In the first quarter of 2024, JD.com reported strong earnings results that exceeded analyst expectations. The company’s adjusted net income and earnings per share increased, while expenses declined due to cost-cutting measures. JD.com also spent $1.3 billion to repurchase shares and still has $2.3 billion worth of stock to buy through 2027. Revenue increased by 7% year-over-year to RMB 260 billion, beating expectations, and adjusted net income rose to RMB 8.9 billion, beating expectations of a decline.
Baidu also reported impressive earnings for the first quarter of 2024, with revenue increasing by 4% year-over-year. The company’s core search business saw a revenue increase of 3% to RMB 17 billion. Operating costs and expenses declined, and adjusted net income and earnings per share exceeded expectations. Baidu repurchased $229 million worth of shares in the first quarter. Despite missing revenue expectations by a small margin, the company’s overall performance was better than anticipated.
The Asian equities market rallied following soft CPI data from the US, signaling hopes for potential Fed rate cuts as the US dollar declined. Hong Kong’s stock market had a strong rally despite geopolitical challenges, with Tencent and Alibaba being heavily traded. Real estate stocks performed well in both Hong Kong and Mainland China, with health care stocks also showing signs of improvement. The Hong Kong and Hang Seng Tech indexes experienced gains, with Southbound Stock Connect volumes high as Mainland investors bought a net $508 million worth of Hong Kong-listed stocks and ETFs.
In Shanghai, Shenzhen, and the STAR Board, stocks diverged with small gains and losses. The top-performing sectors were real estate, financials, and technology, while energy and consumer discretionary sectors saw declines. Northbound Stock Connect volumes were moderate, with some stocks seeing net buys and sells. Overall, the performance of the Chinese stock market showed a mix of positives and negatives, with various sectors and subsectors experiencing gains and losses.
Vladimir Putin’s visit to Beijing highlighted the strong relationship between China and Russia, with China’s economy remaining closely tied to Western markets. The optics of the visit were seen as less than ideal, but both countries continue to strengthen their economic ties. The currency exchange rates and bond yields remained relatively stable, with copper and steel prices showing slight increases. Overall, the Chinese stock market remained resilient despite global economic uncertainties, with investors closely watching for potential catalysts for further growth.
