China (Shanghai) | SHCOMP Index | 1.4% |
| China (Shenzhen) | SZCOMP Index | 1.8% |
| China (STAR Board) | Star50 Index | 2.8% |
| Mainland Turnover | .chturn Index | 7.9% |
| Northbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0.2% |
| Japan | NKY Index | 0.3% |
| India | SENSEX Index | 0.1% |
| Indonesia | JCI Index | 1.8% |
| Malaysia | FBMKLCI Index | 0.6% |
| Pakistan | KSE100 Index | 0.6% |
| Philippines | PCOMP Index | 0.2% |
| South Korea | KOSPI Index | 0.2% |
| Taiwan | TWSE Index | 0.2% |
| Thailand | SET Index | 0.5% |
| Singapore | STI Index | 1.2% |
| Australia | AS51 Index | 0.7% |
| Vietnam | VNINDEX Index | 1.6% |
| Indicator | Hong Kong | Mainland |
|---|---|---|
| Today's Volume % of 1-Year Average | 111% | 111% |
| Advancing Stocks | 296 | 4279 |
| Declining Stocks | 176 | 764 |
| Outperforming Factors | Liquidity, Large Caps, Value | Momentum, Liquidity, EPS Revision |
| Underperforming Factors | Low Volatility | |
| Top Sectors | Financials, Discretionary, Industrials | Tech, Industrials, Real Estate |
| Bottom Sectors | Tech | Energy, Utilities |
| Top Subsectors | Electrical Equipment, Paper, Semis | Communication Equipment, Energy Equipment, Electronic Components |
| Bottom Subsectors | Consumer Durables/Apparel, Household/Personal Products, Telecom | Coal, Telecom, Airport |
| Southbound Connect Buys | Pop Mart (Large), Hua Hong Semi, Xiaomi, (Moderate), China Life, SMIC, ZTE (Small) | |
| Southbound Connect Sells | Alibaba (Moderate), Tencent (Tiny) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | 0.87 |
| Communication Services | 9 | 0.72 |
| Consumer Discretionary | 28 | 1.16 |
| Consumer Staples | 13 | 0.15 |
| Energy | 6 | 0.38 |
| Financials | 24 | 1.63 |
| Health Care | 12 | 0.26 |
| Industrials | 21 | 0.98 |
| Information Technology | 10 | -0.2 |
| Materials | 10 | 0.05 |
| Real Estate | 7 | 0.61 |
| Utilities | 12 | 0.04 |
| Mainland China Listed | 395 | 1.59 |
| Communication Services | 7 | 1.17 |
| Consumer Discretionary | 29 | 0.77 |
| Consumer Staples | 24 | 0.2 |
| Energy | 13 | -0.47 |
| Financials | 64 | 0.71 |
| Health Care | 32 | 0.83 |
| Industrials | 61 | 1.69 |
| Information Technology | 90 | 4.45 |
| Materials | 54 | 1.05 |
| Real Estate | 6 | 1.23 |
| Utilities | 15 | -0.24 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.5 |
| Alibaba HK | 9988 HK Equity | 2 |
| JD.com HK | 9618 HK Equity | 0.6 |
| NetEase HK | 9999 HK Equity | 2 |
| Yum China HK | 9987 HK Equity | 1.9 |
| Baozun HK | 9991 HK Equity | 5.5 |
| Baidu HK | 9888 HK Equity | 0.3 |
| Autohome HK | 2518 HK Equity | 0.1 |
| Bilibili HK | 9626 HK Equity | 8.9 |
| Trip.com HK | 9961 HK Equity | 1 |
| EDU HK | 9901 HK Equity | 3.3 |
| Xpeng HK | 9868 HK Equity | 3.7 |
| Weibo HK | 9898 HK Equity | 2.2 |
| Li Auto HK | 2015 HK Equity | 0.3 |
| Nio Auto HK | 9866 HK Equity | 2.8 |
| Zhihu HK | 2390 HK Equity | 2.3 |
| KE HK | 2423 HK Equity | 1.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1 |
| Meituan HK | 3690 HK Equity | -0.2 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ALIBABA GROUP HOLDING LTD | 2 |
| POP MART INTERNATIONAL GROUP | -8.1 |
| SEMICONDUCTOR MANUFACTURI-H | 3.1 |
| TENCENT HOLDINGS LTD | 0.5 |
| XIAOMI CORP-CLASS B | -1.4 |
| HUA HONG SEMICONDUCTOR LTD-H | -0.3 |
| CHINA LIFE INSURANCE CO-H | 6 |
| MEITUAN-CLASS B | -0.2 |
| PING AN INSURANCE GROUP CO-H | 2.9 |
| CHINA MOBILE LTD-H | -1.4 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 9.6 |
| EOPTOLINK TECHNOLOGY INC L-A | 11 |
| CAMBRICON TECHNOLOGIES-A | 6.9 |
| VICTORY GIANT TECHNOLOGY -A | 6.4 |
| LUXSHARE PRECISION INDUSTR-A | 7 |
| CONTEMPORARY AMPEREX TECHN-A | 2.6 |
| FOXCONN INDUSTRIAL INTERNE-A | 9.6 |
| SUNGROW POWER SUPPLY CO LT-A | 2.8 |
| ZHEJIANG SANHUA INTELLIGEN-A | 1.8 |
| ZTE CORP-A | 5.4 |
Last Night’s Exchange Rates, Prices, & Yields
- CNY per USD 7.11 versus 7.12 yesterday
- CNY per EUR 8.26 versus 8.30 yesterday
- Yield on 10-Year Government Bond 1.84% versus 1.85% yesterday
- Yield on 10-Year China Development Bank Bond 1.90% versus 1.93% yesterday
- Copper Price +0.32%
- Steel Price -0.26%
