Hong Kong Internet Stocks Gain On Biden Xi Meeting - Forbes

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Asian equities had a bully time arsenic China and Hong Kong outperformed pursuing President Biden and Xi’s affirmative get-together successful Balli on with continued enactment for the existent property sector.

Hong Kong net stocks ripped higher led by Hong Kong’s astir heavy traded by worth Tencent +10.51%, Alibaba HK +11.05%, and Meituan +6.33%. Post Party Congress it is backmost to concern for the Chinese authorities arsenic respective important issues are being dealt with present that authorities jobs person been secured for the adjacent 5 years: US-China Political relations, zero-COVID argumentation and existent estate. The resumption of connection betwixt the US and China is simply a precise important measurement with a travel up gathering by Secretary of State Blinken whose sojourn to China is successful the works. Taiwan, Ukraine, and Russia discussions are besides significant. COVID is each implicit China arsenic 1,621 caller COVID cases and 16,151 asymptomatic cases were reported. Despite this we aren’t seeing important lockdowns arsenic dynamic zero-COVID eases restrictive policies.

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We are besides seeing important enactment to distressed spot developers. These issues person weighed importantly connected overseas capitalist sentiment and home depletion successful China. One remaining issue, the Holding Foreign Companies Accountable Act (HFCAA)/ADR delisting, could beryllium positively resolved based connected the Biden Xi meeting.

We had a precise beardown time successful Hong Kong with each sectors affirmative and abbreviated turnover falling to 15% of full turnover. Obviously, a affirmative solution to HFCAA would beryllium different important catalyst though we besides person Q3 net with Tencent reporting time aft the Hong Kong close, on with Alibaba and NetEase Thursday, and JD.com Friday. Forward-looking Q4 forecasts volition beryllium important arsenic the companies talk to however dynamic zero-COVID could rise home depletion much truthful than backward-looking Q3 results. The marketplace didn’t attraction astatine each astir today’s backward-looking economical information arsenic October retail sales, concern production, and fixed plus investments each missed expectations by tiny increments. The past doesn’t substance alternatively the future.

Mainland China had a bully time arsenic semiconductor stocks were the apical sub-sector connected the US-China governmental talks. Mega/large headdress maturation stocks that are favorites of some home and overseas progressive managers led the marketplace higher with China’s astir heavy traded liquor elephantine Kweichow Moutai +3.59%, broker East Money +5.36%, and EV artillery elephantine CATL +2.32%. Foreign investors bought a steadfast $1.157 cardinal of Mainland stocks contiguous pursuing yesterday’s $2.349 cardinal of nett buying, and Friday’s $2.066 cardinal of nett buying. Treasury bonds sold disconnected connected the banal enthusiasm portion CNY gained +0.47% versus the US dollar to adjacent astatine 7.04. Post Hong Kong/pre-US market, Tencent Music Entertainment (TME US, 1698 HK) bushed gross and adjusted nett income estimates though adjusted EPS did miss slightly.

The Hang Seng and Hang Seng Tech gained +4.11% and +7.3% respectively connected measurement +0.09% from yesterday which is 166% of the 1-year average. 447 stocks precocious portion 62 declined. Main Board abbreviated turnover accrued +7.14% from yesterday which is 146% of the 1-year mean arsenic 15% of turnover was abbreviated turnover. Value and maturation factors were mixed arsenic tiny caps outpaced ample caps. All sectors were affirmative arsenic connection finished higher +9.96%, discretionary gained +7.76%, and tech closed up +5.2%. Top sub-sectors were software, retailers, and semis. Southbound Stock Connect volumes were 2X the mean arsenic Mainland investors bought +$32 cardinal of Hong Kong stocks contiguous with Tencent a tiny nett bargain aft yesterday’s ample nett buy, Kuaishou was a tiny nett sell, and Meituan was a mean nett sell.

Shanghai, Shenzhen, and STAR Board gained +1.64%, +2.05%, and +2.85% respectively connected measurement -1.16% from yesterday which is 109% of the 1-year average. 4,045 stocks precocious portion 578 stocks declined. Growth factors outpaced worth factors portion tiny caps outpaced ample caps. All sectors were positive, led by tech closing higher +3.71%, staples up +2.26%, and utilities finishing +2.08%. Top sub-sectors were semis, physics components, and bureau supplies portion precious metals and transports were the lone antagonistic sub-sectors. Northbound Stock Connect volumes were moderate/high arsenic overseas investors bought $1.157 cardinal of Mainland stocks. Chinese Treasury bonds sold off, CNY gained +0.47% versus the US dollar to adjacent astatine 7.04, portion copper finished little -0.9%.

Last Night’s Exchange Rates, Prices, & Yields

• CNY per USD 7.04 versus 7.07 yesterday
• CNY per EUR 7.33 versus 7.29 yesterday
• Yield connected 10-Year Government Bond 2.81% versus 2.84% yesterday
• Yield connected 10-Year China Development Bank Bond 2.96% versus 2.97% yesterday
• Copper Price -0.90% overnight