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Posted August 15, 2025 at 11:15 am
Asian equities were mixed overnight as Mainland China and Japan outperformed, while Hong Kong and Vietnam underperformed.
Hong Kong’s market was flooded by an absolutely massive session of buying from Mainland investors via Southbound Stock Connect on broad weakness. Mainland investors purchased a staggering net $4.6 billion worth of Hong Kong-listed stocks and ETFs overnight, a new record since data became available in December of 2016 and six times the one-year average! Southbound flows have picked up significantly this year and are already above the total net inflow for 2024. This is owed to various factors, including structural adjustments leading to more stock ownership, the Mainland’s lag versus onshore this year, and positioning ahead of a potential increase in yields in China, which could happen if inflation is triggered.
Alibaba fell -3 %, and Meituan fell -2 %, as they were Hong Kong’s second and third most-traded stocks by value overnight. Alibaba will report earnings next week. Internet earnings have so far been better than expected, as major hits to net income from instant commerce price war have mostly been averted. Meanwhile, Tencent’s spending on AI also did not hit its bottom line too badly.
There was a slight value bias in Hong Kong overnight, as the Hang Seng Index ended a three-day winning streak. Technology and large caps were under pressure. Mainland did well, as the Shanghai, Shenzhen, and the STAR Market all managed healthy gains.
Consumer lending fintech platform Qifu Technology reported Q2 earnings last night. Borrowers on the platform increased +15% year-over-year in the second quarter, reaching 36.8 million. Total outstanding loan value also increased +13%. This is positive for the consumer. Consumers need to borrow more and the government’s recent encouragement of borrowing by offering to fund consumer loans could benefit Qifu and other fintech platforms. China’s consumers have always been wary of borrowing, unlike their American counterparts, preferring to save and spend with cash. That could be changing somewhat. Platforms like Qifu are important bellwethers because they act like credit cards do in the United States.
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -1% |
| Hang Seng Tech | HSTECH Index | -0.6% |
| Hong Kong Turnover | HKTurn Index | 15.8% |
| Hong Kong Short Sale Turnover | HKSST Index | 90.4% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 20.8% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 4,581.91 |
| China (Shanghai) | SHCOMP Index | 0.8% |
| China (Shenzhen) | SZCOMP Index | 1.7% |
| China (STAR Board) | Star50 Index | 1.4% |
| Mainland Turnover | .chturn Index | -1.5% |
| Northbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0.1% |
| Japan | NKY Index | 1.7% |
| India | SENSEX Index | 0.1% |
| Indonesia | JCI Index | -0.4% |
| Malaysia | FBMKLCI Index | -0.3% |
| Pakistan | KSE100 Index | -0.2% |
| Philippines | PCOMP Index | 0.4% |
| South Korea | KOSPI Index | 0% |
| Taiwan | TWSE Index | 0.4% |
| Thailand | SET Index | -0.6% |
| Singapore | STI Index | -0.6% |
| Australia | AS51 Index | 0.7% |
| Vietnam | VNINDEX Index | -0.7% |
| Indicator | Hong Kong | Mainland |
|---|---|---|
| Today’s Volume as % of 1-Year Average | 96 | 151 |
| Advancing Stocks | 25 (Hang Seng) | 211 (CSI 300) |
