Asian stocks ended the week and year on a positive note, despite South Korea being closed early for New Year’s celebrations and the Philippines closed on Rizal Day in honor of national hero José Rizal, who was executed that day in 1896 for inciting against the Spaniards.
The CNY was strong throughout the day, gaining nearly +1% against the US dollar to trade at CNY6.89/USD, while the Asian dollar index rose +0.57% and JPY/USD rose + 0.85%.
Shares in Hong Kong rose, but the rise in Internet shares was hardly as strong as yesterday’s rise in US listed stocks. Unfortunately, US-listed Chinese stocks fell today. The top-selling stocks in Hong Kong were Tencent, which fell 0.36% on another moderate day of net buying for Mainland Chinese investors, Meituan, which fell 4.95%, and Alibaba, which gained 0.82%.
After yesterday’s Commerce Department report, automobiles and electric vehicles (EVs) performed well with BYD +0.84%, Geely +0.35%, NIO +0.45%, Li Auto +3.09% and Xpeng +2.13% .
The Hang Seng index failed to close above 20,000. Meanwhile, the real estate sector was the most profitable sector in Hong Kong, rising 2.65% and 1.52% respectively, thanks to comments from the People’s Bank of China. In my opinion, the Asian high-yield bond market in Asia is a great way to play this rally, even though I have very few co-investors! Short selling in Hong Kong has been relatively quiet over the past two months, but activity picked up slightly last week. Mainland China rose on little news as all sectors rose on the day. Since we have added a map showing new Covid cases while the situation in northern China has improved, the COVID outbreak in southern China has remained very intense.
How do you position yourself in 2023? China’s GDP is projected at 4.8% and its CPI at 2.3%, while the U.S. is projected at 0.3% and its CPI at 2.3%, according to a Bloomberg poll of economists. the level of 4%. According to Steve Holden’s Copley Fund Research, “Global equity managers have paid less attention to Chinese equities over the past three quarters. to EPFR According to the data, at the end of November, active funds in emerging markets reduced their investment in China by 2.4%. Pain works higher!
The Hang Seng Index and the Hang Seng Technology Index rose 0.2% and 0.52% respectively, with trading volume down 4.11% from yesterday, 70% of the yearly average. 353 stocks rose and 136 stocks fell. Short selling volume on the main market fell by 13.63% compared to yesterday, which is 67% of the 1-year average, of which 17% is short selling. Growth and value drivers were mixed as small caps outperformed large caps. The most performing sectors were real estate (+2.67%), industry (+1.08%) and technology (+0.91%). Meanwhile, consumer goods fell -1.17%, healthcare -0.79% and consumer goods -0.42%. The top performing sub-sectors were media, food/basic and insurance, while retail, food/beverage/tobacco and pharmaceuticals were the worst. Hong Kong Stock Connect trading volume was light as Mainland Chinese investors bought $849 million worth of Hong Kong shares, Tencent had a moderate net buying, Kuaishou had a small net buying and Meituan had a small net selling.
Shanghai, Shenzhen and the Council for Scientific and Technological Innovation closed up +0.51%, +0.37% and -0.24% respectively, with trading volume down -1.67% from yesterday, accounting for 65 % of the annual average. 3190 shares rose and 1399 fell. Value drivers outperformed growth drivers, while large-cap stocks outperformed small-cap stocks. All sectors rose: utilities +2.15%, finance +1.82% and consumer goods +1.73%. The top-performing sub-sectors are insurance, cultural media, and the Internet, while fine chemicals, non-ferrous metals, and telecommunications are the worst. Trading volumes on Shanghai Stock Connect were low as foreign investors bought $13 million worth of mainland shares. The Chinese yuan strengthened against the dollar, rising 0.95% to 6.90 yuan per dollar, while the Treasury yield curve flattened slightly and copper fell -0.3%.
The upward trend in road traffic has worked well, while metro usage has grown more slowly. The epidemic situation in South China is still ongoing, and the epidemic situation in North China has improved.
Post time: Dec-31-2022