Risk Off as SAMR Holds First Company Meeting on Fair Competition
9 Min. Read Time
Key News
Asian equities were risk-off as hopes for a resolution to the conflict in the Middle East faded, and investors became concerned about higher oil prices for longer. South Korea underperformed on Google’s TurboQuant release, which raised questions about memory chip demand. At the same time, India missed out on the fun while it was closed for Ram Navami, the Hindu festival celebrating the birth of Lord Rama.
After the close, the State Administration for Market Regulation (SAMR) held its “first symposium on fair competition for enterprises in 2026”. SAMR was unsubtle in titling the release the “first symposium,” i.e., implying that there will be more. According to the release, the companies in attendance included China Minmetals Corporation, China State Construction Engineering Corporation, CATL, BYD, Chery Automobile, Didi Chuxing, and Meituan. SAMR's Meng Yang was quoted as saying that “State Administration for Market Regulation will resolutely implement the decisions and plans of the CPC Central Committee and the State Council, strengthen anti-monopoly supervision and enforcement, enhance compliance guidance for enterprises, thoroughly rectify 'involutionary' competition, deepen institutional opening-up in the field of competition, and provide greater support for enterprises to explore international markets and achieve high-quality development.” The release also noted that SAMR's Anit-Monooply Bureau Director General Wang Tiehan was in attendance. The release was not very subtle about who the bad cop is. This follows yesterday’s Economic Daily article that declared "The Takeout War Is Over". Let’s hope so, as that would mean that JD, Meituan, and Alibaba could be set for a profitability rebound.
Hong Kong and Mainland China grinded lower across the trading day on lower volume and terrible breadth as the Hang Seng closed back below the 25,000 level. Oil & gas names were rare gainers in both markets, though Mainland China held up a touch better, as CATL gained 1.18%, along with a few banks.\
Kuaishou fell -14.04% despite a large net buy from Mainland investors via Southbound Stock Connect after yesterday’s Q4 results, reported after the close in Hong Kong. On the conference call with analysts, management toned down 2026 growth expectations and mentioned increased capex, which, in this market, appears to be a death sentence.
Alibaba fell -4.58% despite two positive call option blocks, while JD.com gained +1.07%, managing to buck the downtrend following yesterday’s SAMR call for the end of the profit-wrecking instant commerce war. Exhibit A would be Meituan’s Q4 results below, as the company posted a Q4 loss for the second quarter in a row.
China Life’s net profit rose 44% year-over-year (YoY), but missed analyst expectations. Its Hong Kong-listed shares fell 8.48% and its Mainland-listed shares fell 4.43%, weighing on insurers in both markets.
The Mainland-listed China equity ETFs favored by China's "National Team", i.e. investment firms associated with sovereign wealth, had below-average volumes and net outflows. That is quite disappointing, as the recent inflows had lent themselves to hopes of a bottom.
President Trump will travel to China May 14th and 15th,. The White House also said that President Xi will visit the US in 2026.
The State Council released "Opinions on Accelerating the Establishment of a Long-Term Care Insurance System" as the National Healthcare Security Administration moves to establish a national plan within the next three years.
Meituan (3690 HK) “Due to the intensified industry competition, the operating profit of our Core Local Commerce segment significantly declined and turned to negative RMB6.9 billion in 2025 on a year-over-year basis.”
