BYD Powers EV Ecosystem, Policy Support For Internet Companies Articulated - Forbes

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Asian equities were mostly higher overnight but for Mainland China and Hong Kong, which were mixed.

Over the weekend, China’s State Council recommended 8 proposals to enactment the integer economy, i.e. net companies. Official Chinese media besides published an nonfiction astir Alibaba’s Singles Day, November 11^th/One-One-One-One, i.e. single, a income extravaganza akin to Black Friday successful the United States. The festival has already started with pre-sales. This is conscionable different motion that China’s net regularisation oversight is good down us. China’s economy, particularly its home depletion economy, is going to request these companies to bash well.

Purchasing managers’ indexes (PMIs) are diffusion indexes, meaning that a speechmaking supra 50 indicates maturation month-over-month, and readings beneath 50 bespeak a diminution month-over-month. The “official” PMI is simply a ample survey conducted by the National Bureau of Statistics versus the “private” PMI by Caixin, which has its survey done by IHS Markit INFO . Weaker exports were the culprit successful the debased speechmaking for October, which should not astonishment anyone arsenic the planetary system slows the request for goods from the world’s mill continues to slow. It is absorbing that, successful some surveys, concern expectations stay high. Raising home depletion volition beryllium cardinal for the authorities arsenic they can’t power overseas demand.

Hong Kong and Mainland China were mostly higher successful the greeting connected these tailwinds. There was a large woody of overseas media sum connected COVID successful China contiguous arsenic the state confirmed 497 caller COVID cases and 2,220 asymptomatic cases crossed 31 provinces. So, yes, COVID remains successful China, though we bash not expect a repetition of the Shanghai lockdown successful economically important cities.

A section Chinese media root reported that Foxconn workers are not blessed with enactment conditions from some intelligence and carnal wellness perspectives. This is simply a long-running contented that flared up respective years agone erstwhile the institution saw a emergence successful worker suicides.

Mainland China and Hong Kong faded, coming disconnected the day’s highs arsenic maturation sectors outperformed. The Hang Seng Tech Index closed up +1.05% portion the Hang Seng Index fell -1.18%. Hong Kong’s astir heavy traded stocks by worth overnight were Tencent, which gained +2.39%, Meituan, which gained +2.46%, and Alibaba HK, which fell -0.49%. Investors successful China bought a precise steadfast $664 cardinal worthy of Hong Kong stocks via Southbound Stock Connect arsenic Tencent saw beardown buying again. Total Hong Kong abbreviated turnover was 19% of full Main Board trading, though abbreviated enactment successful Hong Kong net stocks was airy today. China’s growth-oriented Shenzhen and STAR Board closed higher by +0.38% and +1.67%, respectively, portion Shanghai fell -0.77%.

The electrical conveyance (EV) ecosystem had a beardown time successful some Hong Kong and Mainland China aft BYD’s precise beardown fiscal results connected Friday. One headwind was the Renminbi (CNY), which fell -0.63% to 7.29 versus the US dollar arsenic the Asia dollar scale fell -0.52% versus the US dollar.

Chinese spot developer Longfor (960 HK) fell -23.78% aft the company’s Chairwoman quit. The company’s bonds owed successful 2029 fell from Friday’s adjacent of $23.51 to $19.76 arsenic enslaved investors person been disquieted astir the institution for a agelong time. The quality pummeled existent property stocks successful Mainland China and Hong Kong. Foreign investors were nett sellers of Mainland stocks via Northbound Stock Connect overnight, to the tune of -$1.2 billion.

I highly urge speechmaking “Markets person China’s caller enactment each wrong” from the Asia Times. Li Qiang, a Xi state promoted during the Party Congress who could go China’s caller premier, has acquisition governing the Shanghai Free Trade Zone, which was instrumental successful the country’s economical rise. Tesla’s mill was besides established during his tenure arsenic Party Secretary for Shanghai. Most importantly, the nonfiction refutes the communal assertion helium is solely liable for Shanghai’s COVID lockdown.

State Councilor and Foreign Minister Wang Yi met with US Ambassador to China Nicholas Burns connected Friday. This could beryllium different measurement successful a Biden Xi gathering astatine the mid-November G-20 meetings successful Indonesia

The Hang Seng and Hang Seng Tech indexes diverged to adjacent -1.18% and +1.05%, respectively, connected measurement that accrued +5.11% from Friday, which is 106% of the 1-year average. 112 stocks advanced, portion 387 declined. Main Board abbreviated turnover accrued +3.06% from Friday, which is 117% of the 1-year average, arsenic 19% of turnover was short. Growth and worth factors were mixed on with ample versus tiny caps. Communication services and exertion were the lone affirmative sectors overnight, gaining +1.68% and +1.41%, respectively, portion utilities fell -8.14%, existent property fell -6.71%, and vigor fell -6.48%. The top-performing subsectors were car parts, software, and hardware, portion banks, electrical powerfulness companies, and spot absorption companies were among the worst. Southbound Stock Connect volumes were moderate/high arsenic Mainland investors bought $664 cardinal worthy of Mainland stocks arsenic Tencent was a mean nett buy, and Kuaishou and Meituan were tiny nett buys.

Shanghai, Shenzhen, and the STAR Board were mixed to adjacent -0.77%, +0.38%, and +1.67% connected measurement that decreased -3.17% from Friday, which is 90.4% of the 1-year average. 3,074 stocks advanced, portion 942 stocks declined. Growth and worth factors were some disconnected arsenic tiny caps “outperformed” ample caps. Tech was the lone affirmative sector, gaining +0.73%, portion existent property fell -5.99%, vigor fell -5.33%, and user staples fell -1.97%. Northbound Stock Connect volumes were moderate/high arsenic overseas investors sold a steadfast -$1.234B of mainland stocks. Treasury bonds rallied today, CNY declined -0.63% versus the US dollar to 7.30, and copper fell -1.73%.

Last Night’s Exchange Rates, Prices, & Yields

• CNY per USD 7.30 versus 7.25 Friday
• CNY per EUR 7.23 versus 7.21 Friday
• Yield connected 1-Day Government Bond 1.25% versus 1.30% Friday
• Yield connected 10-Year Government Bond 2.64% versus 2.67% Friday
• Yield connected 10-Year China Development Bank Bond 2.84% versus 2.85% Friday
• Copper Price -1.73% overnight