Markets don’t like uncertainty and Biden’s win eliminates a big one, fueling a big overnight rally in Asia, accompanied by big volumes. Unfortunately, Pfizer
Hong Kong had solid volumes which were 140% of the 1-year average, with the volume leaders being Tencent + 1.3%, Alibaba
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Takeaway: The post was strong across the board as both exports and imports increased as China’s trade balance with most countries was dominated by an increase in exports. China’s trade data is similar to a poker tell because it provides an indication not only of the state of China’s national economy, but also of the global economy. The global economy is demanding more goods from China, indicating that the global economies are percolating.
“No respect” was Rodney Dangerfield’s comedic punchline of the 1980s. “Back to School” was a Dangerfield film notable for its “Triple Lindy” dive, bouncing off three diving boards. Aside from the bad special effects from the 1980s, has anyone noticed CNY at 6.61? Non-USD emerging market bonds are down around -2.5% year-to-date while Chinese bonds are up + 7% year-to-date. I know it thanks to my personal investments. The amount of interest here in the US for Chinese bonds? Zero point zero (0.0%). If I gave away renminbi-denominated bonds around the corner for free, I doubt anyone would accept them. The influx of investors in non-USD emerging market bonds adds to the insult, as the majority of emerging market central banks cut rates, hurting their currencies against the US dollar. China? No drop in interest rates. Do you want to be the ultimate contrarian? Buy Chinese bonds. Need help with tickers? Send me an email. I expect no one to email me.
New Orient Education (EDU US) relisted in Hong Kong today with the symbol 9901 HK led by Credit Suisse
Wednesday after the US close we will receive the MSCIs
2020 threw another anomaly on us as there was a very minor earthquake in New England yesterday.
Remember: + 0.7% year on year while decreasing by -0.5%. No one cares about this post except for gold enthusiasts who will notice that gold reserves have declined slightly.
The Hang Seng opened higher before trading flat to close + 1.18% / + 303 index points at 26016. Volume was 140% of the 1-year average, while the width was strong with 35 progressors and 13 decline. The 204 Chinese companies in the MSCI China All Shares index rose 1.35%, driven by technology + 2.89%, finance + 1.73%, industry + 1.68%, materials + 1.5%, discretionary + 1.46%, health + 0.24% etc. Connect volumes were high, with mainland investors buying $ 349 million in Hong Kong shares today, with Southbound Connect transactions accounting for 12% of Hong Kong revenue.
Shanghai and Shenzhen opened higher and continued to climb closer to + 1.86% and + 2.25% at 3,373 and 2,333, respectively. Volume was 22% higher than Friday and 135% of the 1-year average. The breadth was bad with 3392 advancers and 401 declining ones. The 518 mainland stocks in the MSCI China All Shares index rose + 2.34%, driven by technology + 3.86%, materials + 2.62%, finance + 2.48% , energy + 2.43%, commodities + 2.24%, health care + 2.23% etc. Connect volumes were moderate / high, with overseas investors buying $ 2.984 billion in mainland shares today and Northbound Connect trading accounting for 7% of mainland revenue.
Exchange rates and yields from last night
- CNY / USD 6.62 vs. 6.61 Friday
- CNY / EUR 7.87 vs. 7.85 Friday
- 1-day government bond yield 1.81% vs. 1.61% Friday
- 10-year government bond yield 3.24% vs. 3.21% Friday
- 10-year Development Bank of China bond yield 3.71% vs. 3.67% Friday
Krane Funds Advisors, LLC is the investment manager of the KraneShares ETFs. Our range of China-focused ETFs provide solutions for investors to understand the importance of China as an essential part of a well-designed investment portfolio. We strive to deliver innovative, market-first strategies that have been developed on the basis of our strong partnerships and in-depth investment knowledge. We help investors stay on top of global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).