Asian equities saw mixed performance as the US dollar strengthened overnight, with Indian markets closed for election day. Hong Kong, Shanghai, and Shenzhen markets showed positive movements, with real estate stocks experiencing profit-taking after a strong performance. The Chinese government’s new policies were met with skepticism, although media reports indicated strong apartment sales in Shenzhen and Beijing over the weekend.
In Hong Kong, Tencent, Alibaba, Meituan, Ping An Insurance, and Sense Time were the most heavily traded stocks, with mixed results. Mainland investors continued to buy Mainland stocks via Southbound Stock Connect, with a year-to-date total of $31.4 billion. The Loan Prime Rates remained unchanged at 3.45% and 3.95%, respectively. Didi announced the elimination of the President role, with Jean Liu stepping down but intending to stay with the company.
The market continues to climb amidst skepticism, with tariffs becoming a popular topic among politicians. Similarities between the 1920s and the current decade, including a pandemic, strong stock market, and rise in protectionism, are noted. Hang Seng and Hang Seng Tech indexes saw gains, with positive performance from growth and small cap stocks. Materials, Utilities, and Energy sectors were top performers, while Real Estate, Industrials, and Technology sectors lagged.
In mainland China, Shanghai, Shenzhen, and the STAR Board showed varied performance, with energy, materials, and utilities sectors leading gains. Northbound Stock Connect volumes were moderate, with CATL, Wuliangye, and CITS as net buys. CNY and Asia Dollar Index declined against the US dollar, while Treasury bonds fell. Copper prices surged, while steel prices posted a small gain.
Upcoming webinars on China’s potential drivers for sustained equity bull market and the impact of US elections on US-China relations were announced. Additionally, a recent article highlighting five reasons for China’s stock market rally was released. Exchange rates, prices, and yields for CNY, government bonds, copper, and steel were provided for the previous night’s performance.
