Asian stocks rose today on expectations of a decline in US rates and a weak US dollar, with mainland China, Hong Kong and Taiwan outperforming the region. India was the only country to record a negative performance.
China and Hong Kong were complex throughout the day following the announcement that the CSRC is making it harder to short sell inventory on the mainland by expanding margin needs to a minimum of 80% to one hundred percent starting today. In contrast, China Securities Financial Corp, the largest equity lender, announced that it would block loans today and eliminate existing inventory loans through September.
We’re worth assuming that one detail of today’s move was covering short selling, with Hong Kong expansion stocks following the mainland market higher. This is a transparent signal from the CSRC and its new leader, in the past dubbed the butcher of agents for his fight against corruption during his first term, to boost the market. The Shanghai index is just under 3,000 and the Shenzhen index has returned to 1,600 after hitting its lowest point in January, although the recovery has stalled or slowed since mid-May. It could simply be additional political help at next week’s Third Plenary, when sensible leaders meet to discuss economic policy.
Baidu rose 2. 26% after yesterday’s 10. 15% in 11 cities, adding Beijing, Shanghai and Wuhan, the company’s “Radish Quick Run” robotaxis, which sold for just 200,000 RMB. Continental media highlighted the main demand for Baidu robotaxis. which is “the intelligent formula of the sixth generation of Apollo”. After hitting a 52-week low on July 2 in Hong Kong, the stock is up just 20%, despite the US ADRit is still 70% below its all-time high. in February 2021.
The highest values traded in Hong Kong through price were Tencent 1. 91% due to changes in wages and employee-friendly benefits, Alibaba 3. 21%, Meituan 1. 04%, China Construction Bank 1. 84% and AIA 4. 33% after buying 1. 3 billion shares today. Tencent announced later at the close that it had repurchased 2. 61 million shares today. Apple’s ecosystem has earned the company’s purpose of promoting a 90mm iPhone 16. Electric cars and cars had a day with BYD 1. 94%, Li Auto 7. 07%, XPeng 11. 66% and NIO 5. 39%.
The mainland reports an increase in government purchases of solar sent to the mainland, with Longi Green Energy trading on the stock exchange at 4. 87%. A mainland media source noted that Beijing, Shanghai, Guangzhou and Shenzhen reported that the number of “commercial residential buildings” in the square meters sold of construction is increasing month by month and year by year. Improving real estate costs in Tier 1 cities would affect customer confidence and the stock market’s “animal spirits. “I suppose that the costs of levels 2 and 3 are still stagnant, even if it is a start.
Hang Seng and Hang Seng Tech gained +2. 06% and +2. 67% on volume of -1. 92% compared to yesterday, or 97% of the 1-year average. 440 stocks rose, while 51 fell. The Main Board’s short trading volume decreased by -16. 07% from yesterday, which is 90% of the year-over-year average, as 16% of the turnover was short trading volume (the Hong Kong short trading volume includes ETF short volume, which we decide through market makers’ ETF hedging). Growth stocks and small caps outperformed price stocks and large caps. All sectors were positive, with healthcare +3. 33%, generation +3. 13% and real estate +2. 61%. All subsectors were positive, led by pharmaceuticals, technical devices and semiconductors. Southbound Stock Connect volumes were moderate as mainland investors snapped up $60 million worth of Hong Kong stocks and ETFs, with Meituan a small acquisition and Tencent and XPeng small net sales.
Shanghai, Shenzhen and STAR Board gained 1. 06%, 2. 35% and 1. 08% in volume, 16. 17% compared to yesterday, or 96% of the annual average. 4,709 shares advanced, while 310 fell. Growth and small-cap stocks outperformed price and large-cap stocks. All sectors were positive, led by textiles (3. 12%), healthcare (2. 49%) and raw materials (2. 14%). The top subsectors were restaurants/tourism, convenience beverages, and structural machinery, while banking, insurance, and telecommunications were the only negative subsectors. Northbound Stock Connect volumes were moderate as foreign investors were small net buyers of major nation stocks, with Kweichow Moutai and Changan Auto being small/moderate net purchases, while Foxconn and Zhongji Innolight were small/moderate. net sales. The CNY and the Asian dollar index gained against the US dollar. Copper and metal advanced.
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