Asian equities were largely lower with Hong Kong, India, and Taiwan being rare positive performers today as China remains on holiday.
Asian equities were largely lower with Hong Kong, India, and Taiwan being rare positive performers today as China remains on holiday. Volumes in Hong Kong were very low today at only 58% of the 1-year average. Hong Kong internet stocks were off on no news, though they were not down as much as their US share classes yesterday so we are apt to see a bounce (fingers crossed). Yicai Global noted that Mainland regulator and data provider Ministry of Industry and Information Technology (MIIT) reported large internet companies have seen profits increase 37.5% year over year to RMB 103.3B (~$15.93B) in the first eight months of 2021, while revenues increased 25.4% year over year to RMB 10.1 trillion. The price action doesn’t agree with the data but that’s been the case all year as the companies’ revenue has held up well. Tencent hasn’t been buying back stock this week as I assume the Shenzhen home office is on vacation. Yesterday’s sell-off was interesting as CNH, China’s currency that trades during US trading hours, was remarkably quiet.
