Xi’s Tech Park Visit Sends Stocks Higher
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Key News
Asian equities had a very strong start to the week following US stocks’ Friday rip higher as the US dollar weakened versus local currencies. China's currency, the renminbi (CNY), hit another 52-week high versus the US dollar, closing at 6.92 for the first sub-6.93 closing since May 2023.
Mainland media covered President Xi’ visit to the National Information Technology Innovation Park extensively. There, he met with “researchers and technology companies”. The visit would explain the technology and growth stock outperformance seen in both markets. The STAR Board gained +2.51% on strong gains for AI and robotics names. These industries' representative stocks saw strong momentum in both Hong Kong and Mainland China overnight.
Both Hong Kong and Mainland China participated in the strong rebound day with notable breadth, though Hong Kong's volumes were a touch light. Mainland investors sold a net -$241 million worth of Hong Kong-listed stocks and ETFs. This was the first net sell day for the program in seven days and was primarily driven by large sales of the Hong Kong Tracker ETF. However, Tencent gained +2.28% on large buying from Mainland investors.
The only real laggards today were oil & gas stocks and telecom following the recent value-added tax (VAT) increase.
Kuaishou fell -2.74% after last week’s fine. Meanwhile, Meituan fell -0.38% after announcing its intent to purchase grocery delivery platform Dingdong. Non-ferrous metals stocks rebounded in both markets after last week’s commodity price turbulence.
Hong Kong-listed insurance companies had a strong day, though I did not see any specific catalysts for the industry overnight.
Solar was higher on continued chatter of Elon Musk’s solar-powered space data centers, which reads like science fiction.
The Ministry of Commerce (MoC) had a conference with auto makers to discuss “policy support and reform innovation”. Otherwise, it was a very quiet night with no new economic data!
Top internet companies' Q4 and full year 2025 results are slated to start coming in next week with Baidu, expected to report on February 17th, followed by Alibaba a few days later. Unfortuantely, many do not report until March. We will keep our readers updates on timing and results!
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 1.8% |
| Hang Seng Tech | HSTECH Index | 1.3% |
| Hong Kong Turnover | HKTurn Index | 2.9% |
| Hong Kong Short Sale Turnover | HKSST Index | -22.9% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 14.4% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -240.93 |
| China (Shanghai) | SHCOMP Index | 1.4% |
| China (Shenzhen) | SZCOMP Index | 1.9% |
| China (STAR Board) | Star50 Index | 2.5% |
| Mainland Turnover | .chturn Index | 4.9% |
| Japan | NKY Index | 3.9% |
| India | SENSEX Index | 0.6% |
| Indonesia | JCI Index | 1.2% |
| Malaysia | FBMKLCI Index | 1.1% |
| Pakistan | KSE100 Index | -1% |
| Philippines | PCOMP Index | -0.7% |
| South Korea | KOSPI Index | 4.1% |
| Taiwan | TWSE Index | 2% |
| Thailand | SET Index | 3.5% |
| Singapore | STI Index | 0.5% |
| Australia | AS51 Index | 1.9% |
| Vietnam | VNINDEX Index | 0% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 97 | 100 |
| Advancing Stocks | 385 | 4360 |
| Declining Stocks | 107 | 701 |
