Energy & Value Stocks Outperform
5 Min. Read Time
Key News
Asian equities were mostly lower overnight despite a weaker US dollar, as Japan underperformed while Australia and India were closed for Australia Day and Republic Day, respectively. The yen gained versus the US dollar on assumed intervention.
Last night's trading was a classic "Revenge of The Nerds" scenario, as value stocks outperformed, supported by higher oil and gas prices due to the US winter storm, which lifted energy names. Meanwhile, growth stocks were led lower by semiconductors and technology hardware. Companies gaining access to Nvidia’s H200 chips continues to weigh on the valuations of local chipmakers. Both markets had strong volumes. Mainland China, in particular, experienced turnover that was almost twice the one-year average.
There were massive outflows in the Mainland-listed ETFs that are favored by the "National Team", i.e., investment firms associated with China's sovereign wealth. This indicated another effort to tap the brakes on the bull market. However, these efforts have been shockingly ineffective so far, as this market keeps showing that it wants to go higher. The top six ETFs recorded $12.12 billion in outflows today, bringing the weekly total to $42.34 billion and the 1-month total to $59.54 billion. Remember, these efforts are focused on Mainland China (Shanghai % Shenzhen) and not offshore China (Hong Kong and New York). The former is virtually held by domestic investors, while the latter represents foreign investors’ view of China, given that the MSCI China Index comprises only 14% Mainland China stocks.
Leaders in both onshore and offshore markets overnight were banks, insurance, and non-ferrous metals, led by Zijin Mining, which gained +4.35% on news that it will buy Canadian-listed Allied Gold. Oil & gas, coal, technology hardware, semiconductors, electric vehicle autos, batteries, and healthcare all underperformed.
Tencent bucked the trend, gaining 0.76%, after Founder and Chairman Pony Ma highlighted AI's importance to the company. Mainland investors were large net buyers via Southbound Stock Connect.
Southbound Stock Connect saw another rare net outflow for an even rarer two consecutive days in a row of net outflow.
Internet stocks were mixed, as Alibaba fell -1.96%, despite an analyst raising its price target. Baidu fell -3.12%, Trip.com gained +1.4% on a government release highlighting domestic tourist trips, which increased by 16.2% year-over-year (YoY), and JD.com gained +1.05%.
There were lots of headlines on the Ministry of Commerce’s plan to raise domestic consumption in 2026, though it lacked any stimulus amounts. Premier Li spoke at the All-China Federation of Industry and Commerce about the 15th Five-Year Plan.
Foreign Direct Investment decreased -9.5% in 2025 from 2024.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.1% |
| Hang Seng Tech | HSTECH Index | -1.2% |
| Hong Kong Turnover | HKTurn Index | 8.6% |
| Hong Kong Short Sale Turnover | HKSST Index | 13.6% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 14.3% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -105.4 |
| China (Shanghai) | SHCOMP Index | -0.1% |
| China (Shenzhen) | SZCOMP Index | -0.9% |
| China (STAR Board) | Star50 Index | -1.3% |
| Mainland Turnover | .chturn Index | 5.3% |
| Japan | NKY Index | -1.8% |
| India | SENSEX Index | -0.9% |
| Indonesia | JCI Index | 0.3% |
| Malaysia | FBMKLCI Index | 1.4% |
| Pakistan | KSE100 Index | -0.6% |
| Philippines | PCOMP Index | -0.9% |
| South Korea | KOSPI Index | -0.8% |
| Taiwan | TWSE Index | 0.3% |
| Thailand | SET Index | -0.6% |
