Hong Kong Internet Stocks Ride Policy Tailwind As COVID Weighs On Mainland Sentiment

main news

Asian stocks were rocked on Monday as Lionel Messi turned the world into football fans (at least temporarily!) with Argentina’s thrilling win over France.

Friday was the last trading/liquidity event of the year for institutional investors, so trading volumes were low regionally. Hong Kong and China both opened higher, but traded higher throughout the day despite the Central Economic Work Council’s strong growth boost/domestic consumption announcement focused on internet companies, EVs and real estate. fell at In addition to his CEWC consumer promotion announcement highlighting the importance of internet companies, local government officials visited Alibaba’s headquarters.

Hong Kong’s Internet stocks outperformed today, with Tencent +1.14%, Alibaba HK +0.69%, Meituan and Kuaishou +1.15% among the biggest traders in Hong Kong. It was announced that Northbound and Southbound Stock Connect eligibility would be expanded within his three months following the close of Hong Kong trading. A problem weighing on Hong Kong, and also on Shanghai and Shenzhen, is his spread of COVID in China. Remember that investing in stocks is for extra savings. So if you’re cautious, you might want to reduce your inventory.

Our leading Chinese mobility tracker shows that both traffic and subway usage have dropped significantly over the past few weeks. I’m worried about becoming The trend could get worse in the short term, but there is light at the end of the tunnel, as her WSJ pointed out to a surge in domestic air travel today. Risk-off sentiment was perhaps seen in health care, which has benefited from COVID, the worst sector in both Hong Kong and China. Professional investors will have to position themselves in light of his PCAOB news on equity law and his reality that China will reopen in 2023, but trading is expected to be light over the next two weeks. increase.

Hang Seng and Hang Seng Tech have fallen -0.5% and -0.58% respectively since Friday with -26% volume. That’s 81% of his yearly average. 110 stocks rose and 395 stocks fell. Short turnovers on the mainboard decreased by -30.11% from Friday. This is 64% of the annual average, as 14% of turnovers were short turnovers. The value factor outperformed the growth factor as large caps outperformed small caps. The top sectors were Telecom +0.78%, Staple Food +0.26%, Discretionary +0.11%, Healthcare -3.92%, Utilities -3.54% and Industrials -2.67%. The top subsectors were software, retail, and food/beverage, while pharmaceuticals, healthcare devices, and staple foods were the worst. Southbound Stock Connect saw low turnover as mainland Chinese investors sold his $54 million Hong Kong shares, with Tencent, Meituan and Kuaishou all netting small amounts.

Shanghai Shenzhen STAR Board fell -1.92%, -1.78%, -2.27% from Friday and -0.22% from Friday’s one-year average of 81%. 518 stocks rose and 4,216 stocks fell. The growth factor “outperformed” the value factor, while the large-cap outperformed the small-cap. All sectors fell, with the industrial sector at -1.07% and the medical sector at -3.28%. The only positive sub-sector was education, with pharmaceuticals, telecommunications and biotech the worst. Northbound Stock Connect’s trading volume was low as foreign investors sold -$213 million of mainland stocks. The CNY fell very slightly at 6.97 against the US dollar, the US Treasury market rose and copper fell -0.23%.

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last night’s performance

Last night’s exchange rates, prices and yields

• CNY/USD 6.97 vs 6.97 Friday
• CNY/EUR 7.39 vs 7.40 Friday
• 10-Year Treasury Yields 2.88% vs. 2.86% Friday
• China Development Bank 10-Year Bond Yields 3.02% vs. 3.04% Friday
• Copper price -0.23%