《Economic Daily News, Special Report 12th》Markets gradually digest negative news from OpenAI. On Friday last week (9th), U.S. President Trump announced easing sanctions on Russian oil, with Russian President Putin set to supply over 4.8 million tons of diesel to the U.S. and global markets. Despite Ukrainian President Zelenskyy expressing disappointment over the U.S. move, Trump announced an immediate "energy ceasefire" between Russia and Ukraine on Sunday, causing oil prices to retreat. U.S. stocks performed positively on Friday, with all three major indices rising: the Dow rose 423 points to 51,654, the Nasdaq rose 172 points to 27,366, and the S&P rose 46 points to 7,811.
*Chinese ADRs perform well*
Chinese ADRs generally rose and outperformed the broader market: Alibaba rose 5.36% to US$111.37, Pinduoduo rose 3.95% to US$81.35, JD.com rose 0.67% to US$27.09, Baidu rose 1.68% to US$85.33, Li Auto rose 5.87% to US$11.54, NIO rose 4.99% to US$3.58, XPeng rose 3.66% to US$9.90, KE Holdings rose 4.39% to US$17.84, Trip.com rose 2.48% to US$38.90, and GDS Holdings rose 1.74% to US$30.97.
ADR prices closed higher than their corresponding Hong Kong shares: Tencent (00700) ADR was 0.86% above its Hong Kong share price, equivalent to HK$428.4; Xiaomi (01810) ADR was 0.35% above, equivalent to HK$26.1; Meituan (03690) ADR was 1.30% above, equivalent to HK$72.4; AIA (01299) ADR was 0.85% above, equivalent to HK$71.9; HSBC (00005) ADR was 0.50% above, equivalent to HK$145.9; HKEX (00388) ADR was 0.69% above, equivalent to HK$380.4.
*China-EU developments boost auto stocks; Hang Seng Index rebounds but faces resistance at 24,500*
Following news of Russia resuming oil supplies, oil prices retreated from highs after Asian trading began this morning. New York crude futures dropped to around US$90. Hong Kong stocks stabilized noticeably this morning. The Singapore HS50 futures index, reflecting market expectations for Hong Kong stocks, is currently at 24,378, a 167-point premium over the current Hang Seng Index, suggesting the market is likely to open over 100 points higher.
Last week, reports emerged that the EU might impose excessive tariffs on Chinese car imports, but both sides have now reached a "mutual understanding." According to EU Trade Commissioner Ferrova, the number of Chinese hybrid vehicles entering the EU will be halved, with quotas reportedly increasing by 6% annually for four years after the first year. Avoiding a tariff war has boosted Chinese auto-related ADRs and provided positive momentum for Hong Kong stocks. According to the Hang Seng Index bull-bear warrant positioning data, after last Friday's rally, bearish positions increased significantly, with a net addition of 1,599 futures-equivalent contracts across all bear warrants. The 24,500 to 24,599 range saw a net increase of 320 futures-equivalent contracts to 860, becoming the area with the largest new positioning and heaviest concentration. Therefore, 24,500 is expected to pose significant resistance to the Hang Seng Index's rebound today. (hc)
*Chinese ADRs perform well*
Chinese ADRs generally rose and outperformed the broader market: Alibaba rose 5.36% to US$111.37, Pinduoduo rose 3.95% to US$81.35, JD.com rose 0.67% to US$27.09, Baidu rose 1.68% to US$85.33, Li Auto rose 5.87% to US$11.54, NIO rose 4.99% to US$3.58, XPeng rose 3.66% to US$9.90, KE Holdings rose 4.39% to US$17.84, Trip.com rose 2.48% to US$38.90, and GDS Holdings rose 1.74% to US$30.97.
ADR prices closed higher than their corresponding Hong Kong shares: Tencent (00700) ADR was 0.86% above its Hong Kong share price, equivalent to HK$428.4; Xiaomi (01810) ADR was 0.35% above, equivalent to HK$26.1; Meituan (03690) ADR was 1.30% above, equivalent to HK$72.4; AIA (01299) ADR was 0.85% above, equivalent to HK$71.9; HSBC (00005) ADR was 0.50% above, equivalent to HK$145.9; HKEX (00388) ADR was 0.69% above, equivalent to HK$380.4.
*China-EU developments boost auto stocks; Hang Seng Index rebounds but faces resistance at 24,500*
Following news of Russia resuming oil supplies, oil prices retreated from highs after Asian trading began this morning. New York crude futures dropped to around US$90. Hong Kong stocks stabilized noticeably this morning. The Singapore HS50 futures index, reflecting market expectations for Hong Kong stocks, is currently at 24,378, a 167-point premium over the current Hang Seng Index, suggesting the market is likely to open over 100 points higher.
Last week, reports emerged that the EU might impose excessive tariffs on Chinese car imports, but both sides have now reached a "mutual understanding." According to EU Trade Commissioner Ferrova, the number of Chinese hybrid vehicles entering the EU will be halved, with quotas reportedly increasing by 6% annually for four years after the first year. Avoiding a tariff war has boosted Chinese auto-related ADRs and provided positive momentum for Hong Kong stocks. According to the Hang Seng Index bull-bear warrant positioning data, after last Friday's rally, bearish positions increased significantly, with a net addition of 1,599 futures-equivalent contracts across all bear warrants. The 24,500 to 24,599 range saw a net increase of 320 futures-equivalent contracts to 860, becoming the area with the largest new positioning and heaviest concentration. Therefore, 24,500 is expected to pose significant resistance to the Hang Seng Index's rebound today. (hc)
