China ETF News: Add AI Chips To TACO Tuesday
By Brendan Ahern
Key News
Asian equities rebounded overnight on enthusiasm that Middle East tensions could de-escalate, though Iran launched overnight attacks on Israel.
Today was the inverse of yesterday, with very strong breadth in both Hong Kong and Mainland China, as both markets rebounded strongly following yesterday’s downdraft. Today’s volumes were a touch light as yesterday’s oiL, gas, and coal stock winners were today’s losers.
Southbound Stock Connect flows have recently become Jekyll & HydE. Yesterday’s massive inflows of $3.8 billion became today’s outflows of -$3.5 billion. Today’s outflows were concentrated in the Hong Kong-listed ETFs that saw inflows yesterday, though Tencent managed to attract net buying from Mainland investors, as well.
After the Hong Kong close, travel booking platform Tongcheng Travel and smartphone and electric vehicle maker Xiaomi both reported Q4 financial results that beat analyst expectations. Medical contract research organization Wuxi Biologics also beat analyst expectations in its 2025 annual financial results.
Alibaba gained +2.92% after launching the AI cloud chip Xuan Tie C950. The company is still recognized as offering a full AI suite that includes the Qwen large laguage model (LLM) series, cloud services, and chips. Alibaba Cloud also entered into a partnership with Siemens.
Humanoid robotics maker Unitree will raise $608.3 million by selling 40.5 million shares via a STAR Board IPO. According to Yicai, 2025 revenue rose by +335% to $24 million, and net income rose by +674% to $8 million.
The Beijing Municipal Administration for Market Regulation met with twelve internet companies, including Alibaba’s Taobao, Trip.com, Meituan, JD.com, Bytedance’s Douyin, and Kuaishou, on extreme competition in E-Commerce.
Minister of Commerce Wang Wentao met with members of the US-China Business Council. Bloomberg News reported that Chinas' sovereign wealth fund China Inverstment Corp. (CIC) may invest alongside US asset managers following a pullback. Shouldn’t they let Trump and Xi announce this?
The China Development Forum ended yesterday with zero coverage in Western media, despite the presence of global CEOs, including chief executives from McDonald's, ABB, Novartis, Nestle, Tapestry (owner of fashion brands Coach and Kate Spade), and HSBC. An interesting statistic released from the event is that Chinese households currently hold RMB 24 trillion in bank deposits.
Non-ferrous metals stock, which include mining, gold, and precious metals, had a strong day in both markets. Mainland-listed chips powered the STAR Market to a strong gain. Mainland-listed China equity ETFs saw another strong day of inflows, with $2.34 billion worth of net buying, following January and February’s massive outflow. Interesting, right? Remember, PDD and Kuaishou report earnings tomorrow after the close in Hong Kong.
The Bo'ao Forum for Asia kicked off today in Hainan.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 2.8% |
| Hang Seng Tech | HSTECH Index | 2.5% |
| Hong Kong Turnover | HKTurn Index | -17.8% |
| Hong Kong Short Sale Turnover | HKSST Index | -35.8% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 17.7% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -3,494.37 |
| China (Shanghai) | SHCOMP Index | 1.8% |
| China (Shenzhen) | SZCOMP Index | 2.2% |
| China (STAR Board) | Star50 Index | 2.3% |
| Mainland Turnover | .chturn Index | -14.5% |
| Japan | NKY Index | 1.4% |
| India | SENSEX Index | 1.9% |
| Indonesia | JCI Index | 1.2% |
| Malaysia | FBMKLCI Index | -0.7% |
| Pakistan | KSE100 Index | 0.8% |
