Asian equities saw mixed performance, with gains in most markets except for India, which was closed for Holi. The China Development Forum speech by PBOC head Pan Gongsheng highlighted China’s strong economic recovery and supportive monetary policy. This led to gains in the real estate sector in Hong Kong and Mainland China. Market action was driven by various earnings releases, with companies like Anta Sports, PetroChina, and China Merchants Bank beating estimates. Alibaba announced the cancellation of Cainiao’s Hong Kong IPO.
Hong Kong’s most traded stocks included Tencent, AIA, and Meituan, among others. Baidu saw a boost in stock price after a collaboration with Apple in artificial intelligence. Mainland investors were active in buying Hong Kong-listed stocks and ETFs via Southbound Stock Connect. CATL gained on comments about developing a new battery for Tesla. Foreign investors also bought Mainland stocks via Northbound Stock Connect. Despite negative Western media coverage, markets remained resilient, with companies engaging in shareholder-friendly measures.
An article by the Wall Street Journal discussed Chinese tech stocks as value plays with strong cash flow, buybacks, and dividends. The Hang Seng and Hang Seng Tech indexes saw gains, with communication services, technology, and financials outperforming. Shanghai, Shenzhen, and the STAR Board closed mixed, with consumer staples, financials, and industrials performing well. Northbound Stock Connect volumes were moderate/high, with foreign investors buying Mainland stocks in various sectors.
Market indicators showed slight gains in CNY against the USD and EUR, while bond yields remained stable. Copper and steel prices were down. A webinar on electric vehicle opportunities in portfolios was announced for the next day. Defined outcome strategies for China internet were discussed in a new article. Overall, the market showed resiliency despite challenges and uncertainties, with investors focusing on growth opportunities in various sectors.
