PDD Holdings Reports Q1 Earnings
5 Min. Read Time
Key News
Asian equities did not share Wall Street's exuberance from yesterday, as most markets were lower. Pakistan and Korea outperformed, while Mainland China and Indonesia underperformed.
Hong Kong and Mainland China both opened mixed but declined throughout the session. There was a slight value bias in both Hong Kong and Mainland China overnight, though Semiconductor Manufacturing International (SMIC) and some chip names outperformed on reported advances in China's capabilities. SMIC was the top-traded stock by value in Hong Kong overnight. Mainland investors sold a net -$986 million worth of Hong Kong-listed stocks and ETFs overnight, as selling was particularly pronounced in Tencent, while SMIC and Xiaomi were heavy buys. Both markets saw elevated volumes and weak breadth, as decliners outnumbered advancers by a wide margin.
Battery giant CATL gained +6% overnight on new battery safety and standardization regulations. The new rules will likely benefit the large supplier and make it more difficult for smaller battery companies to compete.
Xiaomi reported Q1 earnings after the close in Hong Kong on Tuesday. So, the company's Hong Kong-listed shares reacted to the release in last night's session. Shares fell -4% as earnings reflected higher memory chip costs. The electric vehicle ecosystem was mostly lower overnight, following Xiaomi's results, except for CATL and some other suppliers seen as beneficiaries of new regulations.
Semiconductor stocks benefited from Micron's surge to a trillion-dollar market capitalization, as well as technological developments that may help China's chipmakers avoid the need for the highest-end fabrication equipment to make powerful AI chips. Also, memory chip supplier Changxin Technology began the review process for its pending STAR Market IPO, which benefited the subsector on the Mainland.
PDD Holdings Q1 Earnings Overview
Global E-Commerce platform operator PDD Holdings, which owns the Temu and Pinduoduo marketplaces, reported Q1 earnings overnight that missed revenue and net income estimates. The company cited continued supply chain investments as weighing on profitability, and E-Commerce competition remains hyper-competitive in China. Temu likely reduced costs due to optimization amid greater stability in US-China trade tariffs.
% changes are year-over-year unless otherwise indicated. Figures are adjusted (non-GAAP).
- Revenue +11% to RMB 106.2 billion
- Net Income RMB 12.5 billion
- Net Income Margin 12%
- Earnings per Share RMB 8.5
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -1.1% |
| Hang Seng Tech | HSTECH Index | -0.8% |
| Hong Kong Turnover | HKTurn Index | -10.8% |
| Hong Kong Short Sale Turnover | HKSST Index | -8.7% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 16% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -985.62 |
| China (Shanghai) | SHCOMP Index | -1.2% |
| China (Shenzhen) | SZCOMP Index | -1.3% |
| China (STAR Board) | Star50 Index | -2.8% |
| Mainland Turnover | .chturn Index | -0.3% |
| Japan | NKY Index | 0% |
| India | SENSEX Index | -0.2% |
| Indonesia | JCI Index | -1.2% |
| Malaysia | FBMKLCI Index | -0.6% |
| Pakistan | KSE100 Index | 2.4% |
| Philippines | PCOMP Index | -0.8% |
| South Korea | KOSPI Index | 2.3% |
| Taiwan | TWSE Index | 1.7% |
| Thailand | SET Index | 1.1% |
| Singapore | STI Index | -0.8% |
| Australia | AS51 Index | 0.7% |
| Vietnam | VNINDEX Index | -0.5% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 123 | 148 |
| Advancing Stocks | 16 (Hang Seng) | 89 (CSI 300) |
| Declining Stocks | 73 (Hang Seng) | 207 (CSI 300) |
| Outperforming Factors | Value | Value |
| Underperforming Factors | Growth | Growth |
