Friday Night Highlights from Meituan & CXMT Post Close Results, Week in Review
6 Min. Read Time
Week in Review
- Asian equities were mixed but mostly higher for the week, as Mainland China's semiconductor-heavy STAR (Science & Technology) board outperformed, supported by encouraging results from Nvidia on Wednesday.
- E-Commerce giant PDD Holdings reported Q2 earnings on Monday that showed the company was more profitable than expected during the quarter.
- Alibaba's shares came under pressure this week due to a share sale to raise capital for AI capital expenditure, though key executives increased their stock ownership at the same time.
- Mainland earnings season was in full swing this week, with first-half 2026 reports from WuXi Biologics, which announced a 38% net profit increase year-over-year (YoY), and wind turbine maker Goldwind, which announced a net profit increase of 24% YoY, among others.
Key News
Asian equities were mixed on light volumes, though South Korea underperformed the region, as investors await Warsh's Jackson Hole speech. US tariff threats and Iran's escalation were not major factors overnight, as Trump and Xi's September summit appears on track, per the bullet below. South Korea's wobble set off profit-taking in the Four Chinese Horsemen of AI (semis, semiconductor equipment, tech hardware, electronic equipment, and communication equipment), as the Science and Technology (STAR) Board -1.85%, though still positive for the week.
After the close, DRAM chip maker and recent STAR Board IPO CXMT (688825 CH) reported 1st half revenue increased 873% YoY to RMB 150B ($22B), while the company became profitable, with net income of RMB 77B versus last year's 1st half loss of RMB 2.33B. Today's downdraft might be short-lived!
Value outperformed in both markets with banks, oil/gas, and non-ferrous metals (mining and precious metals). Tencent was Hong Kong's most heavily traded by value, +1.65% following yesterday's AI model update. Hong Kong volumes were light, with Tencent's trading value at 2/3 of the normal/non-Friday summer level. Alibaba -1.39% as Time names CEO Wu an AI 100 leader. Funny that Time magazine considers Alibaba as an AI company, but investors don't. Mainland investors sold -$48mm (HK $380mm) of Alibaba stock today via Southbound Stock Connect.
AI LLM Z AI -6.03% and Minimax -4.51% following the recent rip higher. Victory Giant -12.96% following financial results that missed expectations. Bilibili +1.62% following yesterday's better-than-expected results, though several analysts lowered their price targets. Meituan was flat/0.0% before today's after-the-close financial results. Mainland investors were up big on agricultural stocks following the Standing Committee's release on rural area support. Mainland real estate stocks were up, but not significantly, while Hong Kong real estate stocks were down despite the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, and the General Administration of Financial Regulation releasing "Notice on improving the commodity housing sales system" that looks to standardize and streamline housing purchases.
A Bloomberg reporter asked yesterday at the Ministry of Foreign Affairs' daily press conference about President Xi visiting the US. The spokesperson's response was "…China and the United States have maintained communication on arrangements for interactions between their heads of state this year."
Absolutely horrific images from the Nepal landslide — our condolences to all those affected.
We dropped my oldest off at college yesterday, which is a big life moment for him and his parents. Good luck Mac!
Meituan Q2 Earnings Overview
Delivery giant Meituan (3690 HK) announced financial results after the Hong Kong close that beat analyst expectations but, more importantly, returned to profitability for the first time in four quarters. This is a situation where government intervention is warranted, as subsidies have destroyed the bottom lines of JD.com and Meituan. Interesting to note the company made several great investments, including "3.86% and 7.61% of equity interests in Z.AI and Unitree".
