Asian stocks rose sharply except for Japan, Taiwan and Hong Kong, but China and South Korea closed today. Concerns over US debt caps weighed heavily on countries with strong US economic ties, while Southeast Asia was resilient. Chinese internet companies are entering a quiet period before reporting their third-quarter earnings starting in November. Meanwhile, both companies will host a phone call with analysts, as Alibaba did last week. Alibaba’s price target was lowered taking into account how much the stock price was below the previous price target, but there was no undue concern about reporting from an EPS perspective.
Theoretically, managers could step into the name without anyone knowing until the holdings were re-released at the end of the fourth quarter, so they could catalyze China’s internet space after the third quarter. I was guessing that there was sex. But that didn’t happen overnight because Hong Kong was off, but the Hang Seng Index fell to the bottom of that range at the 24,000 level, which is very high at only 66% of the annual average in China for holidays until Thursday. It was a small amount.
Efforts in clean technologies such as electric vehicles (EVs), solar and wind have fallen out of concerns about energy shortages. Real estate today was the only positive sector, as Evergrande (3333 HK) and Everegrande Property Services (6666 HK) were suspended awaiting announcement. Bloomberg News reports to Hopson Development a 51% sale of the real estate services sector. The sale will raise the cash that parents have been coveted to meet their ongoing loan and bond debt.
US Trade Representative Catherine Tsai will discuss China today at 10 am. She is expected to revive tariff exceptions for US companies that can only procure materials from expired China. She may also screw to China for failing to meet the promises of a trade deal. After Biden called Xi, a small thaw was seen in political rhetoric between the United States and China, and Huawei’s CFO was released. After all, tariffs are Tsai’s primary bargaining tool, so you shouldn’t expect her to soften into China just outside the gate.
The Wall Street Journal published an article on China’s Internet stocks and delisting over the weekend. This article accurately called the issue politicized, but it didn’t contain anything new. With the enactment of the Corporate Social Responsibility Act, only politicians can now solve the problem, so US and Chinese regulators cannot solve the problem. It is difficult to see if this issue is part of the political debate between the United States and China.
The Hang Seng Index continued to fall, dropping to -2.19% due to off-sales-1.6% since last Thursday, only 66% on average for the year. 210 Chinese equities listed in Hong Kong and the MSCI China All Shares Index fell -2.37%, real estate + 0.38%, utilities -6.29%, healthcare -5.18%, discretion -3.22%, Staples were -2.04% and finances were -2.02. %, Technology-1.92%, Materials-1.71%, Communications-1.04%. The most traded stocks in Hong Kong are Alibaba down -3.66%, Tencent down -0.95%, Meituan down -3.97%, Wuxi Biologics down -8.62%, AIA down -1.95%, Xiaomi Was down -3.75%, Ping An Insurance was down -3.76%, JD.com HK was down -3.04%, The Stock Exchange of Hong Kong was down -0.96% and China Evergrande New Energy Vehicles was up + 29.14. %. Southbound Stock Connect was closed today along with the mainland market.
Shanghai, Shenzhen, and STAR Board have been closed with Northbound Stock Connect.
Exchange rates, prices and yields last night
The mainland market closed overnight.
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