Mainland Investors’ $1 Billion Bet On Hong Kong Stocks, Week In Review

Week in Review

• Asian equities were mostly mixed this week, led by measures of government support for the platform economy and U.S.-China diplomatic green shoots.
• Industrial production beat expectations, increasing +4.4% year over year versus the estimated 2.5% and May’s 3.5%, though retail sales were +3.1% versus expectations of 3.3% and May’s 12.7%.
• US semiconductor companies will meet with the White House to press their case limiting US export curbs.
• On Wednesday, Mainland investors bought $2.11 billion of Hong Kong-listed stocks in the 10^th largest net buy day ever.

Friday’s Key News

Asian equities were largely higher as India underperformed on light volumes and little news.

Investors noticed the recent announcement outlining thirty-one measures supporting the private economy as Hong Kong’s most heavily traded were Tencent +0.06%, Alibaba HK +2.01%, and Meituan +1.18%. The National Development and Reform Commission announced “several measures to promote car consumption,” lifting Hong Kong-listed EV stocks. Solvency concerns hammered distressed real estate developer Country Garden’s stocks and bonds. Several Mainland Chinese cities may ease real estate investment curbs, which lifted Mainland-listed real estate stocks. The lifting of curbs could help lift real estate prices which have weighed on investor and consumer sentiment due to the large exposure of Chinese households.