Xiaomi & Live Streaming Platform Joyy Report Q1 Earnings
5 Min. Read Time
Key News
Asian equities were mixed but mostly lower overnight, as Korea and Pakistan outperformed, while Mainland China and Indonesia underperformed.
Hong Kong was basically flat after returning from yesterday's holiday, celebrating Buddha's birthday. Meanwhile, Mainland China closed lower, with technology and financials outperforming, while consumer and energy names contributed to the decline. Mainland investors sold a net -$124 million worth of Hong Kong-listed stocks and ETFs via Southbound Stock Connect, a light day for the mutual market access program. US-Iran drama appeared to have a minor impact on regional markets in Asia. Meanwhile, it is important to note that Hong Kong investors appear to have shrugged off the regulatory action against offshore brokers, which we covered in Friday's post.
Mainland China's STAR Market surged yesterday while the US and Hong Kong markets were closed. However, last night's price action on the technology-focused board was a pullback. The strong performance on Monday was catalyzed by Huawei's announcement of a potential breakthrough in manufacturing advanced chips without the need for cutting-edge equipment, a development the company says could narrow its gap with industry leader Taiwan Semiconductor Manufacturing Co. (TSMC). It would also, in theory, mean that export controls could become less taxing on China's hyper-scalers.
People's Bank of China (PBOC), China's central bank, guided the 1-year Medium-term Lending Facility (MLF) rate, which is the rate that banks pay to the PBOC, to drop to a record low of 1.45%. However, banks were mostly lower overnight.
Offshore trading firms such as Futu and Tiger appear to be recovering somewhat in the US pre-market. However, the outlook for these firms remains uncertain. Contagion fears are overblown, in our opinion, as these firms control a small amount of trading, and they were facilitating trades for Chinese citizens in all global markets, not just offshore China.
Smartphone and electric vehicle maker Xiaomi reported Q1 earnings after the close in Hong Kong. The company missed profit estimates as capital expenditures soared during the quarter.
Livestreaming platform Joyy beat estimates on both top-line revenue and bottom-line net income and announced a significant increase in its share buyback program. Revenue increased 3% year-over-year (YoY), as advertising sales surged 56%. Its net margin was 10.1%, up from 9.0% in the first quarter of 2025. Joyy increased its share repurchase program to $600 million over the next 18 months. It will also pay a $1.02 per American depositary share (ADS) dividend for the quarter. China's live streaming industry has had a strong year, overcoming regulatory changes and demonstrating its ability to remain highly profitable even under the new live streaming rules, which were initially viewed as challenging for the industry.
Shenzhen, China's high-tech manufacturing capital in the south, released its 15th Five-Year Plan overnight. The Plan includes reforms of the legacy tech-oriented ChiNext board of the city's stock exchange, which has seen significant competition from Shanghai's STAR Market over the past year.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0% |
| Hang Seng Tech | HSTECH Index | 1.6% |
| Hong Kong Turnover | HKTurn Index | 27.8% |
| Hong Kong Short Sale Turnover | HKSST Index | 29.4% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 15.6% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -123.58 |
| China (Shanghai) | SHCOMP Index | -0.2% |
| China (Shenzhen) | SZCOMP Index | -0.6% |
| China (STAR Board) | Star50 Index | -1.5% |
| Mainland Turnover | .chturn Index | 1.3% |
| Japan | NKY Index | -0.2% |
| India | SENSEX Index | -0.6% |
