Here Comes the Rain Again Corry

Primal News

A very wet mean solar day hither in the Northeast reminding me of the Eurythmics' classic Hither Comes the Rain Again. Market action suggests staying in bed would have been advised. Hopefully, we will exist referencing the Eurythmics other hit Sweetness Dreams presently enough.

Asian equities were a body of water of ruddy as Taiwan, Japan, Hong Kong, Singapore, Indonesia, and South Korea underperformed. Mainland Communist china held up well. US Fed bond tapering and Toyota machine product cuts were widely cited as negative catalysts. Markets announced to be increasingly worried about the delta variant'southward issue on global growth, Mainland china's Ningbo port shutdown being an instance. Hong Kong suffered a broad sell-off with simply 73 advancing stocks and 415 declining stocks with every sector lower.

Tencent was hit despite yesterday's strong results as headlines scream about "regulation". Yes, revenue growth was the slowest quarter in two years led by tepid game growth, though fintech growth was strong as it probable will be the largest acquirement segment next quarter. Yesterday, I proposed my "air pocket" thesis that there are simply no professional buyers willing to step up to buy Communist china net stocks without clarity on regulation. Today'southward price action leads me to believe that Asian active managers are late to the unload game. Equally testify, Tencent experienced a large net sale day from Mainland investors via Southbound Stock Connect.

The internet space was off on reports that the Ministry of Industry and Information technology (MIIT) mentioned several companies accept a calendar week to make their apps compliant with user data laws. I have no doubt they will! At that place was as well chatter about Meituan having its commissions capped.

Luxury goods were smoked on "common prosperity" with Prada'south Hong Kong listing down -xiv.36%. The only bright spot in Hong Kong was the electric vehicle (EV) ecosystem, which as well outperformed on the Mainland.

The Mainland market held upward with growth names outperforming, such as the EV ecosystem, autos, rare earth metals, clean applied science, and semiconductors. The STAR Board was upwardly +2.53% as an exchange comprised of all things growth. Brokerage stocks had a very potent day while energy, materials, and industrial metallic stocks were downward as copper prices get off a cliff. Existent estate was weak as "common prosperity" is being interpreted as a catalyst to implement a holding taxation.

Remember People's republic of china's census shows that incentivizing parents to have more than kids is primal. Making multi-bedroom apartments more affordable makes sense to me. Foreign investors were net sellers of Mainland stocks though the trend has been overweight Mainland stocks versus Hong Kong. Ping An Insurance and liquor stock Wuliangye Yibin saw the largest internet selling. People's republic of china bonds had a potent solar day.

H-Share Update

The Hang Seng opened lower and kept going in that management closing -2.13% as volume increased +22.59% from yesterday which is 98% of the 1-yr average.  The 208 Chinese companies listed in Hong Kong inside the MSCI Cathay All Shares lost -2.93% led lower by materials -4.31%, discretionary -4.17%, existent estate -3.45%, communication -3.iv%, energy -three.39%, financials -2.23%, industrials -1.95%, tech -1.6%, staples -i.31%, utilities -0.76% and healthcare -0.43%. Hong Kong's most heavily traded by value were Tencent -3.44%, Meituan -seven.15%, Alibaba Hong Kong -5.54%, Ping An -5.78%, Geely Machine +ii.1%, BYD +0.62%, Xiaomi -two.44%, Hong Kong Exchanges -two.03%, Cathay Mobile apartment, AIA +0.fifteen%. Southbound Stock Connect volumes were moderate/high as Mainland investors sold $504mm of Hong Kong stocks as Southbound trading deemed for fourteen.viii% of Hong Kong turnover.

A-Share Update

Shanghai, Shenzhen and STAR Board diverged closing -0.51%, +0.2% and +2.53% on book +1.34% from yesterday which is 131% of the 1-twelvemonth average.  The 522 Mainland stocks inside the MSCI Communist china All Shares were off -0.49% equally communication +1.37%, tech +i.07%, discretionary +0.79%, utilities +0.67%, industrials +0.23% and healthcare +0.06% while real manor -two.59%, financials -2.29%, free energy -ii.08%, staples -ane.17% and materials -0.66%. The Mainland's most heavily traded by value were Orient Securities +iv.58%, broker East Money -3.4%, BYD +three.55%, Red china Northern Rare Globe +two.74%, Tianqi Lithium +10%, GF Securities +2.01%, Industrials Securities +two.14% and Ganfeng Lithium +6.33%. Southbound Stock volumes were elevated as foreign investors sold $1.662B of Mainland stocks today as Northbound trading accounted for 5% of Mainland turnover.

Terminal Night's Exchange Rates, Prices, & Yields

• CNY/USD vi.49 versus 6.48 yesterday
• CNY/EUR 7.59 versus 7.59 yesterday
• Yield on ten-Year Government Bail ii.84% versus 2.85% yesterday
• Yield on ten-Year Prc Development Depository financial institution Bond 3.eighteen% versus 3.eighteen% yesterday
• Copper Price -2.00% overnight

sawyerfornamessits.blogspot.com

Source: https://chinalastnight.com/2021/08/19/here-comes-the-rain-again/

Share this post