Reopening Rolls On, Clean Tech Jumps, Week In Review

Review week

• Stockpiles in Asia started in 2023 ahead of China as the country prepares to allow foreign visitors to enter the country without quarantine from Sunday.
• Alibaba-owned Ant Group was approved by the China Banking and Insurance Regulatory Commission (CBIRC) on Wednesday to boost the consumer lending group's capital reserves by 18.5 billion yuan ($2.7 billion).
• The CBIRC and the People's Bank of China (PBOC) on Thursday changed their loan eligibility requirements to make it easier to buy a home.
• US Secretary of State Anthony Blinken met with China's new Foreign Minister Qin Gan on New Year's Eve.

The latest news on Friday

Asian stock markets finished the week mixed as South Korea had a good day and North Asia beat South Asia. Over the week, Hong Kong and mainland China improved significantly, while Japan, India and Indonesia declined.

China's reopening continues with Hong Kong expected to welcome 60,000 visitors a day from the mainland as the coronavirus spreads across China. Hong Kong rose but traded lower on the day, with Hong Kong's most active shares by value Tencent up 0.46%, Alibaba up 2.01% and Meituan down 4.25% . .

Hong Kong electric vehicle companies had a tough day, with Xpeng shares down 6.82%, Li Auto down 6.55%, NIO down 4.03% and BYD down 2%. .6%, as Tesla shares weighed on the market due to some brokerage cutbacks. Part of Tesla's problem is its dwindling market share in China. More options, especially cheaper ones, mean fewer Tesla sales, which could be a problem as global automakers step up their efforts to develop electric vehicles.

There was a lot of real estate news as local members learned of the new loan eligibility requirements. Hong Kong's real estate shares rose 2.22%, while the mainland fell 0.79%. Note that stocks may have less upside potential than bonds because companies issue more stocks to shore up their balance sheets. At the same time, developer bonds should probably be classified as an equity risk due to their volatility relative to equities.

Discussions among the top 10 actively trading mainland Chinese stocks included some solar games that could boost output, with Longyi Green Energy adding 3.9%, Tongwei gaining 5.06%, and Sungro Power gaining 5.43%. Other net companies also made the top ten, such as battery maker CATL, which added 2.25% and Tianqi Lithium, which added 3.01%. Foreign investors bought another $884 million in Chinese stocks today, bringing their total for the week to $2.9 billion. The CNY had another strong day against the US dollar, closing at 6.85. It is worth noting that Chinese Treasuries have declined slightly which could mean that investors are shifting from bonds to equities.

A mainland source said General Motors excellent teacher In 2022, 2.3 million cars were sold in China, compared to 2.9 million cars in the country in 2021, a decrease of 21%. Note that GM sales are not included in official trade figures. While China considers these sales to be US exports, the US does not, as they are not delivered by ship. This is a critical issue that nobody talks about. Adding American goods produced and sold in China to the trade data would not result in a trade deficit!

The Hang Seng and Hang Seng Tech Indices fell -0.4% and -1.4% respectively, on -14.86% volume since yesterday, 118% of their year-over-year average. 221 stocks advanced and 271 fell. Senior Advisor's short selling revenue was down 17.82% from yesterday, or 104% of the year-over-year average, as revenue fell 15%. Value drivers prevailed over growth drivers as small caps outperformed large caps. The sectors with the highest performances were real estate with an increase of 2.21%, utilities with an increase of 1.1% and materials with an increase of 0.44%. Meanwhile, health care declined by 1.39%, technology by 1.1% and consumer products by 0.78%. The best performing sub-sectors were semiconductors, utilities and materials, while automotive, medical equipment and technical equipment were among the worst performers. Southbound's share volume fell as Chinese investors sold: $172 million sold in Hong Kong-based Tencent, Meituan and Xpeng shares, while Lee Auto and Quaisho bought smaller networks.

Shanghai, Shenzhen and Star Board increased by 0.08%, 0.17% and 0.77% respectively, with volume down -0.65% compared to yesterday, 91% of the yearly average. Growth drivers outweigh cost factors, small caps roughly constrain larges. The best performing sectors were materials with growth of +1.59%, energy with growth of +1.43% and technology with growth of +1.21%. Communications instead decreased by 2.38%, real estate by 0.78% and health by 0.61%. The top sub-sectors were power generation equipment, petrochemicals and housewares, while media, education and airports were among the worst performers. Northbound Stock Connect volume was moderate to high as foreign investors bought +$884 million in Mainland China stocks as the top eight companies by trading volume were net buyers. The CNY gained 0.28% against the US dollar to close at 6.85, Treasury selling stalled and copper gained 1.62%.

Mobility monitoring of major Chinese cities

Traffic picked up again as Guangzhou reached its peak at times.

Last night's show

Last night's exchange rates, prices and yields

• 6.85 CNY per dollar against 6.88 yesterday
• CNY from 7.21 euros against 7.25 yesterday
• Government bond yield 0.92% one day and 0.92% yesterday
• Yesterday the yield on 10-year government bonds was 2.83%, at 2.83%.
• The China Development Bank's 10-year bond returned 2.96%, up from yesterday's 2.95%.
• Copper overnight prices +1.62%

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