Renminbi Rocks Vs. US Dollar, Hong Kong Rebounds

Renminbi Rocks Vs. US Dollar, Hong Kong Rebounds

Key News
Asian equities have been combined in a single day as Hong Kong outperformed the area.

Expectations the US rate of interest mountaineering cycle is over fueled China’s renminbi’s acquire of +0.58% versus the US greenback to shut at 7.17 CNY per USD versus Friday’s shut of seven.21 and a latest low of seven.31 on November 2nd (The next alternate price means a weaker US greenback). A weakening US greenback might be a tailwind for non-US shares, together with China shares.

Last week’s Biden-Xi summit must be thought of successful by way of stabilizing the connection, as evidenced by President Xi’s speech. The San Francisco Examiner revealed a superb, full, English-language transcript and audio of the speech, accessible by way of the next hyperlink: Read China President Xi Jinping handle to APEC CEO Summit | Forum |

Premier Li presided over a gathering of the Central Financial Committee as a comply with as much as the Central Financial Work Conference (CFWC). The assembly established “key duties…to enhance the standard of monetary companies for financial and social growth.” The Central Economic Work Conference (CEWC
), which is ready to be held in December, will additional define financial insurance policies.

The 1 and 5-year mortgage prime charges have been left unchanged at 3.45% and 4.2%, respectively, as anticipated, with continued chatter that banks’ reserve requirement ratios (RRRs) shall be minimize.
Hong Kong had very robust breadth with all sectors constructive and advancers beating decliners by 4 to 1. Hong Kong’s most closely traded shares by quantity have been Tencent, which gained +3.62%, Alibaba, which gained +1.64%, and Meituan, which gained +1.58%, as the general Hang Seng Tech Index gained +2.45% in a single day. Mainland buyers offered the Hong Kong Tracker ETF, which they purchased in measurement final week by way of Southbound Stock Connect.

We anticipate excellent news round electrical autos (EVs) this week with the Guangzhou auto present going down.
Li Auto and WuXi AppTec gained +2.42% and +3.49%, respectively, after Friday’s submit shut announcement they are going to be included within the Hang Seng Index, efficient December 1st.

The Mainland market posted smaller features in comparison with Hong Kong, although all sectors have been constructive as properly. Foreign buyers purchased +$191 million value of Mainland shares by way of Northbound Stock Connect. experiences after the US shut right now and Baidu will report following the shut in Hong Kong tomorrow.
After the shut, Bloomberg is reporting fifty actual property builders shall be eligible for a “vary of financing, in response to folks conversant in the matter”. I’ve not seen the information confirmed elsewhere. US dollar-denominated Asian excessive yield debt has risen for 3 weeks in in the past since bottoming on the finish of October. A bit of little bit of a sleeper rally!
The Hang Seng and Hang Seng Tech indexes gained +1.86% and +2.45%, respectively, on quantity that elevated +8.55% from Friday, which is 98% of the 1-year common. 400 shares superior whereas 95 shares declined. Main Board quick turnover elevated +3.28% from Friday, which is 84% of the 1-year common as 14% of the turnover was quick turnover (keep in mind Hong Kong quick turnover contains ETF quick quantity which is pushed by market makers’ ETF hedging). The worth issue and small caps outpaced the expansion issue and enormous caps. All sectors have been constructive as communication companies gained +3.22%, shopper staples gained +2.76%, and utilities gained +2.06%. The top-performing subsectors have been software program, semiconductors, and meals & drinks. Meanwhile, skilled companies and media have been the one damaging subsectors. Southbound Stock Connect volumes have been reasonable as Mainland buyers offered a internet -$783 million value of Hong Kong-listed shares and ETFs together with Xpeng, which was a small internet purchase, whereas the Hong Kong Tracker ETF had a really giant internet promote, the Hang Seng Tech ETF and Tencent have been giant internet sells.
Shanghai, Shenzhen, and the STAR Board gained +0.46%, +0.65%, and +0.14%, respectively, on quantity that elevated +11.95% from Friday, which is 106% of the 1-year common. 3,643 shares superior whereas 1,156 declined. Value and development elements have been combined as small caps outpaced giant caps. All sectors have been constructive together with healthcare, which gained +2.22%, shopper staples, which gained +1.63%, and industrials, which gained +1.51%. The top-performing subsectors have been laptop {hardware}, schooling, and power tools. Meanwhile, valuable metals, securities, and autos have been among the many worst-performing subsectors. Northbound Stock Connect volumes have been mild/reasonable as overseas buyers purchased a internet $191 million value of Mainland shares together with Will Semiconductor, Sungrow, and ZTE, which have been all small internet buys. Meanwhile, Anhui Jianghai Auto Group was a small/reasonable internet promote and Isoftstone and BYD have been small internet sells. CNY and Asia greenback index had a powerful day versus the US greenback. Copper gained whereas metal was off.
Last Night’s PerformanceChart 1KraneSharesChart 2KraneSharesChart 3KraneSharesChart 4KraneSharesChart 5KraneShares
Last Night’s Exchange Rates, Prices, & Yields

CNY per USD 7.17 versus 7.21 Friday
CNY per EUR 7.83 versus 7.87 Friday
Yield on 1-Day Government Bond 1.54% versus 1.49% Friday
Yield on 10-Year Government Bond 2.66% versus 2.65% Friday
Yield on 10-Year China Development Bank Bond 2.73% versus 2.72% Friday
Copper Price +0.15% in a single day
Steel Price -0.13% in a single day

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