Hong Kong Web Rally goes free solo on the Wall of Fear

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Asian shares have been blended/largely down as Hong Kong outperformed considerably, India managed a small achieve and the Philippines closed for the Immaculate Conception. Asian buyers applauded the ten measures harking back to COVID restrictions and the robust assertion from the mainland media following the Politburo assembly, which bears repeating: “… the restoration of client demand is especially important to the financial progress, and consumption is immediately associated to epidemic prevention methods.”

Though a pullback in US-listed Chinese language shares occurred, Hong Kong web shares had a robust day, with Hong Kong’s most traded shares by worth Tencent up 5.73%, Meituan + 6.45% and Alibaba HK +5.11%. A number of corporations had excellent days, corresponding to Kuaishou +11.08%, Alibaba Well being +16.06%, JD Well being +12.19% and Bilibili HK +22.01%, indicating that shorts are nonetheless outdated.

I discussed yesterday that the CNY, the Chinese language foreign money, was steady, indicating a positive surroundings for Chinese language shares. Watching monetary TV earlier this week, when requested, the present’s 4 skilled cash managers all stated China was “uninvestable.” Good! Keep away as ache buying and selling is greater with CEWC and the potential for an ADR radiation resolution offering potential catalysts! Word that the acceleration of ADR reimbursement was not included within the protection price range (NDAA), in response to a DC supply. Mainland China remained steady in a single day, with actual property outperforming as CSRC Vice Chairman Li Chao and Shanghai Inventory Trade Managing Director Cai Jianchun mentioned the acceleration of REIT rollout throughout a convention. Issuing REITs would supply one other financing device for struggling actual property builders. From a information perspective, President Xi visited Saudi Arabia and Hiya Group (ticker MOMO) beat analyst estimates on income and adjusted web earnings, though adjusted EPS was lacking. There have been 4,031 new COVID instances and 17,134 asymptomatic instances, though our Main Metropolis Mobility Tracker reveals a restoration in subway site visitors (see beneath).

Solar Yu of the Chinese language staff at Bridgewater, the world’s largest hedge fund, caught the eye of mainland media for an interview wherein she famous a reasonably pessimistic outlook for the US, Europe and the Kingdom. UK as a consequence of tight credit score liquidity and danger of stagflation. China is totally totally different. China is (in) a part of improved liquidity and financial assist. Going ahead, insurance policies might be extra supportive of the financial system and future progress will come from home consumption and technological growth…it is extra enticing for equities.

The Dangle Seng and Dangle Seng Tech gained +3.38% and +6.64% in quantity -22.53% from yesterday, or 130% of the 1-year common. 454 shares rose, whereas 46 shares fell. Main Card short-term income was down -21.81% from yesterday, or 111% of the 1-year common, as 15% of income was short-term income. brief time period. Progress elements outperformed worth elements, albeit blended, with small caps outperforming giant caps. The primary sectors have been Healthcare +6.2%, Communication +6.12% and Discretionary +5.6%, whereas Power was the one sector down -0.73%. The primary sub-sectors have been healthcare gear, client companies and software program, whereas telecommunications and vitality lagged. Southbound Inventory Join volumes have been excessive/practically 2x the 1-year common as mainland buyers bought -$54m value of Hong Kong shares with Tencent, Meituan, Kuaishou and XPeng all small buys web.

Shanghai, Shenzhen and STAR Board have been down -0.07%, -0.32% and -0.32% on quantity of -8.46% from yesterday, or 91% of the 1-year common . 1,602 shares rose, whereas 3,005 shares fell. Worth elements outperformed progress elements, whereas giant caps outperformed small caps. The primary sectors have been actual property +2.68%, communication +1.09% and finance +0.51%, whereas know-how -0.71%, utilities -0.49% and vitality -0.44%. The highest subsectors have been actual property, training and family merchandise, whereas diversified monetary companies, agriculture and pc {hardware} have been among the many worst. Northbound Inventory Join volumes have been average/excessive as abroad buyers purchased $16 million value of mainland shares, with a choice for Shenzhen/progress shares over Shanghai/worth shares. The CNY was barely decrease towards the US Greenback -0.05% to six.97, the Treasury yield curve steepened and copper gained +0.24%.

Monitoring the mobility of main Chinese language cities

Visitors tendencies have remained steady though metro site visitors continues to extend. The latter signifies a better tolerance to mixing in crowded subway vehicles.

Efficiency final night time

Final night time’s trade charges, costs and yields

• CNY for six.97 USD towards 6.98 yesterday
• CNY for 7.32 EUR towards 7.33 yesterday
• 10-year authorities bond yield 2.89% vs. 2.87% yesterday
• China Improvement Financial institution 10-year bond yield 3.03% vs. 3.02% yesterday
• Copper value +0.24% in a single day