| Singapore | STI Index | -0.6% |
| Australia | AS51 Index | 0.1% |
| Vietnam | VNINDEX Index | -1.4% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume as % of 1-Year Average | 101 | 178 |
| Advancing Stocks | 216 | 1517 |
| Declining Stocks | 272 | 3544 |
| Outperforming Factors | Large Caps, Value, Dividend Yield | Value, EPS Revision, Buyback |
| Underperforming Factors | Liquidity, Growth, Momentum | Liquidity, Growth, Quality |
| Top Sectors | Materials, Energy, Financials | Energy, Materials, Financials |
| Bottom Sectors | Tech, Healthcare, Discretionary | Communication, Real Estate, Discretionary |
| Top Subsectors | Non-Ferrous Metal, Coal, Petroleum/Petrochemical | Precious Metals, Oil/Gas, Energy Equipment |
| Bottom Subsectors | Aerospace, Semiconductors, Auto | Aerospace, Forest, Auto Parts |
| Southbound Connect Buys | Tencent, Xiaomi (Large), CNOOC, Drinda (Small) | N/A |
| Southbound Connect Sells | HK Tracker ETF, Zijin Mining( Large), Alibaba (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 151 | -0.12 |
| Communication Services | 9 | 0.22 |
| Consumer Discretionary | 28 | -1.3 |
| Consumer Staples | 13 | -1.03 |
| Energy | 7 | 3.57 |
| Financials | 23 | 1.04 |
| Health Care | 13 | -2.01 |
| Industrials | 20 | 0.33 |
| Information Technology | 10 | -2.24 |
| Materials | 10 | 3.88 |
| Real Estate | 6 | -0.12 |
| Utilities | 12 | 0.04 |
| Mainland China Listed | 404 | 0.21 |
| Communication Services | 6 | -2.07 |
| Consumer Discretionary | 31 | -1.66 |
| Consumer Staples | 24 | -0.01 |
| Energy | 13 | 3.93 |
| Financials | 64 | 0.8 |
| Health Care | 31 | 0.18 |
| Industrials | 64 | -0.34 |
| Information Technology | 91 | -1.33 |
| Materials | 58 | 3.4 |
| Real Estate | 6 | -1.99 |
| Utilities | 16 | 0.07 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.8 |
| Alibaba HK | 9988 HK Equity | -2 |
| JD.com HK | 9618 HK Equity | 1 |
| NetEase HK | 9999 HK Equity | 0.7 |
| Yum China HK | 9987 HK Equity | -0.3 |
| Baozun HK | 9991 HK Equity | -1.3 |
| Baidu HK | 9888 HK Equity | -3.1 |
| Autohome HK | 2518 HK Equity | -1.2 |
| Bilibili HK | 9626 HK Equity | -2.4 |
| Trip.com HK | 9961 HK Equity | 1.4 |
| EDU HK | 9901 HK Equity | -1.8 |
| Xpeng HK | 9868 HK Equity | -4.2 |
| Weibo HK | 9898 HK Equity | -1.1 |
| Li Auto HK | 2015 HK Equity | -0.2 |
| Nio Auto HK | 9866 HK Equity | -3.8 |
| Zhihu HK | 2390 HK Equity | -2.9 |
| KE HK | 2423 HK Equity | 0 |
| Tencent Music Entertainment HK | 1698 HK Equity | 5.5 |
| Meituan HK | 3690 HK Equity | -0.5 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| SEMICONDUCTOR MANUFACTURI-H | -3.3 |
| TENCENT HOLDINGS LTD | 0.8 |
| ALIBABA GROUP HOLDING LTD | -2 |
| CHINA MOBILE LTD-H | -0.9 |
| HUA HONG SEMICONDUCTOR LTD-H | 1.3 |
| XIAOMI CORP-CLASS B | -2.8 |
| HSBC HOLDINGS PLC | 0.8 |
| MEITUAN-CLASS B | -0.5 |
| PING AN INSURANCE GROUP CO-H | 1.6 |
| YANGTZE OPTICAL FIBRE AND-H | 17.8 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZIJIN MINING GROUP CO LTD-A | 5.2 |
| CHINA AEROSPACE TIMES ELEC-A | -10 |
| TBEA CO LTD-A | 1.8 |
| GOLDWIND SCIENCE & TECHNOL-A | -4 |
| BLUEFOCUS INTELLIGENT COMM-A | 0.9 |
| SHENZHEN SUNWAY COMMUNICAT-A | -10.1 |
| ZHONGJI INNOLIGHT CO LTD-A | 0.8 |
| PING AN INSURANCE GROUP CO-A | 0.4 |
| CHINA SPACESAT CO LTD -A | -10 |
| EOPTOLINK TECHNOLOGY INC L-A | 1.5 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.96 versus 6.96 Friday
- CNY per EUR 8.26 versus 8.21 Friday
- Yield on 10-Year Government Bond 1.82% versus 1.83% Friday
- Yield on 10-Year China Development Bank Bond 1.95% versus 1.95% Friday
- Copper Price 0.23%
- Steel Price -0.44%
