Onshore Stocks Gallop
5 Min. Read Time
Key News
Asian equities were mixed overnight, despite a weaker US dollar, as South Korea and Taiwan outperformed, while Hong Kong, India, and Indonesia underperformed.
The Renminbi resumed its rally versus the US dollar, closing at a new 52-week high of 6.88. US tariffs remained front and center, which may have contributed to Hong Kong’s underperformance. Mainland (onshore) Chinese investors returned from vacation in good spirits. The Year of the Horse galloped out of the starting gate, led by oil & gas stocks on Middle East tensions.
Prior to the market’s open, the February 1 & 5-year Loan Prime Rate (LPR) was announced, remaining, as expected, at 3% and 3.5%. Hong Kong had another complete 180 following yesterday’s 180 as the market had a broad sell-off, as the Hang Seng closed back below 27,000. Popular large-cap tech plays were all off, led by Tencent, down -3.35%, as insurance, banks, healthcare, and even non-ferrous metal stocks all headed lower.
Alibaba fell -2.76%, though it also had decent, large call option buying, despite a report noting its Qwen large language model (LLM) increased its market share from 17.7% in the first half of 2025 to 32.1% by year's end. Baidu, which will report earnings this Thursday, fell -2.63%. However, after the close, it announced that its Kunlun AI chip unit will be valued at RMB 21 billonion ($2.9 billion) based on its confidential Hong Kong IPO filing. JD.com fell -1.21% despite Mainland financial media noting a US research piece stating the company’s stock is at a 47% discount to fair value based on a discounted cash flow model, while its P/E of 8 is below the online retail average of 20 and the peer group average of 42.
Southbound Stock Connect volumes were a net outflow, though reversed in the afternoon, ending the day with $400 million of net buying. Non-ferrous metal, telecom, chemical, and tech hardware stocks outperformed.
The Ministry of Culture and Tourism announced that 596 million trips were recorded during the nine-day holiday, an increase of 95 million from last year, and that travel costs totaled RMB 803 billion, up RMB 126 billion from last year’s eight-day holiday.
Movie attendance fell, combined with ticket prices at their lowest level in eight years, leading to a weak box office total. Premier Li and the State Council’s meeting today focused on organizing efforts to implement the 15th Five-Year Plan and on promoting consumption and supporting the elderly. Panama’s seizure of two ports owned by Hutchison Whampoa. In response to a Bloomberg question, the Ministry of Foreign Affairs spokesperson stated, “Head-of-state diplomacy plays an irreplaceable strategic guiding role in China-US relations. China and the US are maintaining communication regarding President Trump's visit to China.” Tonight’s State of the Union might provide some clues on the trajectory of US-China relations.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -1.8% |
| Hang Seng Tech | HSTECH Index | -2.1% |
| Hong Kong Turnover | HKTurn Index | 45.1% |
| Hong Kong Short Sale Turnover | HKSST Index | 33% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 17.1% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 0 |
| China (Shanghai) | SHCOMP Index | 0.9% |
| China (Shenzhen) | SZCOMP Index | 1.2% |
| China (STAR Board) | Star50 Index | -0.3% |
| Mainland Turnover | .chturn Index | 11.1% |
| Japan | NKY Index | 0.9% |
| India | SENSEX Index | -1.3% |
| Indonesia | JCI Index | -1.4% |
| Malaysia | FBMKLCI Index | -0.2% |
