Asian equities had a strong day before TSMC\u2019s post-close financial results, as US-China tensions eased on Treasury Secretary Bessent\u2019s truce comments, and the US dollar resumed its decline. Having pulled off the Israel-Gaza peace agreement, I suspect the US\u2019s increased pressure on China is to help President Trump resolve the Ukraine war. Makes sense, right?<\/p>\n\n\n\n
It was a quiet night in Hong Kong and Mainland China with light volumes as traders wait for further clarity on the US-China geopolitical situation. Hong Kong and especially Hong Kong growth, technology, and internet names have worked off their overbought situation, as their Relative Strength Index (RSI) declines, and their 50-day moving averages have been acting as support.<\/p>\n\n\n\n
Alibaba fell -0.25% as its Singles Day (November 11th<\/sup>) pre-sales kicked off last night. In the first hour, 35 brands achieved RMB 100 million in sales, 1,802 orders were received, and the number of active users exceeded last year’s. Cosmetics and sports apparel were in vogue, as brands including Estee Lauder, Nike, and Anta reported strong demand out of the gate. Cosmetics company Giant Biogene (2367 HK) fell -15.21% on concerns its products weren\u2019t doing well during Singles Day, though the company\u2019s controlling shareholder bought 760,000 shares on the dip.<\/p>\n\n\n\n NIO fell -8.99% after it was revealed that GIC, a well-respected Singapore sovereign wealth fund, filed a lawsuit in August in a New York City court, accusing the electric vehicle (EV) brand of inflating revenue. GIC is accusing NIO of recognizing revenues from sales to its battery swap affiliate, although the batteries hadn\u2019t yet been sold to end clients. The news weighed on the EV and battery space, impacting names including Xiaomi, which fell -3.6%, CATL, which fell -1.2%, and Xpeng, which fell -3.5% despite CEO He Xiaopeng announcing flying car production will begin in 2026.<\/p>\n\n\n\n He also announced at the 2025 Sustainable Global Leaders Conference in Shanghai that their humanoid robot launch last month will be enhanced by a new AI visual and language system. The National Development & Reform Commission (NDRC) announced a three-year plan to increase the number of EV charging stations across China, which likely explains the outperformance of clean technology companies, such as Sungrow, which gained +7.66%, LONGi, which gained +2.61%, and the Hong Kong and Mainland electricity and coal subsectors. If power generation is the key to AI, doesn\u2019t China have a huge advantage due to its massive solar (12% of electrical output), wind (13%), nuclear (5%), and hydroelectric power (16%)? Surprised this hasn\u2019t hit investors\u2019 radar yet.<\/p>\n\n\n\n Coincidentally, a Mainland media source noted \u201cthe world\u2019s first onshore commercial modular small reactor\u2026has passed the safety review of the International Atomic Energy Agency\u201d. Mainland investors bought a healthy $2.04 billion worth of Hong Kong-listed stocks and ETFs today, accounting for 25% of Hong Kong volumes via Southbound Stock Connect. Zijin Gold International gained +3.8% after being added to the Southbound Stock Connect. Interestingly, Mainland