Asian equities showed mixed results after US markets closed flat, with online retail sales in China increasing significantly. Chancellor Scholz of Germany discussed trade with Xi Jinping, focusing on China’s push to sell electric vehicles in Europe. The CSRC clarified new delisting rules, causing some small caps to sell off. Fitch improved its outlook for large Chinese banks, while China’s government debt outlook turned negative.
In Mainland China, education, banks, and industrials saw positive movement following policy comments, with China Mobile gaining on the announcement of an AI enhancement. The Hang Seng and Hang Seng Tech indexes closed slightly higher, with Mainland investors buying a net $146 million worth of Hong Kong-listed stocks. The best-performing sectors were Industrials, Information Technology, and Utilities, while Energy, Communication Services, and Consumer Discretionary fell.
Shanghai, Shenzhen, and the STAR Board all closed higher, with foreign investors selling a net -$32 million worth of Mainland-listed stocks. The top-performing sectors were Information Technology, Communication Services, and Materials, with copper and steel prices rallying. The upcoming webinars cover China Q1 review and investment strategies, as well as Quadratic Capital’s insights on normalization.
In terms of performance, the CNY per USD remained at 7.24, while the yield on 1-Day Government Bond stayed at 1.40%. The yield on 10-Year Government Bond decreased slightly to 2.26%, while the yield on 10-Year China Development Bank Bond also fell. Copper and steel prices saw increases, indicating a positive trend in the market. The focus remains on China’s economic developments and opportunities for investors.
