Asian equities saw a decline in trading despite the US dollar weakening overnight, with India closed for Holi. Hong Kong and Mainland China-listed technology stocks underperformed due to a Financial Times article stating Chinese government agencies will reduce purchases from AMD and Intel. The China Development Forum in Beijing saw Premier Li discussing challenges facing China’s economy and offering clarity on data rules for foreign companies.
Ant Group’s CEO remains on the agenda as the China basher Representative Mike Gallagher retires, causing shares of Wuxi Biologics and Wuxi AppTec to rise. Janet Yellen is set to visit China next month. In Hong Kong, Meituan and Baidu made gains, while Tencent, Alibaba, Hong Kong Exchanges, and Ping An Insurance fell. Southbound Stock Connect saw a swing in ETF redemptions, with Northbound Stock Connect seeing $722 million in net buying.
The Hang Seng and Hang Seng Tech indexes fell, with 185 advancers compared to 300 decliners. The Main Board short turnover declined, with the growth factor posting a positive return while large caps outperformed small caps. The top-performing sectors were Materials, Real Estate, and Health Care, while Technology, Utilities, and Financials fell. Shanghai, Shenzhen, and the STAR Board also fell, with Real Estate, Energy, and Utilities gaining, and Communication Services, Technology, and Health Care falling.
Foreign investors bought a net $772 million worth of Mainland stocks, while CNY and the Asia Dollar Index appreciated. Treasury bonds fell, and copper and steel prices were off. An upcoming webinar on the electric vehicle opportunity is scheduled for March 27th, and readers can check out the latest defined outcome article on applying strategies to China Internet. Exchange rates and bond yields remained relatively stable.
