Tencent (700 HK) (TCEHY US is its unsponsored ADR) released its second quarter financial results after the Hong Kong lockdown. The effects exceeded analyst expectations, although I am afraid after Tencent Music Entertainment exceeded analyst expectations and still got crushed in US trading hours. So far, analysts seem positive about Tencent’s effects. Online advertising is obviously a bright spot, with profits up +19% year-on-year (YoY). It can only be argued that this accumulation provides a small insight into the Chinese economy, indicating an explanation for why advertisers are spending money to increase awareness of their brands. However, FinTech profit growth, namely cell phone bills and loans, has slowed to only low single digits due to “slow customer spending. ” All effects are year-on-year/compared to Q2 2023.
Asian stocks rose while Hong Kong and mainland China fell on low summer volumes ahead of today’s US CPI, and the US dollar weakened overnight.
It is as if the implosion of the yen industry never happened. Pakistan was closed for Independence Day. Yesterday’s new loan and July’s overall financial literacy were widely cited as lacking expectations, or taking a step forward from June. Bank loans, and, to a lesser extent, loans to banks, fell by RMB 77 billion ($10. 7 billion) since June, which is “the first drop since July 2005, as more was paid debt that was incurred,” according to Bloomberg News, seasonality was an issue. stuff. Paying off your old debts makes sense, since interest rates have fallen, meaning your debt ratio is much higher than the rate available lately. Paying off debt is not bad because debt is still a burden, even if it potentially weighs on consumption. the R
Credit supply/availability is the challenge China still needs, with minimal fiscal measures taken by the government to repair the animal spirits in the stock market, nor to incentivize consumers to spend more. Chinese citizens and investors reject the government’s efforts and vote with their feet. The continued rally in the Treasury market is an example of a strong call to lower yields.
Hong Kong has managed to hold above recent short-term support, one level above long-term support, as Hong Kong posted slight losses ahead of Tencent results. The most traded Hong Kong stock via price was Tencent, down -1. 27% so far. will be able to restart earnings after buyback, Alibaba fell -0. 45% ahead of tomorrow’s earnings, China Mobile up 1. 39%, AIA up 1. 39%, down -1. 71% and Meiutan fell -1. 26%. Internet stocks fell in the absence of news. , with NetEase down -3. 88%, Trip. com down -1. 87%, JD. com awaiting tomorrow’s earnings, Baidu down -0. 24% and Kuaishou down -1. 33%.
Tencent Music Entertainment (TME US, HK 1698) fell -18. 13% in Hong Kong, even though Hong Kong inventory represents only 1% of the US traded price. TME beat analyst expectations, a slight hole in the outlook for new subscribers and a shift in focus on user profits following the increase in new subscribers caused the stock to fall significantly. The stock outperformed, which is likely because investors bought the rumor and sold the news.
Mainland investors have been net distributors to Hong Kong through Southbound Stock Connect with the sale of ETFs. China fell as volume hit a new 52-week, 4-year low with little evidence of support from the national team. Treasury officials will meet with those from the People’s Bank of China on Thursday and Friday as the monetary organization’s meetings continue in Shanghai. Before the meeting, an economist from a Chinese think tank said: “China will revive its expansion through a new long-term reform and opening-up circular. Hopefully the long-term will be as soon as possible.
I’d like to apologize because Bloomberg continues to show that Meituan will report today, the company’s online page has not yet revealed a date. Excuse me!
In China, great attention is being paid to the stopover in Harbin of a former Japanese World War II veteran of Unit 731, who conducted biological and chemical tests on Chinese civilians. The Western media doesn’t pay much attention to those atrocities, it’s worth doing your own research. In my opinion, it is an unpleasant reminder of why war deserves to be avoided.
The Hang Seng and Hang Seng Tech fell -0. 35% and -0. 99% respectively, with volume down -3. 95% from yesterday, or 67% of the one-year average. 123 stocks rose, while 344 fell. The Main Board’s short turnover fell -21% from yesterday, or 56% of the year-over-year average, as 15% of the turnover was short-term turnover (the short turnover Hong Kong short term includes the volume of ETF short positions, which we imagine through market makers’ ETF coverage Value stocks and small cap stocks “outperformed”/. fell less than growth stocks and large cap stocks. All sectors were negative, with healthcare falling -2%, materials falling -1. 39% and communication services the most sensitive subsectors. telecommunications services, food/beverage and banking, while media, prescription drugs and healthcare devices were the worst Southbound Stock Connect volumes were very muted as mainland investors sold Hong Kong stocks for a. value of -133 million dollars. and ETFs, with China Mobile being a moderate net buy, SMIC a small net buy, HK Tracker ETF a giant net sell, and HS Tech ETF a moderate net sell Array and Tencent a small net sell.
Shanghai, Shenzhen and the STAR Board fell -0. 6%, -0. 86% and -1. 38% respectively, with volume down -0. 18% from yesterday, or 59% of the annual average. 1,375 shares rose, while 3,473 fell. Large-cap and price stocks fell less than small-cap and growth stocks. The leading sectors were utilities with +1. 61%, communications services with +1. 23% and financial services with +0. 04%, while materials fell -1Array62%, assistance healthcare -1. 09% and discretionary services -0. 8%. The most sensitive subsectors were telecommunications, the web and cultural media, while motorcycles, materials and power generation devices were the worst. Northbound Stock Connect volumes were moderate as foreign investors were net traders of mainland stocks, with small net buying of Cypc, Foxconn and Shanxi Fen Wine, while Kweichow Moutai, Wanhua and Tongwei were small net traders. /moderate. The CNY and the Asian dollar index gained against the US dollar. Treasury bonds have rallied. Copper and metal fell.
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