Asian equities ended strong on Friday with light summer volumes. Considering all of the headlines, you imagine stock markets did if you shut your eyes just what do? I would say they were down, however the opposite does work! Have a look at our returns which are weekly below. This why I asked you to have a look at CHN (offshore renminbi) before making an investment decision that is emotional. CNH did not move on the data that are economic.
Tencent fell -4.83% in trading in Hong Kong after the White House executive order that may restrict US businesses from transacting with the company within US jurisdiction monday.
Tencent Music Entertainment TME -2.2% (TME US) reported results that are strong were above analyst expectations for Q2 on Tuesday. Revenues increased +17.5% to $981mm (RMB 6.93B) versus estimate RMB 6.871B as the ongoing company announced a partnership with Universal Music Group.
On Wednesday, Tencent (700 HK) reported strong results that are q2 the Hong Kong close and before the US open. Revenues grew +29% to $16.228B (RMB 114.883B) versus an believed RMB 112B. It really is very rare to see a ongoing company this large ($643 billion in market cap) grow this quickly.
On Thursday there clearly was speculation that the PBOC has been government debt that is purchasing. If true, stimulus is far from over.
Hong Kong bounced round the room to publish a loss that is modest light volumes. Amount leaders were Tencent, which fell -0.69%, Meituan Dianping, which rose +3.97%, Alibaba BABA +0.1% HK -0.56%, Xiaomi +0.92%, China Tower +2.84%, and AIA +1.01%. Remember that Hong Kong shares are foreign investors’ primary definition of China and consequently tend to reflect the overhang of US-China rhetoric that is political. In talking with a Hong Kong reporter evening that is last he said the recent coronavirus outbreak appears to be coming under control. Mainland China rebounded in the afternoon session as investors speculate that the production that is financial allow policy makers to support the economy. It in fact was a rebound that is broad several brokers noted more defensive plays such as financials, real-estate, and liquor stocks outperformed. Foreign investors were net buyers of Mainland stocks today, buying nearly $1B worth of Mainland stocks, bringing the week to date total to $959mm.