Growth names galloped with Alibaba HK +0.64%, Meituan Dianping +0.9%, NetEase HK +2.56%, JD.com HK +2.09%, and Semiconductor Manufacturing +3.42%.
Asian equities ended a relatively quiet night mixed. China and Taiwan are closed tomorrow and Friday, while Hong Kong is closed tomorrow and open on Friday. Tencent climbed over HKD 500 at the open but profit taking brought it down -1.33%. Several brokers commented that the Tencent profit-taking pulled the entire Hong Kong market down as investors pocketed some cash before the holiday.
Sinopharm Group (1099 HK) +2% on news it started phase 3 human trials for a coronavirus vaccine in the United Arab Emirates. Fingers crossed that they go well. Mobile phone maker Xiaomi +9% after announcing a share buyback plan. Meanwhile, growth names galloped with Alibaba
BABA HK +0.64%, Meituan Dianping +0.9%, NetEase
NTES HK +2.56%, JD.com HK +2.09%, and Semiconductor Manufacturing +3.42%.
Mainland markets were quiet though healthcare experienced some profit-taking. There was news of increased regulation for online streaming content providers, which I don’t think is a big issue.
Canada’s National Post had an interesting article titled “Trump threat to “decouple” US and China hits trade, investment reality”. The well written article went beyond the sound bites to actually look at data! According to the article, Chinese imports rose to $8.6B in April including 423,891 metric tons of soybeans which is 2X the 208,505 sold in March. For these reasons and more, I believe there will be plenty of China bark, but no bite.