| Outperforming Factors | Momentum, EPS Revision, Liquidity | Liquidity, Momentum, Growth |
| Underperforming Factors | Low Volatility | |
| Top Sectors | Materials, Healthcare, Communication Services | Information Technology, Materials, Communication Services |
| Bottom Sectors | Utilities, Energy, Information Technology | Utilities, Healthcare, Consumer Staples |
| Top Subsectors | Semiconductors, Consumer Durables/Apparel, Non Ferrous Metal | Communication Equipment, Internet, Cultural Media |
| Bottom Subsectors | Telecom Services, Petroleum/Petrochemical | Oil/Gas, Soft Drink, Gas |
| Southbound Connect Buys | Tencent (Large), HS Tech ETF (Moderate), Pop Mart, SMIC, YOFC (Tiny) | N/A |
| Southbound Connect Sells | HK Tracker ETF (Very Large), HS Chine Enterprise ETF (Large), Kuiashou (Moderate), Alibaba (Tiny) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | 1.81 |
| Communication Services | 11 | 2.05 |
| Consumer Discretionary | 28 | 1.57 |
| Consumer Staples | 13 | 1.45 |
| Energy | 6 | 0.53 |
| Financials | 25 | 1.9 |
| Health Care | 16 | 2.37 |
| Industrials | 22 | 1.61 |
| Information Technology | 12 | 0.86 |
| Materials | 14 | 3.7 |
| Real Estate | 7 | 1.92 |
| Utilities | 11 | 0.46 |
| Mainland China Listed | 386 | 1.83 |
| Communication Services | 8 | 2.08 |
| Consumer Discretionary | 26 | 0.83 |
| Consumer Staples | 19 | 0.55 |
| Energy | 12 | 1.88 |
| Financials | 64 | 1.12 |
| Health Care | 31 | 0.46 |
| Industrials | 58 | 1.79 |
| Information Technology | 95 | 3.57 |
| Materials | 52 | 2.19 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 2.3 |
| Alibaba HK | 9988 HK Equity | 1.9 |
| JD.com HK | 9618 HK Equity | 0.9 |
| NetEase HK | 9999 HK Equity | 1.6 |
| Yum China HK | 9987 HK Equity | 3.1 |
| Baozun HK | 9991 HK Equity | 3.8 |
| Baidu HK | 9888 HK Equity | 3.2 |
| Autohome HK | 2518 HK Equity | -1.5 |
| Bilibili HK | 9626 HK Equity | 0.4 |
| Trip.com HK | 9961 HK Equity | 2.2 |
| EDU HK | 9901 HK Equity | 0.4 |
| Xpeng HK | 9868 HK Equity | 2.9 |
| Weibo HK | 9898 HK Equity | 1.6 |
| Li Auto HK | 2015 HK Equity | 0.3 |
| Nio Auto HK | 9866 HK Equity | -0.5 |
| Zhihu HK | 2390 HK Equity | 0.6 |
| KE HK | 2423 HK Equity | 2.5 |
| Tencent Music Entertainment HK | 1698 HK Equity | 1.1 |
| Meituan HK | 3690 HK Equity | -0.4 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 2.3 |
| ALIBABA GROUP HOLDING LTD | 1.9 |
| KUAISHOU TECHNOLOGY | -2.7 |
| POP MART INTERNATIONAL GROUP | 5.8 |
| XIAOMI CORP-CLASS B | 0.1 |
| MEITUAN-CLASS B | -0.4 |
| SEMICONDUCTOR MANUFACTURI-H | 4.1 |
| PING AN INSURANCE GROUP CO-H | 4.9 |
| CHINA MOBILE LTD-H | -2.1 |
| MONTAGE TECHNOLOGY CO LTD-H | 63.7 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 4.8 |
| EOPTOLINK TECHNOLOGY INC L-A | 7.2 |
| SUZHOU TFC OPTICAL COMMUNI-A | 17.8 |
| BLUEFOCUS INTELLIGENT COMM-A | 5 |
| SUNGROW POWER SUPPLY CO LT-A | 6.1 |
| CAMBRICON TECHNOLOGIES-A | 4.8 |
| ZIJIN MINING GROUP CO LTD-A | 3.9 |
| CONTEMPORARY AMPEREX TECHN-A | -0.1 |
| WANGSU SCIENCE & TECHNOLOG-A | 5.4 |
| SHENZHEN SUNWAY COMMUNICAT-A | 3.4 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.92 versus 6.94
- CNY per EUR 8.24 versus 8.20 Friday
- Yield on 10-Year Government Bond 1.81% versus 1.81% Friday
- Yield on 10-Year China Development Bank Bond 1.93% versus 1.95% Friday
- Copper Price 1.51%
- Steel Price -0.68%
