For both the quiet pre-holiday trading consultation and Asian stocks combined, Australia was closed for Australia Day, Indonesia was closed for Al Isra’ Wal-Mi’Raj, South Korea was closed for Korean New Year, and Taiwan was closed for Chinese New Year.
Mainland China and Hong Kong-listed hardware and technology plays, especially semiconductors, were not immune to DeepSeek’s impact on the global AI ecosystem. The Hong Kong-listed Semiconductor Manufacturing International Corporation fell -7.63%. Meanwhile, Mainland-listed communication and electronic component makers were hit hard.
DeepSeek AI highlights the concentration risk of the S&P 500 and global overweight to U.S. stocks globally. Does diversification make a comeback in 2025? We shall see! Mainland investors may have been more apt to hit sell today as it was the last trading day until next Wednesday. The ETFs favored by China’s “National Team,” i.e. investment firms associated with sovereign wealth, had above-average volumes, though they were unable to offset the selling as investors pocketed some vacation cash.
Mainland media outlet Yicai noted that the new electronics trade-in subsidy had led to 10.8 million smartphone and smartwatch purchases in the first four days! Amazing!
China’s Regulatory Commission, the SEC of China, has issued the “Action Plan to promote high quality investment development index in the capital market”, although liberation obviously did not have an effect on the market.
The indexed movements in Hong Kong were broadly led through Tencent, which gained 1. 29%, Alibaba, which gained 2. 95%, Meituan, which fell by 0. 20%, Kuaishou, which gained 3. 82%, jd. com, which gained 1. 03%, Baidu, which gained 3. 92%, and Trip. com. which gained 1. 75%. Investors on the mainland bought a very healthy network of $1. 17 billion worth of stocks and NFB indexed in Hong Kong on Monday.
The “official” “official” PMI in January 49. 1 opposed a 50. 1 planned 50. 1 and November, while PMI 50. 2 non -manufacturing opposed the hopes of 52. 2 and 52. 2. 2 of November. I did not present an estimate, but, if the value was carried out, how do you not expect the fall of December PMI?
Hong Kong is open tomorrow but Mainland China is closed.
It is attractive to see that the US agricultural actions and future are heading. In more detail in an industry agreement such as agricultural purchases of the United States, as well as Boeing airplanes, are the apparent spaces where China can accumulate imports from the United States?
The Hang Seng and Hang Seng Tech indexes gained +0.66% and +0.64%, respectively, on volume -7.81% from Friday, which is 108% of the 1-year average. 368 stocks advanced while 125 stocks declined. Main Board short turnover increased +4.25% from Friday, which is 108% of the 1-year average, as 15% of turnover was short turnover (Hong Kong short turnover includes ETF short volume, which is driven by market makers’ ETF hedging). The growth factor and small caps outpaced the value factor and large caps. The top-performing sectors were Utilities, which gained +1.65%, Real Estate, which gained +1.65%, and Consumer Discretionary, which gained +1.55%. Meanwhile, the worst-performing sector was Information Technology, which fell -0.27%. The top-performing subsectors were media, consumer durables, and paper & packaging. Meanwhile, semiconductors, electrical equipment, and technology hardware were among the worst-performing subsectors. Southbound Stock Connect volumes were 1.5x pre-stimulus levels, as Mainland investors bought a net $1.17 billion worth of Hong Kong-listed stocks and ETFs, including the Hong Kong Tracker ETF, a large net buy, Tencent, a moderate net buy, ZTE, Xiaomi, Meituan and Alibaba. Meanwhile, SMIC and Kingsoft Cloud were small net sells.
Shanghai, Shenzhen, and the STAR Board fell -0.06%, -1.30%, and -2.03%, respectively, on volume that decreased -8.61% from Friday, which is 102% of the 1-year average. 1,790 stocks advanced while 3,189 stocks declined. The value factor and large caps fell less than the growth factor and small caps. The top-performing sectors were Utilities, which gained +1.77%, Energy, which gained +1.05%, and Materials, which gained +0.77%. Meanwhile, the worst-performing sectors were Information Technology, which fell -2.94%, Real Estate, which fell -1.46%, and Industrials, which fell -0.73%. The top-performing subsectors were motorcycles, ports, and power equipment. Meanwhile, communication equipment, electronic components, and power generation equipment were among the worst-performing subsectors. Northbound Stock Connect volumes were just above average. CNY and the Asia Dollar Index posted small losses versus the US dollar. Treasury bonds rallied. Copper and steel rose.
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