Asian equities were mixed overnight ahead of US inflation data, which came in ahead of estimates, as Hong Kong outperformed significantly. Fitch lowered its outlook for China’s credit conditions from stable to negative overnight, following a similar move by S&P in December. Hong Kong-listed stocks did not care, gaining around +2%. NIO continued its rise, gaining nearly +5% overnight on fresh data from the China Association of Automobile Manufacturers (CAAM) showed that March new energy vehicle sales were up +35% year-over-year. China will report inflation and credit data tonight, with expectations of low CPI despite rising pork prices. President Xi Jinping is reported to be meeting with the former president of Taiwan, Ma Ying-Jeou, in Beijing, highlighting ongoing tensions between China and Taiwan.
Alibaba shares gained on rumors that Jack Ma sent a memo to company staff extolling the management’s current strategy. JD also gained on the announcement of massive subsidies for video content creators. The Hang Seng and Hang Seng Tech indexes gained +1.85% and +2.12%, respectively, on increased volume. Mainland investors sold a net -$911 million worth of Hong Kong-listed stocks and ETFs, while the top-performing sectors were Consumer Discretionary, Utilities, and Materials. Shanghai, Shenzhen, and the STAR Board all closed lower on increased volume, with foreign investors selling a net -$525 million worth of Mainland-listed stocks. The top-performing sectors were Energy, Utilities, and Materials, while Real Estate, Information Technology, and Communication Services were the worst-performing sectors.
Looking ahead, a webinar is scheduled on China Q1 Review and investment strategies on Thursday, April 18th. Another webinar on normalization in investment strategies will take place on Wednesday, April 24th. In other news, Nvidia’s rise has been fueled by chip giants TSMC and SK Hynix. Last night’s performance saw CNY per USD at 7.23, CNY per EUR at 7.80, and yields on government bonds increasing slightly. Copper and steel prices also rose. Overall, the markets continue to see fluctuations and reactions to various economic data and geopolitical events.
Fitch’s downgrade of China’s credit conditions from stable to negative may have raised concerns, but Hong Kong-listed stocks remained resilient, gaining around +2% despite the news. NIO continued to rise, reflecting positive data on new energy vehicle sales. Alibaba and JD also saw gains on positive developments within the companies. The Hang Seng and Hang Seng Tech indexes performed well, with mainland investors selling Hong Kong-listed stocks. However, Shanghai, Shenzhen, and the STAR Board closed lower, with foreign investors selling Mainland-listed stocks. The upcoming webinars provide an opportunity for investors to gain insights into the Chinese market and investment strategies.
The meeting between President Xi Jinping and former Taiwan President Ma Ying-Jeou indicates ongoing tensions between China and Taiwan, particularly in light of the current deadlock in Taiwan’s parliament. The performance of key sectors in both Hong Kong and Mainland markets shows a mixed picture, with some sectors performing well while others lag behind. The upcoming webinars offer investors a chance to gain expert analysis and strategic insights. Overall, the markets appear to be reacting to both domestic and international events, with investors closely monitoring economic data and geopolitical developments for potential impacts on their portfolios.