| Declining Stocks | 60 (Hang Seng) | 81 (CSI 300) |
| Outperforming Factors | Value | Large Caps |
| Underperforming Factors | Growth | Small Caps |
| Top Sectors | Materials, Health Care, Real Estate | Real Estate, Materials, Information Technology |
| Bottom Sectors | Consumer Discretionary, Industrials, Financials | Utilities, Consumer Staples, Energy |
| Top Subsectors | Consumer Services, Health Care Equipment, Aerospace | Securities Brokerage, Power Generation, Morotcycles |
| Bottom Subsectors | Commercial & Professional Services, Banks, Conglomerates | Banks, Soft Drinks, Telecom |
| Southbound Connect Buys | Alibaba, Tencent, Meituan | N/A |
| Southbound Connect Sells | N/A | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 151 | -0.42 |
| Communication Services | 9 | 0.09 |
| Consumer Discretionary | 28 | -1.66 |
| Consumer Staples | 13 | 0.66 |
| Energy | 7 | -0.62 |
| Financials | 23 | -0.79 |
| Health Care | 13 | 2.09 |
| Industrials | 20 | -0.96 |
| Information Technology | 10 | 0.2 |
| Materials | 10 | 2.64 |
| Real Estate | 6 | 1.03 |
| Utilities | 12 | 0.03 |
| Mainland China Listed | 404 | 0.74 |
| Communication Services | 6 | 0.67 |
| Consumer Discretionary | 31 | 0.67 |
| Consumer Staples | 24 | -0.19 |
| Energy | 13 | 0 |
| Financials | 64 | 0.67 |
| Health Care | 31 | 0.4 |
| Industrials | 64 | 0.86 |
| Information Technology | 91 | 1.28 |
| Materials | 58 | 1.53 |
| Real Estate | 6 | 1.89 |
| Utilities | 16 | -0.22 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.3 |
| Alibaba HK | 9988 HK Equity | -3 |
| JD.com HK | 9618 HK Equity | -3.4 |
| NetEase HK | 9999 HK Equity | -3.7 |
| Yum China HK | 9987 HK Equity | -1.3 |
| Baozun HK | 9991 HK Equity | 0.7 |
| Baidu HK | 9888 HK Equity | -1 |
| Autohome HK | 2518 HK Equity | -2.2 |
| Bilibili HK | 9626 HK Equity | 2 |
| Trip.com HK | 9961 HK Equity | 0.4 |
| EDU HK | 9901 HK Equity | 3.2 |
| Xpeng HK | 9868 HK Equity | -0.3 |
| Weibo HK | 9898 HK Equity | 9.9 |
| Li Auto HK | 2015 HK Equity | -0.9 |
| Nio Auto HK | 9866 HK Equity | 0.4 |
| Zhihu HK | 2390 HK Equity | -0.5 |
| KE HK | 2423 HK Equity | -0.7 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.9 |
| Meituan HK | 3690 HK Equity | -2.2 |
| Hong Kong’s Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 0.3 |
| ALIBABA GROUP HOLDING LTD | -3 |
| MEITUAN-CLASS B | -2.2 |
| XIAOMI CORP-CLASS B | -0.7 |
| SEMICONDUCTOR MANUFACTURI-H | 1.4 |
| HUA HONG SEMICONDUCTOR LTD-H | 5.2 |
| JD.COM INC-CLASS A | -3.4 |
| CHINA LIFE INSURANCE CO-H | 3.1 |
| PING AN INSURANCE GROUP CO-H | -0.5 |
| CHINA CONSTRUCTION BANK-H | -2.3 |
| Shanghai and Shenzhen’s Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| VISUAL CHINA GROUP CO LTD-A | 1.7 |
| SHANTUI CONSTRUCTION MACHI-A | 1.4 |
| EAST MONEY INFORMATION CO-A | 9.9 |
| CITIC SECURITIES CO-A | 4.9 |
| HITHINK ROYALFLUSH INFORMA-A | 16.3 |
| BEIJING COMPASS TECHNOLOGY-A | 20 |
| FOXCONN INDUSTRIAL INTERNE-A | 3.8 |
| CAMBRICON TECHNOLOGIES-A | -2.7 |
| WOLONG ELECTRIC GROUP CO L-A | 10 |
| EOPTOLINK TECHNOLOGY INC L-A | 0.9 |
—
Originally Posted on August 15, 2025 – Southbound Connect Net Inflow Hits New Daily Record, Week in Review
Content on China Last Night is for informational purposes only and should not be construed as investment advice. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular.
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