Asian stock markets combined overnight, with Taiwan and South Korea outperforming.
Hong Kong and China fell with an October PPI of -1. 3% and a backlog of attributed COVID cases through corridors. I think low inflation was a smart thing to do. October’s CPI of 2. 1% is below expectations of 2. 4% and September’s CPI of 2. 8% is a smart signal. There have been 1294 new COVID cases as well as 6882 asymptomatic cases as China enters flu season. We’re not seeing citywide closures, individual buildings and neighborhoods looking to restrict the spread.
Real estate was the top performer in Hong Kong at 4 percent and China ended up 2. 3 percent after announcing $34. 5 billion in debt sales of government-backed assets. structure without leaving them in default. Foreign investor sentiment is worse than domestic investor sentiment, as evidenced by Hong Kong’s (mostly foreign-owned) decline relative to mainland China (mostly owned through Chinese investors). The maximum traded in Hong Kong was Tencent – 3. 66%, Meituan -3. 02% and Alibaba -1. 64%, as one analyst said, singles’ day sales may disappoint. That’s true, but they can also exceed expectations!We also have Alibaba’s earnings next week.
President Xi opened the Global Internet Conference with a congratulatory message in another sign that China’s cycle of web regulation is over. Short-term gains in Hong Kong were subdued, with JD. com reporting strong short-term gains as a percentage of total gains at 31% today compared to 33% yesterday. Let’s hope the PCAOB provides data on their Hong Kong audits, as that would bring asset managers back to names, which would actually put shorts on notice. We had the first day of net promotion of Hong Kong shares since September 26 through mainland investors via Southbound Stock Connect. The sale amount was only $88 million, as Tencent was a small net purchase. Gold and valuable metals had a strong day on the mainland, while many expansion stocks favored by foreign investors fell. iPod maker GoerTek (002241 CH) was down -10. 29% after wasting a “big foreign customer” ie Apple. After the close, Yicai Global announced that Luxshare (002475 CH) would advance the Air Pod Pros 2. This “news” turned out to be highly anticipated in the market as GoerTek is at its 52-week high. RMB hit 9. 02 on Dec 13, 2021. RMB closed today at a 52-week low of 2. 85 RMB. The Asian dollar index fell slightly, the CNY fell to 7. 25 against the US dollar from 7. 23.
The Hang Seng and Hang Seng Tech Index fell -1. 2% and -1. 89% in volume +6. 27% since yesterday, or 90% of the 1-year average. 203 shares gained while 284 fell. Lead Consulting earnings were up +2. 49% from yesterday, or 85% of the 1-year average, and 16% of overall earnings were short earnings. Value points outperformed expansion points, with small-caps “outpacing” giant-caps. The main sectors were real estate with an increase of +4%, fabrics with an increase of +1. 2% and the financial sector with an increase of +0. 3%, while communications fell -3. 44 %, fitness at -2. 63% and discretionary spending at -2. 51%. The most sensitive subsectors were textiles and real estate, along with semiconductors and banks, while autos, software and stores were among the worst offenders. Southbound Stock Connect volumes were moderate/high as mainland Chinese investors sold Hong Kong stocks worth -$88m, with Tencent a small net long while Meituan had a moderate net short.
Shanghai, Shenzhen and STAR Board fell -0. 53%, -0. 41% and -1. 35%, respectively, at a volume of -6. 85% since yesterday, or 80% of the 1-year average. Year. 1,940 shares rose while 2,506 shares fell. Value points surpassed expansion points, and small-cap companies “surpassed” giant cap companies. The main sectors were Real Estate 2. 3%, Healthcare 0. 03% and Utilities 0. 01%, while Energy fell -1. 47%, Commodities closed with -1. 43% and Technology ended with -1. 4%. The main subsectors included valuable metals, real estate and pharmaceuticals, while power generators, coal and agriculture were among the worst. Northbound Stock Connect volumes were subdued, as investors sold -$94 million worth of Majorland shares. Treasuries retreated, the CNY fell -0. 3% against the US dollar to 7. 25 and copper gained 1. 32%.
Country performance
Stock Market Performance
Top 10 in Hong Kong
China’s Top 10