Asian equities had a mixed performance on the latest trading day, with Hong Kong outperforming while Pakistan was closed for Eid-al-Azha. In Hong Kong, positive catalysts led to gains in the market, while mainland China failed to see a similar boost. CSRC Chairman Wu Qing spoke at the Lujiazui Forum, discussing recent measures to reform capital markets and improve shareholder returns, as well as efforts to enhance companies’ ability to list in Hong Kong. China Reform Holdings, part of China’s “National Team,” announced its first publicly announced buying in Hong Kong, purchasing three Hong Kong-listed ETFs.
JD.com and Alibaba announced strong results from their 618 e-commerce sales events. JD.com reported that 83 brands exceeded RMB 1 billion in sales, while Alibaba had 365 brands reaching more than RMB 100 million in sales. A global bank raised its price target on Bilibili, attributing the increase to the success of its new online video game. Hong Kong’s most heavily traded stocks included Tencent, Meituan, and China Construction Bank, all seeing gains. The Hang Seng Index closed above the key support level of 18,000.
The Hang Seng and Hang Seng Tech indices saw gains on higher-than-average volume, with large caps and value stocks outperforming growth and small caps. All sectors were positive, with technology, financials, and communication services leading the gains. On the other hand, Shanghai, Shenzhen, and the STAR Board fell, with large caps and value stocks showing better performance compared to small caps and growth stocks. The top sectors were financials, energy, and utilities, while consumer discretionary, healthcare, and industrials faced declines.
In terms of exchange rates and bond yields, the CNY per USD was at 7.25, while the CNY per EUR remained steady at 7.79. The yield on 10-year government bonds saw a slight decrease, while the yield on the 10-year China Development Bank bond also edged lower. The prices of copper and steel experienced slight declines. Overall, the market showed a mix of positive and negative performances across different sectors and indices, reflecting the ongoing volatility in Asian equities.
