Hong Kong listed China internet stocks had a strong day despite news Didi may face a steep fine.
Asian equities had a strong day though on lighter volumes with Japan and Pakistan missing out due to holidays today. The US-China diplomatic meeting taking place this weekend was cited as a catalyst. Bloomberg had a good article today on the strength of trade between the US and China. The article doesn’t mention the amount of revenue generated by US companies in China from goods sold from plants based in China. That revenue isn’t considered “trade” since it isn’t put on a boat. I would recommend seeing the US-China Business Council report on US exports by state. Clean technology plays such as metals, solar, wind, and the EV ecosystem outperformed in both China and Hong Kong. Coincidentally The Economist has an article on EV battery maker CATL that is worth reading. CICC also noted today that, as of Q2 2021, CATL is the now the most widely held stock numerically amongst active mutual funds in China. Hong Kong listed China internet stocks had a strong day despite news Didi may face a steep fine. As we mentioned in our webinar yesterday, we need to separate Didi from the broader internet regulation. On that topic, Nikkei Asia had a great interview with Fred Hu, ex Goldman Sachs GS China Chairman and CEO of private equity firm Primavera Capital Group which focuses on China tech with efforts in healthcare and beneficiaries of China’s growing urban middle class.