precious metals and mining stocks had another down day. The Mainland precious metals subsector has doubled since January 2024. Maybe a signal for the red-hot global gold and mining space? Mainland China had a significant value bias as banks, insurance, and utilities outperformed while growth stocks such as semis and the STAR Board underperformed. The National Team\u2019s favored ETFs had average\/slightly above average volumes. Maybe buy the dip from the National Team a little? Hard to know for sure though\u2026\u2026\u2026<\/p>\n\n\n\n The China Federation of Logistics & Purchasing released the E-commerce Logistics Index, which increased MoM to a new high. I\u2019ll have to dig into this further and report back.<\/p>\n\n\n\nLast Night’s Performance<\/h2>\n\n\n\n
Country \/ Index<\/th> Ticker<\/th> 1-Day Change<\/th><\/tr> China (Hong Kong)<\/td> HSI Index<\/td> -0.1%<\/td><\/tr> Hang Seng Tech<\/td> HSTECH Index<\/td> -1.2%<\/td><\/tr> Hong Kong Turnover<\/td> HKTurn Index<\/td> -12.8%<\/td><\/tr> Hong Kong Short Sale Turnover<\/td> HKSST Index<\/td> 3%<\/td><\/tr> Short Turnover as a % of Hong Kong Turnover<\/td> N\/A<\/td> 16.5%<\/td><\/tr> Southbound Stock Connect Net Buy\/Sell (US $ Millions)<\/td> N\/A<\/td> 2020.67<\/td><\/tr> China (Shanghai)<\/td> SHCOMP Index<\/td> 0.1%<\/td><\/tr> China (Shenzhen)<\/td> SZCOMP Index<\/td> -0.6%<\/td><\/tr> China (STAR Board)<\/td> Star50 Index<\/td> -0.9%<\/td><\/tr> Mainland Turnover<\/td> .chturn Index<\/td> -6.9%<\/td><\/tr> Northbound Stock Connect Net Buy\/Sell (US $ Millions)<\/td> N\/A<\/td> Not Available<\/td><\/tr> Jing Daily China Global Luxury Index<\/td> CHINALUX Index<\/td> 0.4%<\/td><\/tr> Japan<\/td> NKY Index<\/td> 1.3%<\/td><\/tr> India<\/td> SENSEX Index<\/td> 1%<\/td><\/tr> Indonesia<\/td> JCI Index<\/td> 0.9%<\/td><\/tr> Malaysia<\/td> FBMKLCI Index<\/td> 0%<\/td><\/tr> Pakistan<\/td> KSE100 Index<\/td> -0.4%<\/td><\/tr> Philippines<\/td> PCOMP Index<\/td> 0%<\/td><\/tr> South Korea<\/td> KOSPI Index<\/td> 2.5%<\/td><\/tr> Taiwan<\/td> TWSE Index<\/td> 1.4%<\/td><\/tr> Thailand<\/td> SET Index<\/td> 0.4%<\/td><\/tr> Singapore<\/td> STI Index<\/td> -0.3%<\/td><\/tr> Australia<\/td> AS51 Index<\/td> 0.9%<\/td><\/tr> Vietnam<\/td> VNINDEX Index<\/td> 0.5%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Indicator<\/th> Hong Kong<\/th> Mainland<\/th><\/tr> Today’s Volume % of 1-Year Average<\/td> 116<\/td> 115<\/td><\/tr> Advancing Stocks<\/td> 271<\/td> 1073<\/td><\/tr> Declining Stocks<\/td> 216<\/td> 3979<\/td><\/tr> Outperforming Factors<\/td> Quality, EPS Revision, Low Volatility<\/td> Large Caps, Dividend Yield, Low Volatility<\/td><\/tr> Underperforming Factors<\/td> <\/td> Momentum, Buybacks, Liquidity<\/td><\/tr> Top Sectors<\/td> Energy, Healthcare, Financials<\/td> Energy, Staples, Financials<\/td><\/tr> Bottom Sectors<\/td> Tech, Materials, Communication<\/td> Materials, Communication, Real Estate<\/td><\/tr> Top Subsectors<\/td> Consumer Durables\/Apparel, Coal, Pharmaceuticals<\/td> Coal, Marine\/Shipping, Banking<\/td><\/tr> Bottom Subsectors<\/td> Household\/Personal Products, Steel, Construction Materials<\/td> Power Generation, Fertilizer\/Pesticides, Steel<\/td><\/tr> Southbound Connect Buys<\/td> Xiaomi (Large), Alibaba, Pop Mart (Moderate), Hua Hong Semi (Small), Tencent, ZTE (Tiny)<\/td> <\/td><\/tr> Southbound Connect Sells<\/td> Giant Biogene, SMIC (Small)<\/td> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n MSCI China All Shares Index<\/th> # of Stocks<\/th> Average 1-Day Change (%)<\/th><\/tr> Hong Kong Listed<\/td> 152<\/td> -0.03<\/td><\/tr> Communication Services<\/td> 9<\/td> -0.94<\/td><\/tr> Consumer Discretionary<\/td> 28<\/td> -0.28<\/td><\/tr> Consumer Staples<\/td> 13<\/td> -0.55<\/td><\/tr> Energy<\/td> 6<\/td> 2.36<\/td><\/tr> Financials<\/td> 24<\/td> 1.86<\/td><\/tr> Health Care<\/td> 12<\/td> 2.35<\/td><\/tr> Industrials<\/td> 21<\/td> 0.71<\/td><\/tr> Information Technology<\/td> 10<\/td> -2.03<\/td><\/tr> Materials<\/td> 10<\/td> -1.42<\/td><\/tr> Real Estate<\/td> 7<\/td> 0.69<\/td><\/tr> Utilities<\/td> 12<\/td> 0.81<\/td><\/tr> Mainland China Listed<\/td> 395<\/td> 0.12<\/td><\/tr> Communication Services<\/td> 7<\/td> -1.09<\/td><\/tr> Consumer Discretionary<\/td> 29<\/td> -0.08<\/td><\/tr> Consumer Staples<\/td> 24<\/td> 0.89<\/td><\/tr> Energy<\/td> 13<\/td> 2.04<\/td><\/tr> Financials<\/td> 64<\/td> 0.88<\/td><\/tr> Health Care<\/td> 32<\/td> 0.32<\/td><\/tr> Industrials<\/td> 61<\/td> 0.04<\/td><\/tr> Information Technology<\/td> 90<\/td> -0.24<\/td><\/tr> Materials<\/td> 54<\/td> -1.95<\/td><\/tr> Real Estate<\/td> 6<\/td> -0.27<\/td><\/tr> Utilities<\/td> 15<\/td> 0.58<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n US & Hong Kong Dually Listed<\/th> Ticker<\/th> 1-Day Change (%)<\/th><\/tr> Tencent HK<\/td> 700 HK Equity<\/td> -1.1<\/td><\/tr> Alibaba HK<\/td> 9988 HK Equity<\/td> -0.2<\/td><\/tr> JD.com HK<\/td> 9618 HK Equity<\/td> -0.7<\/td><\/tr> NetEase HK<\/td> 9999 HK Equity<\/td> 0.1<\/td><\/tr> Yum China HK<\/td> 9987 HK Equity<\/td> 0.9<\/td><\/tr> Baozun HK<\/td> 9991 HK Equity<\/td> -1.1<\/td><\/tr> Baidu HK<\/td> 9888 HK Equity<\/td> -1.7<\/td><\/tr> Autohome HK<\/td> 2518 HK Equity<\/td> -1.4<\/td><\/tr> Bilibili HK<\/td> 9626 HK Equity<\/td> 1.1<\/td><\/tr> Trip.com HK<\/td> 9961 HK Equity<\/td> -0.1<\/td><\/tr> EDU HK<\/td> 9901 HK Equity<\/td> 8.9<\/td><\/tr> Xpeng HK<\/td> 9868 HK Equity<\/td> -3.5<\/td><\/tr> Weibo HK<\/td> 9898 HK Equity<\/td> -1.4<\/td><\/tr> Li Auto HK<\/td> 2015 HK Equity<\/td> -1.5<\/td><\/tr> Nio Auto HK<\/td> 9866 HK Equity<\/td> -9<\/td><\/tr> Zhihu HK<\/td> 2390 HK Equity<\/td> -1.5<\/td><\/tr> KE HK<\/td> 2423 HK Equity<\/td> 0<\/td><\/tr> Tencent Music Entertainment HK<\/td> 1698 HK Equity<\/td> -0.6<\/td><\/tr> Meituan HK<\/td> 3690 HK Equity<\/td> -1.2<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Hong Kong’s Most Heavily Traded by Value<\/th> 1-Day Change (%)<\/th><\/tr> XIAOMI CORP-CLASS B<\/td> 1.8<\/td><\/tr> ALIBABA GROUP HOLDING LTD<\/td> -0.2<\/td><\/tr> TENCENT HOLDINGS LTD<\/td> -1.1<\/td><\/tr> POP MART INTERNATIONAL GROUP<\/td> 3.8<\/td><\/tr> SEMICONDUCTOR MANUFACTURI-H<\/td> 3.6<\/td><\/tr> HUA HONG SEMICONDUCTOR LTD-H<\/td> 5.3<\/td><\/tr> ZIJIN GOLD INTERNATIONAL CO<\/td> 3.8<\/td><\/tr> CHINA LIFE INSURANCE CO-H<\/td> 4.8<\/td><\/tr> GIANT BIOGENE HOLDING CO LTD<\/td> -15.3<\/td><\/tr> MEITUAN-CLASS B<\/td> -1.2<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n