| Philippines | PCOMP Index | 0.6% |
| South Korea | KOSPI Index | 2.7% |
| Taiwan | TWSE Index | -0.3% |
| Thailand | SET Index | 0.9% |
| Singapore | STI Index | 0.4% |
| Australia | AS51 Index | 0.2% |
| Vietnam | VNINDEX Index | 1.5% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 117% | 107% |
| Advancing Stocks | 466 | 4493 |
| Declining Stocks | 58 | 633 |
| Outperforming Factors | Momentum, EPS Revision, Liquidity | Momentum, Buyback, Dividend Yield |
| Underperforming Factors | ||
| Top Sectors | Materials, Healthcare, Staples | Materials, Healthcare, Utilities |
| Bottom Sectors | Energy | |
| Top Subsectors | Consumer Durables/Apparel, Non Ferrous Metal, National Defense | Marine, Environmental Protection, Precious Metals |
| Bottom Subsectors | Coal, Electrical Equipment, Petroleum/Petrochemical | Oil/Gas, Coal |
| Southbound Connect Buys | Tencent, YOFC (Moderate) | N/A |
| Southbound Connect Sells | HS Tech ETF, HS China Enterprise ETF, HK Tracker ETF (Massive), CNOOC, SMIC (Moderate), Alibaba (Small) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 164 | 2.99 |
| Communication Services | 11 | 2.89 |
| Consumer Discretionary | 28 | 3.23 |
| Consumer Staples | 12 | 3.69 |
| Energy | 6 | -0.89 |
| Financials | 25 | 2.67 |
| Health Care | 16 | 4.26 |
| Industrials | 19 | 2.64 |
| Information Technology | 15 | 3.06 |
| Materials | 14 | 6.44 |
| Real Estate | 1 | 1.99 |
| Utilities | 6 | 1.09 |
| Mainland China Listed | 11 | 1.57 |
| Communication Services | 11 | 1.86 |
| Consumer Discretionary | 26 | 0.52 |
| Consumer Staples | 18 | 0.44 |
| Energy | 11 | 0.06 |
| Financials | 64 | 1.71 |
| Health Care | 29 | 2.26 |
| Industrials | 60 | 0.87 |
| Information Technology | 113 | 2.05 |
| Materials | 58 | 2.59 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 3.1 |
| Alibaba HK | 9988 HK Equity | 2.9 |
| JD.com HK | 9618 HK Equity | 2 |
| NetEase HK | 9999 HK Equity | 0.7 |
| Yum China HK | 9987 HK Equity | 2 |
| Baozun HK | 9991 HK Equity | 0.5 |
| Baidu HK | 9888 HK Equity | 2.6 |
| Autohome HK | 2518 HK Equity | 0.9 |
| Bilibili HK | 9626 HK Equity | 2.1 |
| Trip.com HK | 9961 HK Equity | 1.7 |
| EDU HK | 9901 HK Equity | 2.4 |
| Xpeng HK | 9868 HK Equity | 3.2 |
| Weibo HK | 9898 HK Equity | 2 |
| Li Auto HK | 2015 HK Equity | 4.3 |
| Nio Auto HK | 9866 HK Equity | 3.9 |
| Zhihu HK | 2390 HK Equity | 3 |
| KE HK | 2423 HK Equity | 2.5 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.3 |
| Meituan HK | 3690 HK Equity | 3.2 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | 3.1 |
| ALIBABA GROUP HOLDING LTD | 2.9 |
| CNOOC LTD-H | -3.5 |
| XIAOMI CORP-CLASS B | 1.9 |
| YANGTZE OPTICAL FIBRE AND-H | 13.1 |
| BYD CO LTD-H | 4.5 |
| POP MART INTERNATIONAL GROUP | 7.4 |
| GEELY AUTOMOBILE HOLDINGS LT | 4.5 |
| MEITUAN-CLASS B | 3.2 |
| ZIJIN MINING GROUP CO LTD-H | 7.2 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| SHANTUI CONSTRUCTION MACHI-A | 5.3 |
| VISUAL CHINA GROUP CO LTD-A | 2.1 |
| EOPTOLINK TECHNOLOGY INC L-A | 1.6 |
| ZHONGJI INNOLIGHT CO LTD-A | 0.6 |
| SUNGROW POWER SUPPLY CO LT-A | -2.3 |
| ZIJIN MINING GROUP CO LTD-A | 5.3 |
| CONTEMPORARY AMPEREX TECHN-A | -1.2 |
| HGTECH CO LTD-A | -1.2 |
| BIWIN STORAGE TECHNOLOGY C-A | 2.9 |
| BYD CO LTD -A | -0.9 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.89 versus 6.89 yesterday
- CNY per EUR 7.99 versus 7.98 yesterday
- Yield on 10-Year Government Bond 1.83% versus 1.83% yesterday
- Yield on 10-Year China Development Bank Bond 1.97% versus 1.98% yesterday
- Copper Price +1.77%
- Steel Price -0.10%
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