Asian stocks generally retreated as fat countries, including Japan, South Korea, Taiwan and, for the first time, India, succumbed to promotional tension as the US dollar weakened overnight.
Hong Kong and mainland China ended their sessions more or less stable, far from their intraday highs, while their regional counterparts were under pressure. The Shanghai, Shenzhen, Hang Seng and Hang Seng Tech indices continue at near-term aid levels.
By far the biggest news was that Shenzhen Anju Group, a state-owned company founded in Shenzhen, will start buying apartment buildings to convert them into affordable housing. This could only help alleviate the supply of 48,974 apartments for sale, totaling 5. 16 million square meters, which is equivalent to two years of inventory. This follows an announcement by Guangzhou, another Tier 1 city, on May 30 that it would adopt a “buy-rather than build model. “Shenzhen’s policy purchases may only be 50% lower than comparable purchases, but the idea is to absorb inventories, stabilize asset prices, and restore customer confidence. Real estate gained 1. 09% in mainland China and 0. 09% in Hong Kong; It does not appear that the credit default swaps of Chinese developers have improved.
We’ll see if those US dollar Asian high yield (HY) bonds react on US trades that no one wants, even with US HY at a 52-week high while US HY credit spreads are close to tight spreads unprecedented and the probability of a forced landing, not 0%. Also helping were the high costs paid for five plots of land in Shanghai, totaling RMB 10. 95 billion. A mainland Chinese media source reported that Foxconn, the maker of Apple’s iPhone in China, has hired 50,000 more people. personnel in the last two weeks at its Zhengzhou factory. The company will pay bonuses to hire staff, a clear sign of demand for the iPhone 16.
Hong Kong’s most traded stocks in terms of price were Tencent which gained 1. 32%, Alibaba which brought out a James Bond gaining 0. 07%, Meituan which fell -1. 32%, China Construction Bank (CCB), which gained 0. 74%. and BYD, which fell -1. 7% after announcing that the Biden leadership could ban Chinese autonomous driving software and testing in the United States. Internet names indexed in Hong Kong were mixed, although Bilibili -5. 69% and Trip. com -3. 5%. It’s not that tomorrow at 10 a. m. we will have the State Council press conference on “Consumption of services”.
After the close, China Mobile and Semiconductor Manufacturing International (SMIC) reported currency effects that appeared larger than expected, while Hua Hong Semiconductor’s earnings report failed. Mainland investors sold a smart chunk of the Hong Kong-listed ETFs they had purchased earlier in the week. , some headache. The mainland China market had an uninteresting day, ending almost flat. The national team had another down day, due to soft volumes in their favorite ETFs. The media has paid some attention to the People’s Bank of China (PBOC) and its efforts to try to deter retail Treasury spending by promoting more deals, as animal spirits are lacking.
China will release its inflation insights tomorrow. Meanwhile, web earnings season will begin in earnest next week with Meituan reporting on Tuesday. See the schedule below. We will report on the launch, so stay tuned!
Second Quarter Financial Results Schedule:
The Silk Roads, through Professor Peter Frankopan of the University of Oxford, presents a history of the global from a Middle Eastern perspective by examining the industrial routes between East and West over time. I highly recommend this ebook, but don’t let its length intimidate you, as it is well worth the read. I found the book fascinating, having learned, as I think most Americans and Europeans have, about global history beginning with ancient Greece, the Romans and continuing through the Renaissance, Napoleon, the British Empire and the USA. Until 1492, the center of power, wealth, science and industry was the Middle East and its trading partners were in Central Asia, China, India and Asia. The e-book was an eye-opener for me as I found myself using Google Maps to examine the cities and rivers around the Caspian and Black Seas. Without giving too much away/spoiler alert, he ends with an engaging look at the last two superpowers, or what he calls the imperial powers, the British Empire and the United States, and their policies from the First Global War onwards in between. East and Central Asia. Have I ever heard anyone today call the United States an imperial power? Me neither. Get the eBook!
The Hang Seng and Hang Seng Tech indices diverged to close +0. 08% and -0. 47% on volume +7. 5% from yesterday, or 101% of the 1-year average. 146 stocks rose, while 317 fell. Main Board short turnover increased by 16% from yesterday, which is 92% of the year-over-year average, as 16% of turnover was short turnover (Hong Kong short turnover includes the short volume of ETF, which we decide through market makers’ ETF coverage). Large, price stocks outperformed small, expansion stocks. The most sensitive sectors were Healthcare +1. 57%, Communication +1. 13% and Financial +0. 5%, while Materials -1. 1%, Industrial -1. 02% and Discretionary -0. 77%. The most sensitive subsectors were software, prescription drugs and telecommunications services, while the worst were food and beverage, media and automotive. Southbound Stock Connect volumes were moderate, with moderate buying from Tencent and China Mobile, while the Hong Kong Tracker ETF was a very giant net sell, the HS China Enterprise ETF and the HS Tracker ETF were sells. significant network.
Shanghai, Shenzhen and STAR Board combined by 0. 0%, -0. 12% and 0. 19%, with volume up 4. 73% as of yesterday, or 77% of the annual average. 2,221 shares rose, while 2,653 fell. Growth and large-cap companies have outperformed stocks and small-cap companies. The main sectors were raw materials (1. 46%), real estate (1. 07%) and communications (0. 71%), while energy (0. 59%), discretionary products (0. 43%) and industrials (0. 42%). -The sectors were forestry, food and water, while education, aerospace/military and maritime/transport were the worst. Northbound Stock Connect volumes were moderate/light as foreign investors bought Foxconn, Kweichow Moutai and Zijin Mining in small sizes, while Wuliangye, Gree and Zhongji Innolight made small net sales. Treasuries fell. The CNY and the Asian Dollar Index made a slight gain against the US dollar. Copper and metal fell.
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