Moonshot AI Valued At $35 Billion
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Key News
Asian equities were mixed but mostly lower overnight, as Vietnam, Indonesia, and Japan outperformed, while Mainland China's STAR (Science & Technology) Board, Mainland China's Shenzhen Component, and Thailand underperformed.
Overnight, we saw a continuation of the global rotation into software from hardware. This played out in China as weakness in Mainland China, versus Hong Kong, as the former held up better, managing a slight gain, following yesterday's downdraft on Wall Street. However, Mainland investors sold a net -$1.1 billion worth of Hong Kong-listed stocks and ETFs, as SMIC, Alibaba, and Meituan saw the most selling.
Optical communications equipment maker Zhongji Innolight shares fell on their debut in Hong Kong. The company was already listed in Mainland China, but decided to relist offshore in Hong Kong. The IPO was unfortunately caught up in what we are seein as a real rotation from hardware names and into software companies. Nonetheless, as a premier provider of optical wiring, which we believe is necessary to replace coper wires in the global AI buildout, we believe the company still has significant opportunity ahead of it.
There were several government meetings and announcements overnight. The Politburo held its July meeting, setting the date for the Fifth Plenum in October. The Fifth Plenum will feature a serious conversation on the economy as government ministers recognized economic "challenges" in the readout from the July meeting. Could this include consumer Stimulus? Meanwhile, China’s central bank and the National Development & Reform Commission (CSRC) jointly issued a notice to increase the technology use in financial services.
Moonshot AI completed a Series F funding round. The AI model provider is now worth more than $35 billion after releasing models that have been said to compete with Anthropic's Claude on multiple metrics.
The banking sector demonstrated strong resilience with ICBC and CCB gaining 2% and 3%, respectively, overnight. Large consumer segments, particularly food & beverage, dairy, and Baijiu, actively bucked the broader market downtrend.
BYD announced aggressive pricing for its new Seal 8 model. Meanwhile, the world's largest battery maker CATL was highlighted by analysts for its profitability overnight, showing a turn in the tide for China's overcapacity issues in the auto industry.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.2% |
| Hang Seng Tech | HSTECH Index | -1.3% |
| Hong Kong Turnover | HKTurn Index | -2.4% |
| Hong Kong Short Sale Turnover | HKSST Index | -7.4% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 0.2 |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -1094.63844189017 |
| China (Shanghai) | SHCOMP Index | -0.6% |
| China (Shenzhen) | SZCOMP Index | -2.5% |
| China (STAR Board) | Star50 Index | -5.4% |
| Mainland Turnover | .chturn Index | 2.1% |
| Japan | NKY Index | 0.7% |
| India | SENSEX Index | 0.4% |
| Indonesia | JCI Index | 1.6% |
| Malaysia | FBMKLCI Index | 0.3% |
| Pakistan | KSE100 Index | -0.3% |
| Philippines | PCOMP Index | -0.7% |
| South Korea | KOSPI Index | -1.2% |
| Taiwan | TWSE Index | -0.3% |
| Thailand | SET Index | -1.6% |
| Singapore | STI Index | -0.7% |
| Australia | AS51 Index | -0.8% |
