In the past week, Asian equities saw a mix of performance as Japan and China markets underperformed while India outperformed. Global CEOs gathered at the 2024 China Development Forum in Beijing, with some meeting personally with President Xi Jinping. The internet sector saw Meituan gaining on better-than-expected earnings, while Alibaba’s shares fell on the retraction of logistics arm Cainiao’s IPO application. China’s industrial profits increased by 10% year-over-year for the January-February period after a decrease of 2% in January.
In the Asian markets, those not closed for Good Friday ended the month and quarter higher on light volume. The Shanghai Composite ended the quarter positive, gaining in both US dollar and Renminbi terms. The Hang Seng and Hang Seng Tech indexes are still negative year-to-date, though there is hope for continued upward momentum. It was a light news day, with the National People’s Congress Standing Committee Chairman Zhao Leji giving a keynote address at the Boao Forum, reiterating China’s commitment to opening its economy to foreign companies.
In other news, Hong Kong-listed Xiaomi entered the electric vehicle industry with the launch of the SU7 sedan, receiving a significant number of orders. Non-listed Huawei reported a 65% increase in net profit for 2023, with its consumer business group showing a 17% year-over-year increase. Agriculture giant Syngenta pulled its Shanghai IPO application, possibly related to market conditions. Real Estate stocks underperformed, with SOE developer Vanke reporting a significant decline in net income.
Despite small gains in Shanghai and Shenzhen, Real Estate performed poorly due to Vanke’s net income decline. The National Team’s favorite ETFs had light volumes, with Northbound Stock Connect closed. China removed tariffs on Australian wine, indicating improving diplomatic relations. In the US equity market, resilience was seen despite higher interest rates, with money base growth and liquidity injections noted. In China, Shanghai, Shenzhen, and the STAR Board diverged on closing, with the value factor and large caps outperforming growth and small caps. CNY appreciated against the US dollar, while Treasury bonds rallied.
Looking at last night’s performance, CNY per USD was at 7.22, while CNY per EUR remained at 7.80. The yield on 1-Day Government Bond was 1.50%, and the yield on 10-Year Government Bond was 2.29%. Copper prices increased by 0.21%, while steel prices decreased by 0.72%. Overall, the Asian markets saw a mix of performance, with key players from the global economy gathering in China for discussions and meetings with President Xi Jinping. Despite challenges in various sectors, there is optimism for continued growth and development in the region.