| Top Sectors | Industrials, Utilities, Communication Services | Consumer Staples, Health Care, Energy |
| Bottom Sectors | Materials, Consumer Discretionary, Information Technology | Real Estate, Materials, Consumer Discretionary |
| Top Subsectors | Electrical Equipment, Paper & Packaging, Semiconductors | Liquor, Coal, Power |
| Bottom Subsectors | Non-Ferrous Metals, Steel, Consumer Discretionary | Precious Metals, Forest Industry, Internet |
| Southbound Connect Buys | Semiconductor Manufacturing (SMIC), Xiaomi, Montage Technology | N/A |
| Southbound Connect Sells | Tencent, Hua Hong Semiconductor, YOFC | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | -1.2 |
| Communication Services | 11 | -0.53 |
| Consumer Discretionary | 28 | -1.98 |
| Consumer Staples | 12 | -1.38 |
| Energy | 6 | -1.01 |
| Financials | 25 | -0.98 |
| Health Care | 16 | -1.02 |
| Industrials | 19 | 0.69 |
| Information Technology | 15 | -1.47 |
| Materials | 14 | -2.69 |
| Real Estate | 1 | -0.73 |
| Utilities | 6 | -0.47 |
| Mainland China Listed | 11 | -0.85 |
| Communication Services | 11 | -1.23 |
| Consumer Discretionary | 26 | -1.62 |
| Consumer Staples | 18 | 1.33 |
| Energy | 11 | 0.67 |
| Financials | 64 | -0.77 |
| Health Care | 29 | 0.69 |
| Industrials | 60 | 0.3 |
| Information Technology | 113 | -1.44 |
| Materials | 58 | -2.83 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -1 |
| Alibaba HK | 9988 HK Equity | -2.6 |
| JD.com HK | 9618 HK Equity | -1.9 |
| NetEase HK | 9999 HK Equity | 3.2 |
| Yum China HK | 9987 HK Equity | -2 |
| Baozun HK | 9991 HK Equity | 2.3 |
| Baidu HK | 9888 HK Equity | 0.2 |
| Autohome HK | 2518 HK Equity | 0.2 |
| Bilibili HK | 9626 HK Equity | -1.1 |
| Trip.com HK | 9961 HK Equity | 1 |
| EDU HK | 9901 HK Equity | -2.4 |
| Xpeng HK | 9868 HK Equity | -3.6 |
| Weibo HK | 9898 HK Equity | -0.6 |
| Li Auto HK | 2015 HK Equity | -3.1 |
| Nio Auto HK | 9866 HK Equity | -1.5 |
| Zhihu HK | 2390 HK Equity | -3.3 |
| KE HK | 2423 HK Equity | 1.3 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.8 |
| Meituan HK | 3690 HK Equity | -1.4 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| SEMICONDUCTOR MANUFACTURI-H | 0.9 |
| TENCENT HOLDINGS LTD | -1 |
| ALIBABA GROUP HOLDING LTD | -2.6 |
| XIAOMI CORP-CLASS B | -4.6 |
| HUA HONG SEMICONDUCTOR LTD-H | 6.1 |
| LENOVO GROUP LTD | 4.5 |
| CONTEMPORARY AMPEREX TECHN-H | 6.4 |
| CNOOC LTD-H | -2.2 |
| YANGTZE OPTICAL FIBRE AND-H | -3.5 |
| BYD CO LTD-H | -3.2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| GIGADEVICE SEMICONDUCTO-CL A | -2.3 |
| JCET GROUP CO LTD-A | -2.3 |
| BOE TECHNOLOGY GROUP CO LT-A | -0.9 |
| ZHONGJI INNOLIGHT CO LTD-A | 0.8 |
| EOPTOLINK TECHNOLOGY INC L-A | -0.7 |
| TIANSHUI HUATIAN TECHNOLOG-A | 7.9 |
| VICTORY GIANT TECHNOLOGY -A | -3.5 |
| CONTEMPORARY AMPEREX TECHN-A | 3.1 |
| SUZHOU TFC OPTICAL COMMUNI-A | 5.4 |
| MONTAGE TECHNOLOGY CO LTD-A | -2.5 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.78 versus 6.79 yesterday
- CNY per EUR 7.91 versus 7.89 yesterday
- Yield on 10-Year Government Bond 1.72% versus 1.74% yesterday
- Yield on 10-Year China Development Bank Bond 1.79% versus 1.81% yesterday
- Copper Price -0.47%
- Steel Price -0.73%
KraneShares China ETF News delivers the latest news, insights, and analysis on the key drivers shaping China’s capital markets and China ETFs. As a pioneer in the China ETF market for over a decade, KraneShares provides investors with innovative access to China’s fastest-growing sectors, including technology, artificial intelligence (AI), internet, renewable energy, electric vehicles, humanoid robotics, and healthcare.
Explore our full range of U.S.-listed China ETFs designed to help investors access China’s evolving economy and long-term growth opportunities. View the full KraneShares China ETF list.