| Vietnam | VNINDEX Index | -0.0005 |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 111 | 94 |
| Advancing Stocks | 50 (Hang Seng) | 193 (CSI 300) |
| Declining Stocks | 39 (Hang Seng) | 104 (CSI 300) |
| Outperforming Factors | Value | Value |
| Underperforming Factors | Growth | Growth |
| Top Sectors | Financials, Energy, Consumer Staples | Consumer Staples, Consumer Discretionary, Financials |
| Bottom Sectors | Information Technology, Health Care, Industrials | Information Technology, Materials, Industrials |
| Top Subsectors | Petroleum & Petrochemicals, Banks, Consumer Services | Liquor, Auto, Banks |
| Bottom Subsectors | Semiconductors, Technology Hardware, Machinery | Communication Equipment, Electronic Components, Semiconductors |
| Southbound Connect Buys | Tencent, Giga Device, CNOOC | N/A |
| Southbound Connect Sells | SMIC, Alibaba, Meituan | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | 0.1 |
| Communication Services | 11 | 1.03 |
| Consumer Discretionary | 28 | -0.29 |
| Consumer Staples | 13 | 0.67 |
| Energy | 6 | 1.39 |
| Financials | 25 | 1.51 |
| Health Care | 16 | -2.37 |
| Industrials | 22 | -0.41 |
| Information Technology | 12 | -3.91 |
| Materials | 14 | -0.24 |
| Real Estate | 7 | 0.05 |
| Utilities | 11 | 0.46 |
| Mainland China Listed | 386 | -0.94 |
| Communication Services | 8 | 0.69 |
| Consumer Discretionary | 26 | 2.19 |
| Consumer Staples | 19 | 3.17 |
| Energy | 12 | 0.78 |
| Financials | 64 | 2.03 |
| Health Care | 31 | 0.51 |
| Industrials | 58 | 0.32 |
| Information Technology | 95 | -6.13 |
| Materials | 52 | 0.06 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 1.2 |
| Alibaba HK | 9988 HK Equity | -1.6 |
| JD.com HK | 9618 HK Equity | 2 |
| NetEase HK | 9999 HK Equity | 1.7 |
| Yum China HK | 9987 HK Equity | 1 |
| Baozun HK | 9991 HK Equity | 4.3 |
| Baidu HK | 9888 HK Equity | -0.9 |
| Autohome HK | 2518 HK Equity | -0.2 |
| Bilibili HK | 9626 HK Equity | 1 |
| Trip.com HK | 9961 HK Equity | 0 |
| EDU HK | 9901 HK Equity | 18.8 |
| Xpeng HK | 9868 HK Equity | -2.4 |
| Weibo HK | 9898 HK Equity | 0.9 |
| Li Auto HK | 2015 HK Equity | -0.6 |
| Nio Auto HK | 9866 HK Equity | -2.1 |
| Zhihu HK | 2390 HK Equity | 4.4 |
| KE HK | 2423 HK Equity | 0.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | 1.5 |
| Meituan HK | 3690 HK Equity | 0.4 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 1.2 |
| ZHONGJI INNOLIGHT CO LTD-H | -2 |
| SEMICONDUCTOR MANUFACTURI-H | -7.7 |
| Z AI CO LTD | -16.6 |
| ALIBABA GROUP HOLDING LTD | -1.6 |
| XIAOMI CORP-CLASS B | -2.6 |
| HUA HONG GRACE SEMICONDUCTOR | -8.3 |
| MEITUAN-CLASS B | 0.4 |
| GIGADEVICE SEMICONDUCTOR I-H | -1.9 |
| CHINA CONSTRUCTION BANK-H | 1.6 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | -9.1 |
| CXMT CORP | -0.2 |
| EOPTOLINK TECHNOLOGY INC L-A | -11.9 |
| GIGADEVICE SEMICONDUCTO-CL A | 1.9 |
| CAMBRICON TECHNOLOGIES-A | -9.1 |
| CONTEMPORARY AMPEREX TECHN-A | 1.3 |
| SUZHOU DONGSHAN PRECISION-A | -10 |
| GUANGDONG FENGHUA ADVANCED-A | 6.3 |
| BOE TECHNOLOGY GROUP CO LT-A | -6.1 |
| ADVANCED MICRO-FABRICATION-A | -3.8 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.76 versus 6.76 yesterday
- CNY per EUR 7.75 versus 7.75 yesterday
- Yield on 10-Year Government Bond 1.72% versus 1.73% yesterday
- Yield on 10-Year China Development Bank Bond 1.79% versus 1.79% yesterday
- Copper Price -0.10%
- Steel Price -1.73%