- Revenue grew +4.1% YoY to RMB 92.09B from RMB 88.4B and versus expectations of RMB 92.07B
- Adjusted Net income declined YoY to RMB -15B from RMB 9.8B and versus expectations of RMB -12.9B
- Adjusted EPS declined YoY to RMB -2.50 from RMB 1.63 and versus expectations of RMB -2.20
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -1.9% |
| Hang Seng Tech | HSTECH Index | -3.3% |
| Hong Kong Turnover | HKTurn Index | -25.4% |
| Hong Kong Short Sale Turnover | HKSST Index | -23.8% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 19.4% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 426.54 |
| China (Shanghai) | SHCOMP Index | -1.1% |
| China (Shenzhen) | SZCOMP Index | -1.5% |
| China (STAR Board) | Star50 Index | -2% |
| Mainland Turnover | .chturn Index | -10.8% |
| Japan | NKY Index | -0.3% |
| India | SENSEX Index | 1.6% |
| Indonesia | JCI Index | -1.9% |
| Malaysia | FBMKLCI Index | -0.3% |
| Pakistan | KSE100 Index | -3.4% |
| Philippines | PCOMP Index | -1% |
| South Korea | KOSPI Index | -3.2% |
| Taiwan | TWSE Index | -0.3% |
| Thailand | SET Index | -1% |
| Singapore | STI Index | -0.3% |
| Australia | AS51 Index | -0.1% |
| Vietnam | VNINDEX Index | -0.8% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 101 | 100 |
| Advancing Stocks | 64 | 941 |
| Declining Stocks | 457 | 4140 |
| Outperforming Factors | ||
| Underperforming Factors | Liquidity, Growth, Momentum | Liquidity, Growth, EPS Revision |
| Top Sectors | Energy | |
| Bottom Sectors | Materials, Discretionary, Industrials | Real Estate, Tech, Healthcare |
| Top Subsectors | Petroleum, Environmental Protection, Coal | Oil/Gas, Coal, Land Transportation |
| Bottom Subsectors | Consumer Durables/Apparel, Media/Entertainment, Semis | Insurance, Internet, Precious metals |
| Southbound Connect Buys | CNOOC, Kuaishou, HK Tracker ETF (Large), YOFC (Moderate), HS Tech ETF, Tencent (Small) | |
| Southbound Connect Sells | Alibaba (Large), SMIC (Moderate) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | -2.56 |
| Communication Services | 11 | -2.45 |
| Consumer Discretionary | 28 | -3.66 |
| Consumer Staples | 12 | -2.43 |
| Energy | 6 | 0.47 |
| Financials | 25 | -1.81 |
| Health Care | 16 | -2.15 |
| Industrials | 19 | -2.83 |
| Information Technology | 15 | -1.65 |
| Materials | 14 | -3.87 |
| Real Estate | 1 | -2.53 |
| Utilities | 6 | -1.61 |
| Mainland China Listed | 11 | -1.49 |
| Communication Services | 11 | -1.8 |
| Consumer Discretionary | 26 | -1.92 |
| Consumer Staples | 18 | -1.09 |
| Energy | 11 | -0.03 |
| Financials | 64 | -1.19 |
| Health Care | 29 | -2.11 |
| Industrials | 60 | -0.93 |
| Information Technology | 113 | -2.35 |
| Materials | 58 | -1.52 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -2 |
| Alibaba HK | 9988 HK Equity | -4.6 |
| JD.com HK | 9618 HK Equity | 1.1 |
| NetEase HK | 9999 HK Equity | -2.6 |
| Yum China HK | 9987 HK Equity | -4.6 |
| Baozun HK | 9991 HK Equity | 16.7 |
| Baidu HK | 9888 HK Equity | -2.3 |
| Autohome HK | 2518 HK Equity | 1.4 |
| Bilibili HK | 9626 HK Equity | -2.1 |
| Trip.com HK | 9961 HK Equity | -2.5 |
| EDU HK | 9901 HK Equity | -1.4 |
| Xpeng HK | 9868 HK Equity | -2.6 |
| Weibo HK | 9898 HK Equity | -2.6 |
| Li Auto HK | 2015 HK Equity | -2.1 |
| Nio Auto HK | 9866 HK Equity | -2 |
| Zhihu HK | 2390 HK Equity | -8 |
| KE HK | 2423 HK Equity | -2.6 |
| Tencent Music Entertainment HK | 1698 HK Equity | -3.6 |
| Meituan HK | 3690 HK Equity | -3.7 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| POP MART INTERNATIONAL GROUP | -22.5 |
| TENCENT HOLDINGS LTD | -2 |
| ALIBABA GROUP HOLDING LTD | -4.6 |
| MEITUAN-CLASS B | -3.7 |
| KUAISHOU TECHNOLOGY | -14 |
| XIAOMI CORP-CLASS B | -0.5 |
| YANGTZE OPTICAL FIBRE AND-H | 12.1 |
| CNOOC LTD-H | -3.2 |
| CHINA LIFE INSURANCE CO-H | -8.5 |
| SEMICONDUCTOR MANUFACTURI-H | 2.4 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| EOPTOLINK TECHNOLOGY INC L-A | 1.8 |