- Revenues increased +14.4% to RMB 104.643B from RMB 91.490B, versus expectations of RMB 101B
- Adjusted Net Income increased +69% to RMB 2.523B from RMB 1.493B, versus expectations of RMB 340mm
- Adjusted EPS increased to RMB 0.40 from RMB 0.22, versus expectations of RMB 0.05
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.1% |
| Hang Seng Tech | HSTECH Index | -0.3% |
| Hong Kong Turnover | HKTurn Index | -1% |
| Hong Kong Short Sale Turnover | HKSST Index | 18.2% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 0.2 |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 150.22 |
| China (Shanghai) | SHCOMP Index | -0.1% |
| China (Shenzhen) | SZCOMP Index | -0.4% |
| China (STAR Board) | Star50 Index | -1.9% |
| Mainland Turnover | .chturn Index | -0.8% |
| Japan | NKY Index | 0.4% |
| India | SENSEX Index | 0.4% |
| Indonesia | JCI Index | -0.1% |
| Malaysia | FBMKLCI Index | -0.9% |
| Pakistan | KSE100 Index | 0.2% |
| Philippines | PCOMP Index | -0.8% |
| South Korea | KOSPI Index | -1.8% |
| Taiwan | TWSE Index | 0.8% |
| Thailand | SET Index | -0.8% |
| Singapore | STI Index | 0.3% |
| Australia | AS51 Index | 0.6% |
| Vietnam | VNINDEX Index | -0.0005 |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 84 | 84 |
| Advancing Stocks | 254 | 2884 |
| Declining Stocks | 257 | 2123 |
| Outperforming Factors | Buyback, Quality, Low Volatility | Value, Dividend Yield, Low Volatility |
| Underperforming Factors | Large Caps, Growth | Liquidity, Momentum, Growth |
| Top Sectors | Materials, Energy, Communication | Materials, Staples, Energy |
| Bottom Sectors | Healthcare, Real Estate, Discretionary | Tech, Healthcare, Industrials |
| Top Subsectors | Consumer Durables/Apparel, Non Ferrous Metal, National Defense | Petrochemical, Forest, Agricultural |
| Bottom Subsectors | Semis, Household Products, Tech Hardware | Biotech, Semis, Computer Hardware |
| Southbound Connect Buys | Victory Giant (Moderate), KB Laminates, YOFC, Z AI (Small) | |
| Southbound Connect Sells | Alibaba, SMIC, Tencent (Small) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | 0.19 |
| Communication Services | 11 | 1.25 |
| Consumer Discretionary | 28 | -0.83 |
| Consumer Staples | 13 | -0.22 |
| Energy | 6 | 1.39 |
| Financials | 25 | 0.06 |
| Health Care | 16 | -0.87 |
| Industrials | 22 | 0.34 |
| Information Technology | 12 | 0.23 |
| Materials | 14 | 2.31 |
| Real Estate | 7 | -0.85 |
| Utilities | 11 | 0.74 |
| Mainland China Listed | 386 | -0.41 |
| Communication Services | 8 | -0.1 |
| Consumer Discretionary | 26 | 0.4 |
| Consumer Staples | 19 | 0.74 |
| Energy | 12 | 0.57 |
| Financials | 64 | -0.35 |
| Health Care | 31 | -0.8 |
| Industrials | 58 | -0.64 |
| Information Technology | 95 | -1.31 |
| Materials | 52 | 0.95 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 1.7 |
| Alibaba HK | 9988 HK Equity | -1.4 |
| JD.com HK | 9618 HK Equity | -1.4 |
| NetEase HK | 9999 HK Equity | -0.5 |
| Yum China HK | 9987 HK Equity | -1.8 |
| Baozun HK | 9991 HK Equity | 1.2 |
| Baidu HK | 9888 HK Equity | 0 |
| Autohome HK | 2518 HK Equity | 1.6 |
| Bilibili HK | 9626 HK Equity | 1.6 |
| Trip.com HK | 9961 HK Equity | -1.7 |
| EDU HK | 9901 HK Equity | 1.6 |
| Xpeng HK | 9868 HK Equity | -0.7 |
| Weibo HK | 9898 HK Equity | -0.5 |
| Li Auto HK | 2015 HK Equity | -1.3 |
| Nio Auto HK | 9866 HK Equity | -0.2 |
| Zhihu HK | 2390 HK Equity | -1.7 |
| KE HK | 2423 HK Equity | 0.9 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.4 |
| Meituan HK | 3690 HK Equity | 0 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 1.7 |
| ALIBABA GROUP HOLDING LTD | -1.4 |
| Z AI CO LTD | -6 |
| KINGBOARD LAMINATES HLDG LTD | 2.8 |
| MINIMAX GROUP INC | -4.5 |
| YANGTZE OPTICAL FIBRE AND-H | -5.3 |
| SEMICONDUCTOR MANUFACTURI-H | -1.6 |
| MEITUAN-CLASS B | 0 |
| XIAOMI CORP-CLASS B | 1.2 |
| LENOVO GROUP LTD | -2.5 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | -0.9 |
| HENGTONG OPTIC-ELECTRIC CO-A | -3.6 |
| EOPTOLINK TECHNOLOGY INC L-A | -2.5 |
| SHENGYI TECHNOLOGY CO LTD -A | 3.3 |
| VICTORY GIANT TECHNOLOGY -A | -8.2 |
| GIGADEVICE SEMICONDUCTO-CL A | -3.5 |
| CXMT CORP-A | -0.9 |
| CAMBRICON TECHNOLOGIES-A | -0.1 |
| SUZHOU DONGSHAN PRECISION-A | -2.5 |
| FOXCONN INDUSTRIAL INTERNE-A | 0.3 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.72 versus 6.72 yesterday
- CNY per EUR 7.82 versus 7.82 yesterday
- Yield on 10-Year Government Bond 1.69% versus 1.70% yesterday
- Yield on 10-Year China Development Bank Bond 1.77% versus 1.78% yesterday
- Copper Price +0.21%
- Steel Price +0.94%
