Key News
Asian equities leaned lower as oil’s rise lifted defensive and value stocks at the expense of AI plays. Meanwhile, Taiwan was closed for Restoration Day. China's currency, the renminbi (CNY), hit another 52-week high versus the US dollar.
It was a quiet day in Hong Kong and Mainland China as the meeting of the 20th Central Committee of the Communist Party of China (CPC) kicked off in Beijing. The meeting will last until Thursday. However, no major economic news is expected at the politically oriented gathering.
In both markets, oil & gas stocks outperformed. Meanwhile, non-ferrous metals and the AI "picks and shovels" trade, i.e., semiconductors, semiconductor equipment, technology hardware, electronic equipment, and communication equipment, underperformed. As a result, the Science & Technology (STAR) Board fell 2.23%.
The ETFs favored by China's "National Team," i.e., investment firms associated with sovereign wealth, had elevated volumes, though not until the end of the session. Eleven Mainland-listed domestic equity ETFs have had $35 billion of inflows in the last month versus their year-to-date (YTD) outflows of $158 billion.
It was interesting to see that the physical AI trade is picking up. Humanoid robotics giant Unitree, which is also called Yushu Technology, gained 7.75% following Friday’s move of 20%.
Hong Kong’s volumes were light, as Tencent gained 0.1% and was Hong Kong’s most heavily traded stock. Alibaba gained 0.15%, as internet stocks were largely higher. AI large language model (LLM) provider MiniMax fell 7.20%, as Moonshot upgraded its Kimi LLM, though Z.AI gained 1.30%. Healthcare was hit with profit-taking after a strong run of late. Wuxi AppTec, which gained 1.24%, reported after the close that revenue increased 38% YoY and profit increased 136% YoY. It was a very quiet night last night!
Are Hong Kong internet stocks well positioned to benefit from flows coming from the Asia AI picks and shovels trade? I would think that would be the case. If we can get good Q3 financial results, it would give a tailwind to the space!
Thailand shines as Asia slips broadly
6 of 17 markets were up; Thailand was the standout gainer.
-265
Southbound Connect (US$ mn)
| Market | Change | 1-Day |
|---|
Thailand SET Index |
| +1.0% |
India SENSEX Index |
| +0.7% |
China (Hong Kong) HSI Index |
| +0.5% |
Pakistan KSE100 Index |
| +0.4% |
Australia AS51 Index |
| +0.2% |
China (Shanghai) SHCOMP Index |
| +0.2% |
Singapore STI Index |
| -0.1% |
Hang Seng Tech HSTECH Index |
| -0.4% |
Malaysia FBMKLCI Index |
| -0.4% |
Vietnam VNINDEX Index |
| -0.6% |
Japan NKY Index |
| -0.8% |
China (Shenzhen) SZCOMP Index |
| -1.1% |
Indonesia JCI Index |
| -1.2% |
Philippines PCOMP Index |
| -1.5% |
South Korea KOSPI Index |
| -1.5% |
Taiwan TWSE Index |
| -1.8% |
China (STAR Board) STAR50 Index |
| -2.2% |
| Hong Kong and Mainland China Liquidity (1-Day Change) |
Hong Kong Turnover HKTurn Index | -29.6% |
Hong Kong Short Sale Turnover HKSST Index | -23.1% |
Short Turnover as % of HK Turnover | 19.70% |
Southbound Connect Net Buy/Sell (US$ mn) | -265 |
Mainland Turnover .CHTURN Index | -17.9% |
Low Volatility stocks outperform in both markets as Momentum and Growth lag
282 / 277
HK Advancing / Declining
2,220 / 2,809
Mainland Advancing / Declining
| Indicator | Hong Kong | Mainland China |
|---|
| Volume % of 1-Year Average | 68% | 66% |
