Asian stocks continued overnight in the US slump on Friday. Hong Kong-listed Internet stocks were hit today as the Ministry of Industry and Information Technology (MIIT) repeatedly stated that Internet companies could not block their competitors on their platforms. This shouldn’t have been news as we already knew it, but coupled with a Financial Times article stating that the loan business needs to be separated from the new entity’s mobile payments business, it has removed the wind from the space. It’s worth noting that the FT article only cites “unnamed sources.” I’m surprised that investors aren’t skeptical of such articles. Last week, false reports of Diddy being hijacked by the government spread in the United States.
The most interesting part of the Financial Times article was Ant Group’s performance (see earnings chart below).
Just hours after the Biden and Xi calls, I heard that the Biden administration will begin investigating the US-China trade issue.
Tencent saw a small net sale from mainland investors through Southbound Connect, but the company bought back its shares again.
In the mainland market, the value sector outperforms the growth sector as semiconductor weaknesses continue to weigh on the STAR Board. It is important to note that the weaknesses of the STAR Board are not due to the launch of a new stock exchange in Beijing. The new exchange will replace the existing OTC market and focus on SMEs, rather than science and technology stocks. According to institutional investors, the new Beijing Exchange will hold 66 shares with a market capitalization of $ 29 billion, while STAR Board will have a market capitalization of $ 772 billion with 332 shares.
Inventories of metals such as lithium and cobalt continue to be strong in both Hong Kong and mainland China. After a very strong week last week, foreign investors were net selling mainland stocks.
The Hang Seng Index fell and stayed there, closing at -1.5% as trading volumes increased from Friday. 210 Chinese companies listed in Hong Kong and the MSCI China All Shares Index decreased by -2.08% and energy and materials increased by + 3.95% and + 1.89%, respectively. On the other hand, discretionary-3.83%, staples-3.47%, technology-2.49%, healthcare-2.42%, communication-2.41%. The most traded stocks in Hong Kong were Tencent, down -2.45%, Meituan, down -4.47%, Alibaba HK, down -4.23%, Xiaomi, down -2.9%, and Wuxi Biologics, down -2.87%. , Smooth Int’l (-15.26% down), HK Exchanges (+ 0.79% down), BYD (-2.14% down), Kuaishou Technology (+ 2.75% up), Li Ning (-4.1% down). Southbound Stock Connect trading volume was medium / high as mainland investors sold $ 214 million worth of Hong Kong stock, as Southbound Connect trading accounted for 14.7% of Hong Kong sales.
Shanghai, Shenzhen and STAR Board closed at + 0.33%, -0.05% and -2.97% respectively, down -4.87% from Friday to an annual average of 155%. Mainland 542 equities in the MSCI China All Shares Index fell -0.43% to energy + 5.91%, materials + 3.08%, real estate + 2.91% and utilities + 0.89%. On the other hand, high tech -2.78%, discretion -1.77%, staple -1.51%, industrial -1.18%. The most traded stocks on the mainland are COSCO Shipping (+ 2.99% up), TBEA (-5.46% down), China Northern Rare Earth (-3.92% down), Broker East Money (+ 2% up) and China Molybdenum. , + 6.68% up Zijin Mining, + 3.51% up Zijin Mining, + 10% up China Aluminum Corp, + 2.13% up Tianqi Lithium, -2.88% down Longi Green Energy, Jiangxi Special Electric Motor, + 9.99 Increased by%. Northbound Stock Connect trading volume was moderate / high as foreign investors sold $ 592 million worth of mainland stocks as Northbound Connect trading accounted for 4.5% of mainland sales. ..
Exchange rates, prices and yields last night
- RMB / US $ 6.46 vs Friday 6.44
- RMB / Euro 7.61 vs Friday 7.62
- 1-day government bond yield 1.73% vs. Friday 1.63%
- 10-Year Government Bond Yield 2.89% vs. Friday 2.87%
- Yield 3.21% on 10-year Chinese Development Bank bonds vs. 3.19% on Friday
- Copper price-0.77% overnight
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