| Indonesia | JCI Index | -1.2% |
| Malaysia | FBMKLCI Index | -0.6% |
| Pakistan | KSE100 Index | 2.4% |
| Philippines | PCOMP Index | -0.8% |
| South Korea | KOSPI Index | 2.5% |
| Taiwan | TWSE Index | -0.3% |
| Thailand | SET Index | 0.2% |
| Singapore | STI Index | -0.8% |
| Australia | AS51 Index | -0.4% |
| Vietnam | VNINDEX Index | -0.1% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 137 | 149 |
| Advancing Stocks | 210 | 1008 |
| Declining Stocks | 290 | 4081 |
| Outperforming Factors | Large Caps, Momentum, EPS Revision | EPS Revision, Momentum, Growth |
| Underperforming Factors | Quality, Low Volatility, Dividend Yield | Quality, Liquidity |
| Top Sectors | Materials, Tech, Energy | Materials, Utilities, Financials |
| Bottom Sectors | Real Estate, Industrials, Healthcare | Real Estate, Staples, Energy |
| Top Subsectors | Semis, Non-Ferrous Metal, Tech Hardware | Precious Metals, Petrochemical, Fertilizer |
| Bottom Subsectors | Electrical Equipment, Household Appliances, REITs | Computer Hardware, Internet, Aerospace/Military |
| Southbound Connect Buys | Hua Hong Semi, Lenovo, SMIC (Moderate), Dongyue Group (Small) | N/A |
| Southbound Connect Sells | Alibaba, Tencent (Large), HS Tech ETF, YOFC (Moderate) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | 0.21 |
| Communication Services | 11 | -0.07 |
| Consumer Discretionary | 28 | -0.1 |
| Consumer Staples | 12 | 0.15 |
| Energy | 6 | 1.01 |
| Financials | 25 | -0.32 |
| Health Care | 16 | -0.33 |
| Industrials | 19 | -0.48 |
| Information Technology | 15 | 2.23 |
| Materials | 14 | 4.23 |
| Real Estate | 1 | -0.5 |
| Utilities | 6 | -0.22 |
| Mainland China Listed | 11 | 0.38 |
| Communication Services | 11 | 0.47 |
| Consumer Discretionary | 26 | -0.23 |
| Consumer Staples | 18 | -0.67 |
| Energy | 11 | -0.36 |
| Financials | 64 | 0.5 |
| Health Care | 29 | -0.22 |
| Industrials | 60 | -0.12 |
| Information Technology | 113 | 0.02 |
| Materials | 58 | 2.92 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -0.5 |
| Alibaba HK | 9988 HK Equity | 0.5 |
| JD.com HK | 9618 HK Equity | -2.5 |
| NetEase HK | 9999 HK Equity | 4.3 |
| Yum China HK | 9987 HK Equity | -1.2 |
| Baozun HK | 9991 HK Equity | -4.9 |
| Baidu HK | 9888 HK Equity | -0.2 |
| Autohome HK | 2518 HK Equity | -1.2 |
| Bilibili HK | 9626 HK Equity | -0.9 |
| Trip.com HK | 9961 HK Equity | -0.4 |
| EDU HK | 9901 HK Equity | -0.9 |
| Xpeng HK | 9868 HK Equity | 4.2 |
| Weibo HK | 9898 HK Equity | -0.5 |
| Li Auto HK | 2015 HK Equity | 0.6 |
| Nio Auto HK | 9866 HK Equity | -1 |
| Zhihu HK | 2390 HK Equity | -0.9 |
| KE HK | 2423 HK Equity | -1.8 |
| Tencent Music Entertainment HK | 1698 HK Equity | -2.5 |
| Meituan HK | 3690 HK Equity | -3.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| SEMICONDUCTOR MANUFACTURI-H | 5.7 |
| TENCENT HOLDINGS LTD | -0.5 |
| HUA HONG SEMICONDUCTOR LTD-H | 10.5 |
| ALIBABA GROUP HOLDING LTD | 0.5 |
| LENOVO GROUP LTD | 15.5 |
| MEITUAN-CLASS B | -3.1 |
| CNOOC LTD-H | -1.9 |
| XIAOMI CORP-CLASS B | -0.8 |
| DONGYUE GROUP | 15.5 |
| YANGTZE OPTICAL FIBRE AND-H | -6.2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| VISUAL CHINA GROUP CO LTD-A | -1.7 |
| SHANTUI CONSTRUCTION MACHI-A | -1.5 |
| GIGADEVICE SEMICONDUCTO-CL A | 2.2 |
| EOPTOLINK TECHNOLOGY INC L-A | 6.2 |
| JCET GROUP CO LTD-A | 10 |
| BOE TECHNOLOGY GROUP CO LT-A | 9.5 |
| VICTORY GIANT TECHNOLOGY -A | 2.5 |
| SEMICONDUCTOR MANUFACTURIN-A | -4.4 |
| ZHONGJI INNOLIGHT CO LTD-A | 0.9 |
| TONGFU MICROELECTRONIC CO-A | 8 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.78 versus 6.78 yesterday
- CNY per EUR 7.89 versus 7.90 yesterday
- Yield on 10-Year Government Bond 1.74% versus 1.75% yesterday
- Yield on 10-Year China Development Bank Bond 1.81% versus 1.82% yesterday
- Copper Price -0.19%
- Steel Price -1.43%
