Review of the week
Asian stocks rose sharply, with slight losses in Singapore, Thailand and India.
President Xi delivered a speech reiterating China’s reform and opening-up policy, following Premier Li’s speech at the Davos Summer Forum, noting that “China will only open up more and more widely. ” to the outdoor world. ” The quarterly meeting of the financial policy committee of the People’s Bank of China noted that China’s economy “continues to recover and improve” despite “challenges such as inadequate effective demand and low social expectations. ” This is a good recommendation for government leaders as a strategy for the third plenary assembly in just two weeks.
Hong Kong and mainland China opened lower, rose and then slowed, after hitting intraday highs. Growth stocks listed in Hong Kong fell on Thursday, although not as much as Chinese stocks listed in the United States. It wasn’t news. It is difficult to explain the collapse of ADRs, although Asian investors obviously do not share this pessimism. The most traded stocks in Hong Kong via price were Tencent, -0. 53% lower than its OTC directory in the US, -1. 8% lower in the US, Meituan, a – down 2. 29% compared to its non-sponsored ADR which fell -2. 93%, China Mobile which gained +2. 67%, Alibaba which fell -1. 47% compared to ADR which fell -2. 43%, and China Construction Bank, which gained +0. 87%. JD. com down -2. 09% in Hong Kong with its ADR down -4. 54%Array NetEase down -0. 8% from its ADR down -0. 70%, Trip. com up + 0. 32% since its ADR was down -2. 8%, Bilibili gained +0. 16% compared to its ADR which was down -2. 86% and Baidu fell. -0. 99% versus its ADR, down -1. 34%. Mainland investors bought a net $468 million worth of Hong Kong-listed stocks and ETFs overnight.
Nike’s currency effects weighed on its home chain despite cash expansion in China, while North America declined. Local competitor Anta Sports fell -1. 57% after a profit warning.
Mainland China saw slight gains from intraday highs, with mainland Chinese stock ETFs favored by the national team posting above-average volumes. The continent’s expansion inventories fell, adding CATL, -2. 69%, and Kweichow Moutai, -1. 55. The East Money corridor fell by -6. 88% with no news, weighing on the brokerage sector. Energy, utilities and industry had a brilliant day.
Today is the last day of the quarter, which may just be yesterday’s ADR drop, but it’s patently hard to say. The official production and non-production PMIs for June will be released next week.
It’s funny to hear China being blamed for Nike’s monetary results, even though its revenue in China is increasing year-over-year while revenue in North America is declining year-over-year.
After emerging roughly 40% into overbought territory, Chinese expansion stocks fell -15%. After three complicated years, this fall is much worse for me. There are positive issues on the horizon, first of all, the main economic assembly “La Tercera”. Plenary”, which begins on July 15. Expectations are very low, I am more optimistic.
The June 18, 2018 e-commerce event garnered significant discounts, resulting in a year-over-year decline in product sales, although the number of products sold likely increased. These sales will appear in the second quarter currency effects when they are launched in August. Business Basics Are Improving!
Alibaba will set up its main directory in Hong Kong in August. This could allow for the listing of Southbound Stock Connect in September. Tencent owns 9. 5% ($43 billion) of its shares held by major investors through Southbound Stock Connect. Meituan owns 13%/$12 billion of its shares held by investors from major countries.
Purchases of Hong Kong-listed stocks on the mainland continue with $47 billion in purchases through Southbound Stock Connect overnight. This exceeds $40 billion in purchases in 2023. Why do those investors buy?
Chinese Internet and expansion corporations buy shares and pay dividends. If the Chinese economy collapses, why would corporations buy back shares? If the outlook for corporations is so bleak, why would they buy back their shares? They would collect money! The founder of almost each and every KWEB company is the CEO or president. Why do they care about stocks? Because his net worth is in stocks.
The Hang Seng and Hang Seng Tech indices diverged to close +0. 01% and -0. 96% respectively, with volume down -5. 12% from yesterday, or 96% of the one-year average for the stock pool Array 250, while 216 stocks fell. The Main Board’s short turnover decreased by -15. 88% from yesterday, or 82% of the year-over-year average, as 15% of the turnover was short turnover (the Hong Kong short volume includes ETF short volume, which is decided by the market). manufacturers ETF coverage). Price and giant caps outperformed expansion and small caps. The most productive sectors were energy, which gained +2. 98%, industrial, which gained +2. 44%, and materials, which gained +2. 28%. Meanwhile, healthcare fell -1. 35%, discretionary clientele -1. 26% and consumer staples -0. 95%. The most productive subsectors were energy, food and public services. At the same time, the retail, insurance and diversified money services sectors were among the worst performers. Southbound Stock Connect volumes were moderate as mainland investors bought a net $468 million of Hong Kong-listed stocks and ETFs, adding China Mobile, China Construction Bank and ICBC, which were small net purchases.
Shanghai, Shenzhen and the STAR Board diverged to close +0. 73%, +0. 25% and -0. 46% respectively, with volume up +12% from yesterday, or 84% of the annual average . 3,299 shares rose while 1,641 fell. Value and large-cap stocks outperformed growth and small-cap stocks. The most productive sectors were Energy, which gained +2. 47%, Public Services, which gained +1. 95%, and Industrial, which gained +1. 17%. Meanwhile, basic consumption fell by -1. 27%, real estate by -0. 90% and healthcare by -0. 83%, constituting the subsectors that performed the worst. The most productive active subsectors were valuable metals, oil and gas, and aerospace. Meanwhile, securities, alcoholic beverages and software were among the worst performers. Northbound Stock Connect volumes were light/moderate as foreign investors were small net buyers. The CNY managed a slight gain against the US dollar. The Treasury curve has flattened slightly. Copper gained while the metal fell.
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