| Advancing / Declining | 282 / 277 | 2,220 / 2,809 |
| Outperforming Factors | Low VolatilityBuybackQuality | Low VolatilityValueDividend Yield |
| Underperforming Factors | LiquidityMomentumGrowth | MomentumGrowthLiquidity |
| Top Sectors | EnergyReal EstateUtilities | Real EstateEnergyFinancials |
| Bottom Sectors | MaterialsTechHealthcare | TechMaterials |
| Top Subsectors | Petroleum/PetrochemicalREITsCoal | Oil/GasAirportMarine |
| Bottom Subsectors | SemisNon Ferrous MetalsTech Hardware | Precious MetalsElectronic ComponentsCommunications Equipment |
| Southbound Connect Buys | Z AI (Moderate) | — |
| Southbound Connect Sells | Alibaba, CNOCC (Moderate), SMIC, Tencent (Small) | — |
Hong Kong and Mainland China advance on broad gains
+0.47%
Hong Kong listed (152)
+0.46%
Mainland listed (400)
| Sector | # Stocks | Change | Avg. 1-Day |
|---|
| Hong Kong Listed · 152 stocks | +0.47% |
| Energy | 7 |
| +4.28% |
| Real Estate | 6 |
| +2.27% |
| Utilities | 10 |
| +1.67% |
| Financials | 24 |
| +1.03% |
| Industrials | 16 |
| +0.52% |
| Communication Services | 7 |
| +0.17% |
| Consumer Discretionary | 27 |
| +0.05% |
| Consumer Staples | 12 |
| -0.01% |
| Health Care | 15 |
| -0.52% |
| Information Technology | 14 |
| -1.50% |
| Materials | 14 |
| -2.80% |
| Mainland China Listed · 400 stocks | +0.46% |
| Energy | 11 |
| +2.45% |
| Financials | 60 |
| +1.57% |
| Communication Services | 9 |
| +1.28% |
| Consumer Staples | 16 |
| +1.25% |
| Health Care | 26 |
| +1.21% |
| Consumer Discretionary | 21 |
| +0.88% |
| Industrials | 62 |
| +0.13% |
| Materials | 69 |
| -1.60% |
| Information Technology | 126 |
| -3.06% |
US & Hong Kong Dually Listed
| Company | Change | 1-Day |
|---|
Baozun 9991 HK Equity |
| +7.9% |
Meituan 3690 HK Equity |
| +3.3% |
Zhihu 2390 HK Equity |
| +2.9% |
KE Holdings 2423 HK Equity |
| +2.4% |
NetEase 9999 HK Equity |
| +1.0% |
Baidu 9888 HK Equity |
| +0.6% |
Alibaba 9988 HK Equity |
| +0.2% |
Tencent 700 HK Equity |
| +0.1% |
Trip.com 9961 HK Equity |
| -0.2% |
Bilibili 9626 HK Equity |
| -0.4% |
Yum China 9987 HK Equity |
| -0.5% |
JD.com 9618 HK Equity |
| -0.6% |
New Oriental (EDU) 9901 HK Equity |
| -0.8% |
Tencent Music Ent. 1698 HK Equity |
| -1.3% |
Li Auto 2015 HK Equity |
| -1.4% |
Weibo 9898 HK Equity |
| -2.0% |
Nio 9866 HK Equity |
| -2.2% |
Autohome 2518 HK Equity |
| -3.4% |
Xpeng 9868 HK Equity |
| -3.8% |
Meituan surges +3.3% among Hong Kong's most-traded stocks
| Value Traded Rank · Company | Change | 1-Day |
|---|
1Tencent Holdings |
| +0.1% |
2Alibaba Group |
| +0.2% |
3Minimax Group |
| -7.2% |
4SMIC |
| -2.4% |
5Z AI |
| +1.3% |
6Zijin Mining |
| -5.8% |
7Meituan |
| +3.3% |
8Xiaomi |
| +0.4% |
9Lenovo Group |
| -4.0% |
10CATL |
| 0.0% |
Yushu Technology surges +7.7% among Shanghai & Shenzhen's most-traded stocks
| Value Traded Rank · Company | Change | 1-Day |
|---|
1Zhongji Innolight |
| -3.0% |
2Eoptolink Technology |
| -3.6% |
3CATL |
| +0.2% |
4CXMT |
| -0.4% |
5Cambricon Technologies |
| +3.8% |
6GigaDevice Semi |
| -5.3% |
7Zijin Mining |
| -4.6% |
8Suzhou Dongshan Precision |
| -7.7% |
9Yushu Technology |
| +7.7% |
10WuXi AppTec |
| +0.9% |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.67 versus 6.67 Friday
- CNY per EUR 7.46 versus 7.47 Friday
- Yield on 10-Year Government Bond 1.64% versus 1.64% Friday
- Yield on 10-Year China Development Bank Bond 1.67% versus 1.68% Friday
- Copper Price 0.81%
- Steel Price -0.07%
