Corporate Actions Indicate Improving US-China Relations
4 Min. Read Time
Key News
Asian equities had a good day as multiple markets rallied over +1%, including Japan, Taiwan, Indonesia and the Philippines. Meanwhile, Korea was closed for National Foundation Day and Mainland China was closed and will remain closed until Thursday in observance of the National Holiday, which is also known as "Golden Week".
Hong Kong bounced around the room in morning trading, but grinded higher by the end of the session. The market was led by technology and AI-related stocks, though there was a serious lack of news and specific catalysts overnight. It would appear that even the bears are on vacation!
Western media has so far only highlighted the pomp and pageantry of Trump and Xi’s flyover-filled summit. However, corporations clearly received a green light to work with one another. For example, Qualcomm and Huawei announced a patent licensing deal that will cover multiple technologies. Last week, China-based biotech firm Akeso established a partnership with AstraZeneca on the development of a new cancer treatment through its subsidiary Summit Therapeutics. Also, pharmaceutical giant Jiangsu Hengrui announced a deal with Novo Nordisk to license GLP-1's outside of China. With two more meetings between the leaders before year end, we should expect more announcements.
Tencent gained +0.43% overnight and was Hong Kong’s most heavily traded stock by value. However, overall volumes were extremely light, at only about one-third of the one-year average. Technology hardware and semiconductor stocks were mostly higher, as AI model provider Z.AI gained +6.15% on a broker upgrade. Other notable AI-related gainers included Kingboard Laminates, which gained +11.94%, and Lenovo, which gained +4.66%. Battery giant CATL gained +1.38% overnight.
Preliminary Golden Week travel data appears strong, as expected, though we will not get a full picture until everyone is back at work. It was very light on the news front. China’s two-week-long holidays are taken very seriously as people quite literally unplug.
After the close, Tencent announced it bought back 238,000 shares and KE Holdings (US Ticker: BEKE) announced it bought back 636,927 shares.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.3% |
| Hang Seng Tech | HSTECH Index | 0.6% |
| Hong Kong Turnover | HKTurn Index | -32.7% |
| Hong Kong Short Sale Turnover | HKSST Index | -36% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 26 |
| 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 | 2.4% |
| India | SENSEX Index | 0.7% |
| Indonesia | JCI Index | 1.4% |
| Malaysia | FBMKLCI Index | 0.1% |
| Pakistan | KSE100 Index | -1.4% |
| Philippines | PCOMP Index | 2% |
| South Korea | KOSPI Index | Closed |
| Taiwan | TWSE Index | 2.6% |
| Thailand | SET Index | 0.3% |
| Singapore | STI Index | 0.5% |
| Australia | AS51 Index | 0% |
| Vietnam | VNINDEX Index | 0.9% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 37 | Closed |
| Advancing Stocks | 242 | Closed |
| Declining Stocks | 310 | Closed |
| Outperforming Factors | Momentum, EPS Revision, Liquidity | Closed |
| Underperforming Factors | Quality, Buybacks, Low Volatility | Closed |
| Top Sectors | Technology, Healthcare, Materials | Closed |
| Bottom Sectors | Real Estate, Financials, Consumer Staples | Closed |
| Top Subsectors | Technology Hardware, Semiconductors, Consumer Discretionary Distribution | Closed |
| Bottom Subsectors | Steel, Real Estate Management, Paper & Packaging | Closed |
| Southbound Connect Buys | Closed | N/A |
| Southbound Connect Sells | Closed | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 152 | 0.41 |
| Communication Services | 7 | 0.3 |
| Consumer Discretionary | 27 | 0.44 |
| Consumer Staples | 12 | -0.12 |
| Energy | 7 | 0.54 |
| Financials | 24 | -0.12 |
| Health Care | 15 | 1.01 |
| Industrials | 16 | 0.3 |
| Information Technology | 14 | 1.94 |
| Materials | 14 | 0.55 |
| Real Estate | 6 | -0.52 |
| Utilities | 10 | 0.12 |
| Mainland China Listed | 419 | Closed |
| Communication Services | 9 | Closed |
| Consumer Discretionary | 21 | Closed |
| Consumer Staples | 16 | Closed |
| Energy | 11 | Closed |
| Financials | 60 | Closed |
| Health Care | 26 | Closed |
| Industrials | 62 | Closed |
| Information Technology | 126 | Closed |
| Materials | 69 | Closed |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.4 |
| Alibaba HK | 9988 HK Equity | 1 |
| JD.com HK | 9618 HK Equity | -0.5 |
| NetEase HK | 9999 HK Equity | -0.3 |
| Yum China HK | 9987 HK Equity | -1.1 |
| Baozun HK | 9991 HK Equity | 1.4 |
| Baidu HK | 9888 HK Equity | 0.2 |
| Autohome HK | 2518 HK Equity | -3.4 |
| Bilibili HK | 9626 HK Equity | 0.2 |
| Trip.com HK | 9961 HK Equity | -0.3 |
| EDU HK | 9901 HK Equity | 1.9 |
| Xpeng HK | 9868 HK Equity | -0.2 |
| Weibo HK | 9898 HK Equity | -0.2 |
| Li Auto HK | 2015 HK Equity | -0.5 |
| Nio Auto HK | 9866 HK Equity | -0.8 |
| Zhihu HK | 2390 HK Equity | -3.8 |
| KE HK | 2423 HK Equity | -1.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | -1.4 |
| Meituan HK | 3690 HK Equity | 0.6 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 0.4 |
| KINGBOARD LAMINATES HLDG LTD | 11.9 |
| ALIBABA GROUP HOLDING LTD | 1 |
| AIA GROUP LTD | -0.4 |
| XIAOMI CORP-CLASS B | -1.5 |
| HSBC HOLDINGS PLC | 0.3 |
| LENOVO GROUP LTD | 4.7 |
| MEITUAN-CLASS B | 0.6 |
| HUA HONG GRACE SEMICONDUCTOR | 4.3 |
| Z AI CO LTD | 6.1 |
Last Night's Exchange Rates, Prices, & Yields
Mainland China's currency, bond, and commodity markets were closed overnight.
