Hardware Supply Chain Leads Mainland, STAR Market Higher
4 Min. Read Time
Key News
Asian equities were nearly all higher overnight, except for India, as Pakistan and Korea outperformed.
Mainland China, especially the STAR Market, outperformed Hong Kong overnight on elevated volumes compared to the 1-year average. Real estate was a top-performing sector in both markets. Mainland China saw a slightly better tilt towards growth sectors versus Hong Kong, as Mainland investors sold a net -$250 million worth of Hong Kong-listed stocks and ETFs via Southbound Stock Connect, selling Tencent and Alibaba. Hong Kong-listed internet names were mixed, as JD and Baidu outperformed and Meituan was lower. Fiber-optic cable manufacturer Zhongji Innolight was the Mainland's most heavily-traded stock by value, gaining 5%.
Hardware technology names led gains on the Mainland. Shennan Circuits hit its daily limit-up overnight after posting strong earnings for the first quarter. STAR Market-listed memory chip maker Biwin Storage gained 13% on expectations of a memory chip supply crunch globally.
Labubu doll-maker Pop Mart surged overnight and was one of the top buys from Mainland investors via Southbound Stock Connect. According to reports, a well-followed stock influencer in China praised the company's strong moat and brand recognition. The comments came at the same time as a positive broker report on the company, which highlighted strong partnerships.
Markets appeared to welcome progress on a deal between the US and Iran, despite the US' blockade in the Strait of Hormuz. Asian stocks followed Wall Street's move higher from yesterday, hoping for a reprieve from the oil price shock and supply constraints.
China's Foreign Ministry dismissed rumors that it had been supplying weapons to Iran overnight. Meanwhile, President Xi said in a public statement that China should play a "constructive" role in the Middle East, mediating peace. It is important to note that Iran is able to produce drones on its own. But, component parts and materials may come from disparate sources, including from US allies.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.8% |
| Hang Seng Tech | HSTECH Index | 0.6% |
| Hong Kong Turnover | HKTurn Index | 13.9% |
| Hong Kong Short Sale Turnover | HKSST Index | 20.1% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 15.9% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -257.54 |
| China (Shanghai) | SHCOMP Index | 1% |
| China (Shenzhen) | SZCOMP Index | 1.4% |
| China (STAR Board) | Star50 Index | 2.2% |
| Mainland Turnover | .chturn Index | 10.9% |
| Japan | NKY Index | 2.4% |
| India | SENSEX Index | -0.9% |
| Indonesia | JCI Index | 2.3% |
| Malaysia | FBMKLCI Index | 0.5% |
| Pakistan | KSE100 Index | 3% |
| Philippines | PCOMP Index | -0.7% |
| South Korea | KOSPI Index | 2.7% |
| Taiwan | TWSE Index | 2.4% |
| Thailand | SET Index | 1.2% |
| Singapore | STI Index | 0.5% |
| Australia | AS51 Index | 0.5% |
| Vietnam | VNINDEX Index | 0.9% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 93 | 121 |
| Advancing Stocks | 61 (Hang Seng) | 213 (CSI 300) |
| Declining Stocks | 29 (Hang Seng) | 82 (CSI 300) |
| Outperforming Factors | Value | Growth |
| Underperforming Factors | Growth | Value |
| Top Sectors | Real Estate, Materials, Financials | Real Estate, Information Technology, Materials |
| Bottom Sectors | Industrials, Utilities, Energy | Energy, Utilities, Consumer Discretionary |
| Top Subsectors | Consumer Durables, Semiconductors, Real Estate Management | Computer Hardware, Electronic Components, Real Estate Services |
| Bottom Subsectors | Electrical Equipment, Household & Personal Items, Petroleum & Petrochemicals | Oil & Gas, Energy Equipment, Coal |
| Southbound Connect Buys | Pop Mart, CNOOC, SMIC | N/A |
| Southbound Connect Sells | Alibaba, Tencent, Geely Auto | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | 0.84 |
| Communication Services | 11 | 0.77 |
| Consumer Discretionary | 28 | 0.59 |
| Consumer Staples | 12 | 0.35 |
| Energy | 6 | -0.18 |
| Financials | 25 | 1.24 |
| Health Care | 16 | 0.68 |
| Industrials | 19 | -0.64 |
| Information Technology | 15 | 1.03 |
| Materials | 14 | 2.45 |
| Real Estate | 1 | 3.74 |
| Utilities | 6 | -0.43 |
| Mainland China Listed | 11 | 1.54 |
| Communication Services | 11 | 1.51 |
| Consumer Discretionary | 26 | 0.59 |
| Consumer Staples | 18 | 0.94 |
| Energy | 11 | -0.67 |
| Financials | 64 | 1.17 |
| Health Care | 29 | 1.06 |
| Industrials | 60 | 1.32 |
| Information Technology | 113 | 2.79 |
| Materials | 58 | 1.65 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.7 |
| Alibaba HK | 9988 HK Equity | 1.1 |
| JD.com HK | 9618 HK Equity | 2.8 |
| NetEase HK | 9999 HK Equity | -0.2 |
| Yum China HK | 9987 HK Equity | -0.4 |
| Baozun HK | 9991 HK Equity | 2 |
| Baidu HK | 9888 HK Equity | 3.4 |
| Autohome HK | 2518 HK Equity | 1.2 |
| Bilibili HK | 9626 HK Equity | 1.6 |
| Trip.com HK | 9961 HK Equity | 0.1 |
| EDU HK | 9901 HK Equity | 1.1 |
| Xpeng HK | 9868 HK Equity | -1.2 |
| Weibo HK | 9898 HK Equity | 1.2 |
| Li Auto HK | 2015 HK Equity | -0.9 |
| Nio Auto HK | 9866 HK Equity | -0.8 |
| Zhihu HK | 2390 HK Equity | 5.4 |
| KE HK | 2423 HK Equity | 2.5 |
| Tencent Music Entertainment HK | 1698 HK Equity | 1.5 |
| Meituan HK | 3690 HK Equity | -1.6 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 0.7 |
| ALIBABA GROUP HOLDING LTD | 1.1 |
| POP MART INTERNATIONAL GROUP | 6.5 |
| YANGTZE OPTICAL FIBRE AND-H | 0.7 |
| CONTEMPORARY AMPEREX TECHN-H | -3.3 |
| XIAOMI CORP-CLASS B | 0.7 |
| BYD CO LTD-H | -0.8 |
| MEITUAN-CLASS B | -1.6 |
| HSBC HOLDINGS PLC | 1.6 |
| SEMICONDUCTOR MANUFACTURI-H | 1.4 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 4.7 |
| EOPTOLINK TECHNOLOGY INC L-A | 1.4 |
| CONTEMPORARY AMPEREX TECHN-A | 0.9 |
| VICTORY GIANT TECHNOLOGY -A | 4 |
| HGTECH CO LTD-A | -3.6 |
| SUZHOU TFC OPTICAL COMMUNI-A | -1.5 |
| FOXCONN INDUSTRIAL INTERNE-A | 5.8 |
| SUNGROW POWER SUPPLY CO LT-A | 3.9 |
| BIWIN STORAGE TECHNOLOGY C-A | 12.6 |
| LUXSHARE PRECISION INDUSTR-A | 0.9 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.82 versus 6.83 yesterday
- CNY per EUR 8.04 versus 8.03 yesterday
- Yield on 10-Year Government Bond 1.78% versus 1.79% yesterday
- Yield on 10-Year China Development Bank Bond 1.88% versus 1.89% yesterday
- Copper Price 2.05%
- Steel Price -0.06%