| Pakistan | KSE100 Index | -0.5% |
| Philippines | PCOMP Index | 0.9% |
| South Korea | KOSPI Index | 2.1% |
| Taiwan | TWSE Index | 2.7% |
| Thailand | SET Index | 0.7% |
| Singapore | STI Index | -0.4% |
| Australia | AS51 Index | 0% |
| Vietnam | VNINDEX Index | 0.4% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 97% | 117% |
| Advancing Stocks | 149 | 3732 |
| Declining Stocks | 343 | 1341 |
| Outperforming Factors | Momentum, Buyback, EPS Revision | |
| Underperforming Factors | Momentum, EPS Revision, Liquidity | |
| Top Sectors | Energy, Industrials | Energy, Materials, Tech |
| Bottom Sectors | Healthcare, Communication, Financials | Communication, Staples, Real Estate |
| Top Subsectors | Construction Materials, Chemical, Semis | Energy Equipment, Oil/Gas, Marine |
| Bottom Subsectors | Consumer Durables/Apparel, Media/Entertainment, Financial Services | Cultural Media, Software, Internet |
| Southbound Connect Buys | HS Tech ETF (Large), Pop Mart, SMIC, Xiaomi, YOFC (Small) | |
| Southbound Connect Sells | Meituan (Small), Alibaba, CNOOC, Tencent (Tiny) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | -2.31 |
| Communication Services | 11 | -3.16 |
| Consumer Discretionary | 28 | -2.38 |
| Consumer Staples | 13 | -1.16 |
| Energy | 6 | 0.28 |
| Financials | 25 | -2.72 |
| Health Care | 16 | -3.29 |
| Industrials | 22 | 0.23 |
| Information Technology | 12 | -1.54 |
| Materials | 14 | -0.96 |
| Real Estate | 7 | -1.37 |
| Utilities | 11 | -0.21 |
| Mainland China Listed | 386 | 1.36 |
| Communication Services | 8 | -2.8 |
| Consumer Discretionary | 26 | 0.47 |
| Consumer Staples | 19 | -0.62 |
| Energy | 12 | 4.73 |
| Financials | 64 | 0.05 |
| Health Care | 31 | 0.36 |
| Industrials | 58 | 1.74 |
| Information Technology | 95 | 1.91 |
| Materials | 52 | 3.79 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -3.3 |
| Alibaba HK | 9988 HK Equity | -2.8 |
| JD.com HK | 9618 HK Equity | -1.1 |
| NetEase HK | 9999 HK Equity | -1.6 |
| Yum China HK | 9987 HK Equity | 2.5 |
| Baozun HK | 9991 HK Equity | -6.1 |
| Baidu HK | 9888 HK Equity | -2.6 |
| Autohome HK | 2518 HK Equity | -0.4 |
| Bilibili HK | 9626 HK Equity | -1.7 |
| Trip.com HK | 9961 HK Equity | -3.8 |
| EDU HK | 9901 HK Equity | -1.9 |
| Xpeng HK | 9868 HK Equity | 1.7 |
| Weibo HK | 9898 HK Equity | -1.9 |
| Li Auto HK | 2015 HK Equity | -1.5 |
| Nio Auto HK | 9866 HK Equity | 1.6 |
| Zhihu HK | 2390 HK Equity | -3.5 |
| KE HK | 2423 HK Equity | -2.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | -5.6 |
| Meituan HK | 3690 HK Equity | -4.2 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | -3.3 |
| ALIBABA GROUP HOLDING LTD | -2.8 |
| MEITUAN-CLASS B | -4.2 |
| XIAOMI CORP-CLASS B | -2.2 |
| YANGTZE OPTICAL FIBRE AND-H | 1.2 |
| PING AN INSURANCE GROUP CO-H | -4.1 |
| SEMICONDUCTOR MANUFACTURI-H | -2.4 |
| POP MART INTERNATIONAL GROUP | -5.9 |
| KNOWLEDGE ATLAS TECHNOLOGY-H | 12.1 |
| KUAISHOU TECHNOLOGY | -2.8 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 4.3 |
| EOPTOLINK TECHNOLOGY INC L-A | 1.6 |
| SUZHOU TFC OPTICAL COMMUNI-A | 12.7 |
| RANGE INTELLIGENT COMPUTI-A | 13.5 |
| WANGSU SCIENCE & TECHNOLOG-A | -5.4 |
| GIGADEVICE SEMICONDUCTO-CL A | 4.6 |
| ZIJIN MINING GROUP CO LTD-A | 4.1 |
| LEO GROUP CO LTD-A | 1.8 |
| BEIJING TEAMSUN TECHNOLOGY-A | -3.2 |
| CAMBRICON TECHNOLOGIES-A | -4.4 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.88
- CNY per EUR 8.10
- Yield on 10-Year Government Bond 1.80%
- Yield on 10-Year China Development 1.92%
- Copper Price +0.82%
- Steel Price -0.98%