| ZHONGJI INNOLIGHT CO LTD-A | 4.2 |
| HGTECH CO LTD-A | 3.3 |
| SUZHOU TFC OPTICAL COMMUNI-A | 6.5 |
| LUXSHARE PRECISION INDUSTR-A | 10 |
| CONTEMPORARY AMPEREX TECHN-A | 1.2 |
| ZIJIN MINING GROUP CO LTD-A | 3.2 |
| BIWIN STORAGE TECHNOLOGY C-A | 9.4 |
| SUNGROW POWER SUPPLY CO LT-A | 1.5 |
| GIGADEVICE SEMICONDUCTO-CL A | -5.9 |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 136 | 112 |
| Advancing Stocks | 377 | 4484 |
| Declining Stocks | 132 | 607 |
| Outperforming Factors | Growth, Value, Low Volatility | Liquidity, Momentum, EPS Revision |
| Underperforming Factors | Buyback, Momentum, EPS Revision | |
| Top Sectors | Discretionary, Materials, Staples | Tech, Materials, Communication |
| Bottom Sectors | Communication, Energy | Energy |
| Top Subsectors | Consumer Discretionary Distribution, Food, Semis | Food, Internet, Communication Equipment |
| Bottom Subsectors | Consumer Durables/Apparel, National Defense, Consumer Services | Oil/Gas, Coal, Marine |
| Southbound Connect Buys | HK Tracker ETF (Massie), HS China Enterprise, Meituan, Pop Mart (Very Large), Alibaba, HS Tech ETF, Xiaomi (Large), YOFC (Tiny) | N/A |
| Southbound Connect Sells | CNOOC (Large), Tencent (Moderate) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | 1.21 |
| Communication Services | 11 | -1.23 |
| Consumer Discretionary | 28 | 3.04 |
| Consumer Staples | 12 | 2.7 |
| Energy | 6 | -0.12 |
| Financials | 25 | 1.68 |
| Health Care | 16 | 0.4 |
| Industrials | 19 | 0.76 |
| Information Technology | 15 | 1.3 |
| Materials | 14 | 2.76 |
| Real Estate | 1 | 0.96 |
| Utilities | 6 | 1.52 |
| Mainland China Listed | 11 | 1.33 |
| Communication Services | 11 | 1.6 |
| Consumer Discretionary | 26 | 0.72 |
| Consumer Staples | 18 | 0.42 |
| Energy | 11 | -2.36 |
| Financials | 64 | 0.69 |
| Health Care | 29 | 0.6 |
| Industrials | 60 | 1.33 |
| Information Technology | 113 | 2.55 |
| Materials | 58 | 2.19 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -1.7 |
| Alibaba HK | 9988 HK Equity | 4.6 |
| JD.com HK | 9618 HK Equity | 4.9 |
| NetEase HK | 9999 HK Equity | -0.5 |
| Yum China HK | 9987 HK Equity | -1.2 |
| Baozun HK | 9991 HK Equity | 0 |
| Baidu HK | 9888 HK Equity | -0.5 |
| Autohome HK | 2518 HK Equity | -4.4 |
| Bilibili HK | 9626 HK Equity | -0.6 |
| Trip.com HK | 9961 HK Equity | 0.8 |
| EDU HK | 9901 HK Equity | 0 |
| Xpeng HK | 9868 HK Equity | -2.3 |
| Weibo HK | 9898 HK Equity | 0.2 |
| Li Auto HK | 2015 HK Equity | 4.2 |
| Nio Auto HK | 9866 HK Equity | 1.9 |
| Zhihu HK | 2390 HK Equity | 5.1 |
| KE HK | 2423 HK Equity | 2.1 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.3 |
| Meituan HK | 3690 HK Equity | 13.9 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| POP MART INTERNATIONAL GROUP | -22.5 |
| MEITUAN-CLASS B | 13.9 |
| TENCENT HOLDINGS LTD | -1.7 |
| ALIBABA GROUP HOLDING LTD | 4.6 |
| XIAOMI CORP-CLASS B | -0.5 |
| CNOOC LTD-H | -3.2 |
| YANGTZE OPTICAL FIBRE AND-H | 12.1 |
| BYD CO LTD-H | -0.6 |
| ZIJIN MINING GROUP CO LTD-H | 2.2 |
| SEMICONDUCTOR MANUFACTURI-H | 2.4 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| VISUAL CHINA GROUP CO LTD-A | 1.6 |
| SHANTUI CONSTRUCTION MACHI-A | 2.9 |
| EOPTOLINK TECHNOLOGY INC L-A | 1.8 |
| ZHONGJI INNOLIGHT CO LTD-A | 4.2 |
| ZIJIN MINING GROUP CO LTD-A | 3.2 |
| BIWIN STORAGE TECHNOLOGY C-A | 9.4 |
| LUXSHARE PRECISION INDUSTR-A | 10 |
| SUZHOU TFC OPTICAL COMMUNI-A | 6.5 |
| HGTECH CO LTD-A | 3.3 |
| SUNGROW POWER SUPPLY CO LT-A | 1.5 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.90 versus 6.89 yesterday
- CNY per EUR 7.97 versus 8.00 yesterday
- Yield on 10-Year Government Bond 1.82% versus 1.82% yesterday
- Yield on 10-Year China Development Bank Bond 1.96% versus 1.97% yesterday
- Copper Price +0.41%
- Steel Price -0.25%
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