Mainland buyers purchase Hong Kong shares by quantity, Baidu and Kuaishu earnings tomorrow

Main information

Asian shares have been blended in a single day as mainland China and Hong Kong underperformed.

We’re seeing a slight resurgence in US-listed Chinese language shares this morning, with Hong Kong web shares not falling as a lot as their US-listed counterparts on Friday. With extra positive factors this week, we might see a continued correction greater.

Search engine Baidu and quick video platform Kuaishou reported second-quarter outcomes tomorrow, and home service and meals supply large Meituan reported on Thursday. We must always anticipate to see spectacular rebounds in advert income, as was the case with each quick video platform Bilibili and Tencent within the second quarter of this yr. The year-to-date comparability is especially favorable for promoting this quarter, as China was simply rising from quarantine in a number of cities within the second quarter of 2022. Promoting income relies on in-person exercise, largely, which returned strongly, regardless of the difficult financial It’s typically highlighted by the media.

The Wall Road Journal ran an article on China’s financial challenges over the weekend. Whereas the article does a superb job of explaining China points, as regular, the evaluation of China’s debt didn’t bear in mind the US authorities debt-to-GDP ratio of 122% in 2022 in comparison with 80% in China. China stays a web capital exporter. Home debt is a matter, however the authorities can work with native governments and companies to beat it. Exterior debt is normally the most important concern for rising economies, however China doesn’t have that a lot exterior debt. Regardless of some promoting, China stays one of many largest holders of US Treasury securities. It is troubling to me that the media within the US is once more calling out a “Lehman second” for China even after getting it incorrect in 2021. Sure, China’s progress is not going to be at a quick tempo. However the high quality of progress is more likely to be greater, and it’s concentrated within the know-how and repair sectors.

Once more, mainland buyers purchased greater than $1 billion in Hong Kong shares whereas international buyers offered slightly below $1 billion in mainland shares. International buyers want extra stimulus, whereas mainland buyers are betting on supporting progress and know-how with their purchases in Hong Kong.

The Grasp Seng and Grasp Seng Tech closed down -2.10% and -1.82%, respectively, with quantity up 2% from yesterday. Mainland buyers purchased $1.2 billion value of Hong Kong shares through Southbound Inventory Join. Among the many most traded names, actual property, power and monetary establishments have been decrease whereas know-how was greater.

Shanghai, Shenzhen, and STAR Board closed down -1.24%, -1.00%, and -1.34% respectively in a single day attributable to -8% decrease buying and selling quantity than yesterday. International buyers offered $818 million web value of Hong Kong shares through Northbound Inventory Join. Among the many most traded names, supplies and the monetary sector have been the bottom whereas telecoms outperformed.

final night time’s efficiency

Forex change charges, charges, and returns

• CNY per US greenback 7.28 vs. 7.28 yesterday
• CNY 7.93 every, in opposition to 7.92 yesterday
• The one-day authorities bond yield is 1.40% versus 1.37% yesterday
• The ten-year authorities bond yield is 2.54% versus 2.56% yesterday
• The yield on the CDB’s 10-year bond is 2.65%, up from 2.67% yesterday
• Copper worth -0.01% in a single day
• Metal worth +0.05% in a single day